Document:

Exhibit 4.2

 

SECURITY AGREEMENT

 

SECURITY
AGREEMENT, dated as of February 19, 2004, among PLAYTEX PRODUCTS, INC., a
Delaware corporation (“Playtex” or “Company”), PLAYTEX
MANUFACTURING, INC., a Delaware corporation (“PMI”), PLAYTEX SALES &
SERVICES, INC., a Delaware corporation (“PSSI”), PLAYTEX INVESTMENT
CORP., a Delaware corporation (“PIC”), TH MARKETING CORP., a Delaware
corporation (“THMC”), PLAYTEX INTERNATIONAL CORP., a Delaware
corporation (“PINT”), SUN PHARMACEUTICALS CORP., a Delaware corporation (“SPC”),
SMILE-TOTE, INC., a California corporation (“STC”), CAREWELL INDUSTRIES,
INC., a New York corporation (“CII”), PERSONAL CARE HOLDINGS, INC., a
Delaware corporation, (“PCHI”), and PERSONAL CARE GROUP, INC., a
Delaware corporation (“PCGI”) (Playtex, PMI, PSSI, PIC, THMC, PINT, SPC,
STC, CII, PCHI and PCGI are sometimes collectively referred to herein as “Grantors”
and individually as a “Grantor”), and WELLS FARGO BANK MINNESOTA,
NATIONAL ASSOCIATION, in its capacity as trustee (in such capacity, together
with its successors and assigns, the “Trustee”) for the benefit of
holders of Notes (as defined below) (the “Secured Parties”).

 

W  I  T
N  E  S  S  T  H:

 

WHEREAS,
pursuant to the Indenture, dated as of the date hereof (as from time to time
amended, restated, supplemented or otherwise modified, the “Indenture”),
by and among the Company), the Persons named therein as Guarantors and
the Trustee, the Company intends to issue 8% Senior Secured Notes due 2011 (the
“Notes”) and the Guarantors intend to guarantee payment of the Notes and all
other Note Obligations (as defined in the Indenture);

 

WHEREAS,
Grantors have agreed to grant a continuing Lien on the Collateral (as
hereinafter defined) to secure the Notes and Note Obligations and such Lien is
intended to be a first lien on the Note First Lien Collateral (as defined in
the Indenture) and a second lien on the Collateral, except for Note First Lien
Collateral, and the Lien granted to the Agent (as defined below) under the
Credit Security Agreement (as defined below) is intended to be a first lien on
the Collateral (other than Note First Lien Collateral) and a second lien on the
Note First Lien Collateral, in each case, in accordance with the Intercreditor
Provisions of the Indenture (as defined below);

 

NOW,
THEREFORE, in consideration of the premises and mutual covenants herein
contained and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

 

1.                                       DEFINED TERMS.

 

(a)                                  All capitalized terms used but not otherwise
defined herein have the meanings given to them in the Indenture.  All other terms contained in this Security
Agreement, unless the context indicates otherwise, have the meanings provided
for by the Code (as defined below) to the extent the same are used or defined
therein.

 

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

 

 

“Account
Debtor” means any Person who may become obligated to the Company or any
Guarantor under, with respect to, or on account of, an Account, Chattel Paper
or General Intangibles (including a payment intangible).

 

“Agent”
means (i) initially General Electric Capital Corporation in its capacity as
Agent for itself and the Lenders (as defined in Credit Agreement) and (ii) the
Credit Agreement Agent under any other Credit Agreement.

 

“Code”
means the Uniform Commercial Code as the same may, from time to time, be
enacted and in effect in the State of New York; provided, that to the extent that the Code is used to define
any term herein and such term is defined differently in different Articles or
Divisions of the Code, the definition of such term contained in Article or
Division 9 shall govern; provided,
further, that in the event that,
by reason of mandatory provisions of law, any or all of the attachment,
perfection or priority of, or remedies with respect to, Trustee’s Lien on any
Collateral is governed by the Uniform Commercial Code as enacted and in effect
in a jurisdiction other than the State of New York, the term “Code”
shall mean the Uniform Commercial Code as enacted and in effect in such other
jurisdiction solely for purposes of the provisions thereof relating to such
attachment, perfection, priority or remedies and for purposes of definitions
related to such provisions.

 

“Copyright
License” means any and all rights now owned or hereafter acquired by the
Company or any Guarantor under any written agreement granting any right to use
any Copyright or Copyright registration.

 

“Copyrights”
means all of the following now owned or hereafter adopted or acquired by any
Grantor: (a) all United States copyrights (whether registered or unregistered),
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 similar office or agency of the United
States, any state or territory thereof, or any other country or any political
subdivision thereof; and (b) all reissues, extensions or renewals thereof.

 

“Copyright
Security Agreements” means the Copyright Security Agreements dated the date
hereof made in favor of Trustee, on behalf of the Secured Parties, by each
applicable Grantor, as from time to time amended, restated, supplemented or
otherwise modified.

 

“Credit
Security Agreement” means (i) the Security Agreement, dated as of the date
hereof, among the Grantors party thereto and the Agent and (ii) any similar
Credit Agreement Security Document securing the Credit Agreement Obligations,
in each case, as from time to time amended, restated, supplemented or otherwise
modified.

 

“Foreign”
means, as to any Person, a Person which is not created or organized under the
laws of the United States of America, or any of its states or the District of
Columbia.

 

“Governmental
Authority” means any nation or government, any state or other political
subdivision thereof, and any agency, department or other entity exercising
executive, legislative, judicial, regulatory or administrative functions of or
pertaining to government.

 

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“Intercreditor
Provisions of the Indenture” means Article 10 of the Indenture as in
effect from time to time.

 

“License”
means any Copyright License, Patent License, Trademark License or other license
of rights or interests now held or hereafter acquired by the Company or any
Guarantor.

 

“Patent
License” means rights under any written agreement now owned or hereafter
acquired by the Company or any Guarantor granting any right with respect to any
invention on which a Patent is in existence.

 

“Patents”
means all of the following in which any Grantor now holds or hereafter acquires
any interest: (a) all letters patent of the United States or any other country,
all registrations and recordings thereof, and all applications for letters
patent of the United States or of any other country, including registrations,
recordings and applications in the United States Patent and Trademark Office or
in any similar office or agency of the United States, any State or any other country,
and (b) all reissues, continuations, continuations-in-part or extensions
thereof.

 

“Patent
Security Agreements” means the Patent Security Agreements dated the date
hereof made in favor of Trustee, on behalf of the Secured Parties, by each
applicable Grantor, as from time to time amended, restated, supplemented or
otherwise modified.

 

“Stock”
means all shares, options, warrants, general or limited partnership interests,
membership interests or other equivalents (regardless of how designated) of or
in a corporation, partnership, limited liability company or equivalent entity
whether voting or nonvoting, including common stock, preferred stock or any
other “equity security” (as such term is defined in Rule 3a11-1 of the General
Rules and Regulations promulgated by the Securities and Exchange Commission
under the Securities Exchange Act of 1934).

 

“Termination
Date” means the date on which all principal of, accrued and unpaid interest
and premium and Liquidated Damages (as defined in the Indenture) on the Notes
are paid in full and all other Note Obligations, that are due and payable at or
prior to the time such principal, accrued and unpaid interest and premium and
Liquidated Damages, if any, are paid in full, are paid in full.

 

“Trademark
License” means rights under any written agreement now owned or hereafter
acquired by the Company or any Guarantor granting any right to use any
Trademark.

 

“Trademarks”
means all of the following now owned or hereafter adopted or acquired by any
Grantor: (a) all United States trademarks, trade names, corporate names,
business names, trade styles, service marks, logos, internet domain names,
other source or business identifiers, prints and labels on which any of the
foregoing have appeared or appear, designs and general intangibles of like
nature (whether registered or unregistered), all registrations and recordings
thereof, and all applications in connection therewith, including registrations,
recordings and applications in the United States Patent and Trademark Office or
in any similar office or agency of the United States, any state or territory
thereof, or any other

 

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country
or any political subdivision thereof; (b) all reissues, extensions or renewals
thereof; and (c) all goodwill associated with or symbolized by any of the
foregoing.

 

“Trademark
Security Agreements” means the Trademark Security Agreements dated the date
hereof made in favor of Trustee, on behalf of the Secured Parties, by each
applicable Grantor, as from time to time amended, restated, supplemented or
otherwise modified.

 

2.                                       GRANT OF LIEN.

 

(a)                                  To secure the prompt and complete payment,
performance and observance of all of the Note Obligations, each Grantor hereby
grants, assigns, conveys, mortgages, pledges, hypothecates and transfers to
Trustee, for the benefit of the Secured Parties, a Lien upon all of its right,
title and interest in, to and under all personal property and other assets,
whether now owned by or owing to, or hereafter acquired by or arising in favor
of such Grantor (including under any trade names, styles or derivations
thereof), and whether owned or consigned by or to, or leased from or to, such
Grantor, and regardless of where located (all of which being hereinafter
collectively referred to as the “Collateral”), including:

 

(i)                                     all Accounts;

 

(ii)                                  all Chattel Paper;

 

(iii)                               all Documents;

 

(iv)                              all General Intangibles (including payment
intangibles and Software);

 

(v)                                 all Goods (including Inventory, Equipment and
Fixtures);

 

(vi)                              all Instruments;

 

(vii)                           all Investment Property (except for Stock of
any Subsidiary pledged pursuant to the Pledge Agreement);

 

(viii)                        all Deposit Accounts, of any Grantor, and all
other bank accounts and all deposits therein;

 

(ix)                                all money, cash or cash equivalents of any
Grantor;

 

(x)                                   all Supporting Obligations and
Letter-of-Credit Rights of any Grantor;

 

(xi)                                the commercial tort claims (i) in respect of
the Proctor & Gamble lawsuit Civil Action No. 02 Civ. 8046 (WHP) and (ii)
those identified in a written notice to Trustee by any Grantor pursuant to
Section 5(a)(viii); and

 

(xii)                             to the extent not otherwise included, all
Proceeds, tort claims, insurance claims and other rights to payments not
otherwise included in the foregoing

 

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and
products of the foregoing and all accessions to, substitutions and replacements
for, and rents and profits of, each of the foregoing.

 

provided,
however, that notwithstanding any of the other provisions set forth in this
Section 2 or any other provision herein, this Agreement shall not
constitute a grant of a security interest in, and “Collateral” shall not
include, (i) any property to the extent and only for so long as that a grant of
a security interest therein (x) is prohibited by any requirements of law of a
Governmental Authority, (y) requires a consent not obtained of any Governmental
Authority pursuant to such requirement of law or (z) is prohibited by, or
constitutes a breach or default under or results in the termination of or
requires any consent not obtained under, any contract, license, agreement,
instrument or other document evidencing or giving rise to such property or, in
the case of any Investment Property, 
any applicable shareholder or similar agreement, except to the extent
that such requirement of law or the term in such contract, license, agreement,
instrument or other document or shareholder or similar agreement providing for
such prohibition, breach, default or termination or requiring such consent is
ineffective under applicable law; provided, that immediately upon the
ineffectiveness, lapse or termination of any such document, agreement or
provision, the Collateral shall include, and such Grantor shall be deemed to
have granted a security interest in, all such rights and interests as if such
provision had never been in effect; (ii) any “intent-to-use” based application
for a United States Trademark until such time that a statement of use has been
filed with the United States Patent and Trademark Office; and (iii) Excluded
Note Assets.

 

(b)                                 In addition, to secure the prompt and
complete payment, performance and observance of the Note Obligations, each
Grantor hereby grants to Trustee, for the benefit of Secured Parties, a right
of setoff against the property of such Grantor held by Trustee, consisting of
property described above in Section 2(a) now or hereafter in the
possession or custody of or in transit to Trustee, 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.  Trustee agrees that it shall not exercise any such right unless
an Event of Default has occurred and is continuing.

 

3.                                       TRUSTEE’S RIGHTS: LIMITATIONS ON TRUSTEE’S
OBLIGATIONS.

 

(a)                                  It is expressly agreed by Grantors that,
anything herein to the contrary notwithstanding, each Grantor shall remain
liable under each of its contracts and each of its Licenses to observe and
perform all the conditions and obligations to be observed and performed by it
thereunder.  The Trustee shall not have
any obligation or liability under any contract or License by reason of or
arising out of this Security Agreement or the granting herein of a Lien thereon
or the receipt by Trustee of any payment relating to any contract or License
pursuant hereto.  The Trustee shall not
be required or obligated in any manner to perform or fulfill any of the
obligations of any Grantor under or pursuant to any contract or License, or to
make any payment, or to make any inquiry as to the nature or the sufficiency of
any payment received by it or the sufficiency of any performance by any party
under any contract or License, or to present or file any claims, or to take any
action to collect or enforce any performance or the payment of any amounts which
may have been assigned to it or to which it may be entitled at any time or
times.

 

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(b)                                 Subject to the Intercreditor Provisions of
the Indenture, (i) Trustee may at any time after an Event of Default has
occurred and is continuing without prior notice to any Grantor, notify any
Account Debtor and other Persons obligated on the Collateral that Trustee has a
security interest therein, and that payments shall be made directly to Trustee
and (ii) upon the request of Trustee after an Event of Default has occurred and
is continuing, each Grantor shall so notify any Account Debtor or other Persons
obligated on Collateral.  Once any such
notice has been given to any Person obligated on the Collateral, the affected
Grantor shall not give any contrary instructions to such Account Debtor or
other Person until such Event of Default has been cured or waived without
Trustee’s prior written consent.

 

(c)                                  Trustee may verify the validity, amount or
any other matter relating to Accounts or Inventory in accordance with the
provisions of the Indenture.

 

4.                                       REPRESENTATIONS AND WARRANTIES. 
Each Grantor represents and warrants that:

 

(a)                                  Each Grantor has rights in and the power to
grant a security interest in the Collateral upon which it purports to grant a
Lien hereunder free and clear of any and all Liens other than Permitted Liens.

 

(b)                                 No effective security agreement, financing
statement, equivalent security or Lien instrument or continuation statement
covering all or any part of the Collateral is on file or of record in any
public office, except such as may have been filed (i) by any Grantor in favor
of Trustee pursuant to this Security Agreement, and (ii) in connection with any
other Permitted Liens.

 

(c)                                  This Security Agreement is effective to
create a valid and continuing Lien on and, upon the filing of the appropriate
financing statements listed on Schedule I hereto and the filing of
the Trademark Security Agreements in the PTO, the Patent Security Agreements in
the PTO and the Copyright Security Agreements in the United States Copyright
Office, a perfected Lien in favor of Trustee, for the benefit of Secured
Parties, on the Collateral with respect to which a Lien may be perfected by
filing pursuant to the Code.  Such Lien
is prior to all other Liens, except Permitted Liens that would be prior to
Liens in favor of Trustee for the benefit of the Secured Parties as a matter of
law or pursuant to the Intercreditor Provisions of the Indenture and is
enforceable as such as against any and all creditors of and purchasers from any
Grantor (other than purchasers and lessees of Inventory in the ordinary course
of business), all action by any Grantor necessary or desirable to protect
(subject to the filings by Trustee referred to in the first sentence of this
paragraph) and perfect such Lien on each item of the Collateral has been duly
taken.

 

(d)                                 As of the Closing Date, Schedule II
hereto lists all Instruments (other than checks received in the ordinary course
of business), Letter of Credit Rights (other than Letter of Credit Rights to
support Accounts which are owing by Foreign Persons and Chattel Paper of all
Grantors (other than those the outstanding face amount of which does not exceed
$250,000 in the aggregate).  All action
by any Grantor necessary or desirable to protect and perfect the Lien of
Trustee on each item set forth on Schedule II (including the
delivery of all originals thereof to Trustee on and after the Transfer Date (as
defined below) and the legending of all Chattel Paper

 

6

 

as required by Section 5(a)
hereof) has been duly taken.  The Lien
of Trustee, for the benefit of Secured Parties, on the Collateral listed on Schedule II
hereto is prior to all other Liens, except Permitted Liens that would be prior
to Liens in favor of Trustee for the benefit of the Secured Parties as a matter
of law or pursuant to Intercreditor Provisions of the Indenture, and is
enforceable as such against any and all creditors of and purchasers from any
Grantor.

 

(e)                                  Each Grantor’s name as it appears in official
filings in the state of its incorporation or other organization, the type of
entity of each Grantor (including corporation, partnership, limited partnership
or limited liability company), organizational identification number issued by
each Grantor’s state of incorporation or organization or a statement that no
such number has been issued, each Grantor’s state of organization or
incorporation, the location of each Grantor’s chief executive office, principal
place of business, offices, all warehouses and premises where Collateral is
stored or located, and the locations of its books and records concerning the
Collateral are set forth on Schedule III-A,  Schedule III-B,
Schedule III-C,  Schedule III-D,  Schedule III-E
Schedule III-F, Schedule III-G,  Schedule III-H,
Schedule III-I,  Schedule III-J, and Schedule III-K,
respectively, hereto.  Each Grantor has
only one state of incorporation or organization.

 

(f)                                    As of the Closing Date, Schedule III-A,
Schedule III-B,  Schedule III-C,  Schedule III-D,
Schedule III-E, Schedule III-F, Schedule III-G,
Schedule III-H,  Schedule III-I,  Schedule III-J,
and Schedule III-K, hereto, and such other locations as may be
disclosed by the Company to Trustee in writing, after the date hereof until the
Transfer Date, to the extent such disclosure is required under the Credit
Security Agreement, lists all Inventory located at the applicable Grantor’s
locations.  With respect to such Inventory,
(i) no Inventory is now, or shall at any time or times hereafter until the
Transfer Date be stored at any other location unless each applicable Grantor
concurrently therewith obtains, to the extent such corresponding instruments
are required under the Credit Security Agreement, if any, in connection with
the security interests granted or contemplated therein, bailee, landlord and
mortgagee agreements in connection with the security interests granted or
contemplated herein, (ii) the applicable Grantor has good, indefeasible and
merchantable title to such Inventory and such Inventory is not subject to any
Lien or security interest or document whatsoever except for the Lien granted to
Trustee, for the benefit of Secured Parties, and except for Permitted Liens,
(iii) such Inventory is not subject to any licensing, patent, royalty,
trademark, trade name or copyright agreements with any third parties which
would require any consent of any third party upon sale or disposition of that
Inventory or the payment of any monies to any third party upon such sale or
other disposition (other than those consents which have been obtained or
otherwise have been disclosed to the Credit Agreement Agent), and (iv) the
completion of manufacture, sale or other disposition of such Inventory by
Trustee following an Event of Default shall not require the consent of any
Person and shall not constitute a breach or default under any contract or
agreement to which any Grantor is a party or to which such property is subject
(other than those consents which have been obtained or otherwise disclosed to
the Credit Agreement Agent); provided, however, the representations and
warranties set forth in clauses (i), (iii) and (iv) above shall only be
applicable to the extent substantially similar corresponding representations
and warranties are contained in the Credit Security Agreement.

 

(g)                                 As of the date hereof, no Grantor has any
interest in, or title to, any Patent, Trademark or Copyright except as set
forth in Schedule IV hereto. 
This Security Agreement is

 

7

 

effective to create a valid
and continuing Lien on and, upon filing of the Copyright Security Agreements
with the United States Copyright Office and filing of the Patent Security
Agreements and the Trademark Security Agreements with the United State Patent
and Trademark Office, perfected Liens in favor of Trustee on each Grantor’s
registered Patents, Trademarks and Copyrights existing in the United States and
such perfected Liens are enforceable as such as against any and all creditors
of and purchasers from any Grantor. 
Upon filing of the Copyright Security Agreements with the United States
Copyright Office and filing of the Patent Security Agreements and the Trademark
Security Agreements with the United State Patent and Trademark Office and the
filing of appropriate financing statements listed on Schedule I
hereto, all action necessary or desirable to protect and perfect Trustee’s Lien
on each Grantor’s registered Patents, Trademarks or Copyrights existing in the
United States shall have been duly taken.

 

(h)                                 No asset which is excluded as “Collateral”
pursuant to clauses (i) and (ii) of the proviso in Section 2(a)
is material to the business, operations, assets, property or financial
condition of any Grantor.

 

5.                                       COVENANTS.  Each Grantor covenants and
agrees with Trustee, for the benefit of Secured Parties, that from and after
the date of this Security Agreement and until the Termination Date:

 

(a)                                  Further Assurances: Pledge of Instruments;
Chattel Paper.

 

(i)                                     At any time and from time to time, upon the
written request of Trustee and at the sole expense of Grantors, each Grantor
shall promptly and duly execute and deliver any and all such further
instruments and documents and take such further actions as Trustee may deem desirable,
to obtain the full benefits of this Security Agreement and of the rights and
powers herein granted, including filing any financing or continuation
statements under the Code with respect to the Liens granted hereunder or under
any Note Security Document.

 

(ii)                                  Unless Agent or Trustee, as applicable, shall
otherwise consent in writing (which consent may be revoked), each Grantor shall
deliver to Agent until the Discharge of Credit Agreement Indebtedness and
release of Liens, in whole, in respect of any Additional First Lien
Obligations, if any (such date, the “Transfer Date”), at which time,
each Grantor shall deliver to Trustee, all Collateral consisting of negotiable
Documents, certificated securities (other than Stock of any Subsidiary of any
Grantor pledged to Trustee pursuant to the Pledge Agreement, dated as of the
date hereof (the “Pledge Agreement”), among the pledgors named therein
and the Trustee), Chattel Paper and Instruments (other than those the fair
market value of which, in the case of certificated securities or outstanding
face amount of which, in the case of Chattel Paper and Instruments, is less
than $250,000 in the aggregate and in each case, accompanied by stock powers,
allonges or other instruments of transfer executed in blank) promptly after
such Grantor receives the same, provided, however, that no
Grantor shall be required to deliver (a) any checks received in the ordinary
course of business by such Grantor, (b) the shares of Kmart Corporation common
stock awarded to any Grantor in connection with the bankruptcy proceeding,
provided that such stock is sold by such Grantor within ninety

 

8

 

(90)
days of receipt thereof by such Grantor, or (c) any securities of customers of
any Grantor received by any Grantor in lieu of cash payments in the event any
customer of such Grantor is deemed, in the reasonable judgment of such Grantor,
to be in a reorganization or unable to make a timely cash payment on
indebtedness of such customer owing to it, provided such securities are sold
within ninety (90) days of receipt thereof by such Grantor and such Grantor has
paid no new consideration (other than the forgiveness of indebtedness or other
obligations) therefor.

 

(iii)                               Each Grantor shall, to the extent required to
do so under the Credit Agreement prior to the Transfer Date, obtain or use its
commercially reasonable efforts to obtain waivers or subordinations of Liens
from landlords and mortgagees and signed acknowledgements of Trustee’s Liens
from bailees having possession of any Grantor’s Goods that they hold for the
benefit of the Agent and the Trustee.

 

(iv)                              If any Grantor is required by the terms of
the Credit Security Agreement, and such requirement is not waived by Agent in
writing (which waiver may be revoked), to obtain authenticated Control Letters
from each issuer of uncertificated securities, securities intermediary, or
commodities intermediary issuing or holding any financial assets or commodities
to or for any Grantor, then such Grantor will concurrently obtain authenticated
Control Letters for the Trustee with respect to such uncertificated securities,
financial assets or commodities for the benefit of Secured Parties.

 

(v)                                 If the Grantors collectively are or become
the beneficiaries of letters of credit (other than (a) letters of credit to
support Accounts which are owing by Foreign Persons) and (b) letters of credit
the outstanding face amount of which is less than $250,000 in the aggregate),
each Grantor shall promptly, and in any event within five (5) Business Days
after becoming a beneficiary, notify Trustee thereof and enter into a tri-party
agreement with Trustee and the issuer and/or confirmation bank with respect to
Letter-of-Credit Rights assigning such Letter-of-Credit Rights to Trustee and
directing all payments thereunder in accordance with the Intercreditor
Provisions of the Indenture, all in form and substance reasonably satisfactory
to Trustee.

 

(vi)                              Each Grantor shall take all steps necessary
to grant the Agent and, on and after the Transfer Date, the Trustee control of
all electronic chattel paper in accordance with the Code and all “transferable
records” as defined in each of the Uniform Electronic Transactions Act and the
Electronic Signatures in Global and National Commerce Act.

 

(vii)                           Each Grantor hereby irrevocably authorizes
the Trustee at any time and from time to time to file in any filing office any
initial financing statements and amendments thereto, without the applicable
Grantor’s signature, that (a) indicate the Collateral (i) as “all assets” or
“all property” of such Grantor or words of similar effect, regardless of
whether any particular asset comprised in the Collateral falls within the scope
of Article 9 of the Code or such jurisdiction, or (ii) as being of an equal
or lesser scope or with greater detail, and (b) contain any other information
required by part 5 of Article 9 of the Code for the sufficiency or filing
office acceptance of any financing statement or amendment, including (i)
whether such Grantor is an organization, the type

 

9

 

of
organization and any organization identification number issued to such Grantor,
and (ii) in the case of a financing statement filed as a fixture filing or
indicating Collateral as as-extracted collateral or timber to be cut, a
sufficient description of real property to which the Collateral relates.  Each Grantor agrees to furnish any such
information to the Trustee promptly upon request.

 

(viii)                        Each Grantor shall promptly, and in any event
within five (5) Business Days after the same is acquired by it, notify Trustee
of any commercial tort claim (as defined in the Code) acquired by it (other
than those commercial tort claims for which the amount of such claims is less
than $250,000), and unless otherwise consented by Agent under the Credit
Security Agreement in connection with the security interests granted in such
commitment tort claim prior to the Transfer Date or by the Trustee, on and
after the Transfer Date, such Grantor shall enter into a supplement in form and
substance reasonably satisfactory to the Trustee on and after the Transfer
Date, and prior to the Transfer Date, in substantially the same form as the
supplement to the Credit Security Agreement, to this Security Agreement, in
each case, granting to Trustee a Lien in such commercial tort claim.

 

(b)                                 Maintenance of Records. 
Grantors shall keep and maintain, at their own cost and expense,
satisfactory and complete records of the Collateral in all material respects,
including a record of any and all payments received and any and all credits
granted with respect to the Collateral and all other dealings with the
Collateral.  Grantors shall mark their
books and records pertaining to the Collateral to evidence this Security Agreement
and the Liens granted hereby.  If any
Grantor retains possession of any Chattel Paper or Instruments with Agent’s
consent and on and after the Transfer Date, the Trustee’s consent, such Chattel
Paper and Instruments shall be marked with the following legend: “This writing
and the obligations evidenced or secured hereby are subject to the security
interest of Wells Fargo Bank Minnesota, National Association, as Trustee under
the Indenture, dated February 19, 2004, among Playtex Products, Inc., the
Guarantors named therein, and the Trustee.”

 

(c)                                  Covenants Regarding Patent, Trademark and
Copyright Collateral.

 

(i)                                     Grantors shall notify Trustee within thirty
(30) Business Days if they know or have reason to know that any application or
registration relating to any material Patent, Trademark or Copyright (now or
hereafter existing) may become abandoned or dedicated to the public domain, 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 States Copyright Office or any court
but excluding any non-final determinations of the United States Patent and
Trademark Office) regarding any Grantor’s ownership of any material Patent,
Trademark or Copyright, its right to register the same, or to keep and maintain
the same.

 

(ii)                                  If any Grantor, either itself or through any
agent, employee, licensee or designee, shall file an application for the
registration of any Patent, Trademark or Copyright with the United States
Patent and Trademark Office, the United States Copyright Office or any similar
office or agency, Grantor shall within thirty (30)

 

10

 

Business
Days of such filing give the Trustee notice thereof and upon request of Trustee
shall execute and deliver any and all Patent Security Agreements, Copyright
Security Agreements or Trademark Security Agreements as Trustee may request to
evidence Trustee’s Lien on such Patent, Trademark or Copyright, and the General
Intangibles of such Grantor relating thereto or represented thereby.

 

(iii)                               Grantors shall take all commercially
reasonable actions necessary or requested by Trustee to maintain and pursue
each application, to obtain the relevant registration and to maintain the
registration of each of the Patents, Trademarks and Copyrights (now or
hereafter existing), including the filing of applications for renewal,
affidavits of use, affidavits of noncontestability and opposition and
interference and cancellation proceedings, unless the applicable Grantor shall
determine that such Patent, Trademark or Copyright is not material to the
conduct of its business.

 

(iv)                              In the event that any material Patent,
Trademark or Copyright Collateral is infringed upon, or misappropriated or
diluted by a third party, such Grantor shall comply with
Section 5(a)(viii) of this Security Agreement.  Such Grantor shall, unless such Grantor shall reasonably determine
that such Patent, Trademark or Copyright Collateral is in no way material to
the conduct of its business or operations, shall take such actions as Grantor
shall deem appropriate under the circumstances to protect such Patent,
Trademark or Copyright Collateral, including suing for infringement, misappropriation
or dilution and recovering any and all damages for such infringement,
misappropriation or dilution.

 

(d)                                 Indemnification.  In
any suit, proceeding or action brought by Trustee relating to any Collateral
for any sum owing with respect thereto or to enforce any rights or claims with
respect thereto, each Grantor will save, indemnify and keep Trustee harmless
from and against all expense (including reasonable attorneys’ fees and
expenses), loss or damage suffered by reason of any defense, setoff,
counterclaim, recoupment or reduction of liability whatsoever of the Account
Debtor or other Person obligated on the Collateral, arising out of a breach by
any Grantor of any obligation thereunder or arising out of any other agreement,
indebtedness or liability at any time owing to, or in favor of, such obligor or
its successors from such Grantor, except in the case of Trustee, to the extent
such expense, loss, or damage is attributable solely to the gross negligence or
willful misconduct of Trustee as finally determined by a court of competent
jurisdiction. All such obligations of Grantors shall be and remain enforceable
against and only against Grantors and shall not be enforceable against Trustee.

 

(e)                                  Compliance with Terms of Accounts, etc.  In
all material respects, each Grantor will perform and comply with all
obligations in respect of the Collateral and all other agreements to which it
is a party or by which it is bound relating to the Collateral.

 

(f)                                    Limitation on Liens on Collateral.  No
Grantor will create, permit or suffer to exist, and each Grantor will defend
the Collateral against, and take such other action as is necessary to remove,
any Lien on the Collateral except Permitted Liens, and will defend the right,
title and interest of Trustee in and to any of such Grantor’s rights under the
Collateral against the claims and demands of all Persons whomsoever, in each
case, except as otherwise provided in the Intercreditor Provisions of the
Indenture.

 

11

 

(g)                                 Limitations on Disposition.  No
Grantor will sell, license, lease, transfer or otherwise dispose of any of the
Collateral, or attempt or contract to do so except as permitted by the
Indenture (including the Intercreditor Provisions of the Indenture and
Section 11.04 thereof).

 

(h)                                 Further Identification of Collateral. 
Grantors will, if so requested by Trustee, furnish to Trustee, as often
as Trustee requests, statements and schedules further identifying and
describing the Collateral and such other reports in connection with the
Collateral as Trustee may reasonably request, all in such detail as Trustee may
specify.

 

(i)                                     Notices.  Grantors will advise Trustee
promptly, in reasonable detail, (i) of any Lien (other than Permitted Liens) or
claim made or asserted against any of the Collateral, and (ii) of the
occurrence of any other event which would have a material adverse effect on the
aggregate value of the Collateral or on the Liens created hereunder or under
any Note Security Document .

 

(j)                                     No Reincorporation. 
Without limiting the limitations, if any, on mergers involving the
Grantors contained in the Indenture, no Grantor shall reincorporate or
reorganize itself under the laws of any jurisdiction other than the jurisdiction
in which it is incorporated or organized as of the date hereof without giving
at least 30 days prior notice to Trustee.

 

(k)                                  Terminations; Amendments Not Authorized. 
Until the Termination Date, each Grantor acknowledges that it is not
authorized to file any financing statement or amendment or termination
statement with respect to any financing statement without the prior written
consent of Trustee and agrees that it will not do so without the prior written
consent of Trustee, subject to such Grantor’s rights under Section 9-509(d)(2)
of the Code, and in accordance with the Intercreditor Provisions of the
Indenture and Section 11.04 of the Indenture.

 

(l)                                     Authorized Terminations. 
Trustee will promptly deliver to each Grantor for filing or authorize
each Grantor to prepare and file termination statements and releases in
accordance with the Indenture including the Intercreditor Provisions of the
Indenture and Section 11.04 thereof.

 

6.                                       TRUSTEE’S APPOINTMENT AS ATTORNEY-IN-FACT.

 

On
the Closing Date, each Grantor shall execute and deliver to Trustee a power of
attorney (the “Power of Attorney”) substantially in the form attached
hereto as Exhibit A.  The power
of attorney granted pursuant to the Power of Attorney is a power coupled with
an interest and shall be irrevocable until the Termination Date.  The powers conferred on Trustee, for the
benefit of Secured Parties, under the Power of Attorney are solely to protect
Trustee’s interests (for the benefit of Secured Parties) in the Collateral and
shall not impose any duty upon Trustee to exercise any such powers.  Trustee agrees that (a) except for the
powers granted in clause (h) of the Power of Attorney, it shall not exercise
any power or authority granted under the Power of Attorney unless an Event of
Default has occurred and is continuing; (b) Trustee shall account for any
moneys received by Trustee in respect of any foreclosure on or disposition of
Collateral pursuant to the Power of Attorney provided that Trustee shall not
have any duty as to any Collateral, and Trustee shall be accountable only for
amounts that they actually receive as a result of the exercise of such powers;
and (c) its exercise of any powers or authority under the

 

12

 

Power
of Attorney is subject to the Intercreditor Provisions of the Indenture.  TRUSTEE NOR ANY OF ITS RESPECTIVE
AFFILIATES, OFFICERS, DIRECTORS, EMPLOYEES, AGENTS OR REPRESENTATIVES SHALL BE
RESPONSIBLE TO ANY GRANTOR FOR ANY ACT OR FAILURE TO ACT UNDER ANY POWER OF
ATTORNEY OR OTHERWISE, EXCEPT IN RESPECT OF DAMAGES ATTRIBUTABLE SOLELY TO
THEIR OWN GROSS NEGLIGENCE OR WILLFUL MISCONDUCT AS FINALLY DETERMINED BY A
COURT OF COMPETENT JURISDICTION, NOR FOR ANY PUNITIVE, EXEMPLARY, INDIRECT OR
CONSEQUENTIAL DAMAGES.

 

7.                                       REMEDIES: 
RIGHTS UPON DEFAULT.  Except as otherwise provided in the
Intercreditor Provisions of the Indenture:

 

(a)                                  In addition to all other rights and remedies
granted to it under this Security Agreement, the Indenture, any Note Security
Document and under any other instrument or agreement securing, evidencing or
relating to any of the Note Obligations, if any Event of Default shall have
occurred and be continuing, Trustee may exercise all rights and remedies of a
secured party under the Code.  Without
limiting the generality of the foregoing, each Grantor expressly agrees that in
any such event Trustee, without demand of performance or other demand,
advertisement or notice of any kind (except the notice specified below of time
and place of public or private sale) to or upon such Grantor or any other
Person (all and each of which demands, advertisements and notices are hereby
expressly waived to the maximum extent permitted by the Code and other
applicable law), may forthwith enter upon the premises of such Grantor where
any Collateral is located through self-help, without judicial process, without
first obtaining a final judgment or giving such Grantor or any other Person
notice and opportunity for a hearing on Trustee’s claim or action and may
collect, receive, assemble, process, appropriate and realize upon the
Collateral, or any part thereof, and may forthwith sell, lease, license,
assign, give an option or options to purchase, or sell or otherwise dispose of
and deliver said Collateral (or contract to do so), or any part thereof, in one
or more parcels at a public or private sale or sales, at any exchange at such
prices as it may deem acceptable, for cash or on credit or for future delivery
without assumption of any credit risk. 
Trustee 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
for the benefit of Trustee, the whole or any part of said Collateral so sold,
free of any right or equity of redemption, which equity of redemption each
Grantor hereby releases.  Such sales may
be adjourned and continued from time to time with or without notice.  Trustee shall have the right to conduct such
sales on any Grantor’s premises or elsewhere and shall have the right to use
any Grantor’s premises without charge for such time or times as Trustee deems
necessary or advisable.

 

If
any Event of Default shall have occurred and be continued, each Grantor further
agrees, at Trustee’s request, to assemble the Collateral and make it available
to Trustee at a place or places designated by Trustee which are reasonably
convenient to Trustee and such Grantor, whether at such Grantor’s premises or
elsewhere.  Until Trustee is able to
effect a sale, lease, or other disposition of Collateral, Trustee shall have
the right to hold or use Collateral, or any part thereof, to the extent that it
deems appropriate for the purpose of preserving Collateral or its value or for
any other purpose deemed appropriate by Trustee.  Trustee shall have no obligation to any Grantor to maintain or
preserve the rights of such Grantor as against third parties with respect to
Collateral while Collateral is in the possession of Trustee.  Trustee may, if

 

13

 

it
so elects, seek the appointment of a receiver or keeper to take possession of
Collateral and to enforce any of Trustee’s remedies (for the benefit of Secured
Parties), with respect to such appointment without prior notice or hearing as
to such appointment.  Trustee shall
apply the net proceeds of any such collection, recovery, receipt,
appropriation, realization or sale to the Note Obligations as provided in the
Indenture, and only after so paying over such net proceeds, and after the
payment by Trustee of any other amount required by any provision of law, need
Trustee account for the surplus, if any, to any Grantor.  To the maximum extent permitted by
applicable law, each Grantor waives all claims, damages, and demands against
Trustee arising out of the repossession, retention or sale of the Collateral
except such as arise solely out of the gross negligence or willful misconduct
of Trustee as finally determined by a court of competent jurisdiction.  Each Grantor agrees that ten (10) days prior
notice by Trustee of the time and place of any public sale or of the time after
which a private sale may take place is reasonable notification of such
matters.  Grantors shall remain liable
for any deficiency if the proceeds of any sale or disposition of the Collateral
are insufficient to pay all Obligations, including any attorneys’ fees and
other expenses incurred by Trustee to collect such deficiency.

 

(b)                                 Except as otherwise specifically provided
herein, each Grantor hereby waives presentment, demand, protest or any notice
(to the maximum extent permitted by applicable law) of any kind in connection
with this Security Agreement or any Collateral.

 

(c)                                  To the extent that applicable law imposes
duties on the Trustee to exercise remedies in a commercially reasonable manner,
each Grantor acknowledges and agrees to the extent it may do so under
applicable law that it is not commercially unreasonable for the Trustee (i) to
fail to incur expenses reasonably deemed significant by the Trustee to prepare
Collateral for disposition or otherwise to complete raw material or work in
process into finished goods or other finished products for disposition, (ii) to
fail to obtain third party consents for access to Collateral to be disposed of,
or to obtain or, if not required by other law, to fail to obtain governmental
or third party consents for the collection or disposition of Collateral to be
collected or disposed of, (iii) to fail to exercise collection remedies against
Account Debtors or other Persons obligated on Collateral or to remove Liens on
or any adverse claims against Collateral, (iv) to exercise collection remedies
against Account Debtors and other Persons obligated on Collateral directly or
through the use of collection agencies and other collection specialists, (v) to
advertise dispositions of Collateral through publications or media of general
circulation, whether or not the Collateral is of a specialized nature, (vi) to
contact other Persons, whether or not in the same business as the Grantor, for
expressions of interest in acquiring all or any portion of such Collateral,
(vii) to hire one or more professional auctioneers to assist in the disposition
of Collateral, whether or not the Collateral is of a specialized nature, (viii)
to dispose of Collateral by utilizing internet sites that provide for the
auction of assets of the types included in the Collateral or that have the
reasonable capacity of doing so, or that match buyers and sellers of assets,
(ix) to dispose of assets in wholesale rather than retail markets, (x) to
disclaim disposition warranties, such as title, possession or quiet enjoyment,
(xi) to purchase insurance or credit enhancements to insure the Trustee against
risks of loss, collection or disposition of Collateral or to provide to the
Trustee a guaranteed return from the collection or disposition of Collateral,
or (xii) to the extent deemed appropriate by the Trustee, to obtain the
services of other brokers, investment bankers, consultants and other
professionals to assist the Trustee in the collection or disposition of any of
the Collateral.  Each Grantor
acknowledges that the purpose of this Section 7(c) is to provide
non-exhaustive indications of what actions or omissions by the Trustee would

 

14

 

not be commercially
unreasonable in the Trustee’s exercise of remedies against the Collateral and
that other actions or omissions by the Trustee shall not be deemed commercially
unreasonable solely on account of not being indicated in this
Section 7(c).  Without limitation
upon the foregoing, nothing contained in this Section 7(c) shall be
construed to grant any rights to any Grantor or to impose any duties on Trustee
that would not have been granted or imposed by this Security Agreement or by
applicable law in the absence of this Section 7(c).

 

(d)                                 The Trustee shall not be required to make any
demand upon, or pursue or exhaust any of their rights or remedies against, any
Grantor, any other obligor, guarantor, pledgor or any other Person with respect
to the payment of the Note Obligations or to pursue or exhaust any of their
rights or remedies with respect to any Collateral therefor or any direct or
indirect guarantee thereof.  The Trustee
shall not be required to marshal the Collateral or any guarantee of the Note
Obligations or to resort to the Collateral or any such guarantee in any
particular order, and all of its and their rights hereunder or under any other
Note Security Document shall be cumulative. 
To the extent it may lawfully do so, each Grantor absolutely and
irrevocably waives and relinquishes the benefit and advantage of, and covenants
not to assert against the Trustee, any valuation, stay, appraisement,
extension, redemption or similar laws and any and all rights or defenses it may
have as a surety now or hereafter existing which, but for this provision, might
be applicable to the sale of any Collateral made under the judgment, order or
decree of any court, or privately under the power of sale conferred by this
Security Agreement, or otherwise.

 

8.                                       GRANT OF LICENSE TO USE INTELLECTUAL PROPERTY  COLLATERAL.  Solely for the purpose of enabling Trustee to exercise rights and
remedies under Section 7 hereof (including, without limiting the
terms of Section 7 hereof, in order to take possession of, hold,
preserve, process, assemble, prepare for sale, market for sale, sell, liquidate
or otherwise dispose of Collateral) at such time as Trustee shall be lawfully
entitled to exercise such rights and remedies, each Grantor hereby grants to
Trustee, for the benefit of Secured Parties, an irrevocable, nonexclusive
license (exercisable without payment of royalty or other compensation to such
Grantor) to use, license or sublicense any Intellectual Property and all
registered and unregistered U.S. and foreign patents, trademarks, copyrights,
applications therefor and licenses with respect thereto and tradenames, trade
secrets, servicemarks and know-how, manufacturing processes and formulas now
owned or hereafter acquired by such Grantor, and wherever the same may be
located, and including in such license access to all media in which any of the
licensed items may be recorded or stored and to all computer software and
programs used for the compilation or printout thereof, provided that Trustee
agrees to pay and remit any royalty payments which may be owed under any License
as a result of Trustee’s exercise of rights and remedies under Section 7
hereof.  Trustee shall only exercise its
rights pursuant to the foregoing license upon the occurrence and continuation
of an Event of Default and subject to the Intercreditor Provisions of the
Indenture.

 

9.                                       LIMITATION ON TRUSTEE’S DUTY IN RESPECT OF
COLLATERAL.  Trustee shall use reasonable care with
respect to the Collateral in its possession or under its control.  Trustee shall not have any other duty as to
any Collateral in its possession or control or in the possession or control of
any agent or nominee of Trustee, or any income thereon or as to the
preservation of rights against prior parties or any other rights pertaining
thereto.

 

15

 

10.                                 REINSTATEMENT. 
This Security Agreement shall remain in full force and effect and
continue to be effective should any petition be filed by or against any Grantor
for liquidation or reorganization, should any Grantor become insolvent or make
an assignment for the benefit of any creditor or creditors or should a receiver
or trustee be appointed for all or any significant part of any Grantor’s
assets, and shall continue to be effective or be reinstated, as the case may
be, if at any time payment and performance of the Note Obligations, or any part
thereof, is, pursuant to applicable law, rescinded or reduced in amount, or
must otherwise be restored or returned by any obligee of the Note Obligations,
whether as a “voidable preference,” “fraudulent conveyance,” or otherwise, all
as though such payment or performance had not been made.  In the event that any payment, or any part
thereof, is rescinded, reduced, restored or returned, the Note Obligations
shall be reinstated and deemed reduced only by such amount paid and not so
rescinded, reduced, restored or returned.

 

11.                                 NOTICES.  Except as otherwise provided
herein, whenever it is provided herein that any notice, demand, request,
consent, approval, declaration or other communication shall or may be given to
or served upon any of the parties by any other party, or whenever any of the
parties desires to give and serve upon any other party any communication with
respect to this Security Agreement, each such notice, demand, request, consent,
approval, declaration or other communication shall be in writing and shall be
given in the manner, and deemed received, as provided for in the Indenture.

 

12.                                 SEVERABILITY. 
Whenever possible, each provision of this Security Agreement shall be
interpreted in a manner as to be effective and valid under applicable law, but
if any provision of this Security Agreement shall be prohibited by or invalid
under applicable law, such provision shall be ineffective to the extent of such
prohibition or invalidity without invalidating the remainder of such provision
or the remaining provisions of this Security Agreement.  This Security Agreement is to be read,
construed and applied together with the Indenture and the other Note Security
Documents which, taken together, set forth the complete understanding and
agreement of Trustee and Grantors with respect to the matters referred to
herein and therein.

 

13.                                 NO WAIVER; CUMULATIVE REMEDIES. 
Trustee shall not by any act, delay, omission or otherwise be deemed to
have waived any of its rights or remedies hereunder, and no waiver shall be
valid unless in writing, signed by Trustee and then only to the extent therein
set forth.  A waiver by Trustee of any
right or remedy hereunder on any one occasion shall not be construed as a bar
to any right or remedy which Trustee would otherwise have had on any future
occasion.  No failure to exercise nor
any delay in exercising on the part of Trustee, any right, power or privilege
hereunder, shall operate as a waiver thereof, nor shall any single or partial
exercise of any right, power or privilege hereunder preclude any other or
future exercise thereof or the exercise of any other right, power or
privilege.  The rights and remedies
hereunder provided are cumulative and may be exercised singly or concurrently,
and are not exclusive of any rights and remedies provided by law.  Except as otherwise provided in the
Intercreditor Provisions of the Indenture or Section 11.04 of the
Indenture, none of the terms or provisions of this Security Agreement may be waived,
altered, modified or amended except by an instrument in writing, duly executed
by Trustee and Grantors.

 

16

 

14.                                 LIMITATION BY LAW.  All
rights, remedies and powers provided in this Security Agreement may be
exercised only to the extent that the exercise thereof does not violate any
applicable provision of law, and all the provisions of this Security Agreement
are intended to be subject to all applicable mandatory provisions of law that
may be controlling and to be limited to the extent necessary so that they shall
not render this Security Agreement invalid, unenforceable, in whole or in part,
or not entitled to be recorded, registered or filed under the provisions of any
applicable law.

 

15.                                 TERMINATION AND RELEASES

 

(a)                                  Subject to Section 10 hereof,
this Security Agreement shall terminate upon the Termination Date.  On the Termination Date, Trustee shall, at
the sole expense of the Grantors, take all actions and deliver releases of the
security interests granted hereby at the request of any Grantor.

 

(b)                                 Each Grantor shall automatically be released
from its obligations hereunder and the security interests in the Collateral of
such Grantor shall be automatically released (i) upon the consummation of any transaction
expressly permitted by the Indenture (and which would not result in an Event of
Default) as a result of which such Grantor ceases to be a Subsidiary of the
Company, or (ii) otherwise as is permitted in accordance with the terms of the
Indenture including the Intercreditor Provisions of the Indenture and
provisions of Section 11.04 thereof.

 

(c)                                  Upon any sale or other transfer by any
Grantor of any Collateral that is expressly permitted under the Indenture (and
which would not result in an Event of Default) to any Person that is not a
Grantor, or upon any release of the security interest granted hereby as is
permitted the security interest in such Collateral shall be automatically
released, in accordance with the terms of the Indenture including the
provisions of Section 11.04 thereof and the Intercreditor Provisions of
the Indenture.

 

(d)                                 In connection with any release of the
security interests in any Collateral of a Grantor pursuant to paragraph (b) or
(c) of this Section 15, the Trustee shall execute and deliver to
such Grantor at such Grantor’s sole expense all documents that such Grantor
shall reasonably request to evidence such release.  Any execution and delivery of documents pursuant to this Section 15
shall be without recourse to or warranty by the Trustee.

 

16.                                 SUCCESSORS AND ASSIGNS. 
This Security Agreement and all obligations of Grantors hereunder shall
be binding upon the successors and assigns of each Grantor (including any
debtor-in-possession on behalf of such Grantor) and shall, together with the
rights and remedies of Trustee, for the benefit of Secured Parties, hereunder,
inure to the benefit of Secured Parties, all future holders of any instrument
evidencing any of the Note Obligations and their respective successors and
assigns.  No sales of participations,
other sales, assignments, transfers or other dispositions of any agreement
governing or instrument evidencing the Note Obligations or any portion thereof
or interest therein shall in any manner impair the Lien granted to Trustee, for
the benefit of Secured Parties, hereunder. 
No Grantor may assign, sell, hypothecate or otherwise transfer any
interest in or obligation under this Security Agreement.

 

17

 

 

17.                                 COUNTERPARTS. 
This Security Agreement may be authenticated in any number of separate
counterparts, each of which shall collectively and separately constitute one
agreement.  This Security Agreement may
be authenticated by manual signature, facsimile or, if approved in writing by
Trustee, electronic means, all of which shall be equally valid.

 

18.                                 GOVERNING LAW. 
EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN THE INDENTURE OR NOTE SECURITY
DOCUMENTS, IN ALL RESPECTS, INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND
PERFORMANCE, THIS SECURITY AGREEMENT AND THE OBLIGATIONS ARISING HEREUNDER
SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS
OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN THAT
STATE, AND ANY APPLICABLE LAWS OF THE UNITED STATES OF AMERICA.  EACH GRANTOR HEREBY CONSENTS AND AGREES THAT
THE STATE OR FEDERAL COURTS LOCATED IN NEW YORK COUNTY, CITY OF NEW YORK, NEW
YORK, SHALL HAVE EXCLUSIVE JURISDICTION TO HEAR AND DETERMINE ANY CLAIMS OR
DISPUTES BETWEEN GRANTORS AND TRUSTEE PERTAINING TO THIS SECURITY AGREEMENT OR
ANY OF THE OTHER NOTE SECURITY DOCUMENTS OR TO ANY MATTER ARISING OUT OF OR
RELATING TO THIS SECURITY AGREEMENT OR ANY OF THE OTHER NOTE SECURITY
DOCUMENTS, PROVIDED, THAT TRUSTEE AND GRANTORS ACKNOWLEDGE THAT ANY
APPEALS FROM THOSE COURTS MAY HAVE TO BE HEARD BY A COURT LOCATED OUTSIDE OF
NEW YORK COUNTY, AND, PROVIDED,  FURTHER, NOTHING IN THIS
AGREEMENT SHALL BE DEEMED OR OPERATE TO PRECLUDE TRUSTEE FROM BRINGING SUIT OR
TAKING OTHER LEGAL ACTION IN ANY OTHER JURISDICTION TO REALIZE ON THE
COLLATERAL OR ANY OTHER SECURITY FOR THE NOTE OBLIGATIONS, OR TO ENFORCE A
JUDGMENT OR OTHER COURT ORDER IN FAVOR OF TRUSTEE.  EACH GRANTOR EXPRESSLY SUBMITS AND CONSENTS IN ADVANCE TO SUCH
JURISDICTION IN ANY ACTION OR SUIT COMMENCED IN ANY SUCH COURT, AND EACH
GRANTOR HEREBY WAIVES ANY OBJECTION WHICH IT MAY HAVE BASED UPON LACK OF
PERSONAL JURISDICTION, IMPROPER VENUE OR FORUM  NON  CONVENIENS
AND HEREBY CONSENTS TO THE GRANTING OF SUCH LEGAL OR EQUITABLE RELIEF AS IS
DEEMED APPROPRIATE BY SUCH COURT.  EACH
GRANTOR HEREBY WAIVES PERSONAL SERVICE OF THE SUMMONS, COMPLAINT AND OTHER
PROCESS ISSUED IN ANY SUCH ACTION OR SUIT AND AGREES THAT SERVICE OF SUCH
SUMMONS, COMPLAINTS AND OTHER PROCESS MAY BE MADE BY REGISTERED OR CERTIFIED
MAIL ADDRESSED TO SUCH GRANTOR AT THE ADDRESS SET FORTH IN THE INDENTURE.

 

19.                                 WAIVER OF JURY TRIAL. 
BECAUSE DISPUTES ARISING IN CONNECTION WITH COMPLEX FINANCIAL
TRANSACTIONS ARE MOST QUICKLY AND ECONOMICALLY RESOLVED BY AN EXPERIENCED AND
EXPERT PERSON AND THE PARTIES WISH APPLICABLE STATE AND FEDERAL LAWS TO APPLY
(RATHER THAN ARBITRATION RULES), THE PARTIES DESIRE THAT DISPUTES ARISING
HEREUNDER OR RELATING HERETO BE RESOLVED BY A JUDGE APPLYING SUCH APPLICABLE
LAWS.  THEREFORE, TO ACHIEVE THE BEST COMBINATION
OF THE BENEFITS OF THE JUDICIAL SYSTEM AND OF

 

18

 

ARBITRATION, THE PARTIES
HERETO WAIVE ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, SUIT OR PROCEEDING
BROUGHT TO RESOLVE ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT, OR
OTHERWISE, AMONG TRUSTEE AND GRANTORS ARISING OUT OF, CONNECTED WITH, RELATED
TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED IN CONNECTION WITH, THIS
SECURITY AGREEMENT OR ANY OF THE OTHER NOTE SECURITY DOCUMENTS OR THE TRANSACTIONS
RELATED HERETO OR THERETO.

 

20.                                 SECTION TITLES.  The
Section titles contained in this Security Agreement are and shall be
without substantive meaning or content of any kind whatsoever and are not a
part of the agreement between the parties hereto.

 

21.                                 NO STRICT CONSTRUCTION.  The
parties hereto have participated jointly in the negotiation and drafting of
this Security Agreement.  In the event
an ambiguity or question of intent or interpretation arises, this Security
Agreement shall be construed as if drafted jointly by the parties hereto and no
presumption or burden of proof shall arise favoring or disfavoring any party by
virtue of the authorship of any provisions of this Security Agreement.

 

22.                                 ADVICE OF COUNSEL. 
Each of the parties represents to each other party hereto that it has
discussed this Security Agreement and, specifically, the provisions of Section 18
and Section 19, with its counsel.

 

23.                                 BENEFIT OF SECURED PARTIES.  All
Liens granted or contemplated hereby shall be for the benefit of Secured
Parties, and all proceeds or payments realized from Collateral in accordance
herewith shall be applied to the Note Obligations in accordance with the terms
of the Indenture including the Intercreditor Provisions of the Indenture.

 

24.                                 INTERCREDITOR PROVISIONS OF THE INDENTURE. Notwithstanding any other provision of this
Agreement, the security interest of the Trustee granted hereunder and the
performance by the Trustee of its obligations under this Agreement and the
exercise of its rights hereunder is subject in all respects to the
Intercreditor Provisions of the Indenture.

 

[Signature Pages Follow]

 

19

 

IN
WITNESS WHEREOF, each of the parties hereto has caused this Security Agreement
to be executed and delivered by its duly authorized officer as of the date
first set forth above.

 

	
   

  	
  GRANTORS:

  
	
   

  	
   

  	
   

  
	
   

  	
  PLAYTEX PRODUCTS, INC.

  
	
   

  	
  By:

  	
      /s/
  Glenn A. Forbes

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Glenn
  A. Forbest

  
	
   

  	
   

  	
  Title:

  	
  Executive
  Vice President and

  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  PLAYTEX MANUFACTURING, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
      /s/
  Glenn A. Forbes

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Glenn
  A. Forbes

  
	
   

  	
   

  	
  Title:

  	
  Executive
  Vice President and

  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  PLAYTEX SALES & SERVICES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
      /s/
  Glenn A. Forbes

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Glenn
  A. Forbes

  
	
   

  	
   

  	
  Title:

  	
  Executive
  Vice President and

  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  PLAYTEX INVESTMENT CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
      /s/
  Glenn A. Forbes

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Glenn
  A. Forbes

  
	
   

  	
   

  	
  Title:

  	
  Executive
  Vice President and

  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  TH MARKETING CORP.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
      /s/
  Glenn A. Forbes

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Glenn
  A. Forbes

  
	
   

  	
   

  	
  Title:

  	
  Executive
  Vice President and

  Chief Financial Officer

  
								

 

Signature Page to Playtex Security Agreement

 

 

	
   

  	
  PLAYTEX INTERNATIONAL CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
      /s/
  Glenn A. Forbes

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Glenn
  A. Forbes

  
	
   

  	
   

  	
  Title:

  	
  Executive
  Vice President and

  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SUN PHARMACEUTICALS CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
      /s/
  Glenn A. Forbes

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Glenn
  A. Forbes

  
	
   

  	
   

  	
  Title:

  	
  Executive
  Vice President and

  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SMILE-TOTE, INC.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
      /s/
  Glenn A. Forbes

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Glenn
  A. Forbes

  
	
   

  	
   

  	
  Title:

  	
  Executive
  Vice President and

  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CAREWELL INDUSTRIES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
      /s/
  Glenn A. Forbes

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Glenn
  A. Forbes

  
	
   

  	
   

  	
  Title:

  	
  Executive
  Vice President and

  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  PERSONAL CARE HOLDINGS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
      /s/
  Glenn A. Forbes

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Glenn
  A. Forbes

  
	
   

  	
   

  	
  Title:

  	
  Executive
  Vice President and

  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  PERSONAL CARE GROUP, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
      /s/
  Glenn A. Forbes

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Glenn
  A. Forbes

  
	
   

  	
   

  	
  Title:

  	
  Executive
  Vice President and

  Chief Financial Officer

  
							

 

Signature Page to Playtex Security Agreement

 

 

	
   

  	
  TRUSTEE:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  WELLS
  FARGO BANK MINNESOTA,

  NATIONAL ASSOCIATION, as Trustee

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
      /s/
  Joseph P. O’Donnell

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Joseph
  P. O’Donnell

  
	
   

  	
   

  	
  Title:

  	
  Assistant
  Vice President

  
					

 

Signature Page to Playtex Security AgreementExhibit 4.3

 

RESTRICTED ACCOUNT AGREEMENT

 

This
RESTRICTED ACCOUNT AGREEMENT (the
“Agreement”) dated as of the date
specified at the end of this Agreement is entered into among PLAYTEX PRODUCTS, INC. (“Customer”), WELLS FARGO BANK MINNESOTA, NATIONAL ASSOCIATION, in its
capacity as trustee (together with its successors and assigns in such capacity,
the “Trustee”), for the benefit
holders of certain 8% Senior Secured Notes due 2011 of Customer (the “Senior Notes”) pursuant to the Indenture,
dated as of February 19, 2004 (the “Indenture”),
among the Customer, the Guarantors named therein and the Trustee and  the Wells Fargo Bank identified in the
signature block at the end of this Agreement (“Wells Fargo”), and acknowledged by each of the entities listed
on Schedule I (collectively, the “Guarantors”),
and sets forth the rights of the Trustee and the obligations of Wells Fargo
with respect to the deposit account(s) of Customer at Wells Fargo identified as
the Restricted Account(s) at the end of this Agreement.  As used in this Agreement, the term “Restricted Account” refers, individually
and collectively, to each such deposit account.  All references herein to the “UCC”
shall mean the Uniform Commercial Code as in effect in the State of  New York.

 

1.                                       TRUSTEE’S INTERESTS IN
RESTRICTED ACCOUNT.  Trustee represents that it has been
designated as trustee for the benefit of the holders of the Senior Notes of the
Customer, who have been granted a security interest in the Restricted Account.  Customer hereby confirms, and Wells Fargo
hereby acknowledges, the security interest granted by Customer to the Trustee
in all of Customer’s right, title and interest in and to the Restricted Account
and all sums now or hereafter on deposit in or payable or withdrawable from the
Restricted Account or any successor or replacement account (the “Account Funds”).  Except as specifically provided otherwise in this Agreement,
Customer has given the Trustee complete control over the Account Funds.  Trustee hereby appoints Wells Fargo as agent
for Trustee only for the purpose of perfecting the security interest of Trustee
in the Account Funds while they are in the Restricted Account.  Customer hereby instructs Wells Fargo to
indicate on its records for the Restricted Account that Trustee has a security
interest in the Restricted Account. 
Wells Fargo hereby agrees to do this. 
Customer and Trustee would like to use the service of Wells Fargo
described in this Agreement (the “Service”)
to further the arrangements between Trustee and Customer regarding the Account
Funds.

 

2.                                       ACCESS TO RESTRICTED ACCOUNT.  Trustee agrees that Customer will be allowed access to the Account
Funds until Wells Fargo receives written instructions from Trustee directing
that Customer no longer has access to any Account Funds (the “Instructions”).  Trustee agrees with Customer that it shall not deliver the
Instructions to Wells Fargo except after the occurrence and during the
continuation of an Event of Default under (and as defined in) the Indenture; it
being understood and agreed that Wells Fargo shall rely exclusively on
Instructions as to the existence of such Event of Default and shall be under no
obligation to make any independent investigation as to the existence of such
Event of Default.  Customer agrees that the Account Funds should be paid
to Trustee after Wells Fargo receives the Instructions, and hereby irrevocably
authorizes Wells Fargo to comply with the Instructions even if Customer objects
in any way to the Instructions. 
Customer further agrees that after Wells Fargo receives the
Instructions, Customer will not have access to any Account Funds.

 

1

 

3.                                       BALANCE REPORTS. 
Wells Fargo agrees, at the telephone request of Trustee on any Business
Day (a day on which Wells Fargo is open to conduct its regular banking
business, other than a Saturday, Sunday or public holiday) to make available to
the Trustee a report (the “Balance Report”)
showing the opening available balance in the Restricted Account as of the beginning
of that Business Day, either on-line (over the Internet) or by facsimile
transmission, at Wells Fargo’s option. 
Customer expressly consents to this transmission of information.  The Trustee and Customer understand and
agree that the opening available balance in the Restricted Account at the
beginning of any Business Day will be determined after deducting from the
Restricted Account the face amount (“Returned
Item Amount”) of all checks, automated clearing house entries, and
other items credited to the Restricted Account and then returned unpaid on the
immediately preceding Business Day for any reason (“Returned Item”). 
Customer will be informed of the balances in the Restricted Account by
the means arranged between Wells Fargo and Customer.

 

4.                                       TRANSFERS TO TRUSTEE. 
Wells Fargo agrees that on each Business Day after it receives the
Instructions, it will transfer to the Trustee’s account specified at the end of
this Agreement with the bank specified at the end of this Agreement (the “Trustee Account”) the full amount of the
opening available balance in the Restricted Account at the beginning of such
Business Day.  Wells Fargo will use the
Fedwire system to make such transfers unless for any reason the Fedwire system
is unavailable, in which case Wells Fargo will determine the funds transfer
system to be used in making each funds transfer and the means by which each
transfer will be made.  Wells Fargo,
Trustee and Customer each agree that Wells Fargo will comply with instructions
given to Wells Fargo by Trustee directing disposition or transfer of funds in
the Restricted Account without further consent by Customer, subject to the
terms of this Agreement (or, if disposition or transfer is requested by a means
other than wire transfer, subject to Wells Fargo’s standard policies,
procedures and documentation in effect from time to time governing the type of
disposition or transfer requested). 
Except as otherwise required by law, Wells Fargo will not agree with any
third party to comply with instructions for disposition or transfer of funds in
the Restricted Account originated by such third party.

 

5.                                       DELAYS IN MAKING FUNDS
TRANSFERS.   Trustee and Customer understand that a
funds transfer may be delayed or not made if (a) the transfer would cause Wells
Fargo to exceed any limitation on its intra-day net funds position established
in accordance with Federal Reserve or other regulatory guidelines or to violate
any other Federal Reserve or other regulatory risk control program, or (b) the
funds transfer would otherwise cause Wells Fargo to violate any applicable law
or regulation.  If a funds transfer
cannot be made or will be delayed, Wells Fargo will attempt to notify Trustee
by telephone.

 

6.                                       RELIANCE ON ACCOUNT NUMBER
OF WIRE TRANSFER BENEFICIARY.  If Trustee indicates a name and an
identifying number for the bank of the person or entity to receive funds
transfers out of the Restricted Account, Trustee and Customer understand that
Wells Fargo will rely on the number Trustee indicates even if that number
identifies a bank different from the bank Trustee named.  If Trustee indicates a name and an account
number for the person or entity to receive funds transfers out of the
Restricted Account, Trustee and Customer understand that the bank of that
person or entity may rely on the account number Trustee indicates even if that
account number is not the account number for the person or entity who is to
receive the transfers.

 

2

 

7.                                       REPORTING ERRORS IN
TRANSFERS.  If Trustee or Customer learns of any error
in a funds transfer or any unauthorized funds transfer, then the party learning
of such error or unauthorized transfer (the “Informed
Party”) must notify Wells Fargo as soon as possible by telephone at
(800) AT-WELLS (which is a recorded line), and provide written confirmation to
Wells Fargo of such telephonic notice within two Business Days at the address
given for Wells Fargo on the signature page of this Agreement.  In no case may such notice to Wells Fargo by
an Informed Party be made more than fourteen (14) calendar days after Wells
Fargo’s first confirmation of a funds transfer to such Informed Party.  If a funds transfer is made in error and
Wells Fargo suffers a loss because the Trustee or Customer breached its agreement
to notify Wells Fargo of such error within this fourteen (14) calendar day
period, then the party or parties which breached this agreement shall be
obligated to reimburse Wells Fargo for such loss promptly upon demand by Wells
Fargo; provided, however, that in the event both the Trustee and Customer
breach this notification requirement, the Trustee shall not be obligated to
reimburse Wells Fargo for such loss unless Customer fails to satisfy Wells
Fargo’s demand for such reimbursement within fifteen (15) calendar days after
such demand is made on Customer.

 

8.                                       RETURNED ITEM AMOUNTS.  The
Trustee and Customer understand and agree that the Returned Item Amount of each
Returned Item will be paid by Wells Fargo debiting the Restricted Account,
without notice to the Trustee or Customer, on the Business Day that each
Returned Item is received.  Customer
agrees to pay the Returned Item Amounts immediately on demand, without setoff
or counterclaim, to the extent there are not sufficient funds in the Restricted
Account to cover such Returned Item Amounts on the day they are to be debited
to the Restricted Account.  After Wells
Fargo receives the Instructions, Trustee agrees to pay the Returned Item
Amounts within thirty (30) calendar days after demand, without setoff or
counterclaim, to the extent the Returned Item Amounts are not paid in full by
Customer within fifteen (15) calendar days after demand on Customer by Wells
Fargo, and to the extent such Trustee received proceeds from the corresponding
Returned Item(s).

 

9.                                       WELLS FARGO FEES. 
Customer agrees to pay all Wells Fargo’s fees and charges for the
maintenance and administration of the Restricted Account and for the cash
management and other account services provided with respect to the Restricted
Account (collectively “Wells Fargo Fees”),
including, but not limited to, the fees for (a) the Balance Reports provided on
the Restricted Account, (b) the wire transfer services provided with respect to
the Restricted Account, (c) Returned Items, (d) funds advanced to cover
overdrafts in the Restricted Account (but without Wells Fargo being in any way
obligated to make any such advances), and (e) duplicate bank statements on the
Restricted Account.  The Wells Fargo
Fees will be paid by Wells Fargo debiting the Restricted Account.  All such debits will be made on the Business
Day that the Wells Fargo Fees are due without notice to the Trustee or
Customer.  If there are not sufficient
funds in the Restricted Account to cover fully the Wells Fargo Fees on the
Business Day they are debited from the Restricted Account such shortfall or the
amount of such Wells Fargo Fees will be paid by Customer sending Wells Fargo a
check in the amount of such shortfall or such Wells Fargo Fees, without setoff
or counterclaim, within fifteen (15) calendar days after demand of Wells
Fargo.  Wells Fargo may, in its
discretion, change the Wells Fargo Fees upon thirty (30) calendar days prior
written notice to Customer and Trustee.

 

10.                                 ACCOUNT DOCUMENTATION. 
Trustee and Customer agree that, except as specifically provided in this
Agreement, the Restricted Account will be subject to, and Wells

 

3

 

Fargo’s
operation of the Restricted Account will be in accordance with, the terms and
provisions of Wells Fargo’s separate deposit account agreement governing the
Restricted Account (“Account Agreement”),
a copy of which Customer and Trustee acknowledge having received.  In the event of any conflict between this
Agreement and the Account Agreement, this Agreement shall govern.

 

11.                                 SUPPORT SERVICES FOR WELLS
FARGO. 
Customer and Trustee understand that some bank affiliates of Wells Fargo
may provide support services in connection with the services to be provided by
Wells Fargo under this Agreement. 
Customer and Trustee agree to, and authorize, the performance of such
support services by such bank affiliates.

 

12.                                 BANK STATEMENTS. 
After Wells Fargo receives the Instructions, Wells Fargo will, if so
indicated on the signature page of this Agreement, send to Trustee by United
States mail, at the address indicated for Trustee after its signature to this
Agreement, duplicate copies of all bank statements on the Restricted Account
which are sent to Customer.  Customer
will have thirty (30) calendar days after its receipt of a bank statement and
Trustee will have thirty (30) calendar days after its receipt of a bank
statement to notify Wells Fargo of an error in such statement, unless within
such thirty (30) calendar days either Customer or Trustee learns that the other
party has notified Wells Fargo of such error. 
Wells Fargo’s liability for such errors is limited as provided in
Section 18 of this Agreement.

 

13.                                 WAIVER OF SETOFF RIGHTS. 
Wells Fargo hereby waives any right it may now or hereafter have from
time to time to apply any Account Funds against the payment of any indebtedness
from time to time owing to Wells Fargo from Customer, except for debits to the
Restricted Account permitted under this Agreement for the payment of Returned
Item Amounts and Wells Fargo Fees.

 

14.                                 BANKRUPTCY NOTICE.  If
Wells Fargo at any time receives notice of the commencement of a bankruptcy
case or other insolvency or liquidation proceeding by or against Customer (a “Bankruptcy Notice”), Wells Fargo will
notify the other parties to this Agreement, other than Customer.  In such circumstances Wells Fargo agrees to
continue to comply with its obligations under this Agreement, except to the
extent that any action required of Wells Fargo under this Agreement is
prohibited under applicable bankruptcy laws or regulations or is stayed
pursuant to the automatic stay imposed under the United States Bankruptcy Code
or by order of any court or agency.

 

15.                                 CLAIMS, LEGAL PROCESS AND
NOTICES.  If Wells Fargo receives any claim, notice,
legal process or court order relating to the Account Funds or the Restricted
Account, Wells Fargo will notify Trustee and Customer of such receipt, unless
Wells Fargo knows that either Trustee, with respect to so notifying the
Trustee, or Customer, with respect to so notifying Customer, is already aware
of such claim, notice, legal process or court order.  Trustee and Customer understand and agree that Wells Fargo will
comply with any such legal process, legal notice or court order it receives if
Wells Fargo determines in its sole discretion that such legal process, legal
notice or court order is legally binding on it.  If any claim or notice received by Wells Fargo is not legally
binding on it, as determined in its sole discretion, Trustee agrees to instruct
Wells Fargo promptly by telephone, confirmed in writing, to comply or not
comply with such claim or notice and Wells Fargo agrees to comply with such
instructions if (a) such instructions are given promptly after the Trustee is
notified of such claim or notice and (b)

 

4

 

such
instructions do not require Wells Fargo to violate any applicable law,
regulation or court order.  Customer
hereby irrevocably agrees that Wells Fargo is to follow such instructions of
the Trustee with respect to any such non-binding claim or notice even if such
claim or notice is from Customer.   If
Wells Fargo does not receive prompt instructions from Trustee regarding
compliance or non-compliance with any such non-binding claim or notice, the
Trustee and Customer agree that Wells Fargo will not comply with such claim or
notice.

 

16.                                 INDEMNIFICATION FOR
FOLLOWING INSTRUCTIONS.  Trustee and Customer each agree that,
notwithstanding any other provision of this Agreement, Wells Fargo will not be
liable to the Trustee or Customer for any losses, liabilities, damages, claims
(including, but not limited to, third party claims), demands, obligations,
actions, suits, judgments, penalties, costs or expenses, including, but not
limited to, attorneys’ fees, (collectively, “Losses
and Liabilities”) suffered or incurred by the Trustee or Customer as
a result of or in connection with, (a) Wells Fargo complying with any binding
legal process, legal notice or court order referred to in Section 15 of
this Agreement, (b) Wells Fargo following any instruction of Trustee to comply
or not comply with any non-binding claim or notice referred to in
Section 15, (c) if no such instruction from Trustee is promptly received,
Wells Fargo not complying with any such non-binding claim or notice, (d) Wells
Fargo following any other instruction or request of Trustee, or (e) Wells Fargo
complying with its obligations under this Agreement.  Further, Customer will indemnify Wells Fargo against any Losses
and Liabilities Wells Fargo may suffer or incur as a result of or in connection
with any of the circumstances referred to in subsections (a) through (e) in the
preceding sentence.

 

17.                                 NO REPRESENTATIONS OR
WARRANTIES OF WELLS FARGO.  Wells Fargo agrees to perform its
obligations under this Agreement in a manner consistent with the quality
provided when Wells Fargo performs similar services for its own account.  However, Wells Fargo cannot be responsible
for the errors, acts or omissions of others, such as communications carriers,
correspondents or clearinghouses through which Wells Fargo may perform its
obligations under this Agreement or receive or transmit information in
performing its obligations under this Agreement.  The Trustee and the Customer also understand that Wells Fargo cannot
be responsible for any loss, liability or delay caused by wars, failures in
communications networks, labor disputes, legal constraints, fires, power surges
or failures, earthquakes, civil disturbances or other events beyond Wells
Fargo’s control.  WELLS FARGO MAKES NO EXPRESS OR IMPLIED
REPRESENTATIONS OR WARRANTIES WITH RESPECT TO THE SERVICE IT IS TO PERFORM
UNDER THIS AGREEMENT OTHER THAN THOSE EXPRESSLY SPECIFIED IN THIS AGREEMENT.

 

18.                                 LIMITATION OF LIABILITY.  In
the event that Trustee, the Customer or Wells Fargo suffers or incurs any
Losses and Liabilities as a result of, or in connection with, its or any other
party’s performance or failure to perform its obligations under this Agreement,
the affected parties shall negotiate in good faith in an effort to reach a
mutually satisfactory allocation of such Losses and Liabilities, it being
understood that Wells Fargo will not be responsible for any Losses and
Liabilities due to any cause other than its own negligence or breach of this
Agreement, in which case its liability to Trustee and Customer shall, unless
otherwise provided by any law which cannot be varied by contract, be limited to
direct money damages in an amount not to exceed ten (10) times all the Wells
Fargo Fees charged or incurred during the calendar month immediately preceding
the calendar month in which such Losses and

 

5

 

Liabilities
occurred (or, if no Wells Fargo Fees were charged or incurred in the preceding
month, the Wells Fargo Fees charged or incurred in the month in which the
Losses and Liabilities occurred). 
Customer will indemnify Wells Fargo against all Losses and Liabilities
suffered or incurred by Wells Fargo as a result of third party claims;
provided, however, that to the extent such Losses and Liabilities are directly
caused by Wells Fargo’s negligence or breach of this Agreement such indemnity
will only apply to those Losses and Liabilities which exceed the liability
limitation specified in the preceding sentence.  The limitation of Wells Fargo’s liability and the indemnification
by Customer set out above will not be applicable to the extent any Losses and
Liabilities of any party to this Agreement are directly caused by Wells Fargo’s
gross negligence or willful misconduct.  IN NO EVENT WILL WELLS FARGO BE LIABLE FOR
ANY SPECIAL, CONSEQUENTIAL, INCIDENTAL, INDIRECT OR PUNITIVE DAMAGES, WHETHER
ANY CLAIM IS BASED ON CONTRACT OR TORT, WHETHER THE LIKELIHOOD OF SUCH DAMAGES
WAS KNOWN TO WELLS FARGO AND REGARDLESS OF THE FORM OF THE CLAIM OR ACTION,
INCLUDING, BUT NOT LIMITED TO, ANY CLAIM OR ACTION ALLEGING GROSS NEGLIGENCE,
WILLFUL MISCONDUCT, FAILURE TO EXERCISE REASONABLE CARE OR FAILURE TO ACT IN
GOOD FAITH.  Any action
against Wells Fargo by Customer or the Trustee under or related to this
Agreement must be brought within twelve months after the cause of action
accrues.

 

19.                                 TERMINATION.  This
Agreement and the Service may be terminated by Trustee or by Wells Fargo at any
time by the terminating party or parties giving thirty (30) calendar days prior
written notice of such termination to the other parties to this Agreement at
their contact addresses specified after their signatures to this Agreement;
provided, however, that this Agreement and the Service may be terminated (a)
immediately upon written notice from Wells Fargo to Customer and Trustee should
any Trustee fail to make any payment when due to Wells Fargo from Trustee under
the terms of this Agreement, and (b) ten (10) calendar days after Trustee and
Customer receive written notice of such termination from Wells Fargo if
Customer fails to pay any Wells Fargo Fees as provided in this Agreement;
provided, however, that such termination will not occur if Trustee pays, within
such ten (10) calendar days, but without either Trustee being obligated to make
such payment, all such unpaid fees up to the date the notice of termination was
sent.  Trustee and Customer agree that
the Restricted Account may be closed as provided in the Account Agreement.  Customer’s and the Trustee’s obligations, as
provided in this Agreement, to report errors in funds transfers and bank
statements and to pay the Wells Fargo Fees, as well as the indemnifications
made, and the limitations on the liability of Well Fargo accepted, by Customer
and Trustee under this Agreement will continue after the termination of this
Agreement and/or the closure of the Restricted Account with respect to all the
circumstances to which they are applicable existing or occurring before such
termination or closure, and any liability of any party to this Agreement, as
determined under the provisions of this Agreement, with respect to acts or
omissions of such party prior to such termination or closure will also survive
such termination or closure; provided, however, that Trustee’s obligations of
reimbursement hereunder will end forty-five (45) calendar days after such
termination and/or closure, except with respect to written claims made to
Trustee prior to expiration of such forty-five (45) day period.  Upon any termination of this Agreement and
the Service or closure of the Restricted Account all collected balances in the
Restricted Account on the date of such termination or closure will be
transferred to Trustee as requested by Trustee in writing to Wells Fargo.

 

6

 

20.                                 MODIFICATIONS, AMENDMENTS,
AND WAIVERS.  This Agreement may not be modified or
amended, or any provision thereof waived, except in a writing signed by all the
parties to this Agreement; provided, however, that the Wells Fargo Fees may be
changed after thirty (30) calendar days prior written notice to Customer and
Trustee.

 

21.                                 NOTICES.  All
notices from one party to another shall be in writing, or be made by a
telecommunications device capable of creating a written record, shall be
delivered to Customer, Trustee and/or Wells Fargo at their contact addresses
specified after their signatures to this Agreement, or any other address of any
party notified to the other parties in writing, and shall be effective upon receipt.  Any notice sent by one party to this
Agreement to another party shall also be sent to the other parties to this
Agreement.  Wells Fargo is authorized by
Customer and Trustee to act on any instructions or notices received by Wells
Fargo if (a) such instructions or notices purport to be made in the name of
Trustee, (b) Wells Fargo reasonably believes that they are so made, and (c)
they do not conflict with the terms of this Agreement as such terms may be
amended from time to time, unless such conflicting instructions or notices are
supported by a court order.

 

22.                                 SUCCESSORS AND ASSIGNS. 
Neither Customer nor Trustee may assign or transfer its rights or
obligations under this Agreement to any person or entity without the prior
written consent of Wells Fargo, which consent will not be unreasonably
withheld.  Wells Fargo may not assign
its rights or obligations under this Agreement to any person or entity without
the prior written consent of Trustee, which consent will not be unreasonably
withheld; provided, however, that no such consent will be required if the
assignee is a bank affiliate of Wells Fargo.

 

23.                                 GOVERNING LAW.  Customer and Trustee understand that Wells Fargo’s provision of
the Service under this Agreement is subject to federal laws and regulations.  To the extent that such federal laws and
regulations are not applicable, the rights and obligations of all the parties
to this Agreement under this Agreement shall be governed by and be construed in
accordance with the laws of the State of New York, regardless of any provision
in any other agreement, for purposes of the UCC and with respect to the
Agreement, the State of New York shall be deemed to be Wells Fargo’s
jurisdiction (within the meaning of §9-304 of the UCC), without regard to
conflicts of law principles.

 

24.                                 CERTAIN REPRESENTATIONS,
WARRANTIES AND COVENANTS.

 

(a)                                  Wells Fargo represents and warrants that it
has not received any notice of any other security interest in, pledge or
assignment of, or other claim (except for claims and interest of the parties
hereto) on any of the Restricted Accounts.

 

(b)                                 Wells Fargo represents and warrants that it
has not agreed with any third party to comply with instructions or other
directions concerning the Restricted Accounts or the disposition of funds in
the Restricted Accounts originated by any third party.

 

(c)                                  Wells Fargo covenants and agrees that the
each of the Restricted Accounts is a “deposit
account” as defined in Section 9-102(29) of the UCC.

 

7

 

(d)                                 Wells Fargo represents that it is an
organization that is engaged in the business of banking and is therefore a “bank” within the meaning of
Section 9-102(8) of the UCC.

 

(e)                                  Wells Fargo represents and warrants that,
with respect to the Agreement, its “jurisdiction”
(as determined by the rules set forth in Section 9-304(b) of the UCC) is
the State of New York.

 

25.                                 SEVERABILITY.  To
the extent that this Agreement or the Service to be provided under this
Agreement are inconsistent with, or prohibited or unenforceable under, any
applicable law or regulation, they will be deemed ineffective only to the
extent of such prohibition or unenforceability and be deemed modified and
applied in a manner consistent with such law or regulation.  Any provision of this Agreement which is
deemed unenforceable or invalid in any jurisdiction shall not effect the
enforceability or validity of the remaining provisions of this Agreement or the
same provision in any other jurisdiction.

 

26.                                 USURY.  It is never
the intention of Wells Fargo to violate any applicable usury or interest rate
laws.  Wells Fargo does not agree to, or
intend to contract for, charge, collect, take, reserve or receive
(collectively, “charge or collect”)
any amount in the nature of interest or in the nature of a fee, penalty or
other charge which would in any way or event cause Wells Fargo to charge or
collect more than the maximum Wells Fargo would be permitted to charge or
collect by any applicable federal or state law.  Any such excess interest or unauthorized fee shall,
notwithstanding anything stated to the contrary in this Agreement, be applied
first to reduce the amount owed, if any, and then any excess amounts will be
refunded.

 

27.                                 COUNTERPARTS.  This
Agreement may be executed in any number of counterparts, each of which shall be
an original with the same effect as if the signatures thereto and hereto were
upon the same instrument.

 

28.                                 ENTIRE AGREEMENT.  This
Agreement, together with the Account Agreement, contains the entire and only
agreement among all the parties to this Agreement and between Wells Fargo and
Customer and Wells Fargo and the Trustee with respect to (a) the Service, (b)
the interest of the Trustee in the Account Funds and the Restricted Account,
and (c) Wells Fargo’s obligations to the Trustee in connection with the Account
Funds and the Restricted Account.

 

29.                                 ACKNOWLEDGEMENTS. 
Each of the Guarantors hereby acknowledges and agrees with this
Agreement as evidenced by its signature below.

 

[Signatures to follow]

 

8

 

This
Agreement has been signed by the duly authorized officers or representatives of
Customer, the Trustee and Wells Fargo on the date specified below.

 

DATE: February 19, 2004

 

RESTRICTED ACCOUNT NUMBER(S): 
[             ]

 

TRUSTEE ACCOUNT NUMBER:

 

Wells Fargo Bank, N.A.

San Francisco, CA

ABA 121000248

Beneficiary:  Corporate Trust Services

Account Number:  0001038377

Attn:  Joseph O’Donnell

Ref:  Playtex Products, Inc. (SEI
#[            ])

 

 

BANK OF TRUSTEE ACCOUNT:  Wells Fargo Bank, N.A.

 

ý RUSTEE IS TO BE SENT DUPLICATE BANK STATEMENTS

 

WELLS FARGO BANK, N.A.

 

	
   

  	
  By:

  	
  /s/
  Reginald M. Goldsmith, III

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Reginald
  M. Goldsmith, III

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Vice
  President

  	
   

  

 

Address for all Notices:

 

1445 Ross Avenue, 4th Floor

MAC # T5303-042

Dallas, TX  75202-2812

Attention:  Reginald M. Goldsmith III

Fax:  (214) 969-0906

 

with a copy to:

 

5400 LBJ Freeway, Suite 100

MAC # T5395-100

Dallas, TX  75240-1000

Attention:  Flora Rushing

Fax:  (972) 386-4723

 

 

	
  PLAYTEX PRODUCTS,
  INC.

  	
  WELLS FARGO BANK
  MINNESOTA,

  NATIONAL ASSOCIATION, as Trustee

  
	
   

  	
   

  
	
  By:

  	
  /s/ Glenn A. Forbes

  	
   

  	
  By:

  	
  /s/ Joseph P. O’Donnell

  	
   

  
	
  Name:

  	
  Glenn A. Forbes

  	
   

  	
  Name:

  	
  Joseph P. O’Donnell

  	
   

  
	
  Title:

  	
  Executive Vice President and Chief Financial Officer

  	
   

  	
  Title:

  	
  Assistant Vice President

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Address For All
  Notices:

  	
   

  	
  Address For All Notices:

  
	
   

  	
   

  	
   

  	
   

  
	
  300 Nyala Farms Road

  	
   

  	
  Wells  Fargo Bank Minnesota,
  N.A., Corporate

  
	
  Westport, CT 06880

  	
   

  	
  Trust Services

  
	
  Attention: Glenn Forbes

  	
   

  	
  213 Court Street, Suite 703

  
	
  Facsimile: (203) 341-4260

  	
   

  	
  Middletown, CT 06457

  
	
  With a copy to:

  	
   

  	
  Attention: Joseph P. O’Donnell

  
	
   

  	
   

  	
   

  	
  Telephone: (860) 704-6217

  
	
  Haas Wheat &
  Partners, L.P.

  	
   

  	
  Facsimile: (860) 704-6219

  
	
  300 Crescent Court

  	
   

  	
   

  
	
  Suite 1700

  	
   

  	
   

  
	
  Dallas, TX 75201

  	
   

  	
   

  
	
  Attention: Todd Robichaux

  	
   

  	
   

  
	
  Facsimile: (214) 871-8317

  	
   

  	
   

  
										

 

 

The
foregoing Restricted Account Agreement is hereby acknowledged and agreed with
as of the day and year first written above.

 

	
   

  	
  PLAYTEX
  SALES & SERVICES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
      /s/
  Glenn A. Forbes

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Glenn
  A. Forbes

  
	
   

  	
   

  	
  Title:

  	
  Executive
  Vice President and

  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  PLAYTEX MANUFACTURING, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
      /s/
  Glenn A. Forbes

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Glenn
  A. Forbes

  
	
   

  	
   

  	
  Title:

  	
  Executive
  Vice President and

  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  PLAYTEX
  INVESTMENT CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
      /s/
  Glenn A. Forbes

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Glenn
  A. Forbes

  
	
   

  	
   

  	
  Title:

  	
  Executive
  Vice President and

  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  PLAYTEX
  INTERNATIONAL CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
      /s/
  Glenn A. Forbes

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Glenn
  A. Forbes

  
	
   

  	
   

  	
  Title:

  	
  Executive
  Vice President and

  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  TH
  MARKETING CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
      /s/
  Glenn A. Forbes

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Glenn
  A. Forbes

  
	
   

  	
   

  	
  Title:

  	
  Executive
  Vice President and

  Chief Financial Officer

  
							

 

 

	
   

  	
  SMILE-TOTE,
  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
      /s/
  Glenn A. Forbes

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Glenn
  A. Forbes

  
	
   

  	
   

  	
  Title:

  	
  Executive
  Vice President and

  Chief Financial Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SUN
  PHARMACEUTICALS CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
      /s/
  Glenn A. Forbes

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Glenn
  A. Forbes

  
	
   

  	
   

  	
  Title:

  	
  Executive
  Vice President and

  Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
  PERSONAL
  CARE GROUP, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
      /s/
  Glenn A. Forbes

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Glenn
  A. Forbes

  
	
   

  	
   

  	
  Title:

  	
  Executive
  Vice President and

  Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  PERSONAL
  CARE HOLDINGS, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
      /s/
  Glenn A. Forbes

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Glenn
  A. Forbes

  
	
   

  	
   

  	
  Title:

  	
  Executive
  Vice President and

  Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CAREWELL
  INDUSTRIES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
      /s/
  Glenn A. Forbes

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Glenn
  A. Forbes

  
	
   

  	
   

  	
  Title:

  	
  Executive
  Vice President and

  Chief Financial Officer

  
							

 

 

SCHEDULE I

 

The Guarantors

 

	
  Name

  	
   

  	
  State of Incorporation

  
	
  Playtex
  Sales & Services, Inc.

  	
   

  	
  Delaware

  
	
  Playtex
  Manufacturing, Inc.

  	
   

  	
  Delaware

  
	
  Playtex
  Investment Corp.

  	
   

  	
  Delaware

  
	
  Playtex
  International Corp.

  	
   

  	
  Delaware

  
	
  TH
  Marketing Corp.

  	
   

  	
  Delaware

  
	
  Smile-Tote,
  Inc.

  	
   

  	
  California

  
	
  Sun
  Pharmaceuticals Corp.

  	
   

  	
  Delaware

  
	
  Personal
  Care Group, Inc.

  	
   

  	
  Delaware

  
	
  Personal
  Care Holdings, Inc.

  	
   

  	
  Delaware

  
	
  Carewell
  Industries, Inc.

  	
   

  	
  New
  York

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