Document:

Exhibit
10.2

EXECUTION
VERSION

SECURITY
AGREEMENT

Dated
as of June 23, 2006

among

MERISANT
COMPANY,

as Borrower,

and
Each Other Grantor

From
Time to Time Party Hereto

and

WELLS
FARGO BANK, NATIONAL ASSOCIATION,

as Collateral Agent

 

 

TABLE
OF CONTENTS

	
   

  	
   

  	
  Page

  
	
  ARTICLE I

  	
   

  
	
   

  	
   

  
	
  DEFINED TERMS

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 1.1

  	
  DEFINITIONS

  	
  1

  
	
  Section 1.2

  	
  Certain Other Terms

  	
  7

  
	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
   

  
	
   

  	
   

  	
   

  
	
  GRANT OF SECURITY
  INTEREST

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 2.1

  	
  Collateral

  	
  8

  
	
  Section 2.2

  	
  Grant of Security Interest in Collateral

  	
  10

  
	
  Section 2.3

  	
  Cash Collateral Accounts

  	
  10

  
	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
   

  
	
   

  	
   

  	
   

  
	
  REPRESENTATIONS AND
  WARRANTIES

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 3.1

  	
  Title; No Other Liens

  	
  11

  
	
  Section 3.2

  	
  Perfection and Priority

  	
  11

  
	
  Section 3.3

  	
  State of Incorporation; Chief Executive Office

  	
  11

  
	
  Section 3.4

  	
  Inventory and Equipment

  	
  11

  
	
  Section 3.5

  	
  Pledged Collateral

  	
  11

  
	
  Section 3.6

  	
  Accounts

  	
  13

  
	
  Section 3.7

  	
  Intellectual Property

  	
  13

  
	
  Section 3.8

  	
  Deposit Accounts; Securities Accounts; Commodity
  Accounts; Commercial Tort Claims

  	
  14

  
	
  Section 3.9

  	
  Letter-of-Credit Rights

  	
  14

  
	
  Section 3.10

  	
  Vehicles

  	
  14

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV

  	
   

  
	
   

  	
   

  	
   

  
	
  COVENANTS

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 4.1

  	
  Generally

  	
  15

  
	
  Section 4.2

  	
  Maintenance of Perfected Security Interest; Further
  Documentation

  	
  15

  
	
  Section 4.3

  	
  Changes in Locations, Name, etc.

  	
  16

  
	
  Section 4.4

  	
  Pledged Collateral

  	
  16

  
	
  Section 4.5

  	
  Control Accounts; Eligible Deposit Accounts

  	
  18

  
	
  Section 4.6

  	
  Accounts

  	
  19

  

 

 

 

	
  Section 4.7

  	
  Delivery of Instruments and Chattel Paper      

  	
  19

  
	
  Section 4.8

  	
  Intellectual Property

  	
  20

  
	
  Section 4.9

  	
  Vehicles 

  	
  21

  
	
  Section 4.10

  	
  Payment of Obligations      

  	
  22

  
	
  Section 4.11

  	
  Commercial Tort Claims      

  	
  22

  
	
  Section 4.12

  	
  Letter of Credit Rights         

  	
  22

  
	
  Section 4.13

  	
  Limitations on Dispositions of Collateral         

  	
  22

  
	
  Section 4.14

  	
  Acknowledgment and Consent

  	
  23

  
	
   

  	
   

  	
   

  
	
  ARTICLE V

  	
   

  
	
   

  	
   

  	
   

  
	
  REMEDIAL PROVISIONS

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 5.1

  	
  Code and Other Remedies  

  	
  23

  
	
  Section 5.2

  	
  Accounts and Payments in Respect of General
  Intangibles

  	
  24

  
	
  Section 5.3

  	
  Pledged Collateral

  	
  25

  
	
  Section 5.4

  	
  Proceeds to be Turned Over to Collateral Agent

  	
  26

  
	
  Section 5.5

  	
  Registration Rights

  	
  26

  
	
  Section 5.6

  	
  Deficiency

  	
  27

  
	
  Section 5.7

  	
  Grant of Intellectual Property License

  	
  27

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI

  	
   

  
	
   

  	
   

  	
   

  
	
  THE COLLATERAL AGENT

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 6.1

  	
  Collateral Agent’s Appointment as Attorney-In-Fact

  	
  28

  
	
  Section 6.2

  	
  Duty of Collateral Agent

  	
  30

  
	
  Section 6.3

  	
  Authority to File Financing Statements

  	
  30

  
	
  Section 6.4

  	
  Authority of Collateral Agent

  	
  30

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII

  	
   

  
	
   

  	
   

  	
   

  
	
  MISCELLANEOUS

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 7.1

  	
  Amendments in Writing     

  	
  31

  
	
  Section 7.2

  	
  Notices

  	
  31

  
	
  Section 7.3

  	
  No Waiver by Course of Conduct; Cumulative Remedies

  	
  31

  
	
  Section 7.4

  	
  Successors and Assigns

  	
  31

  
	
  Section 7.5

  	
  Counterparts

  	
  31

  
	
  Section 7.6

  	
  Severability

  	
  32

  
	
  Section 7.7

  	
  Section Headings 

  	
  32

  
	
  Section 7.8

  	
  Entire Agreement 

  	
  32

  
	
  Section 7.9

  	
  Governing Law

  	
  32

  
	
  Section 7.10

  	
  Submission to Jurisdiction; Service of Process

  	
  32

  
	
  Section 7.11

  	
  Waiver of Jury Trial

  	
  33

  
	
  Section 7.12

  	
  Additional Grantors

  	
  33

  
	
  Section 7.13

  	
  Release of Collateral

  	
  33

  

 

 ii
 

 

 

	
  Section 7.14

  	
  Reinstatement       

  	
  33

  
	
  Section 7.15

  	
  Enforcement of Liens on Collateral Located in Spain    

  	
  34

  
	
  Section 7.16

  	
  Intercreditor Agreement     

  	
  34

  

 

	
  Annexes

  	
   

  
	
  Annex 1

  	
  Deposit Account Control Agreement

  
	
  Annex 2

  	
  Securities Account Control Agreement

  
	
  Annex 3

  	
  Pledge Amendment

  
	
  Annex 4

  	
  Joinder Agreement

  
	
  Annex 5

  	
  Form of Copyright Security Agreement

  
	
  Annex 6

  	
  Form of Patent Security Agreement

  
	
  Annex 7

  	
  Form of Trademark Security Agreement

  
	
  Annex 8

  	
  Acknowledgment and Consent

  
	
   

  	
   

  
	
  Schedules

  	
   

  
	
  Schedule 1

  	
  Grantors’ Name, Jurisdiction and Chief Executive
  Office

  
	
  Schedule 2

  	
  Pledged Collateral

  
	
  Schedule 3

  	
  Actions Required for Perfection

  
	
  Schedule 4

  	
  Reserved

  
	
  Schedule 5

  	
  Inventory and Equipment

  
	
  Schedule 6

  	
  Material Intellectual Property

  
	
  Schedule 7

  	
  Deposit Accounts, Securities Accounts and
  Commodities Accounts

  
	
  Schedule 8

  	
  Commercial Tort Claims

  
	
  Schedule 9

  	
  Letter of Credit Rights

  
	
  Schedule 10

  	
  Vehicles

  

 

 iii

 

SECURITY
AGREEMENT

SECURITY AGREEMENT, dated as of June 23, 2006 by Merisant Company,
a Delaware corporation (the “Borrower”)
and each of the other entities listed on the signature pages hereof or
which becomes a party hereto pursuant to Section 7.10 (each a “Grantor” and, collectively, the “Grantors”), in favor of Wells Fargo
Bank, National Association, as agent for the Secured Parties (as defined in the
Credit Agreement referred to below) (in such capacity, the “Collateral Agent”).

W I T N E S S E T H:

WHEREAS, pursuant to the Second Lien Credit Agreement, dated as of the
date hereof (as the same may be amended, restated, supplemented or otherwise
modified from time to time, the “Credit Agreement”) among the Borrower,
Merisant Worldwide, Inc. (“Holdings”), the Lenders party thereto,
Credit Suisse, Cayman Islands Branch as administrative agent for the Lenders
(in such capacity, the “Administrative Agent”), Jeffries &
Company, Inc. and Credit Suisse Securities (USA) LLC (“CS Securities”)
as joint lead arrangers, CS Securities, as syndication agent and documentation
agent and Wells Fargo Bank, National Association as the Collateral Agent, the
Lenders agreed to make extensions of credit to the Borrower upon the terms and
subject to the conditions set forth therein; and

WHEREAS, the Grantors other than the Borrower are party to the Guaranty
pursuant to which they have guaranteed the Obligations; and

WHEREAS, a condition precedent to the obligation of the Lenders to make
their extensions of credit to the Borrower under the Credit Agreement that the
Grantors shall have executed and delivered this Agreement to the Collateral
Agent;

NOW, THEREFORE, in consideration of the premises and to induce the
Lenders, the Collateral Agent and the Administrative Agent to enter into the
Credit Agreement and to induce the Lenders to make their extensions of credit
to the Borrower thereunder, each Grantor hereby agrees with the Collateral
Agent as follows:

ARTICLE I

DEFINED TERMS

Section 1.1             DEFINITIONS.

 

 

(a)           Unless otherwise defined herein,
terms defined in the Credit Agreement and used herein have the meanings given
to them in the Credit Agreement.

(b)           Terms used herein that are defined in
the UCC have the meanings given to them in the UCC, including the following
terms (which are capitalized herein):

“ACCOUNT
DEBTOR”

“ACCOUNTS”

“CHATTEL
PAPER”

“COMMERCIAL TORT CLAIM”

“COMMODITY ACCOUNT”

“COMMODITY INTERMEDIARY”

“CONTROL”

“DEPOSIT ACCOUNT”

“DOCUMENTS”

“ENTITLEMENT HOLDER”

“ENTITLEMENT ORDER”

“EQUIPMENT”

“FINANCIAL ASSET”

“FIXTURES”

“GENERAL INTANGIBLES”

“GOODS”

“INSTRUMENTS”

“INVENTORY”

“INVESTMENT PROPERTY”

“LETTER-OF-CREDIT RIGHTS”

“PAYMENT INTANGIBLE”

“PROCEEDS”

“PROMISSORY NOTE”

“SECURITY”

“SECURITIES ACCOUNT”

“SECURITIES INTERMEDIARY”

“SECURITY ENTITLEMENT”

“SUPPORTING OBLIGATION”

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

“Administrative Agent” has the meaning specified in the
recitals.

“Additional Commercial Tort Claim”
has the meaning specified in Section 4.11.

“Additional Pledged Collateral”
means all shares of, limited and/or general partnership interests in, and
limited liability company interests in, and all securities convertible into,
and warrants, options and other rights to purchase or otherwise acquire, stock
of, either (i) 

 2
 

 

 

any Person that, after the date of this Agreement, as
a result of any occurrence, becomes a direct Subsidiary of any Grantor or (ii) any
issuer of Pledged Stock, any Partnership or any LLC that are acquired by any
Grantor after the date hereof; all certificates or other instruments
representing any of the foregoing; all Security Entitlements of any Grantor in
respect of any of the foregoing; all additional indebtedness from time to time
owed to any Grantor by any obligor on the Pledged Notes and the instruments
evidencing such indebtedness; and all interest, cash, instruments and other
property or Proceeds from time to time received, receivable or otherwise
distributed in respect of or in exchange for any of the foregoing. Additional
Pledged Collateral may be General Intangibles or Investment Property.

“Agreement” means
this Security Agreement.

“Borrower” has the meaning specified in the preamble.

“Cash Collateral Account”
means any Deposit Account or Securities Account established by the Collateral
Agent as provided in Section 2.3 in which cash and Cash Equivalents
may from time to time be on deposit or held therein as provided in Section 5.2
or Section 5.4 or the Credit Agreement.

“Collateral” has
the meaning specified in Section 2.1.

“Collateral Agent” has the meaning specified in the preamble.

“Commodity Account Control Agreement”  means a control agreement reasonable
satisfactory to the Collateral Agent executed by the relevant Grantor and the
Collateral Agent and acknowledged and agreed to by the relevant Commodity
Intermediary.

“Control Account”
means a Securities Account or Commodity Account subject to an effective
Securities Account Control Agreement maintained by any Grantor with an Eligible
Securities Intermediary, and includes all Financial Assets held therein and all
certificates and instruments, if any, representing or evidencing the Financial
Assets contained therein or a Commodity Account subject to an effective
Commodity Account Control Agreement.

“Copyrights”
means (a) all copyrights arising under the laws of the United States, any
other country or any political subdivision thereof, whether registered or
unregistered and whether published or unpublished, all registrations and
recordings thereof, and all applications in connection therewith, including all
registrations, recordings and applications in the United States Copyright
Office or in any foreign counterparts thereof and (b) the right to obtain
all renewals thereof.

 3
 

 

 

“Copyright Licenses”
means any written agreement naming any Grantor as licensor or licensee granting
any right under any Copyright, including the grant of rights to copy, publicly
perform, create derivative works, manufacture, distribute, exploit and sell
materials derived from any Copyright.

“Credit Agreement” has the meaning specified in the recitals.

“CS Securities” has the meaning specified in the recitals.

“Deposit Account Bank”
means a financial institution selected or approved by the Collateral Agent and
with respect to which a Grantor has delivered to the Collateral Agent an
executed Deposit Account Control Agreement.

“Deposit Account Control Agreement”
means a letter agreement, substantially in the form of Annex 1 (with
such changes as may be agreed to by the Collateral Agent), executed by the
Grantor and the Collateral Agent and acknowledged and agreed to by the relevant
Deposit Account Bank.

“Eligible Deposit Account”
means a Deposit Account maintained by any Grantor with a Deposit Account Bank
which Deposit Account is the subject of an effective Deposit Account Control
Agreement, and includes all monies on deposit therein and all certificates and
instruments, if any, representing or evidencing such Deposit Account.

“Eligible Securities Intermediary”
means a Securities Intermediary or Commodity Intermediary selected or approved
by the Collateral Agent and with respect to which a Grantor has delivered to
the Collateral Agent an executed Securities Account Control Agreement.

“Grantor” has the meaning specified in the preamble.

“Holdings” has the meaning specified in the recitals.

“Intellectual Property”
means, collectively, all rights, priorities and privileges of any Grantor
relating to intellectual property, whether arising under United States,
multinational or foreign laws or otherwise, including Copyrights, Copyright
Licenses, Patents, Patent Licenses, Trademarks, Trademark Licenses and trade
secrets, and all rights to sue at law or in equity for any infringement or
other impairment thereof, including the right to receive all proceeds and
damages therefrom.

 4
 

 

 

“Joinder Agreement”
shall mean a joinder agreement, substantially in the form of Annex 4.

“LLC” means a
limited liability company.

“LLC Agreement”
means each operating agreement with respect to an LLC, as each agreement has
heretofore been and may hereafter be amended, restated, supplemented or
otherwise modified from time to time.

“Material Intellectual Property”
means Intellectual Property owned by, licensed to or otherwise used by a
Grantor which is material to its business.

“Participations” has the meaning specified in Section 7.15.

“Partnership”
means any general partnership, limited partnership, limited liability
partnership or other partnership.

“Partnership Agreement”
means each partnership agreement governing a Partnership, as each such
agreement has heretofore been and may hereafter be amended, restated,
supplemented or otherwise modified.

“Patents” means (a) all
letters patent of the United States, any other country or any political
subdivision thereof and all reissues and extensions thereof, (b) all
provisional and non-provisional applications for letters patent of the United
States or any other country and all divisions, continuations and
continuations-in-part thereof, and (c) all rights to obtain any reissues
or extensions of the foregoing.

“Patent License”
means all agreements, whether written or oral, providing for the grant by or to
any Grantor of any right to manufacture, use, import, sell or offer for sale
any invention covered in whole or in part by a Patent.

“Pledge Amendment” has the meaning specified in Section 4.4.

“Pledged Collateral”
means, collectively, the Pledged Notes, the Pledged Equity Collateral, all
certificates or other instruments representing or evidencing any of the
foregoing, and all Security Entitlements of any Grantor in respect of any of
the foregoing whether or not characterized as General Intangibles or Investment
Property.

 5
 

 

 

“Pledged Equity Collateral”
means, collectively, the Pledged Stock, the Pledged Partnership Interests, the
Pledged LLC Interests, any other Investment Property of any Grantor, all certificates
or other instruments representing any of the foregoing and all Security
Entitlements of any Grantor in respect of any of the foregoing.

“Pledged LLC Interests”
means all of any Grantor’s right, title and interest as a member of any LLC and
all of such Grantor’s right, title and interest in, to and under any LLC
Agreement to which it is a party, including those set forth on Schedule 2.

“Pledged Notes”
means all right, title and interest of any Grantor, in Instruments or
Promissory Notes evidencing such indebtedness including all indebtedness for
money owed to such Grantor and all other indebtedness described on Schedule
2, issued by the obligors named therein.

“Pledged Partnership Interests”
shall mean all right, title and interest of any Grantor in any Partnership and
all right, title and interest of any Grantor in, to and under any Partnership
Agreements to which it is a party, including those set forth on Schedule 2.

“Pledged Stock”
means the shares of Stock owned by each Grantor, including all shares of Stock
listed on Schedule 2; provided, however, that only the
outstanding Voting Stock of an Excluded Foreign Subsidiary possessing up to but
not exceeding 65% of the voting power of all classes of Stock of such Excluded
Foreign Subsidiary entitled to vote shall be deemed to be pledged hereunder.

“Related Contract”
means each security agreement, lease and other contract securing or otherwise
relating to any Account.

“Secured Obligations” means, (a) in the case of the
Borrower, the Obligations, and, (b) in the case of any other Loan Party,
the obligations of such Loan Party and each other Loan Party under the Guaranty
and the other Loan Documents to which it is a party.

“Securities Account Control Agreement”
means a letter agreement, substantially in the form of Annex 2 (with
such changes as may be agreed to by the Collateral Agent), executed by the
relevant Grantor and the Collateral Agent and acknowledged and agreed to by the
relevant Eligible Securities Intermediary.

“Securities Act”
means the Securities Act of 1933, as amended.

“Trademarks”
means (a) all trademarks, trade names, corporate names, company names,
business names, fictitious business names, trade styles, service marks, logos
and other 

 6
 

 

 

indicators of the source of goods and services, and all
goodwill associated therewith, now existing or hereafter adopted or acquired,
all registrations and recordings thereof, and all applications in connection
therewith, whether in the United States Patent and Trademark Office or in any
similar office or agency of the United States, any State thereof or any other
country or any political subdivision thereof, or otherwise, and all common-law
rights related thereto, and (b) the right to obtain all renewals thereof.

“Trademark License”
means any agreement, whether written or oral, providing for the grant by or to
any Grantor of any right to use any Trademark.

“Trigger Date”
has the meaning specified in Section 4.5.

“UCC” means the
Uniform Commercial Code as from time to time in effect in the State of New
York; provided, however, that in the event that, by reason of mandatory
provisions of law, any or all of the attachment, perfection or priority of the
Collateral Agent’s and the Secured Parties’ security interest in any Collateral
is governed by the Uniform Commercial Code as in effect in a jurisdiction other
than the State of New York, the term “UCC’ shall mean the Uniform Commercial
Code as in effect in such other jurisdiction for purposes of the provisions
hereof relating to such attachment, perfection or priority and for purposes of
definitions related to such provisions; provided, further, that if the UCC is
amended after the date hereof, such amendment will not be given effect for the
purposes of this Agreement if and to the extent the result of such amendment
would be to limit or eliminate any item of Collateral.

“Vehicles” means
all vehicles covered by a certificate of title law of any state.

Section 1.2             Certain Other Terms.

(a)           In
this Agreement, in the computation of periods of time from a specified date to
a later specified date, the word “from” means “from and including” and the
words “to” and “until” each mean “to but excluding” and the word “through”
means “to and including.”

(b)           The words “herein,” “hereof,” “hereto”
and “hereunder” and similar words refer to this Agreement as a whole and not to
any particular Article, Section, subsection or clause in this Agreement.

(c)           References herein to an Annex,
Schedule, Article, Section, subsection or clause refer to the appropriate Annex
or Schedule to, or Article, Section, subsection or clause in this Agreement.

 7
 

 

 

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

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

(f)            Any reference in this Agreement to a
Loan Document shall include all appendices, exhibits and schedules thereto,
and, unless specifically stated otherwise all amendments, restatements,
supplements or other modifications thereto, and as the same may be in effect at
any and all times such reference becomes operative.

(g)           The term “including” means “including
without limitation” except when used in the computation of time periods.

(h)           The term “or” has, except where
otherwise indicated, the inclusive meaning represented by the phrase “and/or”.

(i)            The terms “Lender,” “Collateral
Agent,” “Administrative Agent” and “Secured Party” include their respective
successors.

(j)            References in this Agreement to any
statute shall be to such statute as amended or modified and in effect from time
to time.

ARTICLE II

GRANT OF SECURITY INTEREST

Section 2.1             Collateral. For the purposes
of this Agreement, all of the following property now owned or at any time
hereafter acquired by a Grantor or in which a Grantor now has or at any time in
the future may acquire any right, title or interests is collectively referred
to as the “Collateral”:

(a)           all Accounts;

(b)           all Inventory;

(c)           all Equipment;

 8
 

 

 

(d)           all Goods, including, without limitation,
Inventory, Equipment and Fixtures

(e)           all General Intangibles, including
all Payment Intangibles;

(f)            all Investment Property, including
all Control Accounts, Securities Accounts and Commodities Accounts;

(g)           all Documents, Instruments, Chattel
Paper and Letter-of-Credit Rights;

(h)           all cash and Deposit Accounts
(including any Eligible Deposit Accounts);

(i)            all Intellectual Property;

(j)            all Cash Collateral Accounts;

(k)           all Pledged Collateral;

(l)            all Vehicles;

(m)          all Supporting Obligations;

(n)           all Commercial Tort Claims, including
those listed on Schedule 8;

(o)           all books and records pertaining to
the Collateral described in this Section 2.1;

(p)           all other personal property of such
Grantor whether tangible or intangible wherever located;

(q)           all property of any Grantor held by
the Collateral Agent or any other Secured Party, including all property of
every description, in the possession or custody of or in transit to Collateral
Agent or such Secured Party for any purpose, including safekeeping, collection
or pledge, for the account of such Grantor, or as to which such Grantor may
have any right or power; and

 9
 

 

 

(r)            to the extent not otherwise
included, all Proceeds and products of each of the foregoing and all accessions
to, substitutions and replacements for, and rents, profits and products of,
each of the foregoing, any and all proceeds of any insurance, indemnity,
warranty or guaranty payable to the Grantor from time to time with respect to
any of the foregoing.

Section 2.2             Grant of Security Interest in
Collateral. Each Grantor, as collateral security for the full, prompt and
complete payment and performance when due (whether at stated maturity, by
acceleration or otherwise) of the Secured Obligations of such Grantor, hereby
collaterally assigns, mortgages, pledges and hypothecates to the Collateral
Agent for the benefit of the Secured Parties, and grants to the Collateral
Agent for the benefit of the Secured Parties a lien on and security interest
in, all of its right, title and interest in, to and under the Collateral of
such Grantor.

Section 2.3             Cash Collateral Accounts. The
Collateral Agent may from time to time establish one or more other Deposit
Accounts and one or more Securities Accounts with such depositaries and
Securities Intermediaries as it in its sole discretion shall determine. Each
such account shall be in the name of the Collateral Agent (but may also have
words referring to the Borrower and the account’s purpose). The Grantors agree
that each such account shall be under the sole dominion and control of the
Collateral Agent and subject to a control agreement substantially in the form
of Annex 1 (for Deposit Accounts) and Annex 2 (for Securities
Account. The Collateral Agent shall be the Entitlement Holder with respect to
each such Securities Account and the only Person authorized to give Entitlement
Orders with respect thereto. Without limiting the foregoing, funds on deposit
in any Cash Collateral Account may be invested in Cash Equivalents at the
direction of the Collateral Agent and, except during the continuance of an
Event of Default, the Collateral Agent agrees with the Grantor to issue
Entitlement Orders for such investments in Cash Equivalents as requested by the
Borrower; provided, however, that the Collateral Agent shall not have any
responsibility for, or bear any risk of loss of, any such investment or income
thereon. Neither the Borrower nor any other Loan Party or Person claiming on
behalf of or through the Borrower or any other Loan Party shall have any right
to demand payment of any of the funds held in any Cash Collateral Account at
any time an Event of Default shall have occurred and be continuing. The
Collateral Agent shall apply all funds on deposit in a Cash Collateral Account
as provided in the Credit Agreement and, except during the continuance of an
Event of Default, agrees to cause any funds remaining on deposit therein after
all Obligations then due and payable have been satisfied at the written
direction of the Borrower. The provisions of this Section 2.3 shall
be subject to the Intercreditor Agreement.

ARTICLE III

REPRESENTATIONS AND WARRANTIES

To induce the Lenders and the Administrative Agent to enter into the
Credit Agreement, each Grantor hereby represents and warrants to the Secured
Parties that:

 10
 

 

 

Section 3.1             Title; No Other Liens.
Except for the Lien granted to the Collateral Agent pursuant to this Agreement,
Liens granted to the First Lien Administrative Agent pursuant to the First Lien
Loan Documents and the other Liens permitted to exist on the Collateral (other
than the Pledged Stock or the Pledged Notes) under Section 6.3 of
the Credit Agreement, such Grantor is the record and beneficial owner of the
Collateral pledged by it hereunder free and clear of any and all Liens. For the
avoidance of doubt, it is understood and agreed that such Grantor may, as part
of its business, grant licenses to third parties to use Intellectual Property
owned or developed by such Grantor. For purposes of this Agreement and the
other Loan Documents, such licensing activity shall not constitute a “Lien” on
such Intellectual Property.

Section 3.2             Perfection and Priority. Upon
completion of the filings and other actions specified on Schedule 3 hereto,
which, in the case of all filings and other documents referred to on such
Schedule, have been delivered to the Collateral Agent in completed and, where
required, duly executed form, the security interest granted pursuant to this
Agreement constitutes a valid and continuing perfected security interest in
favor of the Collateral Agent on behalf of the Secured Parties in the
Collateral. Such security interest is prior to all other Liens on the
Collateral except for Liens granted to the First Lien Administrative Agent
pursuant to the First Lien Loan Documents and Liens permitted by the Credit
Agreement which have priority over the Collateral Agent’s Lien by operation of
law.

Section 3.3             State of Incorporation; Chief
Executive Office.

(a)           Except as set forth on Schedule 1,
within the five-year period preceding the Closing Date such Grantor has not
had, or operated in any jurisdiction under, any trade name, fictitious name or
other name other than its legal name.

(b)           On the Closing Date, such Grantor’s
legal name, jurisdiction of organization, organizational identification number,
if any, and the location of such Grantor’s chief executive office or sole place
of business are specified on Schedule 1.

Section 3.4             Inventory and Equipment. On
the Closing Date, such Grantor’s Inventory and Equipment (other than mobile
goods and Inventory or Equipment in transit) are kept at the locations listed
on Schedule 5.

Section 3.5             Pledged Collateral.

(a)           The Pledged Stock, Pledged
Partnership Interests and Pledged LLC Interests pledged hereunder by such
Grantor and listed on Schedule 2 constitute that percentage of the
issued and outstanding equity of all classes of each issuer thereof as set
forth on Schedule 2.

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(b)           All of the Pledged Stock, Pledged
Partnership Interests and Pledged LLC Interests held by such Grantor as of the
Closing Date are listed on Schedule 2 and have been duly and validly
issued and are fully paid and nonassessable.

(c)           The Pledged Notes pledged hereunder
by such Grantor, being all of the Pledged Notes held by such Grantor, are
listed on Schedule 2.

(d)           (i) Each of the Pledged Notes,
as to which the Borrower or any Subsidiary is an obligor, constitutes the
legal, valid and binding obligation of the obligor with respect thereto,
enforceable in accordance with its terms, subject to the effects of bankruptcy,
insolvency, fraudulent conveyance, reorganization, moratorium and other similar
laws relating to or affecting creditors’ rights generally, and general
equitable principles (whether considered in a proceeding in equity or at law);
and (ii) to the best knowledge of any Grantor that is a holder thereof,
each other Pledged Note constitutes the legal, valid and binding obligation of
the obligor with respect thereto, enforceable in accordance with its terms, subject
to the effects of bankruptcy, insolvency, fraudulent conveyance,
reorganization, moratorium and other similar laws relating to or affecting
creditors’ rights generally, and general equitable principles (whether
considered in a proceeding in equity or at law).

(e)           All Pledged Collateral and, if
applicable, any Additional Pledged Collateral, consisting of certificated
securities or Instruments (other than as specified in Section 4.7)
has been, subject to the Intercreditor Agreement, delivered to the Collateral
Agent in accordance with Section 4.4(a).

(f)            All Pledged Collateral held by a
Securities Intermediary in a Securities Account is (or, at all times after the
Trigger Date specified in Section 4.5, will be) in a Control
Account.

(g)           Other than the Pledged Partnership
Interests and the Pledged LLC Interests that constitute General Intangibles,
there is no Pledged Collateral other than that represented by certificated
securities or Instruments in the possession of the Collateral Agent or its
bailee or agent or that consisting of Financial Assets that are (or, at all
times after the Trigger Date specified in Section 4.5, will be)
held in a Control Account. Each Pledged Partnership Interest and Pledged LLC
Interest is not traded on securities exchanges or in securities markets and is
not “investment company securities” (as defined in section 8-103(b) of
the UCC). The LLC Agreements or Partnership Agreements, as applicable, pledged
hereunder do not provide and shall not be amended to provide, certificates representing
such LLC or Partnership interests, as applicable, and does not otherwise
provide and shall not be amended otherwise to provide that such interests are
securities governed by the UCC.

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(h)           No Person other than the Collateral
Agent and the First Lien Administrative Agent pursuant to the First Lien Loan
Documents has Control over any Investment Property of such Grantor.

(i)            Each LLC Agreement governing any
Pledged LLC Interest and each Partnership Agreement governing any Pledged
Partnership Interest provide that, upon the occurrence and during the
continuance of an Event of Default, the Collateral Agent shall be entitled to
exercise all of the rights of the Grantor granting the security interest
therein, and that a transferee or assignee of a membership interest or
partnership interest, as the case may be, of such LLC or Partnership, as the
case may be, shall become a member or partner, as the case may be, of such LLC
or Partnership, as the case may be, entitled to participate in the management
thereof and, upon the transfer of the entire interest of such Grantor, such
Grantor ceases to be a member or partner, as the case may be.

(j)            The shares of Pledged Stock pledged
by such Grantor hereunder constitute all the issued and outstanding shares of
all classes of the Capital Stock of each Subsidiary of Holdings or the Borrower
owned by such Grantor or, solely in the case of any Voting Stock of any
Excluded Foreign Subsidiary, at least 65% of the Voting Stock of such Excluded
Foreign Subsidiary.

Section 3.6             Accounts. No amount payable
to such Grantor under or in connection with any Account is evidenced by any
Instrument or Chattel Paper which has not been, subject to the Intercreditor
Agreement, delivered to the Collateral Agent, properly endorsed for transfer,
to the extent delivery is required by Section 4.4.

Section 3.7             Intellectual Property.

(a)           Schedule 6 is a complete and
accurate list of all Material Intellectual Property of such Grantor on the date
hereof, separately identifying that which is owned by such Grantor and that
which is licensed to such Grantor. The Material Intellectual Property set forth
on Schedule 6 for such Grantor constitutes all of the intellectual
property rights necessary for such Grantor to conduct its business as it is
currently conducted and contemplated to be conducted.

(b)           Other than Liens created pursuant to
the First Lien Loan Documents, such Grantor is the sole and exclusive owner of
the entire, right, and interest in and to all Intellectual Property on Schedule
6 that is owned by such Grantor.

(c)           On the date hereof, all Material
Intellectual Property owned by such Grantor is valid, subsisting, unexpired and
enforceable, has not been adjudged invalid and has not been abandoned, opposed
or cancelled or otherwise challenged, in whole or in part. The conduct of the
business of such Grantor does not infringe the Intellectual Property rights of
any 

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other Person, no claim has been
asserted or is currently pending or alleging such infringement and, to the
knowledge of such Grantor, there is no basis for such a claim.

(d)           Except as set forth in Schedule 6,
on the Closing Date, none of the Material Intellectual Property owned by such
Grantor is the subject of any licensing or franchise agreement pursuant to
which such Grantor is the licensor or franchisor.

(e)           No holding, decision or judgment has
been rendered by any Governmental Authority that would limit, cancel or
question the validity or enforceability of, or such Grantor’s rights in, any
Material Intellectual Property.

(f)            No action or proceeding seeking to
limit, cancel or question the validity or enforceability of any Material
Intellectual Property owned by such Grantor or such Grantor’s ownership
interest therein is on the date hereof pending or, to the knowledge of such
Grantor, threatened and, to such Grantor’s knowledge, there is no basis for
such an action or proceeding. There are no claims, judgments or settlements to
be paid by such Grantor relating to the Material Intellectual Property nor any
injunctions issued limiting or barring use of any Material Intellectual
Property.

(g)           No action or proceeding seeking to
limit, cancel or question the validity of any intellectual property rights of
any other Person or such Person’s ownership interest therein is on the date
hereof pending or threatened by such Grantor and, to the best of such Grantor’s
knowledge, there is no basis for such an action or proceeding. No claim has
been asserted or is currently pending by such Grantor alleging the conduct of
any other Person is infringing the Intellectual Property of such Grantor and,
to the knowledge of such Grantor, no basis exists for such a claim.

Section 3.8             Deposit Accounts; Securities
Accounts; Commodity Accounts; Commercial Tort Claims. The only Deposit
Accounts, Securities Accounts or Commodity Accounts maintained by any Grantor
on the Closing Date are those listed on Schedule 7, which sets forth
such information separately for each Grantor. On the Closing Date, no Grantor
holds any Commercial Tort Claims having a value individually or in the
aggregate in excess of $5,000,000 except as specified on Schedule 8.

Section 3.9             Letter-of-Credit Rights.
Such Grantor is not a beneficiary or assignee under any letter of credit other
than the letters of credit described on Schedule 9. Each letter of
credit listed on Schedule 9 constitutes a Supporting Obligation for
another item of the Collateral.

Section 3.10           Vehicles. All Vehicles owned
by such Grantor are listed on Schedule 10.

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ARTICLE IV

COVENANTS

As long as any of the Obligations (other than indemnity or
reimbursement obligations not then payable) or the Commitments remain
outstanding, unless the Requisite Lenders otherwise consent in writing, each
Grantor agrees with the Collateral Agent that:

Section 4.1             Generally. Such
Grantor shall (a) except for the security interest created by this
Agreement, not create or suffer to exist any Lien upon or with respect to any
of the Collateral, except for Liens permitted under Section 6.3 of the
Credit Agreement; (b) not use or permit any Collateral to be used
unlawfully or in violation of any provision of this Agreement, any other Loan
Document, any First Lien Loan Document, any Requirement of Law, any Contractual
Obligation, any Related Contract or any policy of insurance covering the
Collateral; (c) not sell, transfer or assign (by operation of law or
otherwise) any Collateral except as permitted under the Credit Agreement; (d) except
for the Loan Documents and the First Lien Loan Documents, not enter into any
agreement or undertaking restricting the right or ability of such Grantor or
the Collateral Agent to sell, assign or transfer any of the Collateral except
as permitted under the Credit Agreement; and (e) promptly notify the
Collateral Agent of its entry into any agreement or assumption of undertaking
that restricts the ability to sell, assign or transfer any of the Collateral,
other than such agreements or assumptions of undertaking entered into in the
ordinary course of business and consistent with past practices.

Section 4.2             Maintenance of Perfected
Security Interest; Further Documentation.

(a)           Such Grantor will maintain the
security interest created by this Agreement as a perfected security interest
having at least the priority described in Section 3.2 and shall
defend such security interest against the claims and demands of all Persons
(other than Persons holding Liens expressly permitted by Section 6.3
of the Credit Agreement).

(b)           Such Grantor will furnish to the
Collateral Agent from time to time statements and schedules further identifying
and describing the Collateral and such other reports in connection with the
Collateral as the Collateral Agent may reasonably request, all in reasonable
detail. At any time and from time to time, upon the written request of the
Collateral Agent, and at the sole expense of such Grantor, such Grantor will
promptly and duly execute and deliver, and have recorded, such further
instruments and documents and take such further action as the Collateral Agent
may reasonably request for the purpose of obtaining or preserving the full
benefits of this Agreement and of the rights and powers herein granted,
including the filing of any financing or continuation statement under the UCC
(or other similar laws) in effect in any jurisdiction with respect to the
security interest created hereby and the execution and delivery of Securities
Account Control Agreements and Deposit Account Control Agreements or otherwise
taking any actions necessary to enable the Collateral Agent to obtain Control
with respect to any Collateral.

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Section 4.3             Changes in Locations, Name, etc.

(a)           Except upon 15 days’ prior written
notice to the Collateral Agent and delivery to the Collateral Agent of (i) all
additional executed financing statements and other documents reasonably
requested by the Collateral Agent to maintain the validity, perfection and
priority of the security interests provided for herein and (ii) if
applicable, a written supplement to Schedule 5 showing any additional
location (or change in location) at which Inventory or Equipment shall be kept,
such Grantor will not:

(i)    permit any of the
Inventory or Equipment having a Fair Market Value of more than $5,000,000 to be
kept at a location other than those listed on Schedule 5;

(ii)   change its
jurisdiction of incorporation or the location of its chief executive office or
sole place of business from that referred to in Section 3.3; or

(iii)  change its name,
identity or corporate structure to such an extent that any financing statement
filed in connection with this Agreement would become misleading.

(b)           Such Grantor will keep and maintain
at its own cost and expense satisfactory and complete records of the
Collateral, including a record of all payments received and all credits granted
with respect to the Collateral and all other dealings with the Collateral.

Section 4.4             Pledged Collateral.

(a)           Such Grantor will (i) subject to
the Intercreditor Agreement, deliver to the Collateral Agent, all certificates
or Instruments representing or evidencing any Pledged Collateral (including
Additional Pledged Collateral), whether now existing or hereafter acquired, in
suitable form for transfer by delivery or, as applicable, accompanied by such
Grantor’s endorsement, where necessary, or duly executed instruments of
transfer or assignment in blank, all in form and substance satisfactory to the
Collateral Agent, together, in respect of any Additional Pledged Collateral,
with a Pledge Amendment, duly executed by the Grantor, in substantially the
form of Annex 3 (a “Pledge
Amendment”) or such other documentation acceptable to
the Collateral Agent, and (ii) from and after the Trigger Date, maintain
all other Pledged Collateral constituting Investment Property in a Control
Account. Such Grantor authorizes the Collateral Agent to attach each Pledge
Amendment to this Agreement. The Collateral Agent shall have the right, at any
time in its discretion and without notice to the Grantor, to transfer to or to
register in its name or in the name of its nominees any or all of the Pledged
Collateral. The Collateral Agent shall have the right at any time after the
occurrence and 

 16
 

 

 

during the continuance of an Event of
Default to exchange any certificate or instrument representing or evidencing
any Pledged Collateral for certificates or instruments of smaller or larger denominations.

(b)           Except as provided in Article V,
such Grantor shall be entitled to receive all cash dividends paid in respect of
the Pledged Equity Collateral (other than liquidating or distributing
dividends). Any other sums paid upon or in respect of any Pledged Collateral,
including any sums paid upon the liquidation or dissolution of any issuer of
any of the Pledged Collateral, any distribution of capital made on or in
respect of any of the Pledged Equity Collateral or any property distributed
upon or with respect to any of the Pledged Equity Collateral pursuant to the
recapitalization or reclassification of the capital of any issuer of Pledged
Collateral or pursuant to the reorganization thereof shall, unless otherwise
subject to a perfected security interest in favor of the Collateral Agent, be
delivered to the Collateral Agent to be held by it hereunder as additional
collateral security for the Secured Obligations. If any sum of money or
property so paid or distributed in respect of any of the Pledged Collateral
shall be received by such Grantor, such Grantor shall, until such money or
property is paid or delivered to the Collateral Agent, hold such money or
property in trust for the Collateral Agent, segregated from other funds of such
Grantor, as additional security for the Secured Obligations.

(c)           Except as provided in Article V,
such Grantor will be entitled to exercise all voting, consent, corporate
partnership or limited liability company rights with respect to the Pledged
Equity Collateral. Notwithstanding the foregoing, such Grantor shall not,
without the prior written consent of the Collateral Agent, (a) cast any
vote, give any consent, exercise any right or take any other action which would
impair the Collateral or which would be inconsistent with or result in any
violation of any provision of the Credit Agreement, this Agreement, any other
Loan Document or any Contractual Obligation or (b) (i) enable or
permit any issuer of Pledged Equity Collateral to issue any stock or other
equity securities of any nature or to issue any other securities convertible
into or granting the right to purchase or exchange for any stock or other
equity securities of any nature of any issuer of Pledged Equity Collateral, (ii) sell,
assign, transfer, exchange or otherwise dispose of, or grant any option with
respect to the Pledged Equity Collateral or the Proceeds therefrom (except
pursuant to a transaction expressly permitted by the Credit Agreement), (iii) create,
incur or permit to exist any Lien or option in favor of, or any claim of any
Person with respect to, any Pledged Equity Collateral or Proceeds thereof, or
any interest therein, except for the security interest created by this
Agreement or the First Lien Loan Documents or (iv) enter into any
agreement or undertaking restricting the right or ability of the Collateral
Agent or (except for the First Lien Loan Document, the Senior Subordinated
Notes Indenture and the Senior Subordinated Discount Notes Indenture) such
Grantor to sell, assign or transfer any of the Pledged Equity Collateral or the
Proceeds thereof.

(d)           Such Grantor shall not grant to any
Person other than the Collateral Agent and the First Lien Administrative Agent
pursuant to the First Lien Loan Documents, and shall not permit any Person
other than the Collateral Agent to have, Control over any Deposit Account or
Investment Property, except to the extent permitted under Sections 6.3(k) of
the Credit Agreement.

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(e)           In the case of each Grantor which is
an issuer of Pledged Collateral, such Grantor agrees to be bound by the terms
of this Agreement relating to the Pledged Collateral issued by it and will
comply with such terms insofar as such terms are applicable to it. In the case
of each Grantor which is a partner in a Partnership, such Grantor hereby consents
to the extent required by the applicable Partnership Agreement to the pledge by
each other Grantor, pursuant to the terms hereof, of the Pledged Partnership
Interests in such Partnership and to the transfer of such Pledged Partnership
Interests to the Collateral Agent or its nominee and to the substitution of the
Collateral Agent or its nominee as a substituted partner in such Partnership
with all the rights, powers and duties of a general partner or a limited
partner, as the case may be. In the case of each Grantor which is a member of
an LLC, such Grantor hereby consents to the extent required by the applicable
LLC Agreement to the pledge by each other Grantor, pursuant to the terms
hereof, of the Pledged LLC Interests in such LLC and to the transfer of such
Pledged LLC Interests to the Collateral Agent or its nominee and to the
substitution of the Collateral Agent or its nominee as a substituted member of
the LLC with all the rights, powers and duties of a member of the LLC in
question.

(f)            Such Grantor will not agree to any
amendment of an LLC Agreement, Partnership Agreement, by-laws or similar
agreement, that in any way adversely affects the perfection of the security
interest of the Collateral Agent in the Pledged Equity Interests pledged by such
Grantor hereunder, including any amendment electing to treat the membership
interest or partnership interest of such Grantor as a security under Section 8-103
of the UCC.

Section 4.5             Control Accounts; Eligible
Deposit Accounts. At all times after the date (the “Trigger Date”) that is the earlier
of (i) the date 10 Business Days after the written request of the
Collateral Agent, or (ii) if on the date of such request an Event of
Default has occurred and is continuing, the date of such request:

(a)           Such Grantor will (i) deposit in
an Eligible Deposit Account all cash and all Proceeds received by such Grantor,
(ii) not establish or maintain any Securities Account or Commodity Account
that is not a Control Account and (iii) not establish or maintain any
account with any financial or other institution other than a Deposit Account
Bank, a First Lien Lender or an Affiliate of a First Lien Lender (for so long
as the obligations of such Grantor with respect to the First Lien Loan
Documents remain outstanding), a Lender or an Affiliate of a Lender; provided,
however, that any Grantor may maintain payroll, withholding tax and other
fiduciary accounts.

(b)           Such Grantor shall instruct each
Account Debtor or other Person obligated to make a payment to such Grantor to
make payment, or to continue to make payment, as the case may be, to an
Eligible Deposit Account and will deposit in an Eligible Deposit Account all
Proceeds received by such Grantor from any other Person immediately upon
receipt.

(c)           In the event (i) such Grantor or
any Eligible Securities Intermediary, Commodity Intermediary or Deposit Account
Bank shall, after the date hereof, 

 18
 

 

 

terminate an agreement with respect
to the maintenance of a Control Account or an Eligible Deposit Account for any
reason, (ii) the Collateral Agent shall demand such termination as a
result of the failure of an Eligible Securities Intermediary, Commodity
Intermediary or Deposit Account Bank to comply with the terms of the applicable
Deposit Account Control Agreement, Securities Account Control Agreement or
Commodity Account Control Agreement, or (iii) the Collateral Agent
determines in its sole discretion that the financial condition of an Eligible
Securities Intermediary, Commodity Intermediary or Deposit Account Bank, as the
case may be, has materially deteriorated, such Grantor agrees to notify all of
its obligors that were making payments to such terminated Control Account or
Eligible Deposit Account, as the case may be, to make all future payments to
another Control Account or Eligible Deposit Account, as the case may be.

Section 4.6             Accounts.

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

(b)           The Collateral Agent shall have the
right to make test verifications of the Accounts in any manner and through any
medium that it reasonably considers advisable, and such Grantor shall furnish
all such assistance and information as the Collateral Agent may reasonably
require in connection therewith. At any time and from time to time, upon the
Collateral Agent’s request and at the expense of the relevant Grantor, such
Grantor shall cause independent public accountants or others satisfactory to
the Collateral Agent to furnish to the Collateral Agent reports showing
reconciliations, aging and test verifications of, and trial balances for, the
Accounts; provided, however, that unless an Event of Default shall be
continuing, the Collateral Agent shall request no more than four such reports
during any calendar year.

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

Section 4.7             Delivery of Instruments and
Chattel Paper. If any amount payable under or in connection with any of the
Collateral owned by such Grantor shall be or become evidenced by an Instrument
or Chattel Paper (other than any Instrument or Chattel Paper which, together
with any other Instruments or Chattel Paper excluded pursuant to this clause
has an aggregate principal amount not in excess of $100,000), such Grantor,
subject to the Intercreditor Agreement, shall promptly deliver such Instrument
or Chattel Paper to the Collateral Agent, duly indorsed in a manner
satisfactory to the Collateral Agent, or, if consented 

 19
 

 

 

to by the Collateral Agent,
shall mark all such Instruments and Chattel Paper with the following legend: “This
writing and the obligations evidenced or secured hereby are subject to the
security interest of Wells Fargo Bank, National Association, as Collateral
Agent for the Secured Parties”.

Section 4.8             Intellectual Property.

(a)           Such Grantor (either itself or
through licensees) will (i) continue to use each Trademark that is
Material Intellectual Property in order to maintain such Trademark in full
force and effect with respect to each class of goods for which such Trademark
is currently used, free from any claim of abandonment for non-use, (ii) maintain
the quality of products and services offered under such Trademark as of the
date hereof, (iii) use such Trademark with the appropriate notice of
registration and all other notices and legends required by applicable
Requirements of Law, (iv) not adopt or use any mark which is confusingly
similar or a colorable imitation of such Trademark unless the Collateral Agent
shall obtain a perfected security interest in such mark pursuant to this
Agreement and (v) not (and not permit any licensee or sublicensee thereof
to) do any act or knowingly omit to do any act whereby such Trademark may
become invalidated or impaired in any way or destroy or otherwise tarnish the
goodwill associated with any Trademark.

(b)           Such Grantor (either itself or
through licensees) will not do any act, or omit to do any act, whereby any
Patent which is Material Intellectual Property may become forfeited, abandoned
or dedicated to the public.

(c)           Such Grantor (either itself or
through licensees) (i) will not (and will not permit any licensee or
sublicensee thereof to) do any act or omit to do any act whereby any portion of
the Copyrights which is Material Intellectual Property may become invalidated
or otherwise impaired and (ii) will not do any act or omit to do any act
whereby any portion of the Copyrights that are Material Intellectual Property
may fall into the public domain.

(d)           Such Grantor (either itself or through
licensees) will not do any act, or omit to do any act, whereby any trade secret
which is Material Intellectual Property may become publicly available or
otherwise unprotectable.

(e)           Such Grantor (either itself or
through licensees) will not do any act that knowingly infringes the
intellectual property rights of any other Person.

(f)            Such Grantor will notify the
Collateral Agent immediately if it knows, or has reason to know, that any
application or registration relating to any Material Intellectual Property may
become forfeited, abandoned or dedicated to the public, or of any adverse
determination or development (including the institution of, or any such
determination or development in, any proceeding in the United States Patent and
Trademark Office, the United 

 20
 

 

 

States Copyright Office or any court
or tribunal in any country) regarding such Grantor’s ownership of, right to
use, interest in, or the validity of, any Material Intellectual Property or
such Grantor’s right to register the same or to own and maintain the same.

(g)           Whenever such Grantor, either by
itself or through any agent, licensee or designee, shall file an application
for the registration of any Intellectual Property with the United States Patent
and Trademark Office, the United States Copyright Office or any similar office
or agency within or outside the United States, such Grantor shall report such
filing to the Collateral Agent within five Business Days after the last day of
the fiscal quarter in which such filing occurs. Upon request of the Collateral
Agent, such Grantor shall execute and deliver, and have recorded, any and all
agreements, instruments, documents, and papers as the Collateral Agent may
request to evidence the Collateral Agent’s security interest in any Copyright,
Patent or Trademark and the goodwill and general intangibles of such Grantor
relating thereto or represented thereby.

(h)           Such Grantor will take all reasonable
actions necessary or requested by the Collateral Agent, including in any
proceeding before the United States Patent and Trademark Office, the United
States Copyright Office or any similar office or agency within or outside the
United States, to maintain and pursue each application (and to obtain the
relevant registration) and to maintain each registration of any Copyright,
Trademark or Patent that is Material Intellectual Property, including filing of
applications for renewal, affidavits of use, affidavits of incontestability and
opposition and interference and cancellation proceedings.

(i)            In the event that any Material
Intellectual Property is infringed upon or misappropriated or diluted by a
third party, such Grantor shall notify the Collateral Agent promptly after such
Grantor learns thereof. Such Grantor shall take appropriate action in response
to such infringement, misappropriation or dilution, as determined in the
exercise of reasonable business judgment, including promptly bringing suit for
infringement, misappropriation or dilution and to recover any and all damages
for such infringement, misappropriation or dilution, and shall take such other
actions may be appropriate in its reasonable judgment under the circumstances
to protect such Material Intellectual Property.

(j)            Unless otherwise agreed to by the
Collateral Agent, such Grantor will execute and deliver to the Collateral Agent
on the Closing Date for filing in (i) the United States Copyright Office,
a short-form copyright security agreement in the form attached hereto as Annex
5, (ii) the United States Patent and Trademark Office, a short-form patent
security agreement in the form attached hereto as Annex 6 and (iii) the
United States Patent and Trademark Office, a short-form trademark security
agreement in form attached hereto as Annex 7.

Section 4.9             Vehicles. Upon the request
of the Collateral Agent, within 30 days after the date of such request and,
with respect to any Vehicles acquired by such Grantor subsequent to the date of
any such request, within 30 days after the date of acquisition thereof, such
Grantor shall file all applications for certificates of title/ownership
indicating the Collateral 

 21
 

 

 

Agent’s security interest
in the Vehicle covered by such certificate, and any other necessary
documentation, in each office in each jurisdiction which the Collateral Agent
shall reasonably deem advisable to perfect its security interests in the
Vehicles. Such security interest shall be prior to all other Liens on such
Vehicles except for Liens granted to the First Lien Administrative Agent
pursuant to the First Lien Loan Documents and Liens permitted by the Credit
Agreement which have priority over the Collateral Agent’s Lien by operation of
law.

Section 4.10           Payment of Obligations. Such
Grantor will pay and discharge or otherwise satisfy at or before maturity or
before they become delinquent, as the case may be, all lawful governmental
claims, taxes, assessments, charges and levies, imposed upon the Collateral or
in respect of income and profits therefrom, as well as all claims of any kind
(including claims for labor, materials and supplies) against or with respect to
the Collateral, except where contested in good faith, by proper proceedings and
adequate reserves therefor have been established on the books of such Grantor
in conformity with GAAP and except to the extent the failure to do so would not,
in the aggregate, be reasonably expected to have a Material Adverse Effect.

Section 4.11           Commercial Tort Claims. If
such Grantor shall at any time hold or acquire a Commercial Tort Claim other
than or in addition to those set forth on Schedule 8 relating to any of
the Collateral and having a value individually or in the aggregate in excess of
$5,000,000 (each such Commercial Tort Claim, an “Additional
Commercial Tort Claim”), such Grantor shall promptly
notify the Collateral Agent in a writing authenticated by such Grantor of the
brief details of such Additional Commercial Tort Claim. Such Grantor shall
grant to the Collateral Agent in such writing a security interest in such
Additional Commercial Tort Claim and in the Proceeds thereof, all in accordance
with and subject to the terms of this Agreement and such writing shall be in
form and substance reasonably satisfactory to the Collateral Agent. Each
Grantor hereby agrees to execute and deliver any additional documents or
instruments, including any financing statements or amendments to any then
existing financing statements, that the Collateral Agent reasonably deems
necessary to create, perfect and protect the Collateral Agent’s Lien on and
security interest in such Additional Commercial Tort Claim.

Section 4.12           Letter of Credit Rights. If
any Grantor is at any time a beneficiary of a letter of credit that has a face
amount individually or in the aggregate in excess of $250,000 now or hereafter
issued in favor of such Grantor, such Grantor shall promptly notify the
Collateral Agent in a writing authenticated by such Grantor. Such Grantor
shall, pursuant to an agreement in form and substance reasonably satisfactory
to the Collateral Agent, either (i) arrange for the issuer and any
confirmer of such letter of credit to consent to an assignment to the
Collateral Agent of the proceeds of any drawing under the letter of credit or (ii) arrange
for the Collateral Agent to become the transferee beneficiary of the letter of
credit, with the Collateral Agent agreeing, in each case, that the proceeds of
any drawing under the letter of credit are to be paid to the applicable Grantor
unless an Event of Default has occurred or is continuing.

Section 4.13           Limitations on Dispositions of
Collateral. Such Grantor shall not sell, transfer, lease or otherwise
dispose of the Collateral, or attempt, offer or contract to do so except as
expressly permitted pursuant to the Credit Agreement and the Intercreditor
Agreement.

 

 22

 

 

Section 4.14           Acknowledgment and Consent. Subject
to Section 6.16 of the Credit Agreement, such Grantors shall cause
Merisant Spain to execute and acknowledgement and consent in the form of Annex
8 attached hereto.

ARTICLE V

REMEDIAL PROVISIONS

Section 5.1             Code and Other Remedies. Upon
the occurrence and during the continuance of an Event of Default, the
Collateral Agent, on behalf of the Secured Parties, may exercise, in addition
to all other rights and remedies granted to it in this Agreement and in any other
instrument or agreement securing, evidencing or relating to the Secured
Obligations, all rights and remedies of a secured party under the UCC or any
other applicable law. Without limiting the generality of the foregoing, upon
the occurrence and during the continuance of an Event of Default the Collateral
Agent, on behalf of the Secured Parties, without demand of performance or other
demand, presentment, protest, advertisement or notice of any kind (except any
notice required by law referred to below) to or upon any Grantor or any other
Person (all and each of which demands, defenses, advertisements and notices are
hereby waived), may in such circumstances forthwith collect, receive,
appropriate and realize upon the Collateral, or any part thereof, and/or may
forthwith sell, lease, assign, give option or options to purchase, or otherwise
dispose of and deliver the Collateral or any part thereof (or contract to do
any of the foregoing), in one or more parcels at public or private sale or
sales, at any exchange, broker’s board or office of the Collateral Agent or any
other Secured Party or elsewhere upon such terms and conditions as it may deem
advisable and at such prices as it may deem best, for cash or on credit or for
future delivery without assumption of any credit risk. The Collateral Agent and
any other Secured Party shall have the right upon any such public sale or
sales, and, to the extent permitted by law, upon any such private sale or
sales, to purchase the whole or any part of the Collateral so sold, free of any
right or equity of redemption in any Grantor, which right or equity is hereby
waived and released. Each Grantor further agrees, at the Collateral Agent’s
request, to assemble the Collateral and make it available to the Collateral
Agent at places which the Collateral Agent shall reasonably select, whether at
such Grantor’s premises or elsewhere. The Collateral Agent shall apply the net
proceeds of any action taken by it pursuant to this Section 5.1,
after deducting all reasonable costs and expenses of every kind incurred in
connection therewith or incidental to the care or safekeeping of any of the
Collateral or in any way relating to the Collateral or the rights of the
Collateral Agent and any other Secured Party hereunder, including reasonable
attorneys’ fees and disbursements, to the payment in whole or in part of the
Secured Obligations, in such order as the Credit Agreement shall prescribe, and
only after such application and after the payment by the Collateral Agent of
any other amount required by any provision of law, including Section 9-610
of the UCC, need the Collateral Agent account for the surplus, if any, to any
Grantor. To the extent permitted by applicable law, each Grantor waives all
claims, damages and demands it may acquire against the Collateral Agent or any
other Secured Party arising out of the exercise by them of any rights
hereunder. If any notice of a proposed sale or other disposition of Collateral
shall be required by law, each Grantor hereby acknowledges and agrees that such
notice shall be deemed reasonable and proper if given at least 10 days before
such sale or other disposition.

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Section 5.2             Accounts and Payments in Respect
of General Intangibles.

(a)           If required by the Collateral Agent
at any time upon the occurrence and during the continuance of an Event of
Default, any payments of Accounts or payments in respect of General
Intangibles, when collected by any Grantor, shall be forthwith (and, in any
event, within two Business Days) deposited by such Grantor in the exact form
received, duly indorsed by such Grantor to the Collateral Agent if required, in
a Cash Collateral Account maintained under the sole dominion and control of the
Collateral Agent, subject to withdrawal by the Collateral Agent as provided in Section 5.4.
Until so turned over, such payments shall be held by such Grantor in trust for
the Collateral Agent, segregated from other funds of such Grantor. Each such
deposit of Proceeds of Accounts and payments in respect of General Intangibles
shall be accompanied by a report identifying in reasonable detail the nature
and source of the payments included in the deposit.

(b)           At the Collateral Agent’s request,
upon the occurrence and during the continuance of an Event of Default, each
Grantor shall deliver to the Collateral Agent all original and other documents
evidencing, and relating to, the agreements and transactions which gave rise to
the Accounts or payments in respect of General Intangibles, including all
original orders, invoices and shipping receipts.

(c)           The Collateral Agent may, without
notice, at any time upon the occurrence and during the continuance of an Event
of Default, limit or terminate the authority of a Grantor to collect its
Accounts or amounts due under General Intangibles or any thereof.

(d)           The Collateral Agent in its own name
or in the name of others may at any time upon the occurrence and during the
continuance of an Event of Default communicate with Account Debtors to verify
with them to the Collateral Agent’s satisfaction the existence, amount and
terms of any Accounts or amounts due under any General Intangibles.

(e)           Upon the request of the Collateral
Agent at any time upon the occurrence and during the continuance of an Event of
Default, each Grantor shall notify Account Debtors that the Accounts or
payments in respect of General Intangibles have been collaterally assigned to
the Collateral Agent and that payments in respect thereof shall be made
directly to the Collateral Agent. In addition, the Collateral Agent may at any
time upon the occurrence and during the continuance of an Event of Default so
enforce such Grantor’s rights against Account Debtors and obligors of General
Intangibles.

(f)            Anything herein to the contrary
notwithstanding, each Grantor shall remain liable under each of the Accounts
and payments in respect of General Intangibles to observe and perform all the
conditions and obligations to be observed and performed by it thereunder, all
in accordance with the terms of any agreement giving rise thereto. Neither the
Collateral Agent nor any other Secured Party shall have any obligation or
liability under any 

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agreement giving rise to an Account
or a payment in respect of a General Intangible by reason of or arising out of
this Agreement or the receipt by Collateral Agent nor any other Secured Party
of any payment relating thereto, nor shall Collateral Agent nor any other
Secured Party be obligated in any manner to perform any of the obligations of
any Grantor under or pursuant to any agreement giving rise to an Account or a
payment in respect of a General Intangible, to make any payment, to make any
inquiry as to the nature or the sufficiency of any payment received by it or as
to the sufficiency of any performance by any party thereunder, to present or
file any claim, to take any action to enforce any performance or to collect the
payment of any amounts which may have been assigned to it or to which it may be
entitled at any time or times.

Section 5.3             Pledged Collateral.

(a)           Upon the occurrence and during the
continuance of an Event of Default, upon notice by the Collateral Agent to the
relevant Grantor or Grantors, (i) the Collateral Agent shall have the
right to receive any and all cash dividends, payments or other Proceeds paid in
respect of the Pledged Collateral and make application thereof to the
Obligations in the order set forth in the Credit Agreement, and (ii) the
Collateral Agent or its nominee may exercise (A) all voting, consent,
corporate, partnership or limited liability company and other rights pertaining
to the Pledged Collateral at any meeting of shareholders, partners or members,
as the case may be, of the relevant issuer or issuers of Pledged Collateral or
otherwise and (B) any and all rights of conversion, exchange and
subscription and any other rights, privileges or options pertaining to the
Pledged Collateral as if it were the absolute owner thereof (including the
right to exchange at its discretion any and all of the Pledged Collateral upon
the merger, consolidation, reorganization, recapitalization or other
fundamental change in the corporate structure of any issuer of Pledged
Securities, the right to deposit and deliver any and all of the Pledged
Collateral with any committee, depositary, transfer agent, registrar or other
designated agency upon such terms and conditions as the Collateral Agent may
determine), all without liability except to account for property actually
received by it; provided, however, that the Collateral Agent shall have no duty
to any Grantor to exercise any such right, privilege or option and shall not be
responsible for any failure to do so or delay in so doing.

(b)           In order to permit the Collateral
Agent to exercise the voting and other consensual rights which it may be
entitled to exercise pursuant hereto and to receive all dividends and other
distributions which it may be entitled to receive hereunder, (i) each
Grantor shall promptly execute and deliver (or cause to be executed and
delivered) to the Collateral Agent all such proxies, dividend payment orders
and other instruments as the Collateral Agent may from time to time reasonably
request and (ii) without limiting the effect of clause (i) above,
such Grantor hereby grants to the Collateral Agent an irrevocable proxy to vote
all or any part of the Pledged Collateral and to exercise all other rights,
powers, privileges and remedies to which a holder of the Pledged Collateral
would be entitled (including giving or withholding written consents of
shareholders, partners or members, as the case may be, calling special meetings
of shareholders, partners or members, as the case may be, and voting at such
meetings), which proxy shall be effective, automatically and without the
necessity of any action (including any transfer of any Pledged Collateral on
the record books of the issuer thereof) by any other person 

 25
 

 

 

(including the issuer of such Pledged
Collateral or any officer or agent thereof) upon the occurrence and during the
continuance of an Event of Default and which proxy shall only terminate upon
the payment in full of the Secured Obligations.

(c)           Each Grantor hereby expressly
authorizes and instructs each issuer of any Pledged Collateral pledged
hereunder by such Grantor to (i) comply with any instruction received by
it from the Collateral Agent in writing that (A) states that an Event of
Default has occurred and is continuing and (B) is otherwise in accordance
with the terms of this Agreement, without any other or further instructions
from such Grantor, and each Grantor agrees that such issuer shall be fully
protected in so complying and (ii) unless otherwise expressly permitted
hereby, pay any dividends or other payments with respect to the Pledged
Collateral directly to the Collateral Agent for deposit in a Cash Collateral
Account or, with the consent of the Collateral Agent, an Eligible Deposit
Account.

Section 5.4             Proceeds to be Turned Over to
Collateral Agent. All Proceeds received by the Collateral Agent hereunder
shall be held by the Collateral Agent in a Cash Collateral Account maintained
under its sole dominion and control. All Proceeds while held by the Collateral
Agent in a Cash Collateral Account (or by such Grantor in trust for the
Collateral Agent) shall continue to be held as collateral security for the
Secured Obligations and shall not constitute payment thereof until applied as
provided in the Credit Agreement.

Section 5.5             Registration Rights.

(a)           If the Collateral Agent shall
determine to exercise its right to sell any or all of the Pledged Equity
Collateral pursuant to Section 5.1, and if in the opinion of the
Collateral Agent it is necessary or advisable to have the Pledged Equity
Collateral, or any portion thereof to be registered under the provisions of the
Securities Act, the relevant Grantor will cause the issuer thereof to (i) execute
and deliver, and cause the directors and officers of such issuer to execute and
deliver, all such instruments and documents, and do or cause to be done all
such other acts as may be, in the opinion of the Collateral Agent, necessary or
advisable to register the Pledged Equity Collateral, or that portion thereof to
be sold, under the provisions of the Securities Act, (ii) use its best
efforts to cause the registration statement relating thereto to become
effective and to remain effective for a period of one year from the date of the
first public offering of the Pledged Equity Collateral, or that portion thereof
to be sold and (iii) make all amendments thereto and/or to the related
prospectus which, in the opinion of the Collateral Agent, are necessary or
advisable, all in conformity with the requirements of the Securities Act and
the rules and regulations of the SEC applicable thereto. Each Grantor
agrees to cause such issuer to comply with the provisions of the securities or “Blue
Sky” laws or other comparable law of any jurisdiction which the Collateral
Agent shall designate and to make available to its security holders, as soon as
practicable, an earnings statement (which need not be audited) which will
satisfy the provisions of Section 11(a) of the Securities Act.

(b)           Each Grantor recognizes that the
Collateral Agent may be unable to effect a public sale of any or all the
Pledged Equity Collateral by reason of certain prohibitions 

 26
 

 

 

contained in the
Securities Act and applicable state securities laws or otherwise or may
determine that a public sale is impracticable or not commercially reasonable
and, accordingly, may resort to one or more private sales thereof to a
restricted group of purchasers which will be obliged to agree, among other
things, to acquire such securities for their own account for investment and not
with a view to the distribution or resale thereof. Each Grantor acknowledges
and agrees that any such private sale may result in prices and other terms less
favorable than if such sale were a public sale and, notwithstanding such
circumstances, agrees that any such private sale shall be deemed to have been
made in a commercially reasonable manner. The Collateral Agent shall be under
no obligation to delay a sale of any of the Pledged Equity Collateral for the
period of time necessary to permit the issuer thereof to register such
securities for public sale under the Securities Act, or under applicable state
securities laws, even if such issuer would agree to do so.

(c)           Each Grantor agrees to use its best
efforts to do or cause to be done all such other acts as may be necessary to
make such sale or sales of all or any portion of the Pledged Collateral
pursuant to this Section 5.5 valid and binding and in compliance
with any and all other applicable Requirements of Law. Each Grantor further
agrees that a breach of any of the covenants contained in this Section 5.5
will cause irreparable injury to the Collateral Agent and other Secured
Parties, that the Collateral Agent and the other Secured Parties have no
adequate remedy at law in respect of such breach and, as a consequence, that
each and every covenant contained in this Section 5.5 shall be
specifically enforceable against such Grantor, and such Grantor hereby waives
and agrees not to assert any defenses against an action for specific
performance of such covenants except for a defense that no Event of Default has
occurred under the Credit Agreement.

Section 5.6             Deficiency. Each Grantor
shall remain liable for any deficiency if the proceeds of any sale or other
disposition of the Collateral are insufficient to pay its Secured Obligations
and the fees and disbursements of any attorneys employed by the Collateral
Agent or any other Secured Party to collect such deficiency.

Section 5.7             Grant of Intellectual Property
License. If an Event of Default shall occur and be continuing, and for so
long as such Event of Default is continuing, each Grantor hereby grants to
Collateral Agent an irrevocable, non-exclusive, fully paid-up, worldwide
license or (for third party rights) sublicense, to use, license or sublicense
any of the Intellectual Property now or hereafter owned, licensed in (to the
fullest extent permitted by such license), held for use or acquired by such
Grantor (and subject to the applicable terms and conditions governing such
Grantor’s rights in and to such Intellectual Property at the time of the Event
of Default), for the purpose of enabling the Collateral Agent to exercise
rights and remedies under Article V hereof at such time as it shall
be lawfully entitled to exercise such rights and remedies, and for no other
purpose; subject to (i) the maintenance of quality control standards with
respect to all goods and services sold under any licensed Trademarks
substantially consistent with those in effect immediately prior to the Event of
Default in order to maintain the validity and enforceability of such Trademarks
and (ii) exclusive licenses granted by such Grantor prior to the Event of
Default to the extent such licenses conflict at the time of the Event of
Default with the granting of other licenses in and to the same Intellectual
Property. Such license or sublicense to the Collateral Agent shall include
access to all media in which any of the 

 27
 

 

 

applicable Intellectual
Property may be recorded, processed or stored and all computer programs related
thereto.

ARTICLE VI

THE COLLATERAL AGENT

Section 6.1             Collateral Agent’s Appointment
as Attorney-In-Fact.

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

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

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

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

 28
 

 

 

(iv)  execute, in
connection with any sale provided for in Section 5.1 or Section 5.5,
any endorsements, assignments or other instruments of conveyance or transfer
with respect to the Collateral; and

(v)   (A) direct
any party liable for any payment under any of the Collateral to make payment of
any and all moneys due or to become due thereunder directly to the Collateral
Agent or as the Collateral Agent shall direct; (B) ask or demand for,
collect, and receive payment of and receipt for, any and all moneys, claims and
other amounts due or to become due at any time in respect of or arising out of
any Collateral; (C) sign and indorse any invoices, freight or express
bills, bills of lading, storage or warehouse receipts, drafts against debtors,
assignments, verifications, notices and other documents in connection with any
of the Collateral; (D) commence and prosecute any suits, actions or
proceedings at law or in equity in any court of competent jurisdiction to
collect the Collateral or any portion thereof and to enforce any other right in
respect of any Collateral; (E) defend any suit, action or proceeding
brought against such Grantor with respect to any Collateral; (F) settle,
compromise or adjust any such suit, action or proceeding and, in connection
therewith, give such discharges or releases as the Collateral Agent may deem
appropriate; (G) assign any Copyright, Patent or Trademark (along with the
goodwill of the business to which any such Trademark pertains), throughout the
world for such term or terms, on such conditions, and in such manner, as the
Collateral Agent shall in its sole discretion determine, including, without
limitation, the execution and filing of any documents necessary to effectuate
and/or record such assignment; and (H) generally, sell, transfer, pledge
and make any agreement with respect to or otherwise deal with any of the
Collateral as fully and completely as though the Collateral Agent were the
absolute owner thereof for all purposes, and do, at the Collateral Agent’s
option and such Grantor’s expense, at any time, or from time to time, all acts
and things which the Collateral Agent deems necessary or advisable to protect,
preserve or realize upon the Collateral and the Collateral Agent’s and the
other Secured Parties’ security interests therein and to effect the intent of
this Agreement, all as fully and effectively as such Grantor might do.

(vi)  Anything in this Section 6.1(a) to
the contrary notwithstanding, the Collateral Agent agrees that it will not
exercise any rights under the power of attorney provided for in this Section 6.1(a) unless
an Event of Default shall be continuing.

(b)           If any Grantor fails to perform or
comply with any of its agreements contained herein, the Collateral Agent, at
its option, but without any obligation so to do, upon the occurrence and during
the continuance of an Event of Default may perform or comply, or otherwise
cause performance or compliance, with such agreement and shall notify such
Grantor of any such performance or compliance.

 29
 

 

 

(c)           The expenses of the Collateral Agent
incurred in connection with actions undertaken as provided in this Section 6.1,
together with interest thereon at a rate per annum equal to the Base Rate plus
2.0%, from the date of payment by the Collateral Agent to the date reimbursed
by the relevant Grantor, shall be payable by such Grantor to the Collateral
Agent on demand.

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

Section 6.2             Duty of Collateral Agent. The
Collateral Agent’s sole duty with respect to the custody, safekeeping and
physical preservation of the Collateral in its possession shall be to deal with
it in the same manner as the Collateral Agent deals with similar property for
its own account. Neither the Collateral Agent, any other Secured Party nor any
of their respective officers, directors, employees or agents shall be liable
for failure to demand, collect or realize upon any of the Collateral or for any
delay in doing so or shall be under any obligation to sell or otherwise dispose
of any Collateral upon the request of any Grantor or any other Person or to
take any other action whatsoever with regard to the Collateral or any part
thereof. The powers conferred on the Collateral Agent hereunder are solely to
protect the Collateral Agent’s interest in the Collateral and shall not impose
any duty upon the Collateral Agent or any other Secured Party to exercise any
such powers. The Collateral Agent and the other Secured Parties shall be
accountable only for amounts that they actually receive as a result of the
exercise of such powers, and neither they nor any of their officers, directors,
employees or agents shall be responsible to any Grantor for any act or failure
to act hereunder, except for their own gross negligence or willful misconduct.

Section 6.3             Authority to File Financing
Statements. Each Grantor authorizes the Collateral Agent or its
representatives to file or record financing statements (including continuation
statements in respect thereof and any financing statement containing a
description of the Collateral granted hereunder as “all assets” or “all
personal property” in each case whether now owed or hereafter acquired) and
other filing or recording documents or instruments with respect to the
Collateral without the signature of such Grantor in such form and in such
offices as the Collateral Agent reasonably determines appropriate to perfect
the security interests of the Collateral Agent under this Agreement. A
photographic or other reproduction of this Agreement shall be sufficient as a
financing statement or other filing or recording document or instrument for
filing or recording in any jurisdiction.

Section 6.4             Authority of Collateral Agent.
Each Grantor acknowledges that the rights and responsibilities of the
Collateral Agent under this Agreement with respect to any action taken by the
Collateral Agent or the exercise or non-exercise by the Collateral Agent of any
option, voting right, request, judgment or other right or remedy provided for
herein or resulting or arising out of this Agreement shall, as between the
Collateral Agent and the other Secured Parties, be governed by the Credit
Agreement and by such other agreements with respect thereto as may exist from
time to time among them, but, as between the Collateral Agent and the Grantors,
the Collateral Agent shall be conclusively presumed to be acting as agent for 

 30
 

 

 

the Collateral Agent and
the other Secured Parties with full and valid authority so to act or refrain
from acting, and no Grantor shall be under any obligation, or entitlement, to
make any inquiry respecting such authority.

ARTICLE VII

MISCELLANEOUS

Section 7.1             Amendments in Writing. Other
than in connection with the execution and delivery of a Joinder Agreement
relating to the addition of Grantors, none of the terms or provisions of this
Agreement may be waived, amended, supplemented or otherwise modified except in
accordance with Section 9.1 of the Credit Agreement.

Section 7.2             Notices. All notices,
requests and demands to or upon the Collateral Agent or any Grantor hereunder
shall be effected in the manner provided for in Section 9.8 of the
Credit Agreement; provided, however, that any such notice, request or demand to
or upon any Grantor other than the Borrower shall be addressed to such Grantor
care in care of the Borrower at the Borrower’s notice address set forth in such
Section 9.8.

Section 7.3             No Waiver by Course of Conduct;
Cumulative Remedies. Neither the Collateral Agent nor any other Secured
Party shall by any act (except by a written instrument pursuant to Section 7.1),
delay, indulgence, omission or otherwise be deemed to have waived any right or
remedy hereunder or to have acquiesced in any Default or Event of Default. No
failure to exercise, nor any delay in exercising, on the part of the Collateral
Agent or any other Secured Party, any right, power or privilege hereunder shall
operate as a waiver thereof. No single or partial exercise of any right, power
or privilege hereunder shall preclude any other or further exercise thereof or
the exercise of any other right, power or privilege. A waiver by the Collateral
Agent or any other Secured Party of any right or remedy hereunder on any one
occasion shall not be construed as a bar to any right or remedy which the
Collateral Agent or such other Secured Party would otherwise have on any future
occasion. The rights and remedies herein provided are cumulative, may be
exercised singly or concurrently and are not exclusive of any other rights or
remedies provided by law.

Section 7.4             Successors and Assigns. This
Agreement shall be binding upon the successors and assigns of each Grantor and
shall inure to the benefit of the Collateral Agent and each other Secured Party
and their successors and assigns; provided, however, that no Grantor may
assign, transfer or delegate any of its rights or obligations under this
Agreement without the prior written consent of the Collateral Agent.

Section 7.5             Counterparts. This Agreement
may be executed by one or more of the parties to this Agreement on any number
of separate counterparts (including by telecopy), and all of said counterparts
taken together shall be deemed to constitute one and the same agreement.
Signature pages may be detached from multiple separate counterparts and
attached to a single counterpart so that all signature pages are attached
to the same document. Delivery of an executed signature page of this
Agreement by facsimile transmission shall be as effective as delivery of a
manually executed counterpart hereof.

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Section 7.6             Severability. Any provision
of this Agreement which is prohibited or unenforceable in any jurisdiction
shall, as to such jurisdiction, be ineffective to the extent of such
prohibition or unenforceability without invalidating the remaining provisions
hereof, and any such prohibition or unenforceability in any jurisdiction shall
not invalidate or render unenforceable such provision in any other
jurisdiction.

Section 7.7             Section Headings. The Article and
Section titles contained in this Agreement are and shall be without
substantive meaning or content of any kind whatsoever and are not part of the
agreement of the parties hereto.

Section 7.8             Entire Agreement. This
Agreement together with the other Loan Documents represents the entire
agreement of the parties and supersedes all prior agreements and understandings
relating to the subject matter hereof.

Section 7.9             Governing Law. THIS
AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HERETO, INCLUDING THE
INTERPRETATION, CONSTRUCTION, VALIDITY AND ENFORCEABILITY HEREOF, SHALL BE
GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE
STATE OF NEW YORK.

Section 7.10           Submission to Jurisdiction;
Service of Process. Each of Grantor hereby irrevocably and unconditionally:

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

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

(c)           agrees that service of process in any
such action or proceeding may be effected by mailing a copy thereof by
registered or certified mail (or any substantially similar form of mail),
postage prepaid, to any Grantor at its address specified in Section 7.2
; and

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

 32
 

 

 

Section 7.11           Waiver of Jury Trial. EACH
GRANTOR AND THE COLLATERAL AGENT IRREVOCABLY WAIVES TRIAL BY JURY IN ANY ACTION
OR PROCEEDING WITH RESPECT TO THIS AGREEMENT.

Section 7.12           Additional Grantors. If,
pursuant to Section 5.9(c) of the Credit Agreement, Holdings
or the Borrower shall be required to cause any Subsidiary of Holdings or the
Borrower that is not a Grantor to become a Grantor hereunder, such Subsidiary
shall execute and deliver to the Collateral Agent a Joinder Agreement and shall
thereafter for all purposes be a party hereto and have the same rights,
benefits and obligations as a Grantor party hereto on the Closing Date.

Section 7.13           Release of Collateral.

(a)           At the time provided in Section 8.7(b)(i)
of the Credit Agreement, the Collateral shall be released from the Lien created
hereby and this Agreement and all obligations (other than those expressly
stated to survive such termination) of the Collateral Agent and each Grantor
hereunder shall terminate, all without delivery of any instrument or
performance of any act by any party, and all rights to the Collateral shall revert
to the applicable Grantor. At the request and sole expense of any Grantor
following any such termination, the Collateral Agent shall promptly deliver to
such Grantor any Collateral of such Grantor held by the Collateral Agent
hereunder and execute and deliver to such Grantor such documents as such
Grantor shall reasonably request to evidence such termination.

(b)           If any of the Collateral shall be
sold or disposed of by any Grantor in a transaction permitted by the Credit
Agreement or if any Collateral is otherwise permitted to be released pursuant
to Section 8.7(b) of the Credit Agreement, the Collateral so sold
or disposed of shall be released from the Lien created hereby to the extent
provided in Section 8.7(b)(ii) or (iii) of the Credit
Agreement and, in connection therewith, the Collateral Agent, at the request
and sole expense of the Borrower, shall promptly execute and deliver to the
Borrower all releases or other documents reasonably necessary or desirable for
the release of the Lien created hereby on such Collateral. At the request and
sole expense of the Borrower, a Grantor shall be released from its obligations
hereunder in the event that all the capital stock of such Grantor shall be so
sold or disposed to a Person other than an Included Subsidiary in a transaction
permitted by Article VI of the Credit Agreement; provided, however, that
the Borrower shall have delivered to the Collateral Agent, at least five
Business Days prior to the date of the proposed release, a written request for
release identifying the relevant Grantor and the terms of the sale or other
disposition in reasonable detail, including the price thereof and any expenses
in connection therewith, together with a certification by a Responsible Officer
of the Borrower stating that such transaction is in compliance with the Credit
Agreement and the other Loan Documents.

Section 7.14           Reinstatement. Each Grantor
further agrees that, if any payment made by any Loan Party or other Person and
applied to the Obligations is at any time annulled, avoided, set aside,
rescinded, invalidated, declared to be fraudulent or preferential or otherwise
required to be refunded or repaid, or the proceeds of Collateral are required
to be returned by any Secured Party to such Loan Party, its estate, trustee,
receiver or any other party, including any 

 33
 

 

 

Grantor, under any
bankruptcy law, state or federal law, common law or equitable cause, then, to
the extent of such payment or repayment, any Lien or other Collateral securing
such liability shall be and remain in full force and effect, as fully as if
such payment had never been made or, if prior thereto the Lien granted hereby
or other Collateral securing such liability hereunder shall have been released
or terminated by virtue of such cancellation or surrender), such Lien or other
Collateral shall be reinstated in full force and effect, and such prior
cancellation or surrender shall not diminish, release, discharge, impair or
otherwise affect any Lien or other Collateral securing the obligations of any
Grantor in respect of the amount of such payment.

Section 7.15           Enforcement of Liens on Collateral
Located in Spain. With respect to the security interest granted by MFH in
the participations in Merisant Spain listed on Schedule 2 (the “Participations”)
under this Agreement, it is agreed by the Grantors and the Collateral Agent
that in addition to all other rights and remedies granted to the Collateral
Agent in this Agreement, the Collateral Agent may, upon the execution of the
Deed of Pledge and the registry of the lien on the records of Merisant Spain,
enforce its Lien on the Participations via notarial foreclosure in Spain.
Further, the Grantors agree, and MFH shall instruct Merisant Spain, that none
of the Grantors or Merisant Spain shall object to the Collateral Agent
enforcing its Lien on the Participations via notarial foreclosure in Spain. In
the event the Collateral Agent enforces its Lien on the Participations via
notarial foreclosure in Spain, the Collateral Agent may, but need not, present
this Agreement to a notary or other public official to the extent necessary to
enforce the Lien on the Participations.

Section 7.16           Intercreditor Agreement. Notwithstanding
anything herein to the contrary, the lien and security interest granted to
Wells Fargo Bank, National Association (“WF”), as Collateral Agent,
pursuant to this Agreement and the exercise of any right or remedy by WF in its
capacity as collateral agent hereunder are subject to the provisions of the
Intercreditor Agreement, dated as of June 23, 2006 (as amended, restated,
supplemented or otherwise modified from time to time, the “Intercreditor
Agreement”), among Credit Suisse, Cayman Islands Branch, as First Lien
Agent, WF, as Second Lien Agent, and Merisant Company, a Delaware corporation,
Merisant Worldwide, Inc., a Delaware corporation, Merisant US, Inc.,
a Delaware corporation, Merisant Foreign Holdings I, Inc., a Delaware
corporation, and Whole Earth Sweetener Company, LLC, a Delaware limited
liability company. In the event of any conflict between the terms of the
Intercreditor Agreement and this Agreement, the terms of the Intercreditor Agreement
shall govern and control.

 

 34

 

 

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

	
   

  	
   

  	
   

  	
  MERISANT COMPANY,

  
	
   

  	
   

  	
   

  	
   

  	
  a Delaware corporation

  
	
   

  	
   

  	
   

  	
  MERISANT WORLDWIDE, INC.,

  
	
   

  	
   

  	
   

  	
   

  	
  a Delaware corporation

  
	
   

  	
   

  	
   

  	
  MERISANT FOREIGN HOLDINGS I, INC.

  
	
   

  	
   

  	
   

  	
   

  	
  a Delaware corporation

  
	
   

  	
   

  	
   

  	
  MERISANT US, INC.,

  
	
   

  	
   

  	
   

  	
   

  	
  a Delaware corporation

  
	
   

  	
   

  	
   

  	
  WHOLE EARTH SWEETENER COMPANY LLC,

  
	
   

  	
   

  	
   

  	
   

  	
  a Delaware limited liability company

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Anthony J. Nocchiero

  
	
   

  	
   

  	
   

  	
   

  	
  Name: Anthony J. Nocchiero

  
	
   

  	
   

  	
   

  	
   

  	
  Title: Chief Financial Officer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ACCEPTED AND AGREED:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  WELLS FARGO BANK,

  	
   

  	
   

  	
   

  
	
  NATIONAL ASSOCIATION,

  	
   

  	
   

  	
   

  
	
  as Collateral Agent

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Jeffery Rose

  	
   

  	
   

  	
   

  
	
   

  	
  Name: Jeffery Rose

  	
   

  	
   

  	
   

  
	
   

  	
  Title: Vice President

  	
   

  	
   

  	
   

  

 

 

 

Annex 8

to Security Agreement

ACKNOWLEDGMENT AND CONSENT

Reference is made to that
certain Security Agreement (the “Security
Agreement”), dated June 23, 2006, made by the
Grantors party thereto for the benefit of Wells Fargo Bank, National Association,
as Collateral Agent. Capitalized terms used herein but not defined herein have
the meanings given them in the Security Agreement.

The undersigned hereby
acknowledges receipt of a copy of the Security Agreement and agrees for the
benefit of the Collateral Agent and the Lenders as follows:

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

2.             The undersigned will notify the Collateral Agent
promptly in writing of the occurrence of any of the events described in Section 4.4
of the Security Agreement and will comply promptly with any requirements
thereof.

3.             The terms of Sections 5.3(c) and 5.5
of the Security Agreement shall apply to the undersigned, mutatis mutandis,
with respect to all actions that may be required pursuant to Section 5.3(c) or
5.5 of the Security Agreement.

	
   

  	
  MERISANT SPAIN, S.L.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
  10 South Riverside Plaza, Suite 850

  
	
   

  	
  Chicago, IL 60606

  
	
   

  	
  Fax: (312) 840-5440Exhibit 10.3

EXECUTION  COPY

INTERCREDITOR AGREEMENT

This INTERCREDITOR
AGREEMENT, is dated as of June 23, 2006, and entered into by and among Merisant
Company, a Delaware corporation (the “Company”), Merisant Worldwide,
Inc., a Delaware corporation (“Holdings”), as a Guarantor, the
Subsidiary Grantors (as defined in Section 1 below) party hereto, CREDIT
SUISSE, Cayman Islands Branch (“CS”), in its capacity as administrative
agent (together with its successors and assigns from time to time, the “First
Lien Agent”) for the First Lien Claimholders, and Wells Fargo Bank,
National Association (“Wells Fargo”) in its capacity as collateral agent
(together with its successors and assigns from time to time, the “Second
Lien Collateral Agent”) for the Second Lien Claimholders.  Capitalized terms used herein but not
otherwise defined herein have the meanings set forth in Section 1 below.

RECITALS

WHEREAS, Holdings, the
Company, the lenders party thereto, CS, as administrative agent and sole
arranger, and other agents as therein named have entered into that Credit
Agreement, dated as of July 11, 2003, as amended by the First Amendment
dated as of July 2, 2004, the Second Amendment dated as of October 20,
2004, the Third Amendment dated as of March 11, 2005, the Limited Waiver
and Fourth Amendment dated as of March 29, 2006, and the Fifth Amendment
dated as of the date hereof (as may be further amended, restated, supplemented,
modified or Refinanced from time to time, the “First Lien Credit Agreement”);

WHEREAS, Holdings, the
Company, the lenders party thereto, Credit Suisse Securities (USA) LLC (“CS
Securities”), as syndication agent and documentation agent, CS Securities
and Jefferies & Company, Inc., as joint-lead arrangers, CS, as
administrative agent, and Wells Fargo, as collateral agent and administrative
agent, have entered into that Second Lien Credit Agreement, dated as of the
date hereof (as amended, restated, supplemented, modified or Refinanced from
time to time, the “Second Lien Credit Agreement”);

WHEREAS, the obligations
of the Company, the Subsidiary Grantors and Holdings under the First Lien
Credit Agreement and the other First Lien Credit Documents (including
obligations under any Hedging Contract (as defined in the First Lien Credit
Agreement)) with any Lender or Affiliate of a Lender (each as defined in the
First Lien Credit Agreement) will be secured by substantially all the assets of
Holdings, the Company, the Subsidiary Grantors and their future Subsidiaries
(other than Excluded Foreign Subsidiaries as defined in the First Lien Credit
Agreement) pursuant to the terms of the First Lien Collateral Documents;

WHEREAS, the obligations
of the Company, the Subsidiary Grantors and Holdings under the Second Lien
Credit Agreement and the other Second Lien Credit Documents will be secured by
substantially all the assets of Holdings, the Company, the Subsidiary Grantors
and their future Subsidiaries (other than Excluded Foreign Subsidiaries as
defined in the Second Lien Credit Agreement) pursuant to the terms of the
Second Lien Collateral Documents; 

WHEREAS, the First Lien
Credit Documents and the Second Lien Credit Documents provide, among other
things, that the parties thereto shall set forth in this Agreement their
respective rights and remedies with respect to the Collateral; and

WHEREAS, in order to
induce the First Lien Claimholders to consent to the Grantors incurring the
Second Lien Obligations and to induce the First Lien Claimholders to extend
credit and other financial accommodations and lend monies to or for the benefit
of the Company, the Second Lien Agent on behalf

of the Second Lien Claimholders has agreed to the
subordination, intercreditor and other provisions set forth in this Agreement.

NOW, THEREFORE, in
consideration of the foregoing, the mutual covenants and obligations herein set
forth and for other good and valuable consideration, the sufficiency and
receipt of which are hereby acknowledged, the parties hereto, intending to be
legally bound, hereby agree as follows:

Section 1.   Definitions.

1.1   Defined
Terms.  As used in the Agreement, the
following terms shall have the following meanings:

“Affiliate” of any
Person means any other Person which, directly or indirectly, controls, is
controlled by or is under common control with such Person.  “Control” of a Person means the power,
directly or indirectly, (a) to vote 10% or more of the Capital Securities (on a
fully diluted basis) of such Person having ordinary voting power for the
election of directors, managing members or general partners (or persons
performing similar functions) or (b) to direct or cause the direction of the
management and policies of such Person (whether by contract or otherwise).

“Agreement” means
this Agreement, as amended, renewed, extended, supplemented or otherwise
modified from time to time in accordance with the terms hereof.

"Approved
Interest" means (a) the aggregate amount of pre-petition or
Post-Petition Interest under the First Lien Credit Agreement pursuant to an
agreement of the parties thereto capitalized at a rate per year not to exceed
the interest rate allowed to be capitalized under Section 5.3(c) (vii), and (b)
without duplication, the aggregate amount of interest on Obligations as defined
in the First Lien Credit Agreement required by a final order of a bankruptcy
court to be capitalized rather than paid in cash.

“Bankruptcy Code”
means Title 11 of the United States Code entitled “Bankruptcy”, as now and
hereafter in effect, or any successor statute.

“Bankruptcy Law”
means the Bankruptcy Code and any similar federal, state or foreign law for the
relief of debtors.

“Business Day”
means any day which is neither a Saturday or Sunday nor a legal holiday on
which banks are authorized or required to be closed in New York, New York.

“Capital Securities”
means, with respect to any Person, all shares, interests, participations or
other equivalents (however designated, whether voting or non-voting) of such
Person’s capital, whether now outstanding or issued after the date hereof,
including common shares, preferred shares, membership interests in a limited
liability company, limited or general partnership interests in a partnership or
any other equivalent of such ownership interest.

“Collateral” means
all of the assets and property of any Grantor, whether real, personal or mixed,
constituting (or required by this Agreement to constitute) both First Lien
Collateral and Second Lien Collateral.

“Company” has the
meaning set forth in the preamble. 

 2
 

“Comparable Second
Lien Collateral Document” means, in relation to any Collateral subject to
any Lien created under any First Lien Collateral Document, that Second Lien
Credit Document which creates a Lien on the same Collateral, granted by the
same Grantor.

“Credit Exposure”
under a First Lien Hedging Contract as of any time means the marked-to-market
dollar amount of credit exposure of the First Lien Claimholder that is a party
to such First Lien Hedging Contract and fees, expenses and other amounts owed
to such First Lien Claimholder pursuant thereto as determined by such First
Lien Claimholder and specified in a writing delivered to the First Lien Agent.

“DIP Financing”
has the meaning set forth in Section 6.1.

“Discharge of First
Lien Obligations” means (a) payment in full in cash of the principal of and
interest (including interest that constitutes Post-Petition Interest, whether
or not such interest would be allowed in such Insolvency or Liquidation
Proceeding) and premium, if any, on all Indebtedness (including all
reimbursement obligations in respect of letters of credit) outstanding under
the First Lien Credit Documents, (b) payment in full in cash of all other First
Lien Obligations (including reimbursement obligations in respect of letters of
credit), other than indemnification or reimbursement obligations for which no
claim or demand for payment has been made, (c) termination or cash
collateralization (in an amount and manner satisfactory to the First Lien
Agent) of all letters of credit issued by any First Lien Claimholders pursuant
to the First Lien Credit Agreement provided that the amount of required
cash collateral shall not exceed 105% of the aggregate undrawn amount of
outstanding letters of credit, (d) payment of the Credit Exposure of the First
Lien Claimholders under all First Lien Hedging Contracts, and (e) termination
of all commitments of the First Lien Claimholders under the First Lien Credit
Documents, other than, in the case of each of the preceding clauses (a) through
(e), any such payment or termination in connection with a Refinancing that does
not extend the First Lien Maturity Date beyond the Loan Maturity Date then in
effect under (and as defined in) the Second Lien Credit Agreement.

“First Lien Agent”
has the meaning set forth in the preamble hereof.

“First Lien
Claimholders” means, at any relevant time, the holders of First Lien
Obligations at such time, including the First Lien Lenders, the First Lien
Agent, the other agents under the First Lien Credit Agreement and First Lien
Lenders’ Affiliates that are parties to the First Lien Hedging Contracts.

“First Lien Collateral”
means all of the assets and property of any Grantor, whether real, personal or
mixed, with respect to which a Lien is granted by such Grantor as security for
any First Lien Obligations.

“First Lien Collateral
Documents” means, collectively, the Security Agreement, all Mortgages and
all other Collateral Documents (as each such term is defined in the First Lien
Credit Agreement), including any such documents or instruments executed or
delivered in connection with a Refinancing.

“First Lien Credit
Agreement” has the meaning set forth in the recitals.

“First Lien Credit
Documents” means the First Lien Credit Agreement and the Loan Documents (as
defined in the First Lien Credit Agreement, including any First Lien Hedging
Contracts) and each of the other agreements, documents and instruments
delivered at any time in connection with the foregoing, including any documents
or instruments executed or delivered in connection with a Refinancing.

 3
 

“First Lien Hedging
Contract” means any Hedging Contract to which the Company or any other Loan
Party (as defined in the First Lien Credit Agreement) and a First Lien Lender
or an Affiliate of a First Lien Lender are parties.

“First Lien Lenders”
means the “Lenders” under and as defined in the First Lien Credit Agreement.

“First Lien Loans”
shall mean Loans as defined in, and made pursuant to, the First Lien Credit
Agreement.

“First Lien Maturity
Date” shall mean the latest to occur of the Scheduled Termination Date, the
Tranche (Euro) A Term Loan Maturity Date and the Tranche B Term Loan Maturity
Date, each as defined in the First Lien Credit Agreement.

“First Lien Mortgages”
means a collective reference to each mortgage, deed of trust and any other
document or instrument under which any Lien on real property owned by any
Grantor is granted to secure any First Lien Obligations or under which rights
or remedies with respect to any such Liens are governed (including each
Mortgage as defined in the First Lien Credit Agreement).

“First Lien
Obligations” means all Obligations under the First Lien Credit Agreement
and the other First Lien Credit Documents. 
To the extent any payment with respect to the First Lien Obligations
(whether by or on behalf of any Grantor, as proceeds of security, enforcement
of any right of set off or otherwise) is declared to be fraudulent or
preferential in any respect, set aside or required to be paid or turned over to
a debtor in possession, trustee, receiver or similar Person, then the
obligation or part thereof originally intended to be satisfied shall be deemed
to be reinstated and outstanding as if such payment had not occurred.  “First Lien Obligations” shall include
all Post-Petition Interest in accordance with the rate specified in the
relevant First Lien Credit Document whether or not the claim for such interest
is allowed as a claim in such Insolvency or Liquidation Proceeding.  To the extent that any interest, fees,
expenses or other charges (including, without limitation, Post-Petition
Interest) to be paid pursuant to the First Lien Credit Documents are disallowed
by order of any court, including, without limitation, by order of a Bankruptcy
Court in any Insolvency or Liquidation Proceeding, such interest, fees,
expenses and charges (including, without limitation, Post-Petition Interest)
shall, as between the First Lien Claimholders and the Second Lien Claimholders,
be deemed to continue to accrue and be added to the amount to be calculated as
the “First Lien Obligations”. 
Notwithstanding the preceding three sentences, if the sum of 

(i)            Indebtedness constituting principal
of First Lien Loans (exclusive, for the avoidance of doubt, of Hedging
Obligations pursuant to First Lien Hedging Contracts) (“First Lien Principal”)
plus 

(ii)           the aggregate amount which is undrawn
and available under all issued and outstanding letters of credit under the
First Lien Credit Documents together with the then aggregate amount of unpaid
and outstanding reimbursement obligations related thereto (“First Lien
Letter of Credit Obligations”)

is in excess of the
Maximum First Lien Principal Amount, then the portion of First Lien Principal
and First Lien Letter of Credit Obligations that is in excess of the Maximum
First Lien Principal Amount shall not constitute “First Lien Obligations”,
and interest and letter of credit reimbursement obligations with respect to
First Lien Principal and First Lien Letter of Credit Obligations shall
constitute “First Lien Obligations” only to the extent related to First
Lien Principal and First Lien Letter of Credit Obligations constituting “First
Lien Obligations”.  

 4
 

                                If there is a portion of the
Obligations (as defined in the First Lien Credit Agreement) that would have
been “First Lien Obligations” but for the exclusion set forth in the
preceding sentence of this definition, such portion is herein called the “First
Lien Excluded Excess Obligations”. 

“Governmental
Authority” means the government of the United States, any other nation or
any political subdivision thereof, whether state or local, and any agency, authority,
instrumentality, regulatory body, court, tribunal, grand jury, arbitrator,
central bank, bureau, department, commission or other Person exercising
executive, legislative, judicial, taxing, regulatory or administrative powers
or functions of or pertaining to government.

“Grantors” means
Holdings, the Company, the Subsidiary Grantors, each of their respective
Subsidiaries, and any other Person that may from time to time hereafter grant a
Lien to secure First Lien Obligations or Second Lien Obligations.

“Hedging Contracts”
means all Interest Rate Contracts, foreign exchange contracts, currency swap or
option agreements, forward contracts, commodity swap, purchase or option
agreements, other commodity price hedging arrangements, and all other similar
agreements or arrangements designed to alter the risks of any Person arising
from fluctuations in interest rates, currency values or commodity prices.

“Hedging Obligation”
of Holdings, the Company or any other Loan Party (as defined in the First Lien
Credit Agreement) means any obligation of any such Person pursuant to any
Hedging Contract.

“Indebtedness”
means and includes all Obligations that constitute “Indebtedness” within the
meaning of the First Lien Credit Agreement or the Second Lien Credit Agreement.

“Insolvency or
Liquidation Proceeding” means (a) any voluntary or involuntary case or
proceeding under the Bankruptcy Code with respect to any Grantor, (b) any other
voluntary or involuntary insolvency, reorganization or bankruptcy case or
proceeding, or any receivership, liquidation, reorganization or other similar
case or proceeding with respect to any Grantor or with respect to a material
portion of its assets, (c) any liquidation, dissolution, reorganization or
winding up of any Grantor whether voluntary or involuntary and whether or not
involving insolvency or bankruptcy, or (d) any assignment for the benefit of
creditors or any other marshalling of assets and liabilities of any Grantor.

“Interest Rate
Contracts” means all interest rate swap agreements, interest rate cap
agreements, interest rate collar agreements and interest rate insurance.

“Lien” means any
security interest, mortgage, pledge, hypothecation, assignment, deposit
arrangement, encumbrance, lien (statutory or otherwise), charge against or interest
in property, or other priority or preferential arrangement of any kind or
nature whatsoever, to secure payment of a debt or performance of an obligation.

“Maximum First Lien
Principal Amount” means $175 million plus the aggregate amount of
Approved Interest, minus  any permanent reduction or elimination of any
commitment under the First Lien Credit Agreement or, without duplication, any
permanent repayment of principal of term loans made under the First Lien Credit
Agreement (other than repayment of First Lien Loans made with proceeds of loans
under the Second Lien Credit Agreement), in each case after the date of this
Agreement.  

“Obligations”
means any and all obligations with respect to the payment of (a) any principal
of or interest or premium on any Indebtedness, including any reimbursement
obligation in respect of any letter of credit, or any other liability,
including interest accruing after the filing of a petition initiating any

 5
 

proceeding under the Bankruptcy Code, (b) any fees,
indemnification obligations, expense reimbursement obligations or other
liabilities payable under the documentation governing any Indebtedness, (c) any
obligation to post cash collateral in respect of letters of credit or any other
obligations and (d) any Hedging Obligations.

“Person” means any
natural person, corporation, limited liability company, partnership, joint
venture, association, trust or unincorporated organization, Governmental
Authority or any other legal entity, whether acting in an individual, fiduciary
or other capacity.

“Pledged Collateral”
means, as the context may require, (a) any Collateral in the possession or
control of the First Lien Agent (or its agents), to the extent that possession
or control thereof is taken to perfect a Lien thereon under the Uniform
Commercial Code, including any deposit account or securities account (as such
terms are defined in the UCC) and/or (b) any other Collateral (such as motor
vehicles) with respect to which a secured party must be listed on a certificate
of title in order to perfect a Lien thereon.

“Post-Petition
Interest” means all interest accrued or accruing (or which would, absent
commencement of an Insolvency or Liquidation Proceeding, accrue) after
commencement of an Insolvency or Liquidation Proceeding.

“Recovery” has the
meaning set forth in Section 6.5 hereof.

“Refinance” means,
in respect of any Indebtedness or commitment to extend credit, to refinance,
extend, renew, defease, restructure, replace, refund or repay, or to issue
other Indebtedness, in exchange or replacement for, such Indebtedness in whole
or in part.  “Refinanced” and “Refinancing” shall have correlative meanings.

“Requisite Lenders”
has the meaning set forth in the First Lien Credit Agreement.

“Second Lien Agent”
means the Second Lien Collateral Agent as defined in the preamble hereof.

“Second Lien
Claimholders” means, at any relevant time, the holders of Second Lien
Obligations at such time, including the Second Lien Lenders, the Second Lien
Agent, and the other agents under the Second Lien Credit Agreement.

“Second Lien
Collateral” means all of the assets of any Grantor, whether real, personal
or mixed, with respect to which a Lien is granted by such Grantor as security
for any Second Lien Obligations.

“Second Lien
Collateral Documents” means, collectively, the Security Agreement, the
Mortgages and all other Collateral Documents (as each such term is defined in
the Second Lien Credit Agreement).

“Second Lien Credit
Agreement” has the meaning set forth in the recitals.

“Second Lien Credit
Documents” means the Second Lien Credit Agreement and the Loan Documents
(as defined in the Second Lien Credit Agreement) and each of the other
agreements, documents and instruments delivered at any time in connection with
the foregoing.

“Second Lien Lenders”
means the “Lenders” under and as defined in the Second Lien Credit Agreement.

 6
 

“Second Lien Mortgages”
means a collective reference to, if any, each mortgage, deed of trust and any
other document or instrument under which any Lien on real property owned by any
Grantor is granted to secure any Second Lien Obligations or under which rights
or remedies with respect to any such Liens are governed (including each
Mortgage as defined in the Second Lien Credit Agreement).

“Second Lien
Obligations” means all Obligations under the Second Lien Credit Agreement
and the other Second Lien Credit Documents. 
To the extent any payment with respect to the Second Lien Obligations
(whether by or on behalf of any Grantor, as proceeds of security, enforcement
of any right of set off or otherwise) is declared to be fraudulent or
preferential in any respect, set aside or required to be paid or turned over to
a debtor in possession, trustee, receiver or similar Person, then the
obligation or part thereof originally intended to be satisfied shall be deemed
to be reinstated and outstanding as if such payment had not occurred.  “Second Lien Obligations” shall include all
Post-Petition Interest in accordance with the rate specified in the relevant
Second Lien Credit Document whether or not the claim for such interest is
allowed as a claim in such Insolvency or Liquidation Proceeding.

“Standstill Period”
has the meaning set forth in Section 3.1(a)(i).

“Subsidiary”
means, with respect to any Person, any other Person of which more than 50% of
the outstanding Voting Securities of such other Person (irrespective of whether
at the time Capital Securities of any other class or classes of such other
Person shall or might have voting power upon the occurrence of any contingency)
is at the time directly or indirectly owned or controlled by such Person, by
such Person and one or more other Subsidiaries of such Person, or by one or
more other Subsidiaries of such Person. 
Unless the context otherwise specifically requires, the term
“Subsidiary” shall be a reference to a Subsidiary of Holdings.

“Subsidiary Grantor”
means any Subsidiary that executes a “Subsidiary Guaranty” pursuant to the
First Lien Credit Agreement and the Second Lien Credit Agreement.

“Uniform Commercial
Code” or “UCC” means the Uniform Commercial Code as from time to
time in effect in any applicable jurisdiction.

“Voting Securities”
means, with respect to any Person, Capital Securities of any class or kind
ordinarily having the power to vote for the election of directors, managers or
other voting members of the governing body of such Person.

1.2   Terms
Generally.   The definitions of terms herein shall
apply equally to the singular and plural forms of the terms defined.  Whenever the context may require, any pronoun
shall include the corresponding masculine, feminine and neuter forms.  The words “include”, “includes” and
“including” shall be deemed to be followed by the phrase “without
limitation.”  The word “will” shall be
construed to have the same meaning and effect as the word “shall”.  Unless the context requires otherwise (a) any
definition of or reference to any agreement, instrument or other document
herein shall be construed as referring to such agreement, instrument or other
document as from time to time amended, supplemented or otherwise modified, (b)
any reference herein to any Person shall be construed to include such Person’s
successors and assigns, (c) the words “herein”, “hereof” and “hereunder”, and
words of similar import, shall be construed to refer to this Agreement in its
entirety and not to any particular provision hereof, (d) all references herein
to Sections shall be construed to refer to Sections of this Agreement and (e)
the words “asset” and “property” shall be construed to have the same meaning
and effect and to refer to any and all tangible and intangible assets and
properties, including cash, securities, accounts and contract rights.

 7
 

Section 2.   Lien
Priorities.

2.1   Subordination.   Notwithstanding
the date, manner or order of grant, attachment or perfection of any Liens
securing the Second Lien Obligations granted on the Collateral or of any Liens
securing the First Lien Obligations granted on the Collateral and
notwithstanding any provision of the UCC or any applicable law or the Second
Lien Credit Documents or any defect or deficiencies in, or failure to perfect
or lapse in perfection of, the Liens securing the First Lien Obligations, or
any other circumstance whatsoever, the Second Lien Agent, on behalf of itself
and the Second Lien Claimholders, hereby agrees that:  (a) any Lien on the Collateral securing any
First Lien Obligations now or hereafter held by or on behalf of any First Lien
Claimholder, the First Lien Agent or any other agent or trustee therefor,
regardless of how acquired, whether by grant, possession, statute, operation of
law, subrogation or otherwise, shall be senior in all respects and prior to any
Lien on the Collateral securing any of the Second Lien Obligations; and (b) any
Lien on the Collateral now or hereafter held by or on behalf of any Second Lien
Claimholder, the Second Lien Agent or any other agent or trustee therefor
regardless of how acquired, whether by grant, possession, statute, operation of
law, subrogation or otherwise, shall be junior and subordinate in all respects
to all Liens on the Collateral securing any First Lien Obligations.  All Liens on the Collateral securing any
First Lien Obligations shall be and remain senior in all respects and prior to
all Liens on the Collateral securing any Second Lien Obligations for all
purposes, whether or not such Liens securing any First Lien Obligations are
subordinated to any Lien securing any other obligation of Holdings, the
Company, any other Grantor or any other Person; provided that if the
First Lien Agent voluntarily agrees to subordinate any Liens on any Collateral
securing the First Lien Obligations to any Liens securing obligations owing
from the Company, Holdings or the Subsidiary Guarantors to any third party
(other than Liens expressly permitted under Sections 6.3(vi) and 6.3(xi) of the
First Lien Credit Agreement as in effect on the date of this Agreement (a copy
of which is set forth in Schedule 2.1 to this Agreement)), then the
provisions of the foregoing clause (b) shall not be construed to effect
the subordination of the Liens on the Collateral securing the Second Lien
Obligations to such Lien to which the First Lien Agent has subordinated.

2.2   Prohibition on Contesting Claims and
Liens.   Each of the Second Lien Agent, for itself and on behalf of
each Second Lien Claimholder, and the First Lien Agent, for itself and on
behalf of each First Lien Claimholder, agrees that it shall not (and hereby waives
any right to) contest or support any other Person in contesting, in any
proceeding (including any Insolvency or Liquidation Proceeding), the validity
or enforceability of any First Lien Obligation or any Second Lien Obligation,
respectively, or the priority, validity or enforceability of a Lien held by or
on behalf of any of the First Lien Claimholders in the First Lien Collateral or
by or on behalf of any of the Second Lien Claimholders in the Second Lien
Collateral, respectively; provided that nothing in this Agreement shall be
construed to prevent or impair the rights of the First Lien Agent, the Second
Lien Agent, any First Lien Claimholder or any Second Lien Claimholder to
enforce this Agreement, including the priority of the Liens securing the First
Lien Obligations as provided in Sections 2.1 and 3.1.

2.3   No
New Liens.   So long as the Discharge of First Lien
Obligations has not occurred, whether or not any Insolvency or Liquidation
Proceeding has been commenced by or against the Company, any other Grantor or
any Subsidiary, the parties hereto agree that no Grantor or Subsidiary shall
grant or permit to exist any Liens on any of their respective assets (a) to
secure any Second Lien Obligations unless a Lien has been granted on such asset
to secure the First Lien Obligations, or (b) to secure any First Lien Obligations
unless a Lien has been granted on such asset to secure the Second Lien
Obligations (provided, that failure to comply with this Section 2.3
shall not affect the validity or enforceability of any Lien granted to secure
any First Lien Obligations).  Without
limiting any other rights and remedies available to the First Lien Agent and
the First Lien Claimholders hereunder, the parties agree that if any property
of the Company, any other Grantor or any Subsidiary is subject to a Lien
(including a judgment lien) securing Second Lien Obligations and such property
is not subject to a Lien 

 8
 

securing the First Lien
Obligations, such property shall nevertheless be subject to the provisions of Section
4.2 of this Agreement to the same extent as if it were “Collateral” as
defined in and for purposes of this Agreement.

2.4   Similar
Liens and Agreements.   The parties hereto
agree that it is their intention that the First Lien Collateral and the Second
Lien Collateral be identical.  In
furtherance of the foregoing and of Section 8.9, the parties hereto agree,
subject to the other provisions of this Agreement:

(a)           upon
request by the First Lien Agent or the Second Lien Agent, to cooperate in good
faith (and to direct their counsel to cooperate in good faith) from time to
time in order to determine the specific items included in the First Lien
Collateral and the Second Lien Collateral and the steps taken to perfect their
respective Liens thereon and the identity of the respective parties obligated
under the First Lien Credit Documents and the Second Lien Credit Documents; and

(b)           that
the Second Lien Collateral Documents and the Subsidiary Guaranty (as defined in
the Second Lien Credit Agreement) shall be substantially in the same forms
(except for differences relating to the subordination of the Liens securing the
Second Lien Obligations to the Liens securing the First Lien Obligations) as
the First Lien Collateral Documents and the Subsidiary Guaranty (as defined in
the First Lien Credit Agreement), respectively.

Section 3.   Enforcement.

3.1   Exercise
of Remedies.   (a)  So long as the Discharge of First Lien
Obligations has not occurred, whether or not any Insolvency or Liquidation
Proceeding has been commenced by or against the Company, any other Grantor or
any other Subsidiary:

(i)            the Second Lien Agent and the Second
Lien Claimholders will not exercise or seek to exercise any rights or remedies
(including setoff) with respect to any Collateral (including the exercise of
any right under any account control agreement, landlord waiver or bailee’s
letter or similar agreement or arrangement to which the Second Lien Agent or
any Second Lien Claimholder is a party) or institute any action or proceeding
with respect to such rights or remedies (including any action of foreclosure), and
will not contest, protest or object to any foreclosure proceeding or action
brought by the First Lien Agent or any First Lien Claimholder or any other
exercise by the First Lien Agent or any First Lien Claimholder, of any rights
and remedies relating to the First Lien Collateral or otherwise, or object to
the forbearance by the First Lien Agent or the First Lien Claimholders from
bringing or pursuing any foreclosure proceeding or action or any other exercise
of any rights or remedies relating to the First Lien Collateral; provided,
however, that if an Event of Default (as defined in the Second Lien
Credit Agreement (as in effect on the date hereof)) has occurred and for so
long as such Event of Default is continuing, subject at all times to the
provisions of Sections 2 and 4, commencing 180 days after the
receipt by the First Lien Agent of written notice from the Second Lien Agent
that such Event of Default has occurred and is existing and that the Second
Lien Agent has made written demand to the Company for accelerated payment of
the Second Lien Obligations (the “Standstill Period”), the Second Lien
Agent may take action to enforce its Liens on the Second Lien Collateral
(including the institution of any action or proceeding with respect to its
rights or remedies with respect to any Second Lien Collateral) upon 10 days’
prior written notice to the First Lien Agent (which notice may be given prior
to the completion of such 180-day period, but not prior to the 150th day of such period); provided, further,
however, that notwithstanding anything herein to the contrary, in no
event shall the Second Lien Agent or any Second Lien Claimholder accept, take
or receive any proceeds of Collateral or otherwise exercise any rights or
remedies with respect to the Collateral if, and the Standstill Period shall be
extended to include

 9
 

such period (after the
expiration of the 180-day period) during which, the First Lien Agent or First
Lien Claimholders shall have commenced and be diligently pursuing in good faith
the exercise of any of their rights or remedies with respect to all or any
material portion of the Collateral (without limiting the generality of the
foregoing, including commencement of any action to foreclose its Liens on such
Collateral, any action to take possession of such Collateral or commencement of
any legal proceedings or actions against or with respect to Collateral) (prompt
notice of the initial commencement of such exercise to be given to the Second
Lien Agent, provided, that the First Lien Agent shall incur no liability
for, and the rights of the First Lien Agent hereunder, its rights in respect of
the Collateral, and enforceability of any provision of this Agreement, shall be
unaffected by the failure of the First Lien Agent to give any such notice), and
provided  further that the Standstill Period (x) shall be tolled
during any Insolvency or Liquidation Proceeding involving any Grantor and (y)
shall be tolled for any period not to exceed 180 days during which there is no
Insolvency or Liquidation Period involving any Grantor but due to other
circumstances the First Lien Agent believes in good faith that it is prevented
by applicable law (including for the avoidance of doubt judicial ruling) from
exercising its enforcement rights and remedies against all or any part of the
Collateral, provided that in the case of this clause (y) the First Lien Agent
is diligently attempting in good faith to obtain relief from such applicable
law and is not so prevented by applicable law because of action taken by the
First Lien Agent or the First Lien Lenders in violation of applicable law; and

                                                                                                                              
(i)     
(ii)               the First Lien Agent and the First Lien Claimholders
shall, except as otherwise expressly provided in Section 3.1(a)(i), have
the exclusive right to enforce rights, exercise remedies (including set off and
the right to credit bid their debt) and except as limited by Section 5.1(b)
below, make determinations regarding the release, disposition, or restrictions
with respect to the First Lien Collateral without any consultation with or the
consent of the Second Lien Agent or any Second Lien Claimholder, and in
exercising rights and remedies with respect to the First Lien Collateral, the
First Lien Agent and the First Lien Claimholders may enforce the provisions of
the First Lien Credit Documents and exercise remedies thereunder, all in such
order and in such manner as they may determine in the exercise of their sole
discretion.  Such exercise and
enforcement shall include the rights of an agent appointed by them to sell or
otherwise dispose of First Lien Collateral upon foreclosure, to incur expenses
in connection with such sale or disposition, and to exercise all the rights and
remedies of a secured creditor under the UCC and of a secured creditor under
Bankruptcy Laws of any applicable jurisdiction. 
Notwithstanding anything to the contrary in clauses  (a)(i)
or (c) of this Section 3.1, in any Insolvency or Liquidation
Proceeding commenced by or against Holdings, the Company or any other Grantor,
the Second Lien Agent may (A) file a claim or statement of interest with
respect to the Second Lien Obligations, (B) take any action, including (x)
filing any necessary responsive or defensive pleadings in opposition to any
motion or other pleading made by any Person objecting to or otherwise seeking
the disallowance of any claims of the Second Lien Claimholders (other than any
affirmative defense or counterclaim in respect of a claim that would not
otherwise be permitted to be made under the terms hereof) and (y) voting on any
plan of reorganization in accordance with the terms of Section 6.9(c),
filing any proof of claim and making any motions permitted under this Agreement
with respect to the Collateral, in each case not adverse to the prior Liens on
the First Lien Collateral or the rights of the First Lien Agent or the First
Lien Claimholders to exercise remedies in respect thereof, in order to preserve
or protect its Lien on the Second Lien Collateral and to preserve its rights to
share in the proceeds of the Second Lien Collateral in accordance with the
terms of this Agreement, and (C) seek relief from the automatic stay to the
extent permitted by Section 6.2.

(b)           The
Second Lien Agent, on behalf of itself and the Second Lien Claimholders, agrees
that it will not take or receive any Collateral or any proceeds of Collateral,
either in connection with the

 10
 

exercise of any right or
remedy (including setoff) with respect to any Collateral or otherwise, unless
and until the Discharge of First Lien Obligations has occurred, except in
accordance with Section 3.1(a) of this Agreement.  It is understood and agreed for the avoidance
of doubt that any transfer of Collateral pursuant to or in connection with the
Second Lien Agent’s exercise of remedies shall be subject to the Liens securing
the First Lien Obligations, and any Collateral or proceeds received or
recovered by or on behalf of the Second Lien Agent or any Second Lien
Claimholder shall be paid over to the First Lien Agent in accordance with Section
4.2.  Without limiting the generality
of the foregoing, unless and until the Discharge of First Lien Obligations has
occurred, except in accordance with Section 3.1(a) of this Agreement,
the sole right of the Second Lien Agent and the Second Lien Claimholders with
respect to the Collateral is the right to hold a Lien on the Collateral
pursuant to the Second Lien Collateral Documents for the period and to the
extent granted therein, and, after the Discharge of the First Lien Obligations
has occurred, the right to receive a share of the proceeds thereof, if any, in
accordance with the terms of the Second Lien Credit Documents and applicable
law.

(c)           Except
as expressly provided in Section 3.1(a) of this Agreement, (i) the
Second Lien Agent, for itself and on behalf of the Second Lien Claimholders,
agrees that the Second Lien Agent and the Second Lien Claimholders will not
take any action that would hinder any exercise of remedies under the First Lien
Credit Documents, including any sale, lease, exchange, transfer or other
disposition of the Collateral, whether by foreclosure or otherwise, and (ii)
the Second Lien Agent, for itself and on behalf of the Second Lien
Claimholders, hereby waives any and all rights it or the Second Lien
Claimholders may have as a junior lien creditor or otherwise to object to the
manner in which the First Lien Agent or the First Lien Claimholders seek to
enforce or collect the First Lien Obligations or the Liens granted in any of
the First Lien Collateral, regardless of whether any action or failure to act
by or on behalf of the First Lien Agent or First Lien Claimholders is adverse
to the interest of the Second Lien Claimholders.

(d)           The
Second Lien Agent hereby acknowledges and agrees that no covenant, agreement or
restriction contained in the Second Lien Collateral Documents or any other
Second Lien Credit Document shall be deemed to restrict in any way the rights
and remedies of the First Lien Agent or the First Lien Claimholders with
respect to the First Lien Collateral as set forth in this Agreement and the
First Lien Credit Documents.

3.2   Cooperation.   Subject to the
proviso in clause (i) of Section 3.1(a) of this Agreement, the
Second Lien Agent, on behalf of itself and the Second Lien Claimholders, agrees
that, unless and until the Discharge of First Lien Obligations has occurred, it
will not commence, or join with any Person (other than the First Lien
Claimholders or the First Lien Agent upon the request thereof by the First Lien
Agent) in commencing any enforcement, collection, execution, levy or
foreclosure action or proceeding (including pursuant to any Insolvency or
Liquidation Proceeding) with respect to any Lien held by it under the Second
Lien Collateral Documents or any other Second Lien Credit Document or
otherwise.

Section 4.   Payments.

4.1   Application of Proceeds.   So
long as the Discharge of First Lien Obligations has not occurred, Collateral
and any proceeds of Collateral received in connection with the sale or other
disposition of, or collection on, such Collateral upon the exercise of remedies
(whether prior to or during the pendency of any Insolvency or Liquidation
Proceeding), shall be applied by the First Lien Agent to the First Lien
Obligations in accordance with the relevant First Lien Credit Documents.  Upon the Discharge of the First Lien
Obligations, the First Lien Agent shall deliver to the Second Lien Agent any
Second Lien Collateral or proceeds thereof (together with assets or proceeds
subject to Liens referred to in the final sentence of Section 2.3) held
by it in the same form as received, without recourse, representation or
warranty (other than a representation of the First Lien Agent to the Second
Lien Agent that it has not otherwise sold, assigned, transferred or pledged any
right, title or interest in and to such

 11
 

Second Lien Collateral,
assets or proceeds) but with any necessary endorsements, to be applied by the
Second Lien Agent to the Second Lien Obligations in accordance with the Second
Lien Credit Documents, or as a court of competent jurisdiction may otherwise
direct.  The excess, if any, shall be
paid to the First Lien Agent for application to the First Lien Excluded Excess
Obligations.

4.2   Payments Over.   Until the
Discharge of the First Lien Obligations has occurred, any Collateral and
proceeds thereof and any other distribution of money or other property, in each
case, in respect of Collateral (for the avoidance of doubt, including assets or
proceeds subject to Liens referred to in the final sentence of Section 2.3),
received by the Second Lien Agent or any Second Lien Claimholders (whether
prior to or during the pendency of any Insolvency or Liquidation Proceeding) in
connection with the exercise of any right or remedy (including set off)
relating to the Collateral or otherwise shall be, subject to Section 4.3
below, segregated and held in trust and immediately paid over to be applied to
the First Lien Obligations (including for purposes of cash collateralization
of, if any, letters of credit) without recourse, representation or warranty
(other than a representation of the Second Lien Agent that it has not otherwise
sold, assigned, transferred or pledged any right, title or interest in and to
such Collateral, assets or proceeds) to the First Lien Agent for the benefit of
the First Lien Claimholders in the same form as received, with any necessary
endorsements, or as a court of competent jurisdiction may otherwise direct; and
after the Discharge of the First Lien Obligations has occurred, the obligations
of the Second Lien Agent and the Second Lien Claimholders set forth in this Section
4.2 to segregate, hold in trust and pay over shall terminate (subject to
the provisions of Section 6.5). 
The First Lien Agent is hereby authorized to make any such endorsements
as agent for the Second Lien Agent or any such Second Lien Claimholders.  This authorization is coupled with an
interest and is irrevocable. 
Notwithstanding the foregoing, the Second Lien Agent and the Second Lien
Claimholders shall be entitled to retain and apply to the Second Lien
Obligations (a) cash payments received as adequate protection permitted under
this Agreement, and (b) payments or other distributions made or provided to the
Second Lien Agent or the Second Lien Claimholders under a confirmed plan of
reorganization to which the First Lien Claimholders have consented.

4.3   Certain Agreements with respect to
Unenforceable Liens.   In addition to the rights and obligations of the
First Lien Agent, the Second Lien Agent, the First Lien Claimholders and Second
Lien Claimholders set forth herein, in the event that a determination is made
in any Insolvency or Liquidation Proceeding or otherwise that any Liens
securing First Lien Obligations encumbering any Collateral are not enforceable
for any reason, and the Second Lien Agent or the Second Lien Claimholders
receive any distribution or recovery with respect to, or allocable to, the
value of such Collateral or any proceeds thereof in excess of what they would
have received had such determination not been made, such excess shall (for so
long as the Discharge of the First Lien Obligations has not occurred) be
segregated and held in trust and immediately paid over to be applied to the
First Lien Obligations (including for purposes of cash collateralization of, if
any, letters of credit) without recourse, representation or warranty (other
than a representation of the Second Lien Agent that it has not otherwise sold,
assigned, transferred or pledged any right, title or interest in and to such
Collateral, assets or proceeds) to the First Lien Agent for the benefit of the
First Lien Claimholders in the same form as received, with any necessary
endorsements, or as a court of competent jurisdiction may otherwise direct. The
First Lien Agent is hereby authorized to make any such endorsements as agent
for the Second Lien Agent or any such Second Lien Claimholders.  This authorization is coupled with an
interest and is irrevocable.

4.4   Liens Received in Bankruptcy.   Lien
Agent or any Second Lien Claimholders in any Insolvency or Liquidation
Proceeding shall be subject to the terms of this Agreement.

 12
 

Section 5.   Other Agreements.

5.1           Releases   (a) 
Subject to Section 5.1(b), if, in connection with: 

(i)            the exercise of the First Lien
Agent’s remedies in respect of Collateral, including any sale, lease, exchange,
transfer or other disposition of any such Collateral; or

(ii)           (A) any sale, lease, exchange,
transfer or other disposition of any Collateral, not involving the exercise of
any of the First Lien Agent’s remedies in respect of Collateral referred to in
clause (i) above, that is made after an acceleration of the First Lien
Obligations, and that is effected by a commercially reasonable sale of which
the Second Lien Agent shall have received notice and shall have had an
opportunity to participate in the bidding in respect thereof, or (B) any sale,
lease, exchange, transfer or other disposition of any Collateral (other than to
an Affiliate of  the Borrower or to the
First Lien Agent, any First Lien Claimholder or any Affiliate of any of the
First Lien Agent or any First Lien Claimholder) not involving the exercise of
any of the First Lien Agent’s remedies in respect of Collateral referred to in
clause (i) above and not made after the acceleration of the First Lien
Obligations, but made after not less than 5 Business Days prior written notice
to the Second Lien Agent of such sale, lease, exchange, transfer or other
disposition (such notice to be accompanied by a description of the assets that
are the subject of the transaction, the purchase price and the identity of the
purchaser and a copy of the purchase documentation or term sheet setting forth
the terms of the transaction) (in the case of clause (A) and clause (B), each,
a “Disposition”), 

in each case, whether or
not permitted by the Second Lien Credit Documents (and whether or not a default
or an event of default exists under the Second Lien Credit Documents), the
First Lien Agent, for itself or on behalf of any of the First Lien
Claimholders, releases any of its Liens on any part of the Collateral or
releases any Subsidiary Grantor from its obligations under its guaranty of the
First Lien Obligations, then, the Liens, if any, of the Second Lien Agent, for
itself or for the benefit of the Second Lien Claimholders, on such Collateral,
and the obligations of such Subsidiary Grantor under its guaranty of the Second
Lien Obligations, if applicable, shall be automatically, unconditionally and simultaneously
released, and the Second Lien Agent, for itself or on behalf of any such Second
Lien Claimholders, shall promptly execute and deliver to the First Lien Agent
or such Grantor such termination statements, releases and other documents as
the First Lien Agent or such Grantor may request to effectively confirm such
release; provided that, if, after giving effect to any such exercise of
remedies or Disposition, the Discharge of First Lien Obligations shall have
occurred, the Second Lien Agent and the Second Lien Claimholders shall receive
(or shall be entitled to receive) any residual cash or cash equivalents
remaining that they would have been entitled to receive but for the provisions
of this Section 5.1.

(b)           In
the event that the sum of (i) the Maximum First Lien Principal Amount plus (ii)
the Credit Exposure of the First Lien Claimholders under all First Lien Hedging
Contracts (collectively, the “First Lien Exposure”) at any date of
determination no longer constitutes at least 15% of the sum of the First Lien
Exposure plus the total outstanding principal amount of loans
constituting Second Lien Obligations, then any release arising from the events
described in clause (ii) of Section 5.1(a) above shall require
(unless such Disposition is permitted under the Second Lien Documents) the
consent of the Requisite Lenders as defined in the First Lien Credit Agreement
and the consent of the Requisite Lenders as defined in the Second Lien Credit
Agreement.

(c)           Until
the Discharge of First Lien Obligations occurs, the Second Lien Agent, for
itself and on behalf of the Second Lien Claimholders, hereby irrevocably
constitutes and appoints the First Lien Agent and any officer or agent of the
First Lien Agent, with full power of substitution, as its true and lawful
attorney in fact with full irrevocable power and authority in the place and
stead of the Second Lien

 13
 

Agent or such holder or
in the First Lien Agent’s own name, for the purpose of carrying out the terms
of this Section 5.1, to take any and all appropriate action and to
execute any and all documents and instruments which may be necessary or
desirable to accomplish the purposes of this Section 5.1, including any
endorsements or other instruments of transfer or release.  Such appointment is coupled with an interest
and is irrevocable.

5.2   Insurance.   (a) Unless and until
the Discharge of First Lien Obligations has occurred, the First Lien Agent and
the First Lien Claimholders shall have the sole and exclusive right (subject,
as between the First Lien Claimholders and the Grantors, to the terms of the
First Lien Credit Documents), under the First Lien Credit Documents,
to adjust settlement for any insurance policy covering or relating to the
Collateral in the event of any loss thereunder and to approve any award granted
in any condemnation or similar proceeding (or any deed in lieu of condemnation)
affecting the Collateral.  Unless and
until the Discharge of First Lien Obligations has occurred (subject, as between
the First Lien Claimholders and the Grantors, to the terms of the First Lien
Credit Documents), all proceeds of any such policy and any such award (or any
payments with respect to a deed in lieu of condemnation) relating to the
Collateral shall be paid to the First Lien Agent for the benefit of the First
Lien Claimholders pursuant to the terms of the First Lien Credit Documents
(including for purposes of cash collateralization of, if any, letters of credit
and First Lien Hedging Contracts) and thereafter, to the Second Lien Agent for
the benefit of the Second Lien Claimholders to the extent required under the
Second Lien Collateral Documents, and then to the holder of such policy, such
other Person as may be entitled thereto or as a court of competent jurisdiction
may otherwise direct.  Until Discharge of
the First Lien Obligations has occurred, if the Second Lien Agent or any Second
Lien Claimholders shall, at any time, receive any proceeds of any insurance
policy relating to the property of the Company and any other Grantor or any
Subsidiary or any award or payment pursuant to such policy, it shall segregate
such amounts and hold them in trust and forthwith pay such proceeds over to the
First Lien Agent in accordance with the terms of Section 4.2 of this
Agreement.  Until the Discharge of First
Lien Obligations has occurred, the First Lien Agent is hereby authorized to
endorse on behalf of the Second Lien Agent any check or other payment item
received in respect of any such insurance or condemnation.  This authorization is coupled with an
interest and is irrevocable until the Discharge of First Lien Obligations has
occurred.  

(b)           In
the event a Grantor is permitted, pursuant to the terms of the First Lien
Credit Documents, to utilize proceeds of insurance to repair, restore or
replace Collateral, such Grantor shall be authorized to do so to the same
extent under the Second Lien Credit Documents.

5.3   Amendments
to First Lien Credit Documents and Second Lien Credit Documents; Refinancing of
First Lien Obligations.   (a)  Without the prior written consent of the
First Lien Agent (acting on the direction of or with the consent of the
Requisite Lenders), no Second Lien Credit Document may be amended,
supplemented, Refinanced or otherwise modified or entered into, to the extent
such amendment, supplement, Refinancing or modification, or the terms of any
new Second Lien Credit Document, would (i) increase the then outstanding
aggregate principal amount of the loans under the Second Lien Credit Agreement,
(ii) contravene the provisions of this Agreement, and in the case of a
Refinancing, the terms of the documents governing such Refinancing debt shall
provide that the holders of any such Refinancing debt agree to be bound by the
terms of this Agreement, (iii) provide for dates for payment of principal,
interest, premium (if any) or fees which are earlier than such dates under the
then-existing Second Lien Credit Agreement, (iv) provide for covenants,
representations and warranties, events of default, rights or remedies which are
in the aggregate on terms less favorable to the First Lien Claimholders, (v)
add or increase any requirement to pay or prepay principal, or otherwise
provide for redemption, prepayment or defeasance provisions that are more
burdensome on any Grantor than those set forth in the then-existing Second Lien
Credit Agreement, (vi) provide for collateral securing Indebtedness thereunder
which is more extensive than the collateral provided with respect to the First
Lien Credit Agreement, or provide for subsidiary guaranties from subsidiaries
that are not required to

 14
 

deliver Subsidiary
Guaranties under the First Lien Credit Agreement, unless in each case such
collateral or guaranty is also provided to the First Lien Agent, for the
benefit of the First Lien Claimholders, or (vii) increase the interest rate on
loans under the Second Lien Credit Agreement unless such increase is not more
than 6% with no more than 4% of such increase payable in cash, in each case
exclusive, for the avoidance of doubt, of any imposition of “default interest”
(for avoidance of doubt, this clause (vii) is not intended to restrict
increases in interest rate due solely to fluctuations in LIBOR, Eurodollar
Rate, Fed Funds Rate, prime rate and similar base rates used in the calculation
of interest).

Without limiting
the foregoing, it is agreed that any Second Lien Credit Documents executed as a
post-closing condition under the Second Lien Credit Agreement, including the
documents pertaining to Liens on Capital Stock of Merisant Spain, S.L., shall
be substantially similar to the counterpart documents executed in connection
with the First Lien Credit Agreement and the First Lien Credit Documents
(except for the addition of customary language indicating a second lien or
junior lien) or otherwise reasonably satisfactory to the First Lien Agent.

(b)           Each
of the Second Lien Agent, Holdings, the Company and the Subsidiary Grantors
agrees that each Second Lien Collateral Document shall include the following
language (or language to similar effect approved by the First Lien Agent):

“Notwithstanding anything
herein to the contrary, the lien and security interest granted to Wells Fargo
Bank, National Association (“WF”), as Collateral Agent, pursuant to this
Agreement and the exercise of any right or remedy by WF in its capacity as
collateral agent hereunder are subject to the provisions of the Intercreditor
Agreement, dated as of June 23, 2006 (as amended, restated, supplemented or
otherwise modified from time to time, the “Intercreditor Agreement”),
among Credit Suisse, Cayman Islands Branch, as First Lien Agent, WF, as Second
Lien Agent, and Merisant Company, a Delaware corporation, Merisant Worldwide,
Inc., a Delaware corporation, Merisant US, Inc., a Delaware corporation,
Merisant Foreign Holdings I, Inc., a Delaware corporation, and Whole Earth
Sweetener Company, LLC, a Delaware limited liability company.  In the event of any conflict between the
terms of the Intercreditor Agreement and this Agreement, the terms of the
Intercreditor Agreement shall govern and control.”

In addition, each of the
Second Lien Agent, Holdings, the Company and the Subsidiary Grantors agrees
that each Second Lien Mortgage covering any Collateral shall contain such other
language as the First Lien Agent may reasonably request to reflect the
subordination of such Second Lien Mortgage to the First Lien Mortgage covering
such Collateral.

(c)           Without
the prior written consent of the Second Lien Agent (acting on the direction of
or with the consent of the Requisite Lenders (as defined in the Second Lien
Credit Agreement)), no First Lien Credit Document may be amended, supplemented,
Refinanced or otherwise modified or entered into, to the extent such amendment,
supplement, modification, or Refinancing, or the terms of any new First Lien
Credit Document, would (i) increase the then
outstanding aggregate principal amount of the loans under the First Lien Credit
Agreement plus any undrawn portion of any commitment under the First Lien
Credit Agreement plus the aggregate face amount of any letters of credit issued
under the First Lien Credit Agreement to an amount that exceeds the Maximum
First Lien Principal Amount, (ii) contravene the provisions of this Agreement,
and in the case of a Refinancing, the terms of the documents governing such
Refinancing debt shall provide that the holders of any such Refinancing debt
agree to be bound by the terms of this Agreement, (iii) provide for dates for
payment of principal, interest, premium (if any) or fees which are earlier than
such dates under the then-existing First Lien Credit Agreement, or extend the

 15
 

First Lien Maturity Date
beyond the Loan Maturity Date then in effect under (and as defined in) the
Second Lien Credit Agreement, (iv) provide for covenants, representations and
warranties, events of default, rights or remedies which are in the aggregate on
terms less favorable to the Second Lien Claimholders, (v) add or increase any
requirement to pay or prepay principal, or otherwise provide for redemption,
prepayment or defeasance provisions that are more burdensome on any Grantor
than those set forth in the then-existing First Lien Credit Agreement, (vi)
provide for collateral securing Indebtedness thereunder which is more extensive
than the collateral provided with respect to the Second Lien Credit Agreement,
or provide for subsidiary guaranties from subsidiaries that are not required to
deliver Subsidiary Guaranties under the Second Lien Credit Agreement, unless in
each case such collateral or guaranty is also provided to the Second Lien
Agent, for the benefit of the Second Lien Claimholders, or (vii) increase the
interest rate on the First Lien Loans unless such increase is not more than 6%
with no more than 4% of such increase payable in cash, in each case exclusive,
for the avoidance of doubt, of any imposition of “default interest” (for
avoidance of doubt, this clause (vii) is not intended to restrict increases in
interest rate due solely to fluctuations in LIBOR, Eurodollar Rate, Fed Funds
Rate, prime rate and similar base rates used in the calculation of
interest).  In the case of a Refinancing
of all or any portion of the First Lien Obligations, the Second Lien Agent
shall promptly enter into such agreements (including amendments or supplements
to this Agreement) as may be reasonably requested by the Company, Holdings, any
Grantor or the First Lien Agent, to the extent necessary to provide to the
holders of such Refinancing debt and the First Lien Agent the rights specified
in this Agreement.

(d)           In
the event the First Lien Agent or the First Lien Claimholders and the relevant
Grantor(s) enter into any amendment, waiver or consent permitted hereunder in
respect of any of the First Lien Collateral Documents for the purpose of adding
to, or deleting from, or waiving or consenting to any departures from any
provisions of, any First Lien Collateral Document or changing in any manner the
rights of the First Lien Agent, the First Lien Claimholders, Holdings, the
Company or any other Grantor thereunder, then such amendment, waiver or consent
shall, upon prior notice from the First Lien Agent or the Company to the Second
Lien Agent or to the Requisite Lenders (as defined in the Second Lien Credit
Agreement), apply automatically to any comparable provision of the Second Lien
Credit Agreement and the Comparable Second Lien Collateral Document without the
consent of the Second Lien Agent or the Second Lien Claimholders and without
any action by the Second Lien Agent, Holdings, the Company or any other
Grantor; provided, that (A) no such amendment, waiver or consent shall
have the effect of (i) removing assets subject to the Lien of the Second Lien
Collateral Documents, except to the extent that a release of such Lien is
permitted or required by Section 5.1 of this Agreement (or is expressly
permitted under the terms of the Second Lien Credit Documents) and provided
that there is a corresponding release of such Lien securing the First Lien
Obligations, (ii) imposing duties on the Second Lien Agent without its consent,
(iii) permitting other liens on the Collateral not permitted under the terms of
the Second Lien Credit Documents or Section 6 hereof, (iv) impairing the
rights or remedies of the Second Lien Claimholders to a greater extent than the
First Lien Claimholders (other than by virtue of the priority of the Liens
securing the First Lien Obligations), (v) modifying the terms of lien
subordination provided for in this Agreement, or (vi) modifying any term or
provision set forth in the Second Lien Credit Agreement unless such term
relates solely to issues relating to the scope, grant or perfection of Liens on
the Collateral; and (B) the failure of any such notice to be given shall not
create any liability on the part of the First Lien Agent or any First Lien
Claimholder, or impair or affect the Second Lien Agent’s or any Second Lien
Claimholder’s obligations to the First Lien Agent and the First Lien
Claimholders, the First Lien Agent’s rights hereunder, the enforceability of
this Agreement or any liens created or granted under any First Lien Credit
Document, or limit or impair the effectiveness or effect in the First Lien
Collateral Documents of any such amendment, waiver or consent.

5.4   Rights
As Unsecured Creditors.   (a)  Except as otherwise set forth in this
Agreement, the Second Lien Agent and the Second Lien Claimholders may exercise
rights and remedies as unsecured creditors against Holdings, the Company, the
Subsidiary Grantors or any other Grantor that has

 16
 

guaranteed the Second
Lien Obligations in accordance with the terms of the Second Lien Credit
Documents and applicable law.  Except as
otherwise expressly set forth in this Agreement, in the First Lien Credit
Agreement (as in effect on the date hereof) or in the Second Lien Credit
Agreement, nothing in this Agreement shall prohibit the receipt by the Second
Lien Agent or any Second Lien Claimholders of the required payments of
interest; provided, however, that such receipt may not be the
direct or indirect result of the receipt by any Second Lien Claimholder of
Collateral or proceeds of Collateral, or the exercise by the Second Lien Agent
or any Second Lien Claimholder of rights or remedies as a secured creditor
(including set off or enforcement of any Lien held by any of them), until the
Discharge of First Lien Obligations has occurred.

(b)           In
the event the Second Lien Agent or any Second Lien Claimholder becomes a
judgment lien creditor in respect of Collateral as a result of its enforcement
of its rights as an unsecured creditor or otherwise, such judgment lien shall
be subordinated to the Liens securing the First Lien Obligations on the same
basis as the other Liens securing the Second Lien Obligations are so
subordinated to such First Lien Obligations under this Agreement.  Nothing in this Agreement impairs or
otherwise adversely affects any rights or remedies the First Lien Agent or the
First Lien Claimholders may have with respect to the First Lien
Collateral.  In the event the Second Lien
Agent or any Second Lien Claimholder becomes a judgment lien creditor in
respect of property of the Company, any other Grantor or any Subsidiary and
such property is not encumbered by a Lien securing the First Lien Obligations,
the provisions of the last sentence of Section 2.3 and of Section 4.2
of this Agreement shall apply thereto.

5.5   Bailee
for Perfection.   (a)  The First Lien Agent agrees to hold, maintain
control of, or be listed as a secured party on any certificate of title with
respect to, the Pledged Collateral that is (x) part of the Collateral in its
possession or control or with respect to which it is listed as a secured party
(or in the possession or control of an agent or bailee of the First Lien Agent
or with respect to which an agent of the First Lien Agent is listed as a
secured party), including control of any deposit account or securities account
(as such terms are defined in the UCC) pursuant to an agreement to which the
First Lien Agent is a party, as agent for the First Lien Claimholders and as
bailee for the Second Lien Agent and any assignee (such bailment being intended,
among other things, to satisfy the requirements of Sections 8-106(d)(3),
8-301(a)(2) and 9-313(c) of the UCC) solely for the purpose of perfecting the
security interest granted under the First Lien Credit Documents and the Second
Lien Credit Documents, subject to the terms and conditions of this Section
5.5.

(b)           Except
to the extent otherwise provided for herein and until the Discharge of First
Lien Obligations has occurred, the First Lien Agent shall be entitled to deal
with the Pledged Collateral in accordance with the terms of the First Lien
Credit Documents as if the Liens of the Second Lien Agent under the Second Lien
Collateral Documents did not exist.  The
rights of the Second Lien Agent shall at all times be subject to the terms of
this Agreement and to the First Lien Agent’s rights under the First Lien Credit
Documents.

(c)           The
First Lien Agent shall have no duties or obligation whatsoever to the First
Lien Claimholders, the Second Lien Agent or any Second Lien Claimholder of any
kind, including any obligation to assure that the Pledged Collateral is genuine
or owned by any of the Grantors or to preserve rights or benefits of any
Person, except to hold the Pledged Collateral as bailee in accordance with this
Section 5.5, and, except for gross negligence or willful misconduct as
determined pursuant to a final non-appealable order of a court of competent
jurisdiction, the Second Lien Agent and each Second Lien Claimholder waives and
releases the First Lien Agent and each of the other First Lien Claimholders
from, and hereby indemnifies and agrees to hold harmless the First Lien Agent
and each of the other First Lien Claimholders against, all claims and
liabilities arising as a result of or in connection with the First Lien Agent’s
role as bailee for the Second Lien Agent with respect to the Pledged
Collateral.

 17

 

(d)           The First Lien Agent shall not have by reason of the First
Lien Collateral Documents, the Second Lien Collateral Documents, this Agreement
or any other document a fiduciary relationship in respect of the First Lien
Claimholders, the Second Lien Agent or any Second Lien Claimholder.

(e)           Promptly upon the Discharge of the First Lien Obligations,
the First Lien Agent shall deliver and relinquish control of, and authorize its
removal as secured party from any certificates of title with respect to, the
remaining Pledged Collateral (if any), without recourse, representation or
warranty (other than a representation of the First Lien Agent that it has not
otherwise sold, assigned, transferred or pledged any right, title or interest
in and to such Pledged Collateral), together with any necessary endorsements, first,
to or upon the direction of the Second Lien Agent to the extent the Second Lien
Obligations remain outstanding, and second to the First Lien Lender for
application to the First Lien Excluded Excess Obligations and third to
the applicable Grantor to the extent no First Lien Obligations, Second Lien
Obligations or First Lien Excluded Excess Obligations (as defined in the
definition of “First Lien Obligations”) remain outstanding. The First Lien
Agent further agrees to take all other action reasonably requested by the
Second Lien Agent in connection with the Second Lien Agent obtaining a first
priority interest in the Collateral or as a court of competent jurisdiction may
otherwise direct; provided  however that the First Lien Agent
shall not be required to take any such action requested by the Second Lien
Agent that the First Lien Agent in good faith believes exposes it to personal
liability for expenses or other amounts unless the First Lien Agent receives an
indemnity satisfactory to it from the Second Lien Agent or Second Lien
Claimholders with respect to such action.

5.6   Second Lien Claimholders’ Option
to Purchase.   (a)  If all of the First Lien Obligations shall
have been accelerated (including any automatic acceleration in connection with
any Insolvency or Liquidation Proceeding with respect to the Company) or shall
remain unpaid immediately following the First Lien Maturity Date, the Second
Lien Claimholders shall have the option, upon notice as provided in this Section 5.6,
to purchase all, and not less than all, of the First Lien Obligations from the
First Lien Claimholders. Such notice from the Second Lien Agent to the First
Lien Agent shall be irrevocable.

(b)           The First Lien Agent agrees that it will give prompt
notice to the Second Lien Agent in the event of an acceleration of the First
Lien Obligations (provided that no notice shall be required if an Insolvency or
Liquidation Proceeding has occurred), provided that the First Lien Agent
shall incur no liability for failure to give such notice, and that the failure
of First Lien Agent to give or to timely give any such notice shall not create
any liability on the part of any First Lien Claimholder, or extend the time
periods set forth in this Section 5.6. If Second Lien Claimholders
choose to exercise the option to purchase pursuant to this Section 5.6,
they must irrevocably notify (the “Purchase Option Notice”) the First
Lien Agent thereof within fifteen (15) days following the earlier of (i) notice
of acceleration of the First Lien Obligations (provided that no notice shall be
required if an Insolvency or Liquidation Proceeding has occurred) or (ii) the
First Lien Maturity Date. On the date specified by the Second Lien Agent in the
Purchase Option Notice (which shall not be more than five (5) Business
Days after the receipt by the First Lien Agent of the Purchase Option Notice),
subject to extension for an additional five (5) Business Days to the
extent necessary to close such purchase and sale, the First Lien Claimholders
shall sell to the Second Lien Claimholders exercising such option, and such
Second Lien Claimholders shall purchase from the First Lien Claimholders, the
First Lien Obligations without any requirement of consent of Holdings, the
Company, any other Grantor or any other Person.

(c)           Upon the date of such purchase and sale, the Second Lien
Claimholders that have exercised such option shall, pursuant to documentation
in form and substance reasonably satisfactory to the First Lien Agent, (i) pay
to the First Lien Claimholders as the purchase price therefor the full amount
of all the First Lien Obligations then outstanding and unpaid (including
principal, reimbursement obligations in respect of, if any, letters of credit,
the Credit Exposure under all First Lien Hedging Contracts, interest, fees and
expenses, including reasonable attorneys’ fees and legal expenses) at par, (ii)

 18
 

 

cash collateralize, if any, all
letters of credit outstanding under the First Lien Credit Agreement in an
amount reasonably satisfactory to the First Lien Agent but in no event greater
than 105% of the aggregate undrawn face amount thereof plus an amount
sufficient to prepay letter of credit fees to accrue through the expiration of
all such letters of credit, and (iii) agree to reimburse the First Lien
Agent and the First Lien Claimholders for any checks or other payments
provisionally credited to the First Lien Obligations, and/or as to which the
First Lien Agent or any First Lien Claimholder has not yet received final
payment. Such purchase price and cash collateral shall be remitted by wire
transfer in federal funds to such bank account of the First Lien Agent for the
ratable account of the First Lien Agent and the First Lien Claimholders in New
York, New York, as the First Lien Agent may designate in writing to the Second
Lien Agent for such purpose. Interest shall be calculated to but excluding the
Business Day on which such purchase and sale shall occur if the amounts so paid
by the Second Lien Claimholders that have exercised such option to the bank
account designated by the First Lien Agent are received in such bank account
prior to 1:00 p.m., New York City time and interest shall be calculated to
and including such Business Day if the amounts so paid by such Second Lien
Claimholders to the bank account designated by the First Lien Agent are
received in such bank account later than 1:00 p.m., New York City time on
such Business Day.

(d)           Such purchase shall be expressly made without recourse,
representation or warranty of any kind by the First Lien Agent or any First
Lien Claimholder as to the First Lien Obligations owed to such Person or
otherwise, except that each such Person shall represent and warrant:  (i) the amount of the First Lien
Obligations being sold by it, (ii) that such Person has not created any
Lien on any First Lien Obligation being sold by it and (iii) that such
Person has the right to assign First Lien Obligations being assigned by it and
its assignment is duly authorized.

(e)           If the Second Lien Claimholders elect not to exercise
their purchase right under this Section 5.6 (or do not so
irrevocably provide the Purchase Option Notice within the fifteen (15) day
period set forth in Section 5.6(b) above or do not close the
purchase within the five (5) Business Day period set forth in Section 5.6(b) (subject
to extension as provided in Section 5.6(b) above), unless such
failure is due solely to breach by the First Lien Claimholders of this
Agreement), the First Lien Agent and the First Lien Claimholders shall have no
further obligations pursuant to this Section 5.6.

Section 6.   Insolvency
or Liquidation Proceedings.

6.1   Finance Issues; Section 363.   (a) If
Holdings, the Company, any other Grantor or any Subsidiary shall be subject to
any Insolvency or Liquidation Proceeding and the First Lien Agent shall desire
to permit the use of “cash collateral” (as such term is defined in Section 363(a) of
the Bankruptcy Code) (“Cash Collateral”) on which the First Lien Agent
or any other creditor has a Lien, or to permit Holdings, the Company, any other
Grantor or any Subsidiary to obtain financing, whether from the First Lien
Claimholders or any other entity, under Section 363 or Section 364 of
the Bankruptcy Code or any similar Bankruptcy Law (each, a “DIP Financing”),
then the Second Lien Agent, on behalf of itself and the Second Lien
Claimholders, agrees that (i) it will not and will not join with any other
Person to raise any objection to (or to contest or interfere with) such use of
Cash Collateral, or any Liens securing same, (ii) it will not and will not
join with any other Person to raise any objection to (or to contest or
interfere with) such DIP Financing or any Liens securing same so long as the
sum (without duplication) of (x) the aggregate commitments under such DIP
Financing, plus (y) the aggregate outstanding principal amount of First
Lien Loans, plus (z) the aggregate amount which is undrawn and available
under all issued and outstanding letters of credit under the First Lien Credit
Documents together with the then aggregate amount of unpaid and outstanding
reimbursement obligations related thereto, does not exceed (I) the Maximum
First Lien Principal Amount plus (II) $20 million (iii) it will not
request adequate protection or other relief with respect thereto except
provided in Section 6.3 or as expressly agreed by the First Lien
Agent (acting on the direction of or with the consent of the Requisite
Lenders), (iv) it will subordinate its

 19
 

 

Liens to the replacement Liens granted to First Lien
Agent securing the use of Cash Collateral (and all obligations relating
thereto), and (v) to the extent the Liens securing the First Lien Obligations
are subordinate to the Liens securing such DIP Financing then it will
subordinate its Liens to the Liens securing such DIP Financing (and all
obligations relating thereto); provided that the foregoing shall not
prevent the Second Lien Claimholders from objecting to any DIP Financing or use
of Cash Collateral that permits the First Lien Claimholders (or any subset
thereof) to be granted adequate protection in the form of additional
collateral, a replacement lien on collateral, or current cash payment of
interest, or current cash payment of professional fees, without the Second Lien
Agent, on behalf of itself or any of the Second Lien Claimholders, being
granted adequate protection in the form of a Lien on such additional collateral
or a replacement lien on collateral that is subordinated to the Liens securing
the First Lien Obligations and such DIP Financing or use of Cash Collateral
(and all obligations relating thereto) on the same basis as the other Liens
securing the Second Lien Obligations are so subordinated to the First Lien
Obligations under this Agreement, current cash payments of interest and current
cash payments of reasonable and documented professional fees, including
attorneys fees and financial advisors (provided that the Second Lien Agent and
the Second Lien Claimholders shall only seek current cash payments of interest
and current cash payments of professional fees to the extent that the First
Lien Agent and the First Lien Claimholders have sought or are seeking current
cash payments of interest and current cash payments of such fees).

(b)           If Holdings, the Company or any other Grantor shall be
subject to any Insolvency or Liquidation Proceeding and the First Lien Agent
permits Holdings, the Company or any other Grantor to sell, lease or otherwise
dispose of Collateral free and clear of the Liens securing the First Lien
Obligations or other claims under Section 363 of the Bankruptcy Code (with
such Liens to attach to the proceeds of such sale), then the Second Lien Agent,
on behalf of itself and the Second Lien Claimholders, agrees that it will raise
no objection to such sale, lease or other disposition of Collateral. If
requested by the First Lien Agent in connection therewith, the Second Lien
Agent shall affirmatively consent in writing to such sale, lease or
disposition.

6.2   Relief from the Automatic Stay.   Until
the Discharge of First Lien Obligations has occurred, the Second Lien Agent, on
behalf of itself and the Second Lien Claimholders, agrees that neither it nor
any Second Lien Claimholder shall (i) seek (or support any other Person
seeking) relief from the automatic stay or any other stay in any Insolvency or
Liquidation Proceeding in respect of any Collateral (except, if the First Lien
Agent, on behalf of itself and the First Lien Claimholders, seeks relief from
the automatic stay to exercise its rights against such Collateral, then the
Second Lien Agent, on behalf of itself and the Second Lien Claimholders, may
seek limited relief from the automatic stay to preserve its right, subject to Section 4,
to receive proceeds of Collateral payable to it and the Second Lien
Claimholders under and in accordance with this Agreement), without the prior
written consent of the First Lien Agent (acting on the direction of or with the
consent of the Requisite Lenders), or (ii) oppose any request by the First
Lien Agent or by any First Lien Claimholder for relief from the automatic stay
or from any other stay in any Insolvency or Liquidation proceeding in respect
of any Collateral.

6.3   Adequate Protection.   The
Second Lien Agent, on behalf of itself and the Second Lien Claimholders, agrees
that neither it nor any Second Lien Claimholder shall contest (or support any
other person contesting) (a) any request by the First Lien Agent or the First
Lien Claimholders for adequate protection or (b) any objection by the
First Lien Agent or the First Lien Claimholders to any motion, relief, action
or proceeding based on the First Lien Agent or the First Lien Claimholders
claiming a lack of adequate protection; provided that the foregoing
shall not prevent the Second Lien Claimholders from objecting to any use of
Cash Collateral or DIP Financing to the extent permitted to do so pursuant to
the proviso to Section 6.1(a). In the event the Second Lien Agent
or any Second Lien Claimholders seeks or requests adequate protection in
respect of Second Lien Obligations it shall seek such adequate protection only
in the form of additional collateral, a replacement lien on collateral, current
payments of interest and

 20
 

 

current cash payments of reasonable and documented
professional fees, including attorneys and financial advisors, (provided that
the Second Lien Agent and the Second Lien Claimholders shall only seek current
cash payments of interest and current cash payments of professional fees to the
extent that the First Lien Agent and the First Lien Claimholders have sought or
are seeking current cash payments of interest and current cash payments of such
fees), and if such adequate protection is granted in the form of additional
collateral, the Second Lien Agent, on behalf of itself and the Second Lien
Claimholders, agrees that the First Lien Agent shall also be granted a senior
Lien on such additional collateral as security for the First Lien Obligations,
for any Cash Collateral use and for any such DIP Financing provided by the
First Lien Claimholders, and that any Lien on such additional collateral
securing the Second Lien Obligations shall be subordinated to the Liens on such
collateral securing the First Lien Obligations, any Cash Collateral use and any
such DIP Financing provided by the First Lien Claimholders (and all obligations
relating thereto) and to any other Liens granted to the First Lien Claimholders
as adequate protection, on the same basis as the other Liens securing the
Second Lien Obligations are so subordinated to such First Lien Obligations
under this Agreement.

6.4   No Waiver.   The First
Lien Agent and the First Lien Claimholder shall not be prohibited or in any way
limited from objecting in any Insolvency or Liquidation Proceeding or otherwise
(except to the extent it is expressly agreed herein that no such objection
shall be made) to any action taken by the Second Lien Agent or any of the
Second Lien Claimholders, including the seeking by the Second Lien Agent or any
Second Lien Claimholder of adequate protection or the asserting by the Second
Lien Agent or any Second Lien Claimholders of any of its rights and remedies
under the Second Lien Credit Documents.

6.5   Lien Validity; Recovery Issues.   (a) The
First Lien Obligations shall continue to be treated as First Lien Obligations
and the provisions of this Agreement shall continue to govern the relative
rights and priorities of the First Lien Agent and the First Lien Claimholders
and the Second Lien Agent and the Second Lien Claimholders even if all or part
of the First Lien Obligations or the Liens securing same are subordinated, set
aside, avoided, invalidated or disallowed in connection with any Insolvency or
Liquidation Proceeding; provided, however, that the Second Lien Claimholders
shall be entitled to receive and retain the amounts they would have received
and retained if the Liens securing the First Lien Obligations had not been
subordinated, set aside, avoided, invalidated or disallowed in connection with
such Insolvency or Liquidation Proceeding.

(b)           If the First Lien Agent or any First Lien Claimholder is
required in any Insolvency or Liquidation Proceeding or otherwise to turn over
or otherwise pay to the estate of Holdings, the Company or any other Grantor
any amount whether by reason of being declared to be a fraudulent or
preferential payment or for any other reason (a “Recovery”), then the
First Lien Obligations shall not be deemed paid or satisfied and shall be
reinstated to the extent of such Recovery and the First Lien Agent and/or such
First Lien Claimholder shall be entitled to a reinstatement of First Lien
Obligations with respect to all such recovered amounts, and such First Lien
Obligations shall continue in full force and effect as if such amounts subject
to such Recovery had not been received by the First Lien Agent or such First
Lien Claimholder. If this Agreement shall have been terminated prior to such
Recovery, this Agreement shall be reinstated in full force and effect, and such
prior termination shall not diminish, release, discharge, impair or otherwise
affect the obligations of the parties hereto from such date of reinstatement. Collateral
or proceeds thereof received by any Second Lien Claimholder after the Discharge
of the First Lien Obligations and prior to notice of reinstatement of the First
Lien Obligations shall (to the extent such amounts have not already been paid
over to the Company or any Grantor or the First Lien Agent), be delivered to
the First Lien Agent for the benefit of the First Lien Claimholders in
accordance with Section 4.2 upon notice of such reinstatement.

(c)           This Section 6.5 shall survive termination of
this Agreement.

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6.6   Reorganization
Securities.   If, in any Insolvency or Liquidation
Proceeding, debt instruments or securities of the reorganized debtor secured by
Liens upon any property of the reorganized debtor are distributed, pursuant to
a court-authorized plan of reorganization or similar court-authorized dispositive
restructuring plan, both on account of First Lien Obligations and on account of
Second Lien Obligations, then, to the extent the debt instruments or securities
distributed on account of the First Lien Obligations and on account of the
Second Lien Obligations are secured by Liens upon the same property, the
provisions of this Agreement will survive the distribution of such debt
instruments or securities pursuant to such plan and will apply with like effect
to the Liens securing such debt instruments or securities.

6.7   Post-Petition Interest.   (a) Neither
the Second Lien Agent nor any Second Lien Claimholder shall oppose or seek to
challenge any claim by the First Lien Agent or any First Lien Claimholder for
allowance in any Insolvency or Liquidation Proceeding of First Lien Obligations
consisting of post-petition interest, fees or expenses to the extent of the
value of the First Lien Claimholder’s Lien, without regard to the existence of
the Lien of the Second Lien Agent on behalf of the Second Lien Claimholders on
the Collateral (it being understood and agreed that such value shall be
determined without regard to the existence of the Liens on the Collateral
securing Second Lien Obligations).

(b)           Neither the Second Lien Agent nor any Second Lien
Claimholder shall be entitled to post-petition interest, fees or expenses
except to the extent permitted for the First Lien Agent and the First Lien
Claimholders. Subject to the preceding sentence, neither the First Lien Agent
nor any other First Lien Claimholder shall oppose or seek to challenge any
claim by the Second Lien Agent or any Second Lien Claimholder for allowance in
any Insolvency or Liquidation Proceeding of Second Lien Obligations consisting
of post-petition interest, fees or expenses to the extent of the value of the Lien
of the Second Lien Agent on behalf of the Second Lien Claimholders on the
Collateral (it being understood and agreed that such value shall be determined
taking into account the Liens on the Collateral securing the First Lien
Obligations).

6.8   Waiver.   The Second
Lien Agent, for itself and on behalf of the Second Lien Claimholders, waives
any claim it may hereafter have against any First Lien Claimholder arising out
of the election of any First Lien Claimholder of the application to the claims
of any First Lien Claimholder of Section 1111(b)(2) of the Bankruptcy
Code, and/or out of any cash collateral or financing arrangement or out of any
grant of a security interest in connection with the Collateral in any
Insolvency or Liquidation Proceeding.

6.9   Separate Grants of Security and
Separate Classification.   (a) The Second Lien Agent, for itself
and on behalf of the Second Lien Claimholders, and the First Lien Agent for
itself and on behalf of the First Lien Claimholders, acknowledges and agrees
that:

(i)            the grants of Liens pursuant to the
First Lien Collateral Documents and the Second Lien Collateral Documents
constitute two separate and distinct grants of Liens;

(ii)           because of, among other things, their
differing rights in the Collateral, the Second Lien Obligations are
fundamentally different from the First Lien Obligations and must be separately
classified in any plan of reorganization proposed or adopted in an Insolvency
or Liquidation Proceeding.

(b)           To further effectuate the intent of the parties as
provided in Section 6.9(a) hereof, if it is held that the
claims of the First Lien Claimholders and the Second Lien Claimholders in
respect of the

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Collateral constitute only one
secured claim (rather than separate classes of senior and junior secured claims),
then each of the parties hereto hereby acknowledges and agrees that, subject to
Sections 2.1 and 4.1, all distributions shall be made as if there
were separate classes of senior and junior secured claims against the Grantors
in respect of the Collateral (with the effect being that, to the extent that
the aggregate value of the Collateral is sufficient (for this purpose ignoring
all claims held by the Second Lien Claimholders), the First Lien Claimholders
shall be entitled to receive, in addition to amounts distributed to them in
respect of principal, pre-petition interest and other claims, all amounts owing
in respect of Post-Petition Interest, including any additional interest payable
pursuant to the First Lien Credit Agreement, arising from or related to a
default, which is disallowed (or is not allowed or allowable) as a claim in any
Insolvency or Liquidation Proceeding), before any distribution is made in
respect of any secured claims (including claims in respect of the Collateral
and secured claims with respect to assets or proceeds subject to Section 2.3(b))
held by Second Lien Claimholders, with the Second Lien Agent, for itself and on
behalf of the Second Lien Claimholders, hereby acknowledging and agreeing to
turn over to the First Lien Agent, for itself and on behalf of the First Lien
Claimholders, amounts otherwise received or receivable by them to the extent
necessary to effectuate the intent of this sentence, even if such turnover has
the effect of reducing the recovery of the Second Lien Claimholders in respect
of such secured claim in respect of the Collateral.

(c)           The First Lien Claimholders, on the one hand, and the
Second Lien Claimholders, on the other hand, shall be entitled to vote as
separate classes with respect to any plan of reorganization in connection with
any Insolvency or Liquidation Proceeding; provided, however, that
the Second Lien Agent, on behalf of itself and the Second Lien Claimholders,
agrees that neither it nor any Second Lien Claimholder shall take any action or
vote in any way which supports any plan of reorganization that is, in the
reasonable opinion of the First Lien Agent (acting on the direction of or with
the consent of the Requisite Lenders), inconsistent with the terms of this
Agreement.

6.10   Expense Claims. Neither the
Second Lien Agent nor any Second Lien Claimholder will (a) contest (or
join with any third party in doing so) the payment of fees, expenses or other
amounts to the First Lien Agent or any other First Lien Claimholder under Section 506(b) of
the Bankruptcy Code or otherwise to the extent provided for in the First Lien
Credit Agreement; provided, however that the foregoing shall not
limit the right of the Second Lien Agent or any Second Lien Claimholder to
contest payment or accrual of interest on First Lien Loans to the extent that
such interest exceeds the rates described in Section 5.3(c)(vii), 
or (b) assert or enforce,
or join with any third party in asserting or enforcing at any time prior to the
Discharge of First Lien Obligations, any claim under Section 506(c) of
the Bankruptcy Code senior to or on parity with the First Lien Obligations for
costs or expenses of preserving or disposing of any Collateral.

6.11   Effectiveness in Insolvency or
Liquidation Proceedings.   This Agreement, which the parties hereto
expressly acknowledge is a “subordination agreement” under Section 510(a) of
the Bankruptcy Code, shall, for the avoidance of any doubt, be effective
before, during and after the commencement of an Insolvency or Liquidation Proceeding.
All references in this Agreement to Grantor or any of its subsidiaries shall
include such Grantor or such subsidiary, as applicable, as a
debtor-in-possession and any receiver or trustee for such Grantor or such
subsidiary, as applicable, in any Insolvency or Liquidation Proceeding.

Section 7.   Reliance;
Waivers; Etc.

7.1   Reliance.   Other than
any reliance on the terms of this Agreement, the First Lien Agent, on behalf of
itself and the First Lien Claimholders, acknowledges that it and such First Lien
Claimholders have, independently and without reliance on the Second Lien Agent
or any Second Lien Claimholders, and based on documents and information deemed
by them appropriate, made their own credit analysis and

 23
 

 

decision
to enter into such First Lien Credit Documents and be bound by the terms of
this Agreement and they will continue to make their own credit decision in
taking or not taking any action under the First Lien Credit Documents or this
Agreement. The Second Lien Agent, on behalf of itself and the Second Lien
Claimholders, acknowledges that it and the Second Lien Claimholders have,
independently and without reliance on the First Lien Agent or any First Lien
Claimholder, and based on documents and information deemed by them appropriate,
made their own credit analysis and decision to enter into each of the Second
Lien Credit Documents and be bound by the terms of this Agreement and they will
continue to make their own credit decision in taking or not taking any action
under the Second Lien Credit Documents or this Agreement.

7.2   No Warranties or Liability.   The
First Lien Agent, on behalf of itself and the First Lien Claimholders,
acknowledges and agrees that neither the Second Lien Agent nor the Second Lien
Claimholders have made any express or implied representation or warranty,
including with respect to the execution, validity, legality, completeness,
collectibility or enforceability of any of the Second Lien Credit Documents,
the ownership of any Collateral or the perfection or priority of any Liens
thereon. The Second Lien Claimholders will be entitled to manage and supervise
their respective loans and extensions of credit under the Second Lien Credit
Documents in accordance with applicable law and as they may otherwise, in their
sole discretion, deem appropriate. The Second Lien Agent, on behalf of itself
and the Second Lien Claimholders, acknowledges and agrees that neither the
First Lien Agent nor the First Lien Claimholders have made any express or
implied representation or warranty, including with respect to the execution,
validity, legality, completeness, collectibility or enforceability of any of
the First Lien Credit Documents, the ownership of any Collateral or the
perfection or priority of any Liens thereon. The First Lien Claimholders will
be entitled to manage and supervise their respective loans and extensions of
credit under their respective First Lien Documents in accordance with
applicable law and as they may otherwise, in their sole discretion, deem
appropriate. Neither the Second Lien Agent nor the Second Lien Claimholders
shall have any duty to the First Lien Agent or any of the First Lien
Claimholders, and neither the First Lien Agent nor the First Lien Claimholders
shall have any duty to the Second Lien Agent or any of the Second Lien
Claimholders, to act or refrain from acting in a manner which allows, or
results in, the occurrence or continuance of an event of default or default
under any agreements with Holdings, the Company or any other Grantor (including
the First Lien Credit Documents and the Second Lien Credit Documents),
regardless of any knowledge thereof which they may have or be charged with.

7.3   No Effect on Lien Priorities.   (a) 
No right of the First Lien Claimholders, the First Lien Agent or any of them to
enforce any provision of this Agreement or any First Lien Credit Document, and
none of their rights in respect of the Collateral, shall at any time in any way
be prejudiced or impaired by any act or failure to act on the part of Holdings,
the Company, any Subsidiary Grantor or any other Grantor or by any
noncompliance by the Second Lien Agent, any Second Lien Claimholder, the First
Lien Agent, or any First Lien Claimholder, with the terms, provisions and
covenants of this Agreement, any of the First Lien Credit Documents or any of
the Second Lien Credit Documents, regardless of any knowledge thereof which the
First Lien Agent or the First Lien Claimholders, or any of them, may have or be
otherwise charged with.

(b)           Without in any way limiting the generality of the
foregoing paragraph, the First Lien Claimholders, the First Lien Agent and any
of them may, at any time and from time to time in accordance with the First
Lien Credit Documents and/or applicable law, without the consent of, or notice
to, the Second Lien Agent or any Second Lien Claimholders, without incurring
any liabilities to the Second Lien Agent or any Second Lien Claimholders (provided,
however, that this Section 7.3 shall not be deemed to release the
First Lien Agent or the First Lien Claimholders from responsibility for
compliance with their covenants set forth in this Agreement) and without
impairing or releasing the Lien priorities and other benefits provided in this
Agreement (even if any right of subrogation or other right or remedy of the

 24
 

 

Second Lien Agent or any Second
Lien Claimholders is affected, impaired or extinguished thereby) do any one or
more of the following:

(i)            Change
the manner, place or terms of payment or change or extend the time of payment
of, or amend, renew, exchange, increase or alter, the terms of any of the First
Lien Obligations or any Lien on any First Lien Collateral or guaranty thereof
or any liability of Holdings, the Company or any other Grantor, or any
liability incurred directly or indirectly in respect thereof (including any
increase (subject to the limitation set forth in the definition of First Lien
Obligations) in or extension of the First Lien Obligations, without any
restriction as to the amount, tenor or terms of any such increase or extension)
or otherwise amend, renew, exchange, extend, modify or supplement in any manner
any Liens held by the First Lien Agent or any of the First Lien Claimholders,
the First Lien Obligations or any of the First Lien Credit Documents;

(ii)           sell,
exchange, release, surrender, realize upon, enforce or otherwise deal with in
any manner and in any order any part of the First Lien Collateral or any
liability of Holdings, the Company or any other Grantor to the First Lien
Claimholders or the First Lien Agent, or any liability incurred directly or
indirectly in respect thereof;

(iii)          settle or
compromise any First Lien Obligation or any other liability of Holdings, the
Company or any other Grantor or any security therefor or any liability incurred
directly or indirectly in respect thereof and apply any sums by whomsoever paid
and however realized to any liability (including the First Lien Obligations) in
any manner or order; and

(iv)          exercise
or delay in or refrain from exercising any right or remedy against Holdings,
the Company or any security or any other Grantor or any other Person, elect any
remedy and otherwise deal freely with Holdings, the Company, any other Grantor
or any First Lien Collateral and any security and any guarantor or any
liability of Holdings, the Company or any other Grantor to the First Lien
Claimholders or any liability incurred directly or indirectly in respect
thereof, and, not in limitation but in furtherance thereof, neither the First
Lien Agent nor any First Lien Claimholder shall be required to proceed against
Holdings, the Company or any surety or guarantor (including any other Grantor)
or against any First Lien Collateral prior to or as a condition of exercising
or enforcing its rights or remedies.

(c)           The Second Lien Agent, on behalf of itself and the Second
Lien Claimholders, also agrees that the First Lien Claimholders and the First
Lien Agent shall have no liability to the Second Lien Agent or any Second Lien
Claimholders, and the Second Lien Agent, on behalf of itself and the Second
Lien Claimholders, hereby waives any claim against any First Lien Claimholder
or the First Lien Agent, arising out of any and all actions which the First Lien
Claimholders or the First Lien Agent may take or permit or omit to take (so
long as such actions taken, permitted to be taken or not taken are not in
contravention of the terms of this Agreement) with respect to:  (i) the First Lien Credit Documents, (ii) the
collection of the First Lien Obligations or (iii) the foreclosure upon, or
sale, liquidation or other disposition of, any First Lien Collateral. The
Second Lien Agent, on behalf of itself and the Second Lien Claimholders, agrees
that the First Lien Claimholders and the First Lien Agent have no duty to
itself or any Second Lien Claimholder in respect of the maintenance or
preservation of the First Lien Collateral, the First Lien Obligations or
otherwise, except to the extent expressly provided in Section 5.5.

(d)           The Second Lien Agent, on behalf of itself and the Second
Lien Claimholders, agrees not to assert and hereby waives, to the fullest
extent permitted by law, any right to demand, request, plead or

 25
 

 

otherwise assert or otherwise claim
the benefit of, any marshalling, appraisal, valuation or other similar right
that may otherwise be available under applicable law with respect to the
Collateral or any other similar rights a junior secured creditor may have under
applicable law.

(e)           The Second Lien Agent and the Second Lien Claimholders
waive any claim or defense which any or all of them may now or hereafter have
against the First Lien Agent or the First Lien Claimholders arising out of any
and all actions which the First Lien Agent or the First Lien Claimholders take
or omit to take (including actions with respect to the creation, perfection or
continuation of liens or security interests in any First Lien Collateral,
actions with respect to the occurrence of any default or event of default,
actions with respect to the foreclosure upon, sale, release of, depreciation of
or failure to realize upon, any First Lien Collateral and actions with respect
to the collection of any claim for all or any part of the First Lien
Obligations from Holdings, the Company, any account debtor, guarantor
(including any Subsidiary Grantor) or any other party) with respect to the
First Lien Credit Documents; provided  however, that this Section shall
not be deemed to release the First Lien Agent or the First Lien Claimholders
from compliance with this Agreement.

(f)            In the event that all or any part of the First Lien
Obligations at any time is secured by any deeds of trust or mortgages or other
instruments creating or granting liens on any interest in real property,
including the First Lien Mortgages, the Second Lien Agent and the Second Lien
Claimholders authorize the First Lien Agent and the First Lien Claimholders,
upon the occurrence of and during the continuance of any Event of Default (as
defined in the First Lien Credit Agreement), at its or their sole option,
without notice or demand and without affecting any obligations of the Second
Lien Agent and the Second Lien Claimholders hereunder, the enforceability of
this Agreement, or the validity or enforceability of any liens of First Lien
Claimholders on any First Lien Collateral, to foreclose any and all of such
deeds of trust or mortgages or other instruments by judicial or nonjudicial
sale. The Second Lien Agent and the Second Lien Claimholders expressly waive
any defenses to the enforcement of this Agreement or any liens created or
granted by any First Lien Collateral Document or to the recovery by the First
Lien Agent or the First Lien Claimholders against the Company or any guarantor
(including any other Grantor) or any other Person liable therefor of any
deficiency after a judicial or nonjudicial foreclosure or sale, even though
such a foreclosure or sale may impair the subrogation rights of the Second Lien
Agent and the Second Lien Claimholders and may preclude the Second Lien Agent
and the Second Lien Claimholders from obtaining reimbursement or contribution
from the Company, any guarantor (including other Grantor) or any other Person.

7.4   Obligations Unconditional.   All
rights, interests, agreements and obligations of the First Lien Agent and the
First Lien Claimholders and the Second Lien Agent and the Second Lien
Claimholders, respectively, hereunder shall remain in full force and effect
irrespective of:

(a)           any lack of validity or enforceability of any First Lien
Credit Documents or any Second Lien Credit Documents;

(b)           except as otherwise expressly set forth in this Agreement,
any change in the time, manner or place of payment of, or in any other terms
of, all or any of the First Lien Obligations or Second Lien Obligations, or any
amendment or waiver or other modification, including any increase in the amount
thereof, whether by course of conduct or otherwise, of the terms of any First
Lien Credit Document or any Second Lien Credit Document;

(c)           any exchange of any security interest in any Collateral or
any other collateral, or any amendment, waiver or other modification, whether
in writing or by course of conduct or otherwise, of all or any of the First
Lien Obligations or Second Lien Obligations or any guarantee thereof;

 26
 

 

(d)           the commencement of any Insolvency or Liquidation
Proceeding in respect of Holdings, the Company, any other Grantor or any
Subsidiary; or

(e)           any other circumstances which otherwise might constitute a
defense available to, or a discharge of, Holdings, the Company or any other
Grantor in respect of the First Lien Obligations, or of the Second Lien Agent
or any Second Lien Claimholder in respect of this Agreement.

Section 8.   Miscellaneous.

8.1   Conflicts.   In the
event of any conflict between the provisions of this Agreement and the
provisions of the First Lien Credit Documents or the Second Lien Credit
Documents, the provisions of this Agreement shall govern and control.

8.2   Effectiveness; Continuing Nature
of this Agreement; Severability; Notice of Discharge.   (a) This
Agreement shall become effective when executed and delivered by the parties
hereto. This is a continuing agreement of lien subordination and the First Lien
Claimholders may continue, at any time and without notice to the Second Lien
Agent or any Second Lien Claimholder, to extend credit and other financial
accommodations and lend monies to or for the benefit of Holdings, the Company
or any other Grantor constituting First Lien Obligations in reliance hereof. The
Second Lien Agent, on behalf of itself and the Second Lien Claimholders, hereby
waives any right it may have under applicable law to revoke this Agreement or
any of the provisions of this Agreement. The terms of this Agreement shall
survive, and shall continue in full force and effect, in any Insolvency or
Liquidation Proceeding. Any provision of this Agreement which is prohibited or
unenforceable in any jurisdiction shall not invalidate the remaining provisions
hereof, and any such prohibition or unenforceability in any jurisdiction shall
not invalidate or render unenforceable such provision in any other jurisdiction.
All references to Holdings, the Company, any other Grantor or any Subsidiary
shall include Holdings, the Company, such other Grantor or such Subsidiary as
debtor and debtor in possession and any receiver or trustee for Holdings, the
Company, any other Grantor or any Subsidiary (as the case may be) in any
Insolvency or Liquidation Proceeding.

(b)           Subject to Section 6.5,
this Agreement shall terminate and be of no further force and effect, when both
(i) Discharge of First Lien Obligations has occurred, and (ii) no
Second Lien Obligations are outstanding.

(c)           Upon
the occurrence of the Discharge of First Lien Obligations, the First Lien Agent
shall give the Second Lien Agent written notice thereof. Neither the Second
Lien Agent nor the Second Lien Claimholders shall be entitled to assume or to
act on the assumption that a Discharge of the First Lien Obligations has
occurred unless the Second Lien Agent receives such notice from the First Lien
Agent or a court of competent jurisdiction so finds.

(d)           The
Second Lien Agent shall give notice to the First Lien Agent at such time when
no Second Lien Obligations remain outstanding.

(e)           Whenever
the First Lien Agent or the Second Lien Agent shall be required, in connection
with the exercise of its rights or the performance of its obligations
hereunder, to determine the existence or amount of any First Lien Obligations
or Second Lien Obligations, or the existence of any Lien securing any such
obligations, or the Collateral subject to any such Lien, it may request that
such information be furnished to it in writing by the First Lien Agent or the
Second Lien Agent, as applicable, and shall be entitled to make such
determination on the basis of the information so furnished. Each of the First
Lien Agent and the Second Lien Agent may rely conclusively, and shall be fully
protected in so relying, on any determination made by it in accordance with the
provisions of the preceding sentence (or as otherwise directed by a court of
competent jurisdiction).

 27
 

 

8.3   Amendments; Waivers.   No
amendment, modification or waiver of any of the provisions of this Agreement by
the First Lien Agent or the Second Lien Agent shall be deemed to be effective
unless the same shall be in writing signed on behalf of the First Lien Agent
(acting on the direction of or with the consent of the Requisite Lenders) and
the Second Lien Agent or its authorized agent and each waiver, if any, shall be
a waiver only with respect to the specific instance involved and shall in no
way impair the rights of the parties making such waiver or the obligations of
the other parties to such party in any other respect or at any other time. No
Grantor shall have any right to consent to or approve any amendment,
modification or waiver of any provision of this Agreement except to the extent
its rights, interests, liabilities or privileges are directly and adversely
affected.

8.4   Information Concerning Financial
Condition of Holdings, the Company and Their Respective Subsidiaries.   The
First Lien Claimholders (but not the First Lien Agent), on the one hand, and
the Second Lien Claimholders (but not the Second Lien Agent), on the other
hand, shall each be responsible for keeping themselves informed of (a) the
financial condition of Holdings, the Company, the Subsidiary Grantors and their
respective Subsidiaries and all endorsers and/or guarantors of the First Lien
Obligations or the Second Lien Obligations and (b) all other circumstances
bearing upon the risk of nonpayment of the First Lien Obligations or the Second
Lien Obligations. Neither the First Lien Agent nor the First Lien Claimholders
shall have any duty to advise the Second Lien Agent or any Second Lien
Claimholder of information known to it or them regarding such condition or any
such circumstances or otherwise. In the event that either the First Lien Agent
or any of the First Lien Claimholders, on the one hand, or the Second Lien
Agent or any of the Second Lien Claimholders, on the other hand, in its or
their sole discretion, undertakes at any time or from time to time to provide
any such information to the Second Lien Agent or any Second Lien Claimholder,
on the one hand, or the First Lien Agent or any of the First Lien Claimholders,
on the other hand, it or they shall be under no obligation (w) to make, and
such disclosing parties shall not make, any express or implied representation
or warranty, including with respect to the accuracy, completeness, truthfulness
or validity of any such information so provided, (x) to provide any
additional information or to provide any such information on any subsequent
occasion, (y) to undertake any investigation or (z) to disclose any
information which, pursuant to accepted or reasonable commercial finance
practices, such party wishes to maintain confidential or is otherwise required
to maintain confidential.

8.5   Subrogation.   Subject
to the Discharge of First Lien Obligations, with respect to the value of any
payments or distributions in cash, property or other assets that the Second
Lien Claimholders or Second Lien Agent pay over to the First Lien Agent or
First Lien Claimholders under the terms of this Agreement, the Second Lien
Claimholders and the Second Lien Agent shall be subrogated to the rights of the
First Lien Agent and First Lien Claimholders; provided that, the Second
Lien Agent, on behalf of itself and the Second Lien Claimholders, hereby agrees
not to assert or enforce any and all such rights of subrogation it may acquire
as a result of any payment or distribution hereunder until the Discharge of
First Lien Obligations has occurred. Each Grantor acknowledges and agrees that,
with respect to the value of any payments or distributions in cash, property or
other assets received by the Second Lien Agent or the Second Lien Claimholders
and paid over to the First Lien Agent or the First Lien Claimholders pursuant
to, and applied in accordance with this Agreement, shall not relieve or reduce
any of the obligations owed by such Grantor under the Second Lien Credit
Documents.

8.6   Application of Payments.   All
payments received by the First Lien Agent or the First Lien Claimholders may be
applied, reversed and reapplied, in whole or in part, to such part of the First
Lien Obligations as the First Lien Claimholders, in their sole discretion, deem
appropriate (subject, as among the First Lien Claimholders and as between the
First Lien Claimholders and the Grantors, to the terms of the First Lien Credit
Documents). The Second Lien Agent, on behalf of itself and the Second Lien
Claimholders, assents to any extension or postponement of the time of payment
of the First Lien Obligations or any part thereof and to any other indulgence
with respect thereto, to any substitution,

 28
 

 

exchange
or release of any security which may at any time secure any part of the First
Lien Obligations and to the addition or release of any other Person primarily
or secondarily liable therefor, in each case to the extent not prohibited
hereunder.

8.7   SUBMISSION TO JURISDICTION;
WAIVERS.   (a)   ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION
WITH THIS AGREEMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS
(WHETHER ORAL OR WRITTEN) OR ACTIONS OF ANY PARTY HERETO IN CONNECTION HEREWITH
MAY BE BROUGHT AND MAINTAINED IN THE COURTS OF THE COUNTY OF NEW YORK IN
THE STATE OF NEW YORK OR IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN
DISTRICT OF NEW YORK AND EACH PARTY HERETO IRREVOCABLY AND UNCONDITIONALLY
SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF EACH SUCH COURT; PROVIDED
THAT ANY SUIT SEEKING ENFORCEMENT AGAINST ANY COLLATERAL OR OTHER PROPERTY MAY BE
BROUGHT, AT THE FIRST LIEN AGENT’S OPTION, IN THE COURTS OF ANY JURISDICTION
WHERE SUCH COLLATERAL OR OTHER PROPERTY MAY BE FOUND. EACH PARTY HERETO
HEREBY EXPRESSLY AND IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
LAW, ANY OBJECTION WHICH IT MAY HAVE OR HEREAFTER MAY HAVE TO THE
LAYING OF VENUE OF ANY SUCH LITIGATION BROUGHT IN ANY SUCH COURT REFERRED TO
ABOVE AND ANY CLAIM THAT ANY SUCH LITIGATION HAS BEEN BROUGHT IN AN INCONVENIENT
FORUM. TO THE EXTENT THAT ANY SUCH PARTY HAS OR HEREAFTER MAY ACQUIRE ANY
IMMUNITY FROM JURISDICTION OF ANY COURT OR FROM ANY LEGAL PROCESS (WHETHER
THROUGH SERVICE OR NOTICE, ATTACHMENT PRIOR TO JUDGMENT, ATTACHMENT IN AID OF
EXECUTION OR OTHERWISE) WITH RESPECT TO ITSELF OR ITS PROPERTY, SUCH PARTY
HEREBY IRREVOCABLY WAIVES TO THE FULLEST EXTENT PERMITTED BY LAW SUCH IMMUNITY
IN RESPECT OF ITS OBLIGATIONS UNDER THIS AGREEMENT. EACH PARTY HERETO ALSO  AGREES THAT SERVICE OF ALL
PROCESS IN ANY SUCH PROCEEDING IN ANY SUCH COURT MAY BE MADE BY REGISTERED
OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO THE APPLICABLE PARTY AT ITS
ADDRESS PROVIDED IN ACCORDANCE WITH SECTION 8.8 AND AGREES THAT
SUCH SERVICE IS SUFFICIENT TO CONFER PERSONAL JURISDICTION OVER THE APPLICABLE
PARTY IN ANY SUCH PROCEED­ING IN ANY SUCH COURT, AND OTHERWISE CONSTITUTES
EFFECTIVE AND BINDING SERVICE IN EVERY RESPECT.

(b)           EACH PARTY HERETO HEREBY
KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES TO THE FULLEST EXTENT PERMITTED
BY LAW ANY RIGHTS IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY
LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH THIS
AGREEMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER
ORAL OR WRITTEN) OR ACTIONS OF ANY OTHER PARTY HERETO IN CONNECTION THEREWITH. EACH
PARTY HERETO ACKNOWLEDGES AND AGREES THAT IT HAS RECEIVED FULL AND SUFFICIENT
CONSIDERATION FOR THIS PROVISION AND THAT THIS PROVISION IS A MATERIAL
INDUCEMENT FOR THE OTHER PARTIES HERETO IN ENTERING INTO THIS AGREEMENT.

8.8   Notices.   All notices
to the Second Lien Claimholders and the First Lien Claimholders permitted or
required under this Agreement may be sent to the Second Lien Agent and the
First Lien Agent, respectively. Unless otherwise specifically provided herein,
any notice or other communication herein required or permitted to be given
shall be in writing and may be personally served, sent by

 29
 

 

facsimile
or electronic transmission, or sent by courier service or U.S. mail and shall
be deemed to have been given when delivered in person or by courier service,
upon receipt of facsimile or electronic transmission or four Business Days
after deposit in the U.S. mail (registered or certified, with postage prepaid
and properly addressed). For the purposes hereof, the addresses of the parties
hereto shall be as set forth below each party’s name on the signature pages hereto,
or, as to each party, at such other address as may be designated by such party
in a written notice to all of the other parties.

8.9   Further Assurances.   Each
of the First Lien Agent, on behalf of itself and the First Lien Claimholders,
and the Second Lien Agent, on behalf of itself and the Second Lien
Claimholders, and each Grantor, agrees that each of them shall take such
further action and shall execute and deliver such additional documents and
instruments (in recordable form, if requested) as the First Lien Agent or the
Second Lien Agent may reasonably request to effectuate the terms of and the
lien priorities contemplated by this Agreement. Upon request made by the Second
Lien Agent, the First Lien Agent, on behalf of the First Lien Claimholders,
shall execute and deliver all consents and documents and conduct all such acts
as may be necessary or advisable under the laws and common market practices of
Spain for the Second Lien Agent and the Second Lien Claimholders to have a
perfected second-lien security interest in Merisant Spain, S.L. according to
the terms of the Second Lien Loan Documents.

8.10   APPLICABLE
LAW.   THIS AGREEMENT WILL BE DEEMED TO BE A CONTRACT MADE UNDER
AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK (INCLUDING FOR SUCH PURPOSE
SECTIONS 5 1401 AND 5 1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW
YORK). THIS AGREEMENT REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT
BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL
AGREEMENTS OF THE PARTIES. THERE ARE NO ORAL AGREEMENTS BETWEEN THE PARTIES.

8.11   Binding on Successors and
Assigns; Joinder.   This Agreement shall be binding upon the
Grantors, the First Lien Agent, the Second Lien Agent, the Second Lien
Claimholders and their respective successors and assigns. The provisions of Section 2.2
and Section 5.6 of this Agreement shall be binding on all First
Lien Claimholders that consent to this Agreement, and their respective
successors and assigns, and, to the extent permitted by applicable law and by
the applicable provisions of the First Lien Credit Agreement, binding on all
other First Lien Claimholders and their respective successors and assigns. All
other provisions of this Agreement shall be binding upon all First Lien
Claimholders and their respective successors and assigns.

8.12   Specific Performance.   Each
of the First Lien Agent and the Second Lien Agent may demand specific
performance of this Agreement. The First Lien Agent, on behalf of itself and
the First Lien Claimholders, and the Second Lien Agent, on behalf of itself and
the Second Lien Claimholders, hereby irrevocably waives any defense based on
the adequacy of a remedy at law and any other defense which might be asserted
to bar the remedy of specific performance in any action which may be brought by
the First Lien Agent or the Second Lien Agent, as the case may be.

8.13   Headings.   Section headings
in this Agreement are included herein for convenience of reference only and
shall not constitute a part of this Agreement for any other purpose or be given
any substantive effect.

8.14   Counterparts.   This
Agreement may be executed in counterparts (and by different parties hereto in
different counterparts), each of which shall constitute an original, but all of
which when taken together shall constitute a single contract. Delivery of an
executed counterpart of a signature page of this Agreement or any document
or instrument delivered in connection herewith by facsimile transmission or

 30
 

 

electronic
transmission shall be effective as delivery of a manually executed counterpart
of this Agreement or such other document or instrument, as applicable.

8.15   Authorization.   By its
signature, the First Lien Agent represents and warrants to the other parties
hereto that it has been directed by the Requisite Lenders to enter into this
Agreement. The Second Lien Agent represents and warrants to the other parties
hereto that it has been directed by the Second Lien Lenders to enter into this
Agreement.

8.16   No Third Party Beneficiaries;
Effect of Agreement.   (a) This Agreement and the rights and
benefits hereof shall be binding on each of the parties hereto and its
respective successors and assigns and shall inure to the benefit of the First
Lien Agent and each of the First Lien Claimholders and the Second Lien Agent
and each of the Second Lien Claimholders. No other Person shall have or be
entitled to assert rights or benefits hereunder. The provisions of this
Agreement are and are intended solely for the purpose of defining the relative
rights of the First Lien Agent and the First Lien Claimholders on the one hand
and the Second Lien Agent and the Second Lien Claimholders on the other hand. None
of the Company, any other Grantor or any other creditor thereof shall have any
rights hereunder and neither the Company nor any Grantor may rely on the terms
hereof.

(b)           Nothing in this
Agreement is intended to or shall impair, as between each Grantor and the First
Lien Agent and the First Lien Claimholders, or as between each Grantor and the
Second Lien Agent and the Second Lien Claimholders, the obligations of such
Grantor to pay the First Lien Obligations and the Second Lien Obligations as
and when the same shall become due and payable in accordance with their terms.

[REMAINDER OF PAGE
INTENTIONALLY LEFT BLANK]

 31

 

IN WITNESS WHEREOF, the parties hereto have
executed this Intercreditor Agreement as of the date first written above.

	
  

  	
   

  	
  First Lien Agent:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CREDIT SUISSE, Cayman Islands Branch, in

  its capacity as First Lien Agent

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Megan Kane

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
  Megan Kane

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
  Director

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Didier Siffer 

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
  Didier Siffer

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
  Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address:

  
	
   

  	
   

  	
  One Madison
  Avenue

  
	
   

  	
   

  	
  New York, NY
  10010

  
	
   

  	
   

  	
  Attention:
  Jennifer Goh

  
	
   

  	
   

  	
  Telecopier: 212-538-9884

  
	
   

  	
   

  	
  Telephone: 212-538-9860

  
	
   

  	
   

  	
  email:jennifer.goh@credit-suisse.com

  
								

 

 [This is a Signature Page to the 
 Intercreditor Agreement]
 

 

 

	
  

  	
   

  	
  Second Lien Agent:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  WELLS FARGO BANK, NATIONAL ASSOCIATION,

  in its capacity as Second Lien Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jeffery Rose

  
	
   

  	
   

  	
  Name:

  	
  Jeffery Rose

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address:

  
	
   

  	
   

  	
  MAC N9303-120

  
	
   

  	
   

  	
  Sixth
  Street & Marquette Avenue-120

  
	
   

  	
   

  	
  Minneapolis, MN
  55479

  
	
   

  	
   

  	
  Attention:
  Merisant Agency Administrator

  
	
   

  	
   

  	
  Telecopier: 612-667-9825

  
	
   

  	
   

  	
  Attn: Jeffery
  Rose

  
	
   

  	
   

  	
  email:
  Jeffery.T.Rose@wellsfargo.com

  
					

 [This is a Signature Page to the 
 Intercreditor Agreement]
 

 

Each of Holdings, the Company and the Subsidiary
Grantors (i) consents to the provisions of this Agreement and the
intercreditor arrangements provided for herein and agrees that the obligations
of the Grantors under the First Lien Credit Documents and under the Second Lien
Credit Documents will in no way be diminished or otherwise affected by such
provisions or arrangements,  (ii) agrees
that it shall ensure that each of its Subsidiaries that is or is to become a
party to any First Lien Collateral Document or any Second Lien Collateral
Document shall either be a Grantor hereunder or shall confirm that it is a
Grantor hereunder pursuant to a joinder (in form and substance reasonably
satisfactory to each of the First Lien Agent and the Second Lien Agent) to this
Agreement that is executed and delivered by such Subsidiary prior to or
concurrent with its execution and delivery of such First Lien Collateral
Document or such Second Lien Collateral Document, and (iii) authorizes the
First Lien Agent and the First Lien Claimholders to provide to the Second Lien
Agent and the Second Lien Claimholders, and authorizes the Second Lien Agent
and the Second Lien Claimholders to provide to the First Lien Agent and the
First Lien Claimholders, the notices and other information required or
authorized to be given pursuant to this Agreement.

	
  

  	
  The Company:

  
	
   

  	
   

  
	
   

  	
  MERISANT COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Anthony J. Nocchiero

  
	
   

  	
   

  	
  Name:

  	
  Anthony J. Nocchiero

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Holdings:

  
	
   

  	
   

  
	
   

  	
  MERISANT WORLDWIDE, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Anthony J. Nocchiero

  
	
   

  	
   

  	
  Name:

  	
  Anthony J. Nocchiero

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Subsidiary Grantors:

  
	
   

  	
   

  
	
   

  	
  MERISANT US, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jonathan W. Cole 

  
	
   

  	
   

  	
  Name:

  	
  Jonathan W. Cole

  
	
   

  	
   

  	
  Title:

  	
  General Counsel

  
					

 

 [This is a Signature Page to the 
 Intercreditor Agreement]
 

 

 

	
  

  	
  MERISANT FOREIGN HOLDINGS
  I, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jonathan W. Cole

  
	
   

  	
   

  	
  Name:

  	
  Jonathan W. Cole

  
	
   

  	
   

  	
  Title:

  	
  General Counsel

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  WHOLE EARTH SWEETENER
  COMPANY LLC

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jonathan W. Cole

  
	
   

  	
   

  	
  Name:

  	
  Jonathan W. Cole

  
	
   

  	
   

  	
  Title:

  	
  General Counsel

  
	
   

  	
   

  	
   

  	
   

  

 

 [This is a Signature Page to the 
 Intercreditor Agreement]

 

SCHEDULE 2.1

(Copy of Section 6.3(vi) and (xi) of the First Lien Credit Agreement

as in effect on the date hereof — Certain Permitted Liens)

 

(vi)          Liens securing Indebtedness of the
Borrower or any of its Subsidiaries incurred pursuant to Section 6.2(v) [of
the First Lien Credit Agreement] to finance the acquisition of fixed or capital
assets, provided
that (i) such Liens shall be created substantially simultaneously with the
acquisition of such fixed or capital assets, (ii) such Liens do not at any
time encumber any property other than the property financed by such
Indebtedness and (iii) the principal amount of Indebtedness secured
thereby is not increased after its initial occurrence;

(xi)           Liens that (v) secure
Indebtedness permitted under Section 6.2(xiii) [of the First Lien Credit
Agreement] in connection with an acquisition pursuant to an Investment
permitted under Section 6.8(x) [of the First Lien Credit Agreement]
so long as such Liens (w) existed prior to such acquisition, (x) encumber
specific fixed assets acquired by the Borrower or any Subsidiary of the
Borrower, or owned by a Person that becomes a Wholly Owned Subsidiary, pursuant
to such acquisition, (y) were not created in contemplation of such
acquisition and (z) do not encumber any property or assets other than such
specific fixed assets and improvements on or proceeds of such specific fixed
assets;

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