Document:

exhibit10_2.htm

     

    Exhibit 10.2

     

     

    

    CCH II,
LLC,

    CCH II
CAPITAL CORP.,

    and

    CHARTER
COMMUNICATIONS HOLDINGS, LLC

    

     

    $364,197,000

     

    NOTES (as
defined below)

     

    EXCHANGE
AND REGISTRATION RIGHTS AGREEMENT

     

     

    July 2,
2008

     

    Banc of
America Securities LLC

    Citigroup
Global Markets Inc.

    As
representatives (“Representatives”) of the holders

    c/o Banc
of America Securities LLC

    9 West
57th Street, 6th Floor

    New York,
New York  10019

     

    Ladies
and Gentlemen:

     

    CCH II,
LLC, a Delaware limited liability company and CCH II Capital Corp., a
Delaware corporation (collectively, the “Issuers”) propose to issue $364,197,000
of their 10.25% Senior Notes due 2013 (the “Notes”) in exchange for certain of
the Issuers’ outstanding 10.25% Senior Notes due 2010 (the “Old Notes”) (the
“Original Exchange Offer”) upon the terms set forth in the Dealer Manager
Agreement (the “Dealer Manager Agreement”), dated May 29, 2008, among the
Issuers, Charter Communications Holdings, LLC, a Delaware limited liability
company (“Charter Holdings”), and you, the Dealer Managers (as defined in the
Dealer Manager Agreement), relating to the Original Exchange
Offer.  Unless the context otherwise requires, all references to
“Notes” include the related Note Guarantee (as defined below) and all references
to “Issuers” include Charter Holdings, in its capacity as guarantor of the
Notes.  The Notes are to be issued under the Indenture, dated as of
September 14, 2006 ( as supplemented, including pursuant to the supplemental
indenture dated the date hereof the “Indenture”), between the Issuers and The
Bank of New York Mellon Trust Company, N.A., as trustee (the
“Trustee”).  The Issuers agree with you for your benefit and the
benefit of the holders (as defined herein) from time to time of the Registrable
Securities (as defined herein) as follows:

     

    1. Certain
Definitions.  For purposes of this Exchange and Registration
Rights Agreement, the following terms shall have the following respective
meanings:

     

    “Agreement”
shall mean this Exchange and Registration Rights Agreement.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    “Base
Interest” shall mean the interest that would otherwise accrue on the Notes under
the terms thereof and the Indenture, without giving effect to the provisions of
this Exchange and Registration Rights Agreement.

     

    The term
“broker-dealer” shall mean any broker or dealer registered with the Commission
under the Exchange Act.

     

    “Charter
Holdings” shall have the meaning set forth in the preamble.

     

    “Closing
Date” shall mean July 2, 2008.

     

    “Commission”
shall mean the United States Securities and Exchange Commission, or any other
federal agency at the time administering the Exchange Act or the Securities Act,
whichever is the relevant statute for the particular purpose.

     

    “Consummate”
shall mean the occurrence of (i) the filing and effectiveness under the
Securities Act of an Exchange Offer Registration Statement relating to the
Exchange Notes to be issued in such Exchange Offer, (ii) the maintenance of such
Registration Statement continuously effective and the keeping of such Exchange
Offer open for a period not less than the minimum period required pursuant to
Section 2(a) hereof, and (iii) the delivery by the Issuers to the Registrar
under the Indenture of Exchange Notes in the same aggregate principal amount as
the aggregate principal amount of Registrable Securities that were tendered by
Holders thereof pursuant to such Exchange Offer.

     

    “Dealer
Manager Agreement” shall have the meaning set forth in the preamble
hereto.

     

    “Effective
Time,” in the case of (i) an Exchange Offer Registration, shall mean the time
and date as of which the Commission declares the Exchange Offer Registration
Statement effective or as of which the Exchange Offer Registration Statement
otherwise becomes effective and (ii) a Shelf Registration, shall mean the time
and date as of which the Commission declares the Shelf Registration Statement
effective or as of which the Shelf Registration Statement otherwise becomes
effective.

     

    “Electing
Holder” shall mean any holder of Registrable Securities that has returned a
completed and signed Notice and Questionnaire to the Issuers in accordance with
Section 3(e)(ii) or 3(e)(iii) hereof.

     

    “Exchange
Act” shall mean the Securities Exchange Act of 1934, or any successor thereto,
and the rules, regulations and forms promulgated thereunder, all as the same
shall be amended from time to time.

     

    “Exchange
Date” shall have the meaning assigned thereto in Section 2(a)
hereof.

     

    “Exchange
Notes” shall have the meaning assigned thereto in Section 2(a)
hereof.

     

    “Exchange
Offer” shall have the meaning assigned thereto in Section 2(a)
hereof.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    “Exchange
Offer Registration” shall have the meaning assigned thereto in Section 3(c)
hereof.

     

    “Exchange
Offer Registration Statement” shall have the meaning assigned thereto in Section
2(a) hereof.

     

    “Exchanging
Dealer” shall have the meaning assigned thereto in Section 6(a)
hereof.

     

    “Freely
Tradable” shall
mean, with respect to a Note, a Note that at any time of determination
(i) may be resold to the public in accordance with Rule 144 under the
Securities Act or any successor provision thereof without regard to volume,
manner of sale or any other restrictions contained in Rule 144 (other than the
holding period requirement in paragraph (d)(1)(ii) of Rule 144 so long as such
holding period requirement is satisfied at such time of determination) and (ii)
does not bear any restrictive legends relating to the Securities
Act.

     

    The term
“holder” shall mean, unless the context otherwise indicates, each of the holders
and other persons who acquire Registrable Securities from time to time
(including, without limitation, any successors or assigns), in each case for so
long as such person is a registered holder of any Registrable
Securities.

     

    “Indenture”
shall have the meaning set forth in the preamble hereto.

     

     “Issuers”
shall have the meaning set forth in the preamble hereto.

     

    “Losses”
shall have the meaning assigned thereto in Section 6(d) hereof.

     

    “Note
Guarantee” means, in respect of any Notes or Exchange Notes, the related
guarantee thereof by Charter Holdings.

     

    “Notes”
shall have the meaning set forth in the preamble hereto.  Unless the
context otherwise requires, all references to a “Note” or “Notes” include the
related Note Guarantee.

     

    “Notice
and Questionnaire” means a Notice of Registration Statement and Selling
Securityholder Questionnaire substantially in the form of Exhibit A
hereto.

     

    “Original
Exchange Offer” shall have the meaning set forth in the preamble
hereto.

     

    The term
“person” shall mean a corporation, association, partnership, organization,
limited liability company, business, individual, government or political
subdivision thereof or governmental agency.

     

    “Registrable
Securities” shall mean the Notes (and to the extent set forth in clause (i) of
this paragraph and in Section 2(d), certain Exchange Notes); provided, however, that a Note or
Exchange Note shall cease to be a Registrable Security when (i) in the
circumstances contemplated by Section 2(a) hereof, such Note has been exchanged
for an Exchange Note in the Exchange Offer as contemplated in Section 2(a)
hereof (provided that any Exchange Note that,

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

      pursuant
to the penultimate sentence of Section 2(a), is included in a prospectus for use
in connection with resales by broker-dealers shall be deemed to be a Registrable
Security with respect to Sections 5, 6 and 9 hereof until resale of such
Registrable Security has been effected within the period referred to in Section
2(a)(y)); (ii) in the circumstances contemplated by Section 2(b) hereof, a Shelf
Registration Statement registering such Note or Exchange Note under the
Securities Act has been declared or becomes effective and such Note or Exchange
Note has been sold or otherwise transferred by the holder thereof pursuant to
and in a manner contemplated by such effective Shelf Registration Statement;
(iii) such Note is Freely Tradable; or (v) such Note or Exchange Note shall
cease to be outstanding.

    

     

    “Registrar”
shall mean the registrar under the Indenture.

     

    “Registration
Default” shall have the meaning assigned thereto in Section 2(c)
hereof.

     

    “Registration
Default Period” shall have the meaning assigned thereto in Section 2(c)
thereof.

     

    “Registration
Expenses” shall have the meaning assigned thereto in Section 4
hereof.

     

    “Registration
Trigger Date” shall mean the 370th day after the Closing Date.

     

    “Resale
Period” shall have the meaning assigned thereto in Section 2(a)
hereof.

     

    “Restricted
Holder” shall mean (i) a holder that is an affiliate of the Issuers within the
meaning of Rule 405, (ii) a holder who acquires Exchange Notes outside the
ordinary course of such holder’s business, (iii) a holder who has arrangements
or understandings with any person to participate in the Exchange Offer for the
purpose of distributing Exchange Notes and (iv) a holder that is a
broker-dealer, but only with respect to Exchange Notes received by such
broker-dealer pursuant to the Exchange Offer in exchange for Registrable
Securities acquired by the broker-dealer directly from the Issuers.

     

    “Rule
144,” “Rule 405” and “Rule 415” shall mean, in each case, such rule promulgated
under the Securities Act (or any successor provision), as the same shall be
amended from time to time.

     

    “Securities
Act” shall mean the Securities Act of 1933, or any successor thereto, and the
rules, regulations and forms promulgated thereunder, all as the same shall be
amended from time to time.

     

    “Shelf
Registration” shall have the meaning assigned thereto in Section 2(b)
hereof.

     

    “Shelf
Registration Statement” shall have the meaning assigned thereto in Section 2(b)
hereof.

     

    “Special
Interest” shall have the meaning assigned thereto in Section 2(c)
hereof.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    “Transfer
Restricted Notes” shall have the meaning assigned thereto in Section 2(c)
hereof.

     

    “Trustee”
shall have the meaning set forth in the preamble hereto.

     

    “Trust
Indenture Act” shall mean the Trust Indenture Act of 1939, or any successor
thereto, and the rules, regulations and forms promulgated thereunder, all as the
same shall be amended from time to time.

     

    Unless
the context otherwise requires, any reference herein to a “Section” or “clause”
refers to a Section or clause, as the case may be, of this Agreement, and the
words “herein,” “hereof” and “hereunder” and other words of similar import refer
to this Agreement as a whole and not to any particular Section or other
subdivision.

     

    2. Registration
Under the Securities Act.

     

    (a) Except as
set forth in Section 2(b) below, the Issuers agree to file under the Securities
Act, one or more registration statements relating to an offer to exchange (such
registration statements, collectively, the “Exchange Offer Registration
Statement”, and such offer, the “Exchange Offer”) any and all of the Notes,
including the related Note Guarantee, for a like aggregate principal amount of
notes issued by the Issuers, which notes are substantially identical in all
material respects to the Notes (and are entitled to the benefits of the
Indenture which has been qualified under the Trust Indenture Act), except that
they have been registered pursuant to an effective registration statement under
the Securities Act and do not contain provisions for the additional interest
contemplated in Section 2(c) below (such notes, collectively, the “Exchange
Notes”).  Unless the context otherwise requires, all references to an
“Exchange Note” or “Exchange Notes” include the related Note
Guarantee.  The Issuers shall use commercially reasonable best efforts
to Consummate the Exchange Offer with respect to the Notes registered pursuant
to such Exchange Offer Registration Statement not later than 370 days following
the Closing Date (the “Exchange Date”); provided, however, that the Issuers
shall not be required to Consummate such Exchange Offer if all of the Notes are
Freely Tradable (other than such Notes held by affiliates of the Issuers) on the
Exchange Date.  The Issuers further agree to use their commercially
reasonable best efforts to hold the Exchange Offer open for at least 20 business
days (calculated in accordance with the Exchange Act) and exchange the Exchange
Notes for all Registrable Securities that have been properly tendered and not
withdrawn on or prior to the expiration of the Exchange Offer.  If
required to Consummate the Exchange Offer, the Issuers agree (x) to include in
the Exchange Offer Registration Statement a prospectus for use in any resales by
any holder of Exchange Notes that is a broker-dealer and (y) to keep such
Exchange Offer Registration Statement effective for a period (the “Resale
Period”) beginning when Exchange Notes are first issued in the Exchange Offer
and ending upon the earlier of the expiration of the 180th day after the
Exchange Offer has been completed or such time as such broker-dealers no longer
own any Registrable Securities.  With respect to such Exchange Offer
Registration Statement, such holders shall have the benefit of the rights of
indemnification and contribution set forth in Sections 6(a), (c), (d) and (e)
hereof.

     

    (b) If (i) on
or prior to the time the Exchange Offer is completed existing law or Commission
policy or interpretations are changed such that the Exchange Notes received
by

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

      holders,
other than Restricted Holders, in the Exchange Offer in exchange for Registrable
Securities are not or would not be, upon receipt, transferable by each such
holder without restriction under the Securities Act, (ii) the Exchange Offer has
not been Consummated by the Exchange Date or (iii) the Exchange Offer is not
available to any holder, the Issuers shall, in lieu of (or, in the case of
clause (iii), in addition to) conducting the Exchange Offer contemplated by
Section 2(a), file one or more “shelf” registration statements in accordance
with the remainder of this Section 2(b) below, under the Securities Act with
respect to any Registrable Securities that are outstanding on the Exchange
Date.  The Issuers shall, on or prior to the later of (x) the Exchange
Date and (y) 30 days after the time such obligation to file arises, file one or
more “shelf” registration statements providing for the registration of, and the
sale on a continuous or delayed basis by the holders of, all the Registrable
Securities, pursuant to Rule 415 or any similar rule that may be adopted by the
Commission (such filing, the “Shelf Registration” and such registration
statements, collectively, the “Shelf Registration Statement”).  The
Issuers agree to use their commercially reasonable best efforts (x) to cause the
Shelf Registration Statement to become or be declared effective by the
Commission on or prior to 30 days after such obligation to file arises and to
keep such Shelf Registration Statement continuously effective for a period
ending on the earlier of (i) the one year anniversary of the Effective Time or
(ii) such time as there are no longer any Registrable Securities outstanding;
provided, however, that no holder shall
be entitled to be named as a selling securityholder in the Shelf Registration
Statement or to use the prospectus forming a part thereof for resales of
Registrable Securities unless such holder is an Electing Holder, and (y) after
the Effective Time of the Shelf Registration Statement, promptly upon the
request of any holder of Registrable Securities that is not then an Electing
Holder, to take any action reasonably necessary to enable such holder to use the
prospectus forming a part thereof for resales of Registrable Securities,
including, without limitation, any action necessary to identify such holder as a
selling securityholder in the Shelf Registration Statement; provided, however, that nothing in this
clause (y) shall relieve any such holder of the obligation to return a completed
and signed Notice and Questionnaire to the Issuers in accordance with Section
3(e)(iii) hereof.  The Issuers further agree to supplement or make
amendments to the Shelf Registration Statement, as and when required by the
rules, regulations or instructions applicable to the registration form used by
the Issuers for such Shelf Registration Statement or by the Securities Act for
shelf registration, and the Issuers agree to furnish to each Electing Holder
copies of any such supplement or amendment prior to its being used or promptly
following its filing with the Commission.

    

     

    (c) In the
event the Notes are not Freely Tradable on the Exchange Date and either (i) the
Exchange Offer with respect to the Notes has not been Consummated; (ii) a Shelf
Registration Statement with respect to the Notes, if required hereby, has not
been declared effective by the Commission on or before the Exchange Date; (iii)
any Exchange Offer Registration Statement or Shelf Registration Statement
required by Section 2(a) or Section 2(b) hereof has not been filed; or (iv) any
Exchange Offer Registration Statement or Shelf Registration Statement required
by Section 2(a) or 2(b) hereof is filed and becomes or is declared effective but
shall thereafter either be withdrawn by either of the Issuers or shall become
subject to an effective stop order issued pursuant to Section 8(d) of the
Securities Act suspending the effectiveness of such registration statement
(except as specifically permitted herein) without being succeeded immediately by
an additional registration statement filed and declared effective (each such
event referred to in clauses (i) through (iv), a “Registration Default” and each
period during which a Registration Default has occurred and is continuing, a
“Registration Default Period”), then, as 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

      liquidated
damages for such Registration Default, subject to the provisions of Section
9(b), special interest (“Special Interest”), in addition to the Base Interest,
shall accrue on the aggregate principal amount of the outstanding Transfer
Restricted Notes (as defined below) affected by such Registration Default at a
per annum rate of 0.25% for the first 90 days of the Registration Default
Period, at a per annum rate of 0.50% for the second 90 days of the Registration
Default Period, at a per annum rate of 0.75% for the third 90 days of the
Registration Default Period and at a per annum rate of 1.00% thereafter for the
remaining portion of the Registration Default Period.  All accrued
Special Interest shall be paid in cash by the Issuers on each Interest Payment
Date (as defined in the Indenture).  The parties hereto agree that the
Special Interest provided for in this Section 2(c) constitutes a reasonable
estimate of the damage that will be suffered by holders of Registrable
Securities by reason of the happening of any Registration Default and, except
for the holders’ rights to specific performance in Section 9(b), shall be the
sole and exclusive remedy of the holders of the Registrable Securities by reason
of the happening of any Registration Default.  For purposes of this
Agreement, “Transfer Restricted Notes” shall mean, with respect to any
Registration Default, any Notes or Exchange Notes which have not ceased being
Registrable Securities pursuant to the definition thereof in Section 1 of this
Agreement.

    

     

    (d) If any
holder determines that it is not eligible to participate in the Exchange Offer
with respect to the exchange of Registrable Securities constituting any portion
of an unsold allotment, then, at the request of such holder, subject to any
prohibitions or restrictions imposed by any applicable law or regulations, the
Issuers shall use their commercially reasonable efforts to issue and deliver to
such holder, in exchange for such Registrable Securities, a like principal
amount of Exchange Notes.  Such issuance shall not be deemed to be
part of the Exchange Offer.  The Issuers shall use their commercially
reasonable efforts to cause the CUSIP Service Bureau to issue the same CUSIP
number for Exchange Notes described in this Section 2(d) as for Exchange Notes
issued pursuant to the Exchange Offer.  Any such Exchange Notes shall,
at the time of issuance, and subject to the limitations set forth in Section 1
hereof, constitute Registrable Securities for purposes of this Agreement (other
than Section 2(a) hereof).

     

    (e) The
Issuers shall use their commercially reasonable best efforts to take all actions
necessary or advisable to be taken by them to ensure that the transactions
contemplated herein are effected as so contemplated in Section 2(a) or 2(b)
hereof.

     

    (f) Any
reference herein to a registration statement as of any time shall be deemed to
include any document incorporated, or deemed to be incorporated, therein by
reference as of such time and any reference herein to any post-effective
amendment to a registration statement as of any time shall be deemed to include
any document incorporated, or deemed to be incorporated, therein by reference as
of such time.

     

    3. Registration
Procedures.  If the Issuers file a registration statement
pursuant to Section 2(a) or Section 2(b), the following provisions shall
apply:

     

    (a) At or
before the Effective Time of the Exchange Offer or the Shelf Registration, as
the case may be, the Issuers shall cause the Indenture to be qualified under the
Trust Indenture Act.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (b) In the
event that such qualification would require the appointment of a new trustee
under the Indenture, the Issuers shall appoint a new trustee thereunder pursuant
to the applicable provisions of the Indenture.

     

    (c) In
connection with the Issuers’ obligations with respect to the registration of
Exchange Notes as contemplated by Section 2(a) (the “Exchange Offer
Registration”); if applicable, the Issuers shall:

     

    (i) prepare
and file with the Commission an Exchange Offer Registration Statement on any
form which may be utilized by the Issuers and which shall permit the Exchange
Offer and resales of Exchange Notes by broker-dealers during the Resale Period
to be effected as contemplated by Section 2(a), and use their commercially
reasonable best efforts to cause such Exchange Offer Registration Statement to
become or be declared effective on or prior to 30 days prior to the Exchange
Date;

     

    (ii) prepare
and file with the Commission such amendments and supplements to such Exchange
Offer Registration Statement and the prospectus included therein as may be
necessary to effect and maintain the effectiveness of such Exchange Offer
Registration Statement for the periods and purposes contemplated in Section 2(a)
hereof and as may be required by the applicable rules and regulations of the
Commission and the instructions applicable to the form of such Exchange Offer
Registration Statement, and promptly provide each broker-dealer holding Exchange
Notes with such number of copies of the prospectus included therein (as then
amended or supplemented), in conformity in all material respects with the
requirements of the Securities Act and the Trust Indenture Act, as such
broker-dealer reasonably may request prior to the expiration of the Resale
Period, for use in connection with resales of Exchange Notes;

     

    (iii) promptly
notify the holders, and each broker-dealer that has requested or received copies
of the prospectus included in such registration statement, and confirm such
advice in writing, (A) when such Exchange Offer Registration Statement or the
prospectus included therein or any prospectus amendment or supplement or
post-effective amendment has been filed, and, with respect to such Exchange
Offer Registration Statement or any post-effective amendment, when the same has
become effective, (B) of any comments by the Commission and by the blue sky or
securities commissioner or regulator of any state with respect thereto, or any
request by the Commission for amendments or supplements to such Exchange Offer
Registration Statement or prospectus or for additional information, (C) of the
issuance by the Commission of any stop order suspending the effectiveness of
such Exchange Offer Registration Statement or the initiation or, to the
knowledge of the Issuers, threatening of any proceedings for that purpose, (D)
if at any time the Representations and Warranties of the Issuers contemplated by
Section 5 hereof cease to be true and correct in all material respects, (E) of
the receipt by the Issuers of any notification with respect to the suspension of
the qualification of the Exchange Notes for sale in any jurisdiction or the
initiation or, to the knowledge of the Issuers, threatening of any proceeding
for such 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

      purpose,
or (F) at any time during the Resale Period when a prospectus is required to be
delivered under the Securities Act, that such Exchange Offer Registration
Statement, prospectus, prospectus amendment or supplement or post-effective
amendment does not conform in all material respects to the applicable
requirements of the Securities Act and the Trust Indenture Act, or contains an
untrue statement of a material fact or omits to state any material fact required
to be stated therein or necessary to make the statements therein not misleading
in light of the circumstances then existing;

    

     

    Upon
receiving notice of the occurrence of any of the events listed in this Section
3(c)(iii), each holder will, upon request by the Issuers in writing, immediately
discontinue disposition of Notes or Exchange Notes pursuant to a Registration
Statement until such holder’s receipt of copies of the supplemented or amended
prospectus contemplated by Section 3(c)(iv) or until it is advised in writing by
the Issuers that use of the applicable prospectus may resume, and, if so
directed by the Issuers, such holder will deliver to the Issuers (at the
Issuers’ expense) all copies in such holder’s possession, other than permanent
file copies, of the prospectus covering such Notes or Exchange Notes that was
current at the time of receipt of such notice.

     

    (iv) in the
event that the Issuers would be required, pursuant to Section 3(c)(iii)(E)
above, to notify the holders and any broker-dealers holding Exchange Notes, the
Issuers shall prepare and furnish to each such holder a reasonable number of
copies of a prospectus supplemented or amended so that, as thereafter delivered
to purchasers of such Exchange Notes during the Resale Period, such prospectus
conforms in all material respects to the applicable requirements of the
Securities Act and the Trust Indenture Act and shall not contain an untrue
statement of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein not misleading in
light of the circumstances then existing and each holder hereby agrees to
suspend use of the prospectus until the Issuers have amended or supplemented the
prospectus to correct such misstatement or omission;

     

    (v) use their
commercially reasonable best efforts to obtain the withdrawal of any order
suspending the effectiveness of such Exchange Offer Registration Statement or
any post-effective amendment thereto as soon as practicable;

     

    (vi) use their
commercially reasonable best efforts to (A) register or qualify the Exchange
Notes under the securities laws or blue sky laws of such jurisdictions as are
contemplated by Section 2(a) no later than the commencement of the Exchange
Offer, (B) keep such registrations or qualifications in effect and comply with
such laws so as to permit the continuance of offers, sales and dealings therein
in such jurisdictions until the expiration of the Resale Period and (C) take any
and all other actions as may be reasonably necessary or advisable to enable each
broker-dealer holding Exchange Notes to consummate the disposition thereof in
such jurisdictions; provided, however, that neither of the Issuers shall be
required for any such purpose to (1) qualify as a foreign corporation or limited

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

      liability
company, as the case may be, in any jurisdiction wherein it would not otherwise
be required to qualify but for the requirements of this Section 3(c)(vi), (2)
consent to general service of process in any such jurisdiction or (3) make any
changes to its certificate of incorporation or by-laws (or other organizational
document) or any agreement between it and holders of its ownership
interests;

    

     

    (vii) use their
commercially reasonable best efforts to obtain the consent or approval of each
governmental agency or authority, whether federal, state or local, which may be
required to effect the Exchange Offer Registration, the Exchange Offer and the
offering and sale of Exchange Notes by broker-dealers during the Resale
Period;

     

    (viii) provide a
CUSIP number for all Exchange Notes, not later than the applicable Effective
Time;

     

    (ix) comply
with all applicable rules and regulations of the Commission, and make generally
available to their securityholders as soon as practicable but no later than
eighteen months after the effective date of such Exchange Offer Registration
Statement, an earning statement of CCH II, LLC and its subsidiaries complying
with Section 11(a) of the Securities Act (including, at the option of the CCH
II, LLC, Rule 158 thereunder);

     

    (x) mail to
each holder a copy of the prospectus forming part of the Exchange Offer
Registration Statement, together with an appropriate letter of transmittal and
related documents;

     

    (xi) utilize
the services of a depositary for the Exchange Offer with an address in the
Borough of Manhattan in New York City, which may be the Trustee, any new trustee
under the Indenture, or an affiliate of any of them;

     

    (xii) permit
holders to withdraw tendered Notes at any time prior to the close of business,
New York time, on the last business day on which the Exchange Offer is
open;

     

    (xiii) prior to
the Effective Time, provide a supplemental letter to the Commission (i) stating
that the Issuers are conducting the Exchange Offer in reliance on the position
of the Commission in Exxon Capital Holdings Corporation (pub. avail. May 13,
1988), Morgan Stanley and Co., Inc. (pub. avail. June 5, 1991) and (ii)
including a representation that the Issuers have not entered into any
arrangement or understanding with any person to distribute the Exchange Notes to
be received in the Exchange Offer and that, to the best of the Issuers’
information and belief, each holder participating in the Exchange Offer is
acquiring the Exchange Notes in the ordinary course of business and has no
arrangement or understanding with any person to participate in the distribution
of the Exchange Notes;

     

    (xiv) provide
the Representatives, in advance of filing thereof with the Commission, a draft
of such Exchange Offer Registration Statement substantially in the form to be
filed with the Commission, each prospectus included therein or 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

       

      filed
with the Commission and each amendment or supplement thereto (including any
documents incorporated by reference therein after the initial filing), and shall
use their commercially reasonable efforts to reflect in each such document, when
so filed with the Commission, such comments as are reasonably
proposed;

    

     

    (xv) if
requested by a holder, promptly incorporate in the prospectus contained in the
Exchange Offer Registration Statement such information as is required by the
applicable rules and regulations of the Commission, and as such holder specifies
should be included therein relating to the terms of the sale of such Registrable
Securities, including, without limitation, information (i) with respect to the
principal amount of Registrable Securities being sold by such holder, the name
and description of such holder, agent or underwriter, the offering price of such
Registrable Securities, and any discount, commission or other compensation
payable in respect thereof and the purchase price being paid therefor by such
underwriters and (ii) with respect to any other material terms of the offering
of the Registrable Securities to be sold by such holder; and make all required
filings of such prospectus supplement or post-effective amendment upon
notification of the matters to be incorporated in such prospectus supplement or
post-effective amendment; and

     

    (xvi) for a
reasonable period prior to the filing of such Exchange Offer Registration
Statement, make available at reasonable times at the Issuers’ principal place of
business, or such other reasonable place for inspection by holders such
financial and other relevant information and books and records of each of the
Issuers, each of their subsidiaries and, as relevant, Charter Holdings, and
cause each of their officers, employees, counsel and independent certified
public accountants, to supply all relevant information and to respond to such
inquiries, as shall be reasonably necessary, in the judgment of the holders’
counsel, to conduct a reasonable investigation within the meaning of Section 11
of the Securities Act; provided, however, that each such party
shall be required to maintain in confidence and not to disclose to any other
person any information or records reasonably designated by the Issuers as being
confidential, until such time as (A) such information becomes a matter of public
record (whether by virtue of its inclusion in such registration statement or
otherwise, except as a result of a breach of this or any other obligation of
confidentiality to the Issuers), or (B) such person shall be required to
disclose such information pursuant to a subpoena or order of any court or other
governmental agency or body having jurisdiction over the matter (subject to the
requirements of such order, and only after such person shall have given the
Issuers prompt prior written notice of such requirement), or (C) such
information is required to be set forth in such Exchange Offer Registration
Statement or the prospectus included therein or in an amendment to such Exchange
Offer Registration Statement or an amendment or supplement to such prospectus in
order that such Exchange Offer Registration Statement, prospectus, amendment or
supplement, as the case may be, will comply with applicable requirements of the
federal securities laws and the rules and regulations of the Commission and will
not cotain an
untrue statement of a material fact or omit to state therein a material fact
required to be stated therein or necessary to make the statements therein not
mis-

     

    
      
        
        

      

      
        
        

        
          

        

      

       

      leading
in light of the circumstances then existing, provided further, however, that notwithstanding
anything to the contrary in this clause (xvi), any such person (and each
employee, representative, or other agent of such person) may disclose to any and
all persons, without limitation, the U.S. tax treatment and any facts that may
be relevant to the tax structure of the matters covered by and relating to this
Agreement (including opinions or other tax analysis that are provided to such
party relating to such tax treatment and tax structure); provided, however, that no
person (and no employee, representative, or other agent of any person) shall
disclose any other information that is not relevant to understanding the tax
treatment and tax structure of the matters covered by and relating to this
Agreement (including the identity of any party and any information that could
lead another to determine the identity of any party), or any other information
to the extent that such non-disclosure is reasonably necessary in order to
comply with applicable securities law.

    

     

    (d) As soon
as practicable after the close of the Exchange Offer, the Issuers
shall:

     

    (i) accept
for exchange all Registrable Securities tendered and not validly withdrawn
pursuant to the Exchange Offer;

     

    (ii) deliver
to the Trustee for cancellation all Notes so accepted for exchange;
and

     

    (iii) cause the
Trustee promptly to authenticate and deliver to each holder a principal amount
of Exchange Notes equal to the principal amount of the Registrable Securities of
such holder so accepted for exchange.

     

    (e) In
connection with the Issuers’ obligations with respect to the Shelf Registration,
if applicable, the Issuers shall, as soon as practicable (or as otherwise
specified):

     

    (i) prepare
and file with the Commission within the time periods specified in Section 2(b),
a Shelf Registration Statement on any form which may be utilized by the Issuers
and which shall register all the Registrable Securities for resale by the
holders thereof in accordance with such method or methods of disposition as may
be specified by such of the holders as, from time to time, may be Electing
Holders and use their reasonable best efforts to cause such Shelf Registration
Statement to become or be declared effective within the time periods specified
in Section 2(b);

     

    (ii) not less
than 30 calendar days prior to the Effective Time of the Shelf Registration
Statement, mail the Notice and Questionnaire to the holders of Registrable
Securities; no holder shall be entitled to be named as a selling securityholder
in the Shelf Registration Statement as of the Effective Time, and no holder
shall be entitled to use the prospectus forming a part thereof for resales of
Registrable Securities at any time, unless such holder has returned a completed
and signed Notice and Questionnaire to the Issuers by the deadline for response

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

       

      set forth
therein; provided,
however, holders of
Registrable Securities shall have at least 20 calendar days from the date on
which the Notice and Questionnaire is first mailed to such holders to return a
completed and signed Notice and Questionnaire to the Issuers;

    

     

    (iii) after the
Effective Time of the Shelf Registration Statement, upon the request of any
holder of Registrable Securities that is not then an Electing Holder, promptly
send a Notice and Questionnaire to such holder; provided that the Issuers shall
not be required to take any action to name such holder as a selling
securityholder in the Shelf Registration Statement or to enable such holder to
use the prospectus forming a part thereof for resales of Registrable Securities
until such holder has returned a completed and signed Notice and Questionnaire
to the Issuers;

     

    (iv) as soon
as practicable prepare and file with the Commission such amendments and
supplements to such Shelf Registration Statement and the prospectus included
therein as may be necessary to effect and maintain the effectiveness of such
Shelf Registration Statement for the period specified in Section 2(b) and as may
be required by the applicable rules and regulations of the Commission and the
instructions applicable to the form of such Shelf Registration Statement, and
furnish to the Electing Holders copies of any such supplement or amendment
simultaneously with or prior to its being used or filed with the
Commission;

     

    (v) comply
with the provisions of the Securities Act with respect to the disposition of all
the Registrable Securities covered by such Shelf Registration Statement in
accordance with the intended methods of disposition by the Electing Holders
provided for in such Shelf Registration Statement;

     

    (vi) provide
(A) the Electing Holders, (B) the underwriters (which term, for purposes of this
Exchange and Registration Rights Agreement, shall include a person deemed to be
an underwriter within the meaning of Section 2(a)(11) of the Securities Act), if
any, thereof, (C) any sales or placement agent therefor, (D) counsel for any
such underwriter or agent, (E) not more than one counsel for all the Electing
Holders and (F) the Representatives, in advance of filing thereof with the
Commission, a draft of such Shelf Registration Statement, each prospectus
included therein or filed with the Commission and each amendment or supplement
thereto (including any documents incorporated by reference therein after the
initial filing), in each case in substantially the form to be filed with the
Commission, and shall use their commercially reasonable efforts to reflect in
each such document, when so filed with the Commission, such comments as are
reasonably proposed;

     

    (vii) for a
reasonable period prior to the filing of such Shelf Registration Statement, and
throughout the period specified in Section 2(b), make available at reasonable
times at the Issuers’ principal place of business, or such other
reasonable
place for inspection by the persons referred to in Section 3(e)(vi) who shall
certify to the Issuers that they have a current intention to sell the
Registrable Securities 

     

    
      
        
        

      

      
        
        

        
          

        

      

       

      pursuant
to the Shelf Registration such financial and other relevant information and
books and records of each of the Issuers, each of their subsidiaries and, as
relevant, Charter Holdings, and cause each of their officers, employees, counsel
and independent certified public accountants to supply all relevant information
and to respond to such inquiries, as shall be reasonably necessary, in the
judgment of the respective counsel referred to in such Section, to conduct a
reasonable investigation within the meaning of Section 11 of the Securities Act;
provided, however, that each such party
shall be required to maintain in confidence and not to disclose to any other
person any information or records reasonably designated by the Issuers as being
confidential, until such time as (A) such information becomes a matter of public
record (whether by virtue of its inclusion in such registration statement or
otherwise, except as a result of a breach of this or any other obligation of
confidentiality to the Issuers), or (B) such person shall be required so to
disclose such information pursuant to a subpoena or order of any court or other
governmental agency or body having jurisdiction over the matter (subject to the
requirements of such order, and only after such person shall have given the
Issuers prompt prior written notice of such requirement), or (C) such
information is required to be set forth in such Shelf Registration Statement or
the prospectus included therein or in an amendment to such Shelf Registration
Statement or an amendment or supplement to such prospectus in order that such
Shelf Registration Statement, prospectus, amendment or supplement, as the case
may be, will comply with applicable requirements of the federal securities laws
and the rules and regulations of the Commission and will not contain an untrue
statement of a material fact or omit to state therein a material fact required
to be stated therein or necessary to make the statements therein not misleading
in light of the circumstances then existing;

    

     

    (viii) promptly
notify each of the holders, the Electing Holders, any sales or placement agent
therefor and any underwriter thereof (which notification may be made through any
managing underwriter that is a representative of such underwriter for such
purpose) and confirm such advice in writing, (A) when such Shelf Registration
Statement or the prospectus included therein or any prospectus amendment or
supplement or post-effective amendment has been filed, and, with respect to such
Shelf Registration Statement or any post-effective amendment, when the same has
become effective, (B) of any comments by the Commission and by the blue sky or
securities commissioner or regulator of any state with respect thereto, or any
request by the Commission for amendments or supplements to such Shelf
Registration Statement or prospectus or for additional information, (C) of the
issuance by the Commission of any stop order suspending the effectiveness of
such Shelf Registration Statement or the initiation or, to the knowledge of the
Issuers, threatening of any proceedings for that purpose, (D) if at any time the
representations and warranties of the Issuers contemplated by Section 3(e)(xvii)
or Section 5 hereof cease to be true and correct in all material respects, (E)
of the receipt by the Issuers of any notification with respect to the suspension
of the qualification of the Registrable Securities for sale in any jurisdiction
or the initiation or, to the knowledge of the Issuers, threatening of any
proceeding for such purpose, or (F) if at any time when a prospectus is required
to be delivered 

     

    
      
        
        

      

      
        
        

        
          

        

      

       

       

      under the
Securities Act, that such Shelf Registration Statement, prospectus, prospectus
amendment or supplement or post-effective amendment does not conform in all
material respects to the applicable requirements of the Securities Act and the
Trust Indenture Act, or contains an untrue statement of a material fact or omits
to state any material fact required to be stated therein or necessary to make
the statements therein not misleading in light of the circumstances then
existing;

    

     

    (ix) use their
commercially reasonable best efforts to obtain the withdrawal of any order
suspending the effectiveness of such Shelf Registration Statement or any
post-effective amendment thereto as soon as practicable;

     

    (x) if
requested by any managing underwriter or underwriters, any placement or sales
agent or any Electing Holder, promptly incorporate in a prospectus supplement or
post-effective amendment such information as is required by the applicable rules
and regulations of the Commission, and as such managing underwriter or
underwriters, such agent or such Electing Holder specifies should be included
therein relating to the terms of the sale of such Registrable Securities,
including, without limitation, information (i) with respect to the principal
amount of Registrable Securities being sold by such Electing Holder or agent or
to any underwriters, the name and description of such Electing Holder, agent or
underwriter, the offering price of such Registrable Securities, and any
discount, commission or other compensation payable in respect thereof and the
purchase price being paid therefor by such underwriters and (ii) with respect to
any other material terms of the offering of the Registrable Securities to be
sold by such Electing Holder or agent or to such underwriters; and make all
required filings of such prospectus supplement or post-effective amendment upon
notification of the matters to be incorporated in such prospectus supplement or
post-effective amendment;

     

    (xi) furnish
to each Electing Holder, each placement or sales agent, if any, therefor, each
underwriter, if any, thereof and the respective counsel referred to in Section
3(e)(vi) hereof an executed copy (or, in the case of an Electing Holder, a
conformed copy) of such Shelf Registration Statement, each such amendment and
supplement thereto (in each case including all exhibits thereto (in the case of
an Electing Holder of Registrable Securities, upon request) and documents
incorporated by reference therein) and such number of copies of such Shelf
Registration Statement (excluding exhibits thereto and documents incorporated by
reference therein unless specifically so requested by such Electing Holder,
agent or underwriter, as the case may be) and of the prospectus included in such
Shelf Registration Statement (including, without limitation, each preliminary
prospectus and any summary prospectus), in conformity in all material respects
with the applicable requirements of the Securities Act and the Trust Indenture
Act, and such other documents, as such Electing Holder, agent, if any, and
underwriter, if any, may reasonably request in order to facilitate the offering
and disposition of the Registrable Securities owned by such Electing Holder,
offered or sold by such agent or underwritten by such underwriter and to permit
such Electing Holder, agent and underwriter to satisfy the prospectus delivery
requirements of the Securities Act; and the Issuers hereby consent to the use of
such prospectus (including, 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

      without
limitation, such preliminary and summary prospectus) and any amendment or
supplement thereto by each such Electing Holder and by any such agent and
underwriter, in each case in the form most recently provided to such person by
the Issuers, in connection with the offering and sale of the Registrable
Securities covered by the prospectus (including, without limitation, such
preliminary and summary prospectus) or any supplement or amendment
thereto;

    

     

    (xii) use their
commercially reasonable best efforts to (A) register or qualify the Registrable
Securities to be included in such Shelf Registration Statement under such
securities laws or blue sky laws of such jurisdictions as any Electing Holder
and each placement or sales agent, if any, therefor and underwriter, if any,
thereof shall reasonably request, (B) keep such registrations or qualifications
in effect and comply with such laws so as to permit the continuance of offers,
sales and dealings therein in such jurisdictions during the period the Shelf
Registration is required to remain effective under Section 2(b) above and for so
long as may be necessary to enable any such Electing Holder, agent or
underwriter to complete its distribution of Notes pursuant to such Shelf
Registration Statement and (C) take any and all other actions as may be
reasonably necessary or advisable to enable each such Electing Holder, agent, if
any, and underwriter, if any, to consummate the disposition in such
jurisdictions of such Registrable Securities; provided, however, that none of the
Issuers shall be required for any such purpose to (1) qualify as a foreign
corporation or limited liability company, as the case may be, in any
jurisdiction wherein it would not otherwise be required to qualify but for the
requirements of this Section 3(d)(xii), (2) consent to general service of
process in any such jurisdiction or (3) make any changes to its certificate of
incorporation or by-laws (or other organizational document) or any agreement
between it and holders of its ownership interests;

     

    (xiii) use their
commercially reasonable best efforts to obtain the consent or approval of each
governmental agency or authority, whether federal, state or local, which may be
required to effect the Shelf Registration or the offering or sale in connection
therewith or to enable the selling holder or holders to offer, or to consummate
the disposition of, their Registrable Securities;

     

    (xiv) unless
any Registrable Securities shall be in book-entry only form, cooperate with the
Electing Holders and the managing underwriters, if any, to facilitate the timely
preparation and delivery of certificates representing Registrable Securities to
be sold, which certificates, if so required by any securities exchange upon
which any Registrable Securities are listed, shall be penned, lithographed or
engraved, or produced by any combination of such methods, on steel engraved
borders, and which certificates shall not bear any restrictive legends; and, in
the case of an underwritten offering, enable such Registrable Securities to be
in such denominations and registered in such names as the managing underwriters
may request at least two business days prior to any sale of the Registrable
Securities;

     

    (xv) provide a
CUSIP number for all Registrable Securities, not later than the applicable
Effective Time;

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (xvi) enter
into one or more underwriting agreements, engagement letters, agency agreements,
“best efforts” underwriting agreements or similar agreements, as appropriate,
including customary provisions relating to indemnification and contribution (but
no less favorable than those set forth in Section 6 with respect to all parties
indemnified under Section 6), unless such provisions are acceptable to Electing
Holders of at least 50% in aggregate principal amount and any managing
underwriters, and take such other actions in connection therewith as any
Electing Holders of at least 20% in aggregate principal amount of the
Registrable Securities at the time outstanding shall request in order to
expedite or facilitate the disposition of such Registrable
Securities;

     

    (xvii) whether
or not an agreement of the type referred to in Section 3(e)(xvi) hereof is
entered into, and whether or not any portion of the offering contemplated by the
Shelf Registration is an underwritten offering or is made through a placement or
sales agent or any other entity, (A) make such representations and warranties to
the Electing Holders and the placement or sales agent, if any, therefor and the
underwriters, if any, thereof in form, substance and scope as are customarily
made in connection with an offering of debt securities pursuant to any
appropriate agreement or to a registration statement filed on the form
applicable to the Shelf Registration; (B) obtain an opinion of counsel to the
Issuers in customary form, subject to customary limitations, assumptions and
exclusions, and covering such matters, of the type customarily covered by such
an opinion, as the managing underwriters, if any, or as any Electing Holders of
at least 20% in aggregate principal amount of the Registrable Securities at the
time outstanding may reasonably request, addressed to such Electing Holder or
Electing Holders and the placement or sales agent, if any, therefor and the
underwriters, if any, thereof and dated the date of the Effective Time of such
Shelf Registration Statement (and if such Shelf Registration Statement
contemplates an underwritten offering of a part or all of the Registrable
Securities, dated the date of the closing under the underwriting agreement
relating thereto) (it being agreed that the matters to be covered by such
opinion shall include the matters set forth in Exhibit D of the Dealer Manager
Agreement to the extent applicable to an offering of this type); (C) obtain a
“cold comfort” letter or letters from the independent certified public
accountants of the Issuers addressed to the selling Electing Holders, the
placement or sales agent, if any, therefor or the underwriters, if any, thereof,
dated (i) the effective date of such Shelf Registration Statement and (ii) the
effective date of any prospectus supplement to the prospectus included in such
Shelf Registration Statement or post-effective amendment to such Shelf
Registration Statement which includes unaudited or audited financial statements
as of a date or for a period subsequent to that of the latest such statements
included in such prospectus (and, if such Shelf Registration Statement
contemplates an underwritten offering pursuant to any prospectus supplement to
the prospectus included in such Shelf Registration Statement or post-effective
amendment to such Shelf Registration Statement which includes unaudited or
audited financial statements as of a date or for a period subsequent to that of
the latest such statements included in such prospectus, dated the date of the
closing under the underwriting agreement relating thereto), such letter or
letters to be in customary form and covering such matters 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

      of the
type customarily covered by letters of such type; (D) deliver such documents and
certificates, including, without limitation, officers’ certificates, as may be
reasonably requested by any Electing Holders of at least 20% in aggregate
principal amount of the Registrable Securities at the time outstanding or the
placement or sales agent, if any, therefor and the managing underwriters, if
any, thereof to evidence the accuracy of the representations and warranties made
pursuant to clause (A) above or those contained in Section 5(a) hereof and the
compliance with or satisfaction of any agreements or conditions contained in the
underwriting agreement or other similar agreement entered into by the Issuers
pursuant to Section 3(e)(xvi); and (E) undertake such obligations relating to
expense reimbursement, indemnification and contribution as are provided in
Section 6 hereof;

    

     

    (xviii) notify in
writing each holder of Registrable Securities of any proposal by the Issuers to
amend or waive any provision of this Exchange and Registration Rights Agreement
pursuant to Section 9(h) hereof and of any amendment or waiver effected pursuant
thereto, each of which notices shall contain the substance of the amendment or
waiver proposed or effected, as the case may be;

     

    (xix) in the
event that any broker-dealer registered under the Exchange Act shall underwrite
any Registrable Securities or participate as a member of an underwriting
syndicate or selling group or “assist in the distribution” (within the meaning
of the Conduct Rules (the “Conduct Rules”) of the Financial Industry Regulatory
Authority (“FINRA”) or any
successor thereto, as amended from time to time) thereof, whether as a holder of
such Registrable Securities or as an underwriter, a placement or sales agent or
a broker or dealer in respect thereof, or otherwise, assist such broker-dealer
in complying with the requirements of such Conduct Rules, including, without
limitation, by (A) if such Conduct Rules shall so require, engaging a “qualified
independent underwriter” (as defined in such Conduct Rules) to participate in
the preparation of the Shelf Registration Statement relating to such Registrable
Securities, to exercise usual standards of due diligence in respect thereto and,
if any portion of the offering contemplated by such Shelf Registration Statement
is an underwritten offering or is made through a placement or sales agent, to
recommend the yield of such Registrable Securities, (B) indemnifying any such
qualified independent underwriter to the extent of the indemnification of
underwriters provided in Section 6 hereof (or to such other customary extent as
may be requested by such underwriter), and (C) providing such information to
such broker-dealer as may be required in order for such broker-dealer to comply
with the requirements of the Conduct Rules; and

     

    (xx) comply
with all applicable rules and regulations of the Commission, and make generally
available to its securityholders as soon as practicable but in any event not
later than eighteen months after the effective date of such Shelf Registration
Statement, earning statements of the Issuers and their respective subsidiaries
complying with Section 11(a) of the Securities Act (including, at the option of
the Issuers, Rule 158 thereunder).

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (f) In the
event that the Issuers would be required, pursuant to Section 3(e)(viii)(F)
hereof, to notify the Electing Holders, the placement or sales agent, if any,
therefor and the managing underwriters, if any, thereof, the Issuers shall
prepare and furnish to each of the Electing Holders, to each placement or sales
agent, if any, and to each such underwriter, if any, a reasonable number of
copies of a prospectus supplemented or amended so that, as thereafter delivered
to purchasers of Registrable Securities, such prospectus conforms in all
material respects to the applicable requirements of the Securities Act and the
Trust Indenture Act, and shall not contain an untrue statement of a material
fact or omit to state a material fact required to be stated therein or necessary
to make the statements therein not misleading in light of the circumstances then
existing.  Each Electing Holder agrees that upon receipt of any notice
from the Issuers pursuant to Section 3(e)(viii)(F) hereof, such Electing Holder
shall forthwith discontinue the disposition of Registrable Securities pursuant
to the Shelf Registration Statement applicable to such Registrable Securities
until such Electing Holder shall have received copies of such amended or
supplemented prospectus, and if so directed by the Issuers, such Electing Holder
shall deliver to the Issuers (at the Issuers’ expense) all copies, other than
permanent file copies, then in such Electing Holder’s possession of the
prospectus covering such Registrable Securities at the time of receipt of such
notice.

     

    (g) In the
event of a Shelf Registration, in addition to the information required to be
provided by each Electing Holder in its Notice and Questionnaire, the Issuers
may require such Electing Holder to furnish to the Issuers such additional
information regarding such Electing Holder and such Electing Holder’s intended
method of distribution of Registrable Securities as may be required in order to
comply with the Securities Act.  Each such Electing Holder agrees to
notify the Issuers as promptly as practicable of any inaccuracy or change in
information previously furnished by such Electing Holder to the Issuers or of
the occurrence of any event in either case as a result of which any prospectus
relating to such Shelf Registration contains or would contain an untrue
statement of a material fact regarding such Electing Holder or such Electing
Holder’s intended method of disposition of such Registrable Securities or omits
to state any material fact regarding such Electing Holder or such Electing
Holder’s intended method of disposition of such Registrable Securities required
to be stated therein or necessary to make the statements therein not misleading
in light of the circumstances then existing, and promptly to furnish to the
Issuers any additional information required to correct and update any previously
furnished information or required so that such prospectus shall not contain,
with respect to such Electing Holder or the disposition of such Registrable
Securities, an untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary to make the statements therein
not misleading in light of the circumstances then existing.

     

    4. Registration
Expenses.  The Issuers agree, subject to the last sentence of
this Section 4, to bear and to pay or cause to be paid promptly all expenses
incident to the Issuers’ performance of or compliance with this Exchange and
Registration Rights Agreement, including, without limitation, (a) all Commission
and any FINRA registration, filing and review fees and expenses including,
without limitation, fees and disbursements of counsel for the placement or sales
agent or underwriters in connection with such registration, filing and review,
(b) all fees and expenses in connection with the qualification of the Notes for
offering and sale 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

      under the
securities laws and blue sky laws referred to in Section 3(e)(xii) hereof and
determination of their eligibility for investment under the laws of such
jurisdictions as any managing underwriters or the Electing Holders may
designate, including, without limitation, any fees and disbursements of counsel
for the Electing Holders or underwriters in connection with such qualification
and determination, (c) all expenses relating to the preparation, printing,
production, distribution and reproduction of each registration statement
required to be filed hereunder, each prospectus included therein or prepared for
distribution pursuant hereto, each amendment or supplement to the foregoing, the
expenses of preparing the Notes for delivery and the expenses of printing or
producing any underwriting agreements, agreements among underwriters, selling
agreements and blue sky or legal investment memoranda and all other documents in
connection with the offering, sale or delivery of Notes to be disposed of
(including, without limitation, certificates representing the Notes), (d)
messenger, telephone and delivery expenses relating to the offering, sale or
delivery of Notes and the preparation of documents referred in clause (c) above,
(e) fees and expenses of the Trustee under the Indenture, any agent of the
Trustee and any reasonable fees and expenses for counsel for the Trustee and of
any collateral agent or custodian, (f) internal expenses (including, without
limitation, all salaries and expenses of the Issuers’ officers and employees
performing legal or accounting duties), (g) fees, disbursements and expenses of
counsel and independent certified public accountants of the Issuers (including,
without limitation, the expenses of any opinions or “cold comfort” letters
required by or incident to such performance and compliance), (h) fees,
disbursements and expenses of any “qualified independent underwriter” engaged
pursuant to Section 3(e)(xix) hereof, (i) reasonable fees, disbursements and
expenses of one counsel for the Electing Holders retained in connection with a
Shelf Registration, as selected by the Electing Holders of at least a majority
in aggregate principal amount of the Registrable Securities held by Electing
Holders (which counsel shall be reasonably satisfactory to the Issuers), (j) any
fees charged by securities rating services for rating the Notes, and (k)
reasonable fees, expenses and disbursements of any other persons, including,
without limitation, special experts, retained by the Issuers in connection with
such registration (collectively, the “Registration Expenses”).  To the
extent that any Registration Expenses are incurred, assumed or paid by any
holder of Registrable Securities or any placement or sales agent therefor or
underwriter thereof, the Issuers shall reimburse such person for the full amount
of the Registration Expenses so incurred, assumed or paid promptly after receipt
of a request therefor.  Notwithstanding the foregoing, the holders of
the Registrable Securities being registered shall pay all agency fees and
commissions and underwriting discounts and commissions attributable to the sale
of such Registrable Securities and the fees and disbursements of any counsel or
other advisors or experts retained by such holders (severally or jointly), other
than the counsel and experts specifically referred to above.

    

     

    5. Representations, Warranties
and Covenants.  The Issuers represent and warrant to each of
the holders from time to time of Registrable Securities, as of the date hereof,
that:

     

    (a) Each
registration statement covering Registrable Securities and each prospectus
(including, without limitation, any preliminary or summary prospectus) contained
therein or furnished pursuant to Section 3(e) or Section 3(c) hereof and any
further amendments or supplements to any such registration statement or
prospectus, when it becomes effective or is filed with the Commission, as the
case may be, and, in the case of an underwritten offering of Registrable
Securities, at the time of the closing under the 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

      underwriting
agreement relating thereto, will conform in all material respects to the
requirements of the Securities Act and the Trust Indenture Act and will not
contain an untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make the statements therein not
misleading; and at all times subsequent to the Effective Time when a prospectus
would be required to be delivered under the Securities Act, other than from (i)
such time as a notice has been given to holders of Registrable Securities
pursuant to Section 3(e)(viii)(F) or Section 3(c)(iii)(F) hereof until (ii) such
time as the Issuers furnish an amended or supplemented prospectus pursuant to
Section 3(f) or Section 3(c)(iv) hereof, each such registration statement, and
each prospectus (including, without limitation, any preliminary or summary
prospectus) contained therein or furnished pursuant to Section 3(e) or Section
3(c) hereof, as then amended or supplemented, will conform in all material
respects to the requirements of the Securities Act and the Trust Indenture Act
and will not contain an untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary to make the statements
therein not misleading in the light of the circumstances then existing;
provided, however, that this covenant shall not apply to any statements or
omissions made in reliance upon and in conformity with information furnished in
writing to the Issuers by a holder of Registrable Securities expressly for use
therein.

    

     

    (b) Any
documents incorporated by reference in any prospectus referred to in Section
5(a) hereof, when they become or became effective or are or were filed with the
Commission, as the case may be, will conform or conformed in all material
respects to the requirements of the Securities Act or the Exchange Act, as
applicable, and none of such documents will contain or contained an untrue
statement of a material fact or will omit or omitted to state a material fact
required to be stated therein or necessary to make the statements therein not
misleading; provided,
however, that this
covenant shall not apply to any statements or omissions made in reliance upon
and in conformity with information furnished in writing to the Issuers by a
holder of Registrable Securities expressly for use therein.

     

    (c) The
compliance by the Issuers with all the provisions of this Agreement and the
consummation of the transactions herein contemplated will not conflict with or
result in a material breach of any of the terms or provisions of, or constitute
a default under, any indenture, mortgage, deed of trust, loan agreement, lease,
license, franchise agreement, permit or other material agreement or instrument
to which either of the Issuers or Charter Holdings or the Issuers’ subsidiaries
is a party or by which either of the Issuers or Charter Holdings or the Issuers’
subsidiaries is bound or to which any of the property or assets of the Issuers
or Charter Holdings or the Issuers’ subsidiaries is subject, nor will such
action result in any violation of the provisions of the certificate of
formation, limited liability company agreement, the certificate of incorporation
or bylaws of the Issuers or any statute or any order, rule or regulation of any
court or governmental agency or body, including without limitation, the
Communications Act of 1934, as amended, the Cable Communications Policy Act of
1984, as amended, the Cable Television Consumer Protection and Competition Act
of 1992, as amended, and the Telecommunications
Act of 1996 (collectively, the “Cable Acts”) or any order, rule or regulation of
the Federal Communications Commission (the “FCC”), having jurisdiction over the
Issuers or Charter Holdings or the Issuers’ subsidiaries or any of their
properties, except for

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

      any such
violation which would not materially impair the Issuers’ ability to comply
herewith; and no consent, approval, authorization, order, registration or
qualification of or with any such court or governmental agency or body is
required, including, without limitation, under the Cable Acts or any order, rule
or regulation of the FCC, for the consummation by the Issuers of the
transactions contemplated by this Exchange and Registration Rights Agreement,
except the registration under the Securities Act of the Notes, qualification of
the Indenture under the Trust Indenture Act and such consents, approvals,
authorizations, registrations or qualifications as may be required under blue
sky laws in connection with the offering and distribution of the
Notes.

    

     

    (d) This
Agreement has been duly authorized, executed and delivered by the
Issuers.

     

    6. Indemnification.

     

    (a) The
Issuers, jointly and severally, agree to indemnify and hold harmless each holder
of Registrable Securities or Exchange Notes, as the case may be, covered by any
Exchange Offer Registration Statement or Shelf Registration Statement (including
each holder and, with respect to any prospectus delivery as contemplated in
Section 3(c)(ii) or (iv) hereof, each holder that is a broker-dealer and elects
to exchange for Exchange Notes any Registrable Securities that it acquired for
its own account as a result of market-making activities or other trading
activities (but not directly from the Issuers or any affiliate of the Issuers)
for Exchange Notes) (each an “Exchanging Dealer”), the affiliates, directors,
officers, employees and agents of each such holder and each person who controls
any such holder within the meaning of either the Securities Act or the Exchange
Act against any and all losses, claims, damages or liabilities, joint or
several, to which they or any of them may become subject under the Securities
Act, the Exchange Act or other Federal or state statutory law or regulation, at
common law or otherwise, insofar as such losses, claims, damages or liabilities
(or actions in respect thereof) arise out of or are based upon any untrue
statement or alleged untrue statement of a material fact contained in the
Exchange Offer Registration Statement or Shelf Registration Statement as
originally filed or in any amendment thereof, or in any preliminary prospectus
or the prospectus included in any registration statement, or in any amendment
thereof or supplement thereto, or arise out of or are based upon the omission or
alleged omission to state therein a material fact required to be stated therein
or necessary to make the statements therein not misleading, and agrees to
reimburse each such indemnified party, as incurred, for any legal or other
expenses reasonably incurred by them in connection with investigating or
defending any such loss, claim, damage, liability or action; provided, however, that the Issuers
will not be liable in any case to the extent that any such loss, claim, damage
or liability arises out of or is based upon any such untrue statement or alleged
untrue statement or omission or alleged omission made therein in reliance upon
and in conformity with written information furnished to the Issuers by or on
behalf of any such holder specifically for inclusion therein.  This
indemnity agreement will be in addition to any liability which the Issuers may
otherwise have.

     

              The
Issuers, jointly and severally, also agree to indemnify or contribute as
provided in Section 6(d) to Losses of any underwriter of Registrable Securities
or Exchange Notes, as the case may be, registered under a Shelf Registration
Statement, its directors, officers, employees or agents and each person who
controls such underwriter within the meaning of either 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    the
Securities Act or the Exchange Act, on substantially the same basis as that of
the indemnification of the holders provided in this Section 6(a) and shall, if
requested by any holder, enter into an underwriting agreement reflecting such
agreement, as provided in Section 3(e)(xvi) hereof.

     

    (b) Each
holder of Registrable Securities or Exchange Notes covered by an Exchange Offer
Registration Statement or Shelf Registration Statement (including, with respect
to any prospectus delivery as contemplated in Section 3(c)(ii) or (iv) or
Section 3(f) hereof, each Exchanging Dealer) severally agrees to indemnify and
hold harmless the Issuers and each of their affiliates, directors, employees,
members, managers and agents and each Person who controls the Issuers within the
meaning of either the Securities Act or the Exchange Act, to the same extent as
the foregoing indemnity from the Issuers to each such holder, but only with
reference to written information relating to such holder furnished to the
Issuers by or on behalf of such holder specifically for inclusion in the
documents referred to in the foregoing indemnity.  This indemnity
agreement will be in addition to any liability which any such holder may
otherwise have.

     

    (c) Promptly
after receipt by an indemnified party under this Section 6 of notice of the
commencement of any action, such indemnified party will, if a claim in respect
thereof is to be made against the indemnifying party under this Section 6,
notify the indemnifying party in writing of the commencement thereof; but the
failure so to notify the indemnifying party (i) will not relieve it from
liability under paragraph (a) or (b) above unless and to the extent such action
and such failure results in the forfeiture by the indemnifying party of
substantial rights and defenses; and (ii) will not, in any event, relieve the
indemnifying party from any obligations to any indemnified party other than the
indemnification obligation provided in paragraph (a) or (b)
above.  The indemnifying party shall be entitled to participate
therein and, to the extent that it shall wish, jointly with any other
indemnifying party similarly notified, to assume the defense thereof, with
counsel satisfactory to such indemnified party (who shall not, except with the
consent of the indemnified party, be counsel to the indemnifying party), and,
except as provided in the next sentence, after notice from the indemnifying
party to such indemnified party of its election to so assume the defense
thereof, the indemnifying party shall not be liable to such indemnified party
for any legal expenses of other counsel or any other expenses, in each case
subsequently incurred by such indemnified party, in connection with the defense
thereof other than reasonable costs of investigation.  Notwithstanding
the indemnifying party’s rights in the prior sentence, the indemnified party
shall have the right to employ its own counsel (and one local counsel), and the
indemnifying party shall bear the reasonable fees, costs and expenses of such
separate counsel if (i) the use of counsel chosen by the indemnifying party to
represent the indemnified party would present such counsel with a conflict of
interest; (ii) the actual or potential defendants in, or targets of, any such
action include both the indemnified party and the indemnifying party and the
indemnified party shall have reasonably concluded that there may be legal
defenses available to it and/or other indemnified parties which are different
from or additional to those available to the indemnifying party; (iii) the
indemnifying party shall not have employed counsel satisfactory to the
indemnified party to represent the indemnified party within a reasonable time
after notice of the institution of such action; or (iv) the indemnifying party
shall authorize the indemnified party to employ separate counsel at the expense
of the indemnifying party.  No indemnifying party shall, in connection with
any one action or separate but substantially similar or related actions in the
same jurisdiction arising out of the same general circumstances or allegations,
be liable for the fees and expenses of more than one separate firm of attorneys
(in addition to any local counsel) for all indemnified parties.  An
indemnifying party shall not be 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

       

      liable
under this Section 6 to any indemnified party regarding any settlement or
compromise or consent to the entry of any judgment with respect to any pending
or threatened claim, action, suit or proceeding in respect of which
indemnification or contribution may be sought hereunder (whether or not the
indemnified parties are actual or potential parties to such claim or action)
unless such settlement, compromise or consent is consented to by such
indemnifying party, which consent shall not be unreasonably
withheld.

    

     

    (d) In the
event that the indemnity provided in paragraph (a) or (b) of this Section 6 is
unavailable to or insufficient to hold harmless an indemnified party for any
reason, then each applicable indemnifying party agrees to contribute to the
aggregate losses, claims, damages and liabilities (including, without
limitation, legal or other expenses reasonably incurred in connection with
investigating or defending same) (collectively “Losses”) to which such
indemnifying party may be subject in such proportion as is appropriate to
reflect the relative benefits received by the indemnifying party on the one hand
and by the indemnified party on the other from the offering of the
Notes.  If, however, the allocation provided by the immediately
preceding sentence is not permitted by applicable law or if the indemnified
party failed to give the notice required under subsection (c) above, then each
indemnifying party shall contribute to such amount paid or payable by such
indemnified party in such proportion as is appropriate to reflect not only such
relative benefits but also the relative fault of the indemnifying party on the
one hand and the indemnified party on the other in connection with the
statements or omissions which resulted in such losses, claims, damages or
liabilities (or actions in respect thereof), as well as any other relevant
equitable considerations.  Benefits received by the Issuers shall be
deemed to be equal to the sum of (x) the total net proceeds from the initial
placement of the Notes (before deducting expenses) reflected in the Dealer
Manager Agreement and (y) the total amount of Special Interest which the Issuers
were not required to pay as a result of registering the securities covered by
the Exchange Offer Registration Statement or Shelf Registration Statement which
resulted in such Losses.  Benefits received by the holders shall be
deemed to be equal to the total purchase discounts and commissions as reflected
in the Dealer Manager Agreement, and benefits received by any other holders
shall be deemed to be equal to the proceeds received from the sale of the
Registrable Securities or Exchange Notes, as applicable.  Benefits
received by any underwriter shall be deemed to be equal to the total
underwriting discounts and commissions, as set forth in the prospectus forming a
part of the Exchange Offer Registration Statement or Shelf Registration
Statement which resulted in such Losses.  The relative fault shall be
determined by reference to, among other things, whether the untrue or alleged
untrue statement of a material fact or the omission or alleged omission to state
a material fact relates to information supplied by the indemnifying party on the
one hand or the indemnified party on the other and the parties’ relative intent,
knowledge, access to information and opportunity to correct or prevent such
statement or omission.  The parties agree that it would not be just
and equitable if contribution pursuant to this subsection (d) were determined by
pro rata allocation (even if the holders or any agents or underwriters or all of
them were treated as one entity for such purpose) or by any other method of
allocation which does not take account of the equitable considerations referred
to above in this subsection (d).  The amount paid or payable by an
indemnified party as a result of the losses, claims, damages or liabilities (or
actions in respect thereof) referred to above in this subsection (d) shall be
deemed to include any legal or other expenses reasonably incurred by such
indemnified party in connection with investigating or defending any such action
or claim.  Notwithstanding the provisions of this subsection (d), no
holder shall be required to contribute any amount in excess of the amount by
which the dollar amount of the proceeds received by such holder from

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

      the sale
of Registrable Securities (after deducting any fees, discounts and commissions
applicable thereto) exceeds the amount of any damages which such holder has
otherwise been required to pay by reason of such untrue or alleged untrue
statement or omission or alleged omission, and no underwriter shall be required
to contribute any amount in excess of the amount by which the total price of the
Registrable Securities underwritten by it and distributed to the public exceeds
the amount of any damages which such underwriter has otherwise been required to
pay by reason of such untrue or alleged untrue statement or omission or alleged
omission.  The holders’ and any underwriters’ obligations in this
subsection (d) to contribute are several in proportion to the principal amount
of Registrable Securities registered or underwritten, as the case may be, by
them, and not joint.  Notwithstanding the provisions of this paragraph
(d), no person guilty of fraudulent misrepresentation (within the meaning of
Section 11(f) of the Securities Act) shall be entitled to contribution from any
person who was not guilty of such fraudulent misrepresentation.  For
purposes of this Section 6, each person who controls any holder, agent or
underwriter within the meaning of either the Securities Act or the Exchange Act
and each director, officer, employee and agent of a holder, agent or underwriter
shall have the same rights to contribution as such holder, agent or underwriter,
and each person who controls the Issuers within the meaning of either the
Securities Act or the Exchange Act and each officer and director of the Issuers
shall have the same rights to contribution as the Issuers, subject in each case
to the applicable terms and conditions of this paragraph (d).

    

     

    (e) The
provisions of this Section will remain in full force and effect, regardless of
any investigation made by or on behalf of any holder or the Issuers or any of
the officers, directors or controlling persons referred to in this Section
hereof, and will survive the sale by a holder of securities covered by an
Exchange Offer Registration Statement or Shelf Registration
Statement.

     

    7. Underwritten
Offerings.

     

    (a) Selection of
Underwriters.  If any of the Registrable Securities covered by
the Shelf Registration are to be sold pursuant to an underwritten offering, the
managing underwriter or underwriters thereof shall be designated by Electing
Holders holding at least a majority in aggregate principal amount of the
Registrable Securities to be included in such offering, provided that such
designated managing underwriter or underwriters is or are reasonably acceptable
to the Issuers.

     

    (b) Participation by
Holders.  Each holder of Registrable Securities hereby agrees
with each other such holder that no such holder may participate in any
underwritten offering hereunder unless such holder (i) agrees to sell such
holder’s Registrable Securities on the basis provided in any underwriting
arrangements approved by the persons entitled hereunder to approve such
arrangements and (ii) completes and executes all questionnaires, powers of
attorney, indemnities, underwriting agreements and other documents reasonably
required under the terms of such underwriting arrangements.

     

              8. Rule
144.  Each of
the Issuers covenants to the holders of Registrable Securities that to the
extent it shall be required to do so under the Exchange Act, it shall timely
file the reports required to be filed by it under the Exchange Act or the
Securities Act (including, without limitation, the reports under Section 13 and
15(d) of the Exchange Act referred to in 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    subparagraph
(c)(1) of Rule 144 adopted by the Commission under the Securities Act), and
shall take such further action as any holder of Registrable Securities may
reasonably request, all to the extent required from time to time to enable such
holder to sell Registrable Securities without registration under the Securities
Act within the limitations of the exemption provided by Rule 144 under the
Securities Act, or any similar or successor rule or regulation hereafter adopted
by the Commission.  Upon the request of any holder of Registrable
Securities in connection with that holder’s sale pursuant to Rule 144, the
Issuers shall deliver to such holder a written statement as to whether it has
complied with such requirements.

     

    9. Miscellaneous.

     

    (a) No Inconsistent
Agreements.  The Issuers represent, warrant, covenant and agree
that they have not granted, and shall not grant, registration rights with
respect to Registrable Securities or any other Notes which would be inconsistent
with the terms contained in this Exchange and Registration Rights
Agreement.

     

    (b) Specific
Performance.  The parties hereto acknowledge that there would
be no adequate remedy at law if the Issuers fail to perform any of their
obligations hereunder and that the holders of the Registrable Securities may be
irreparably harmed by any such failure, and accordingly agree that the holders,
in addition to any other remedy to which they may be entitled at law or in
equity, shall be entitled to compel specific performance of the obligations of
the Issuers under this Exchange and Registration Rights Agreement in accordance
with the terms and conditions of this Exchange and Registration Rights
Agreement, in any court of the United States or any State thereof having
jurisdiction.

     

    (c) Notices.  All
notices, requests, claims, demands, waivers and other communications hereunder
shall be in writing and shall be deemed to have been duly given (i) when
delivered by hand, if delivered personally or by courier, (ii) when sent by
facsimile (with written confirmation of receipt), provided that a copy is mailed
by registered or certified mail, return receipt requested or (iii) three days
after being deposited in the mail (registered or certified mail, postage
prepaid, return receipt requested) as follows:  If to the Issuers, c/o
CCH II, LLC, 12405 Powerscourt Drive, St. Louis, Missouri, 63131,
Attention:  General Counsel, and if to a holder, to the address of
such holder set forth in the security register or other records of the Issuers,
or to such other address as the Issuers or any such holder may have furnished to
the other in writing in accordance herewith, with a copy in like manner c/o Banc
of America Securities, LLC, Attn: Jami Friedman, Legal Department, 9 West 57th
Street, 6th Floor, New York, New York  10019.  Notices of
change of address shall be effective only upon receipt.

     

    (d) Parties in
Interest.  All the terms and provisions of this Exchange and
Registration Rights Agreement shall be binding upon, shall inure to the benefit
of and shall be enforceable by the parties hereto and the holders from time to
time of the Registrable Securities and the respective successors and assigns of
the parties hereto and such holders.  In the event that any person
shall acquire Registrable Securities, in any manner, whether by gift, bequest,
purchase, operation of law or otherwise, such transferee shall, without any
further writing or action of any kind, be deemed a beneficiary hereof for all
purposes and such Registrable Securities shall be held subject to all the terms
of this Exchange and Registration Rights Agreement, and by taking and holding
such Registrable Securities such transferee shall be entitled to receive the
benefits, 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

      and be
conclusively deemed to have agreed to be bound by all the applicable terms and
provisions, of this Exchange and Registration Rights Agreement.  If
the Issuers shall so request, any such successor, assign or transferee shall
agree in writing to acquire and hold the Registrable Securities subject to all
the applicable terms hereof.

    

     

    (e) Survival.  The
respective indemnities, agreements, representations, warranties and each other
provision set forth in this Exchange and Registration Rights Agreement or made
pursuant hereto shall remain in full force and effect regardless of any
investigation (or statement as to the results thereof) made by or on behalf of
any holder of Registrable Securities, any director, officer or partner of such
holder, any agent or underwriter or any director, officer or partner thereof, or
any controlling person of any of the foregoing, and shall survive delivery of
and exchange for the Registrable Securities pursuant to the Dealer Manager
Agreement and the transfer and registration of Registrable Securities by such
holder and the consummation of the Exchange Offer.

     

    (f) GOVERNING
LAW.  THIS EXCHANGE AND REGISTRATION RIGHTS AGREEMENT SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW
YORK.

     

    (g) Headings.  The
descriptive headings of the several Sections and paragraphs of this Exchange and
Registration Rights Agreement are inserted for convenience only, do not
constitute a part of this Exchange and Registration Rights Agreement and shall
not affect in any way the meaning or interpretation of this Exchange and
Registration Rights Agreement.

     

    (h) Entire Agreement;
Amendments.  This Exchange and Registration Rights Agreement
and the other writings referred to herein (including, without limitation, the
Indenture and the form of Notes) or delivered pursuant hereto which form a part
hereof contain the entire understanding of the parties with respect to its
subject matter.  This Exchange and Registration Rights Agreement
supersedes all prior agreements and understandings between the parties with
respect to its subject matter.  This Exchange and Registration Rights
Agreement may be amended and the observance of any term of this Exchange and
Registration Rights Agreement may be waived (either generally or in a particular
instance and either retroactively or prospectively) only by a written instrument
duly executed by the Issuers and the holders of at least a majority in aggregate
principal amount of the Registrable Securities at the time
outstanding.  Each holder of any Registrable Securities at the time or
thereafter outstanding shall be bound by any amendment or waiver effected
pursuant to this Section 9(h), whether or not any notice, writing or marking
indicating such amendment or waiver appears on such Registrable Securities or is
delivered to such holder.

     

    (i) Inspection.  For
so long as this Exchange and Registration Rights Agreement shall be in effect,
this Exchange and Registration Rights Agreement and a complete list of the names
and addresses of all the holders of Registrable Securities shall be made
available for inspection and copying, upon reasonable prior notice, on any
business day during normal busness
hours by any holder of Registrable Securities for proper purposes only (which
shall include any purpose related to the rights of the holders of Registrable
Securities under the Notes, the Indenture and this Exchange and Registration
Rights Agreement) at the offices of the Issuers at the 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

       

      address
thereof set forth in Section 9(c) above and at the office of the Trustee under
the Indenture.

    

     

    (j) Counterparts.  This
agreement may be executed by the parties in counterparts, each of which shall be
deemed to be an original, but all such respective counterparts shall together
constitute one and the same instrument.

     

    (k) Severability.  In
the event that any one or more of the provisions contained herein, or the
application thereof in any circumstances, is held invalid, illegal or
unenforceable in any respect for any reason, the validity, legality and
enforceability of any such provision in every other respect and of the remaining
provisions hereof shall not be in any way impaired or affected thereby, it being
intended that all of the rights and privileges of the parties shall be
enforceable to the fullest extent permitted by law.

     

    (l) Securities Held by the
Issuers, etc.  Whenever the consent or approval of holders of a
specified percentage of principal amount of Registrable Securities or Exchange
Notes is required hereunder, Registrable Securities or Exchange Notes, as
applicable, held by the Issuers or their affiliates (other than subsequent
holders of Registrable Securities or Exchange Notes if such subsequent holders
are deemed to be affiliates solely by reason of their holdings of such
Registrable Securities or Exchange Notes) shall not be counted in determining
whether such consent or approval was given by the holders of such required
percentage.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    If the
foregoing is in accordance with your understanding, please sign and return to us
counterparts hereof, and upon the acceptance hereof by you, on behalf of each of
the holders, this letter and such acceptance hereof shall constitute a binding
agreement between each of the holders and the Issuers.

     

    Very
truly yours,

    

     

    CCH II,
LLC,

       as
an Issuer

     

    By:          s/
Eloise E. Schmitz

    Name:    Eloise E.
Schmitz

    Title:      Executive
Vice President and

    Chief Financial Officer

    

     

    CCH II
CAPITAL CORP.,

                                       as
an Issuer

     

    By:          s/
Eloise E. Schmitz

    Name:     Eloise E.
Schmitz

    Title:       Executive
Vice President and

    Chief Financial
Officer

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    CHARTER
COMMUNICATIONS HOLDINGS,

    LLC

       as
a guarantor

     

    By:          s/
Eloise E. Schmitz

    Name:    Eloise E.
Schmitz

    Title:      Executive
Vice President and

    Chief Financial
Officer

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Accepted
as of the date hereof:

     

    BANC OF
AMERICA SECURITIES LLC

    CITIGROUP
GLOBAL MARKETS INC.

    as
Representatives of the holders

     

    By:  BANC
OF AMERICA SECURITIES LLC

     

    By:        s/
Andrew C. Karp

    Name: Andrew C. Karp

    Title: Managing Director

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
A

     

    CCH II,
LLC

     

    CCH II
CAPITAL CORP.

     

    INSTRUCTION
TO DTC PARTICIPANTS

     

    (Date of
Mailing)

     

    URGENT —
IMMEDIATE ATTENTION REQUESTED

     

    DEADLINE
FOR RESPONSE:  [DATE](a)

     

    The
Depository Trust Company (“DTC”) has identified you as a DTC Participant through
which beneficial interests in the CCH II, LLC (“CCH II”) and CCH II Capital
Corp. (collectively, the “Issuers”) 10.25% Senior Notes due 2013 (the “Notes”)
are held.  The Issuers and Charter Communications Holdings, LLC are
collectively referred to herein as the “Issuers”.

     

    The
Issuers are in the process of registering the Notes under the Securities Act of
1933, as amended, for resale by the beneficial owners thereof. In order to have
their Notes included in the registration statement, beneficial owners must
complete and return the enclosed Notice of Registration Statement and Selling
Securityholder Questionnaire.

     

    It is
important that beneficial owners of the Notes receive a copy of the enclosed
materials as soon as possible as their rights to have the Notes included in the
registration statement depend upon their returning the Notice and Questionnaire
by [_________].  Please forward a copy of the enclosed documents to
each beneficial owner that holds interests in the Notes through
you.  If you require more copies of the enclosed materials or have any
questions pertaining to this matter, please contact the Issuers c/o CCH II, LLC,
12405 Powerscourt Drive, St. Louis, Missouri, 63131,
Attention:  General Counsel.

     

    (a)           Not
less than 20 calendar days from date of mailing.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    CCH II,
LLC

     

    CCH II
CAPITAL CORP.

     

    Notice of
Registration Statement

    and

    Selling
Securityholder Questionnaire

     

     

    (Date)

     

    Reference
is hereby made to the Exchange and Registration Rights Agreement (the
“Registration Rights Agreement”) between the Issuers, Charter Communications
Holdings, LLC (“Charter Holdings”), and the Representatives named
therein.  Pursuant to the Registration Rights Agreement, the Issuers
have filed with the United States Securities and Exchange Commission (the
“Commission”) a registration statement on Form S-1 (the “Shelf Registration
Statement”) for the registration and resale under Rule 415 of the Securities Act
of 1933, as amended (the “Securities Act”), of the Issuers’ Notes.  A
copy of the Registration Rights Agreement is attached hereto.  All
capitalized terms not otherwise defined herein shall have the meanings ascribed
thereto in the Registration Rights Agreement.

     

    Each
beneficial owner of Registrable Securities is entitled to have the Registrable
Securities beneficially owned by it included in the Shelf Registration
Statement.  In order to have Registrable Securities included in the
Shelf Registration Statement, this Notice of Registration Statement and Selling
Securityholder Questionnaire (“Notice and Questionnaire”) must be completed,
executed and delivered to the Issuers’ counsel at the address set forth herein
for receipt ON OR BEFORE [Deadline for Response].  Beneficial owners
of Registrable Securities who do not complete, execute and return this Notice
and Questionnaire by such date (i) will not be named as selling securityholders
in the Shelf Registration Statement and (ii) may not use the prospectus forming
a part thereof for resales of Registrable Securities.

     

    Certain
legal consequences arise from being named as a selling securityholder in the
Shelf Registration Statement and related prospectus. Accordingly, holders and
beneficial owners of Registrable Securities are advised to consult their own
securities law counsel regarding the consequences of being named or not being
named as a selling securityholder in the Shelf Registration Statement and
related prospectus.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    ELECTION

     

    The
undersigned holder (the “Selling Securityholder”) of Registrable Securities
hereby elects to include in the Shelf Registration Statement the Registrable
Securities beneficially owned by it and listed below in Item (3).  The
undersigned, by signing and returning this Notice and Questionnaire, agrees to
be bound with respect to such Registrable Securities by the terms and conditions
of this Notice and Questionnaire and the Registration Rights Agreement,
including, without limitation, Section 6 of the Registration Rights Agreement,
as if the undersigned Selling Securityholder were an original party
thereto.

     

    Upon any
sale of Registrable Securities pursuant to the Shelf Registration Statement, the
Selling Securityholder will be required to deliver to the Issuers and the
Trustee the Notice of Transfer Pursuant to Registration Statement set forth in
Exhibit B to the Registration Rights Agreement.

     

    The
Selling Securityholder hereby provides the following information to the Issuers
and represents and warrants that such information is accurate and
complete:

     

    QUESTIONNAIRE

     

    
      	
              (1)

            	
              (a)

            	
              Full
      Legal Name of Selling
Securityholder:

            

    

     

    (b)          Full
Legal Name of Registered Holder (if not the same as in (a) above) of Registrable
Securities Listed in Item (3) below:

     

    (c)          Full
Legal Name of DTC Participant (if applicable and if not the same as (b) above)
Through Which Registrable Securities Listed in Item (3) below are
Held:

     

    
      	
              (2)

            	
              Address
      for Notices to Selling
Securityholder:

            

    

     

    
      	
               
      

            	
              _______________________________

            

    

     

    
      	
               
      

            	
              _______________________________

            

    

     

    
      	
               
      

            	
              _______________________________

            

    

     

    
      	
              Telephone:

            	
              _______________________________

            

    

     

    
      	
              Fax:

            	
              _______________________________

            

    

     

    
      	
              Contact
      Person:

            	
              _______________________________

            

    

     

    
      	
              (3)

            	
              Beneficial
      Ownership of Notes:

            

    

     

    
      	
               
      

            	
              Except
      as set forth below in this Item (3), the undersigned does not beneficially
      own any Notes.

            

    

     

    
      	
               
      

            	
              (a)

            	
              Principal
      amount of Registrable Securities beneficially
  owned:

            

    

     

    
      	
               
      

            	                                                                                                                           
      

    

     

    
      	 	
              CUSIP
      No(s). of such Registrable Securities:                                                                                    
      

            	 

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (b)

            	
              Principal
      amount of Notes other than Registrable Securities beneficially
      owned:

            

    

     

    
      	
               
      

            	                                                                                                                            
      

    

     

    
      	
              CUSIP
      No(s). of such other Notes:

            	                                                                                                 
       

    

     

    
      	
               
      

            	
              (c)

            	
              Principal
      amount of Registrable Securities which the undersigned wishes to be
      included in the Shelf Registration Statement:                                                       
      

            	 

    

     

    
      	
               
      

            	
              CUSIP
      No(s). of such Registrable Securities to be included in the Shelf
      Registration Statement:                                                                                                                              
      

            

    

     

    
      	
              (4)

            	
              Beneficial
      Ownership of Other Securities of the
Issuers:

            

    

     

    
      	
               
      

            	
              Except
      as set forth below in this Item (4), the undersigned Selling
      Securityholder is not the beneficial or registered owner of any other
      securities of the Issuers other than the Notes listed above in Item
      (3).

            

    

     

    
      	
               
      

            	
              State
      any exceptions here:

            

    

     

    
      	
              (5)

            	
              Relationships
      with the Issuers:

            

    

     

    
      	
               
      

            	
              Except
      as set forth below, neither the Selling Securityholder nor any of its
      affiliates, officers, directors or principal equity holders (5% or more)
      has held any position or office or has had any other material relationship
      with the Issuers (or their respective predecessors or affiliates) during
      the past three years.

            

    

     

    
      	
               
      

            	
              State
      any exceptions here:

            

    

     

    
      	
              (6)

            	
              Plan
      of Distribution:

            

    

     

    
      	
               
      

            	
              Except
      as set forth below, the undersigned Selling Securityholder intends to
      distribute the Registrable Securities listed above in Item (3) only as
      follows (if at all):  Such Registrable Securities may be sold
      from time to time directly by the undersigned Selling Securityholder or,
      alternatively, through underwriters, broker-dealers or
      agents.  Such Registrable Securities may be sold in one or more
      transactions at fixed prices, at prevailing market prices at the time of
      sale, at varying prices determined at the time of sale, or at negotiated
      prices.  Such sales may be effected in transactions (which may
      involve crosses or block transactions) (i) on any national securities
      exchange or quotation service on which the Registered Notes may be listed
      or quoted at the time of sale, (ii) in the over-the-counter market, (iii)
      in transactions otherwise than on such exchanges or services or in the
      over-the-counter market, or (iv) through the writing of
      options.  In connection with sales of the Registrable Securities
      or otherwise, the Selling Securityholder may enter into hedging
      transactions with broker-dealers, which may in turn engage in short sales
      of the Registrable Securities in the course of hedging the positions they
      assume.  The Selling Securityholder may also sell Registrable
      Securities short and deliver Registrable Securities to close out such
      short positions, or loan or pledge Registrable Securities to
      broker-dealers that in turn may sell such
Notes.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              State
      any exceptions here:

            

    

     

    By
signing below, the Selling Securityholder acknowledges that it understands its
obligation to comply, and agrees that it will comply, with the provisions of the
Exchange Act including, without limitation, Regulation M.

     

    In the
event that the Selling Securityholder transfers all or any portion of the
Registrable Securities listed in Item (3) above after the date on which such
information is provided to the Issuers, the Selling Securityholder agrees to
notify the transferee(s) at the time of the transfer of its rights and
obligations under this Notice and Questionnaire and the Registration Rights
Agreement.

     

    By
signing below, the Selling Securityholder consents to the disclosure of the
information contained herein in its answers to Items (1) through (6) above and
the inclusion of such information in the Shelf Registration Statement and
related prospectus.  The Selling Securityholder understands that such
information will be relied upon by the Issuers and Charter Holdings in
connection with the preparation of the Shelf Registration Statement and related
prospectus.

     

    In
accordance with the Selling Securityholder’s obligation under Section 3(e) of
the Registration Rights Agreement to provide such information as may be required
by law for inclusion in the Shelf Registration Statement, the Selling
Securityholder agrees to promptly notify the Issuers of any inaccuracies or
changes in the information provided herein which may occur subsequent to the
date hereof at any time while the Shelf Registration Statement remains in
effect.  All notices hereunder and pursuant to the Registration Rights
Agreement shall be made in writing, by hand-delivery, first-class mail, or air
courier guaranteeing overnight delivery as follows:

     

    
      	
               
      

            	
              (i)

            	
              To
      the Issuers:

            

    

     

    
      	
               
      

            	
              CCH II,
      LLC

            

    

    
      	
               
      

            	
              CCH II
      Capital Corp.

            

    

    
      	
               
      

            	
              Charter
      Communications Holdings, LLC

            

    

    
      	
               
      

            	
              12405
      Powerscourt Drive

            

    

    
      	
               
      

            	
              St.
      Louis, Missouri  63131

            

    

    
      	
               
      

            	
              Attention:  General
      Counsel

            

    

    
      	 	 	 
	
               
      

            	 	
              with
      a copy to:

            

    

    
      	
               
      

            	
              Thompson
      Coburn LLP

            

    

    
      	
               
      

            	
              One
      US Bank Plaza

            

    

    
      	
               
      

            	
              St.
      Louis, MO 63101

            

    

    

    
      	
               
      

            	
              Attention:
      Thomas Proost

            

    

    

    Once this
Notice and Questionnaire is executed by the Selling Securityholder and received
by the Issuers’ counsel, the terms of this Notice and Questionnaire, and the
representations and warranties contained herein, shall be binding on, shall
inure to the benefit of and shall 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

      be
enforceable by the respective successors, heirs, personal representatives, and
assigns of the Issuers and the Selling Securityholder (with respect to the
Registrable Securities beneficially owned by such Selling Securityholder and
listed in Item (3) above).  This Agreement shall be governed in all
respects by the laws of the State of New York without giving effect to any
provisions relating to conflicts of laws.

    

     

    IN
WITNESS WHEREOF, the undersigned, by authority duly given, has caused this
Notice and Questionnaire to be executed and delivered either in person or by its
duly authorized agent.

     

    Dated:  ____________________

     

     

     

      
        

      

    

    

    Selling
Securityholder

    (Print/type
full legal name of beneficial owner of Registrable Securities)

     

    By:          ___________________________________________

     

    Name:

                
Title:

     

    PLEASE
RETURN THE COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE FOR RECEIPT ON OR
BEFORE [DEADLINE FOR RESPONSE] TO THE ISSUERS’ COUNSEL AT:

     

    
      	
               
      

            	
              Thompson
      Coburn LLP

            

    

    
      	
               
      

            	
              One
      US Bank Plaza

            

    

    
      	
               
      

            	
              St.
      Louis, MO 63101

            

    

     

    
      	
               
      

            	
              Attention:  Thomas
      Proost

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
B

     

    NOTICE OF
TRANSFER PURSUANT TO REGISTRATION STATEMENT

     

    CCH II,
LLC

    CCH II
Capital Corp.

    12405
Powerscourt Drive

    St.
Louis, Missouri  63131

    Attention:  General
Counsel

     

    The Bank
of New York Mellon Trust Company, N.A., as trustee

    2 North
LaSalle Street, Suite 1020

    Chicago,
Illinois 60602

    Attention:  Trust
Officer

     

    Re:           The
Notes as listed on Annex A attached hereto

     

    Dear
Sirs:

     

    Please be
advised that ________________ has transferred $___________ aggregate principal
amount of the above-referenced Notes pursuant to an effective Registration
Statement on Form S-1 (File No. 333-____) filed by the Issuers and Charter
Communications Holdings, LLC.

     

    We hereby
certify that the prospectus delivery requirements, if any, of the Securities Act
of 1933, as amended, have been satisfied and that the above-named beneficial
owner of the Notes is named as a “Selling Holder” in the prospectus dated [date]
or in supplements thereto, and that the aggregate principal amount of the Notes
transferred are the Notes listed in such prospectus opposite such owner’s
name.

     

    Dated:

     

    Very
truly yours,

     

    _____________________________

                               
(Name)

     

    By:                                                                                             

                                      
(Authorized Signature)

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Annex
A

     

    CCH II
Notes:

    10.25%
Senior Notes due 2013

    

    

    
      
        
          

           

          Ann.
A-1exhibit10a.htm

    
      

    

    Exhibit 10.i

     

    FIRST
AMENDED AND RESTATED RECEIVABLES PURCHASE AGREEMENT

     

    dated
as of June 30, 2008,

     

    Among

     

    ENERGIZER
RECEIVABLES FUNDING CORPORATION, 

    as
Seller,

     

    ENERGIZER
BATTERY, INC., 

    as
Servicer,

     

    PLAYTEX
PRODUCTS, INC., 

    as
Sub-Servicer

     

    MIZUHO
CORPORATE BANK, LTD.,

    as
Agent and as a Funding Agent

     

    THE
BANK OF TOKYO-MITSUBISHI UFJ, LTD., NEW YORK BRANCH,

    as
a Funding Agent

     

    and

     

    THE
SEVERAL CONDUITS AND COMMITTED PURCHASERS PARTY HERETO

     

    FROM
TIME TO TIME

    
      
        
           

          

        

         

      

      
        
        

        
          

        

      

      
         

      

    

    TABLE
OF CONTENTS

     

     

    ARTICLE I

    PURCHASE
ARRANGEMENTS

     

    
      	
              Section
      1.1

            	
              Purchase
      Facility 

            	 

    

    
      	
              Section
      1.2

            	
              Increases 

            	
               

            

    

    
      	
              Section
      1.3

            	
              Decreases 

            	
               

            

    

    
      	
              Section
      1.4

            	
              Payment
      Requirements 

            	
               

            

    

    
      	
              Section
      1.5

            	
              Restated
      Agreement 

            	
               

            

    

     

    ARTICLE II

    PAYMENTS
AND COLLECTIONS

     

    
      	
              Section
      2.1

            	
              Payments 

            	 

    

    
      	
              Section
      2.2

            	
              Collections
      Prior to Amortization 

            	 

    

    
      	
              Section
      2.3

            	
              Collections
      Following Amortization 

            	 

    

    
      	
              Section
      2.4

            	
              Application
      of Collections 

            	 

    

    
      	
              Section
      2.5

            	
              Payment
      Recission 

            	 

    

    
      	
              Section
      2.6

            	
              Maximum
      Purchaser Interests 

            	 

    

    
      	
              Section
      2.7

            	
              Clean Up
      Call 

            	 

    

     

    ARTICLE III

    CONDUIT
FUNDING

     

    
      	
              Section
      3.1

            	
              CP
      Costs 

            	 

    

    
      	
              Section
      3.2

            	
              CP Costs
      Payments 

            	 

    

    
      	
              Section
      3.3

            	
              Calculation
      of CP Costs 

            	 

    

     

    ARTICLE IV

    COMMITTED
PURCHASER FUNDING

     

    
      	
              Section
      4.1

            	
              Committed
      Purchaser Funding 

            	 

    

    
      	
              Section
      4.2

            	
              Yield
      Payments 

            	 

    

    
      	
              Section
      4.3

            	
              Selection
      and Continuation of Tranche Periods 

            	 

    

    
      	
              Section
      4.4

            	
              Committed
      Purchaser Discount Rates 

            	 

    

    
      	
              Section
      4.5

            	
              Suspension
      of the LIBO Rate 

            	 

    

    
      	
              Section
      4.6

            	
              Extension
      of Liquidity Termination Date. 

            	 

    

     

    ARTICLE V

    REPRESENTATIONS
AND WARRANTIES

     

    
      	
              Section
      5.1

            	
              Representations
      and Warranties of the Seller Parties 

            	 

    

    
      	
              Section
      5.2

            	
              Committed
      Purchaser Representations and Warranties 

            	 

    

     

    ARTICLE VI

    CONDITIONS
OF PURCHASES

     

    
      	
              Section
      6.1

            	
              Conditions
      Precedent to Initial Incremental Purchase 

            	 

    

    
      	
              Section
      6.2

            	
              Conditions
      Precedent to All Purchases and Reinvestments 

            	
               

            

    

     

    ARTICLE VII

    COVENANTS

     

    
      	
              Section
      7.1

            	
              Affirmative
      Covenants of the Seller Parties 

            	 

    

    
      	
              Section
      7.2

            	
              Negative
      Covenants of the Seller Parties 

            	 

    

     

    ARTICLE VIII

    ADMINISTRATION
AND COLLECTION

     

    
      	
              Section
      8.1

            	
              Designation
      of Servicer 

            	 

    

    
      	
              Section
      8.2

            	
              Duties of
      Servicer 

            	 

    

    
      	
              Section
      8.3

            	
              Collection
      Notices 

            	 

    

    
      	
              Section
      8.4

            	
              Responsibilities
      of Seller 

            	 

    

    
      	
              Section
      8.5

            	
              Reports 

            	 

    

    
      	
              Section
      8.6

            	
              Servicing
      Fees 

            	 

    

     

    ARTICLE IX

    AMORTIZATION
EVENTS

     

    
      	
              Section
      9.1

            	
              Amortization
      Events 

            	 

    

    
      	
              Section
      9.2

            	
              Remedies 

            	 

    

     

    ARTICLE X

    INDEMNIFICATION

     

    
      	
              Section
      10.1

            	
              Indemnities
      by the Seller Parties

            

    

    
      	
              Section
      10.2

            	
              Increased
      Cost and Reduced Return

            

    

    
      	
              Section
      10.3

            	
              Other
      Costs and Expenses

            

    

    
      	
              Section
      10.4

            	
              Allocations

            

    

     

    ARTICLE XI

    THE
AGENT

     

    
      	
              Section
      11.1

            	
              Authorization
      and Action

            

    

    
      	
              Section
      11.2

            	
              Delegation
      of Duties

            

    

    
      	
              Section
      11.3

            	
              Exculpatory
      Provisions

            

    

    
      	
              Section
      11.4

            	
              Reliance
      by Agent

            

    

    
      	
              Section
      11.5

            	
              Non-Reliance
      on Agent and Other
Purchasers

            

    

    
      	
              Section
      11.6

            	
              Reimbursement
      and Indemnification

            

    

    
      	
              Section
      11.7

            	
              Agent in
      its Individual Capacity

            

    

    
      	
              Section
      11.8

            	
              Successor
      Agent

            

    

     

    ARTICLE XII

    ASSIGNMENTS;
PARTICIPATIONS

     

    
      	
              Section
      12.1

            	
              Assignments

            

    

    
      	
              Section
      12.2

            	
              Participations

            

    

     

    ARTICLE XIII

     

    {RESERVED}

     

     

    ARTICLE XIV

    MISCELLANEOUS

     

    
      	
              Section
      14.1

            	
              Waivers
      and Amendments

            

    

    
      	
              Section
      14.2

            	
              Notices 

            

    

    
      	
              Section
      14.3

            	
              Ratable
      Payments 

            

    

    
      	
              Section
      14.4

            	
              Protection
      of Ownership Interests of the Purchasers 

            

    

    
      	
              Section
      14.5

            	
              Confidentiality 

            

    

    
      	
              Section
      14.6

            	
              Bankruptcy
      Petition 

            

    

    
      	
              Section
      14.7

            	
              Limitation
      of Liability 

            

    

    
      	
              Section
      14.8

            	
              CHOICE OF
      LAW 

            

    

    
      	
              Section
      14.9

            	
              CONSENT TO
      JURISDICTION 

            

    

    
      	
              Section
      14.10

            	
              WAIVER OF
      JURY TRIAL 

            

    

    
      	
              Section
      14.11

            	
              Integration;
      Binding Effect; Survival of Terms 

            

    

    
      	
              Section
      14.12

            	
              Counterparts;
      Severability; Section References 

            

    

    
      	
              Section
      14.13

            	
              Mizuho
      Corporate Bank Roles 

            

    

    
      	
              Section
      14.14

            	
              Characterization 

            

    

    
      	
              Section
      14.15

            	
              Withholding 

            

    

    
      	
              Section
      14.16

            	
              Patriot
      Act 

            

    

     

     

    
      
        
           

           

           

        

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Exhibits
and Schedules

     

    
      	
              Exhibit I

            	
              Definitions

            
	
              Exhibit
      II

            	
              Form
      of Purchase Notice

            
	
              Exhibit
      III

            	
              Places
      of Business of the Seller Parties; Locations of Records; Federal Employer
      Identification Number(s)

            
	
              Exhibit
      IV

            	
              Names
      of Collection Banks; Collection Accounts

            
	
              Exhibit
      V

            	
              Form
      of Compliance Certificate

            
	
              Exhibit
      VI

            	
              Form
      of Collection Account Agreement

            
	
              Exhibit
      VII

            	
              Form of
      Assignment Agreement

            
	
              Exhibit
      VIII

            	
              Credit and
      Collection Policy

            
	
              Exhibit
      IX

            	
              Form of
      Contract(s)

            
	
              Exhibit
      X

            	
              Form of
      Monthly Report

            
	
              Exhibit
      XI

            	
              Form of
      Performance Undertaking

            
	
              Exhibit
      XII

            	
              Form of
      Interim Report

            
	
              Schedule
      A

            	
              Commitments

            
	
              Schedule
      B

            	
              Closing
      Documents

            

    

    

     

    
      
        
           

           

          

        

         

      

      
        
        

        
          

        

      

      
         

      

    

    POOL
PURCHASE

     

     

    FIRST AMENDED AND
RESTATED RECEIVABLES PURCHASE AGREEMENT

     

     

    This First Amended
and Restated Receivables Purchase Agreement dated as of June 30, 2008 is among
ENERGIZER RECEIVABLES FUNDING CORPORATION, a Delaware corporation (“Seller”), ENERGIZER
BATTERY, INC., a Delaware corporation (“Energizer”), as
Servicer, PLAYTEX PRODUCTS, INC., a Delaware corporation (“Playtex”), as
Sub-Servicer (Sub-Servicer, together with Seller and Servicer, the “Seller Parties” and
each a “Seller
Party”), the entities listed on Schedule A to this
Agreement (together with any of their respective successors and assigns
hereunder, the “Committed
Purchasers”), THE BANK OF TOKYO-MITSUBISHI UFJ, LTD., NEW YORK
BRANCH (“BTMU”), as a Funding
Agent, MIZUHO CORPORATE BANK, LTD., as a Funding Agent and as agent for the
Purchasers hereunder or any successor agent hereunder (together with its
successors and assigns hereunder, the “Agent”).  Unless
defined elsewhere herein, capitalized terms used in this Agreement shall have
the meanings assigned to such terms in Exhibit
I.

     

    PRELIMINARY
STATEMENTS

     

    Seller desires to
transfer and assign Purchaser Interests to the Purchasers from time to
time.

     

    Each Conduit may,
in its absolute and sole discretion, purchase Purchaser Interests from Seller
from time to time.

     

    In
the event that a Conduit declines to make any purchase, the Committed
Purchaser(s) in the relevant Conduit Group shall, at the request of Seller,
purchase Purchaser Interests from time to time.

     

    Mizuho Corporate
Bank, Ltd. has been requested and is willing to act as Agent on behalf of the
Conduits and the Committed Purchasers in accordance with the terms
hereof.

     

    Seller, Servicer,
the Committed Purchasers, the Conduits, the Funding Agents and the Agent are
parties to that certain Receivables Purchase Agreement dated as of April 4,
2000, as amended or otherwise modified to date (the “Original Agreement”),
and desire to amend and restate the Original Agreement to appoint Playtex as
Sub-Servicer of Receivables under this Agreement and to make certain other
changes as are set forth in this Agreement.

     

     

    ARTICLE I

     

    PURCHASE
ARRANGEMENTS

     

    Section
1.1 Purchase
Facility.  Upon the
terms and subject to the conditions hereof, Seller may, at its option, sell and
assign Purchaser Interests to the Agent for the benefit of one or more of the
Purchasers.  In accordance with the terms and conditions set forth
herein, the Relevant Conduits in their respective Conduit Groups may
collectively, at their option, instruct the Agent to purchase on their behalf,
or if either of the Relevant Conduits shall decline to purchase, the Agent shall
purchase, on behalf of the Committed Purchasers in the related Conduit Group,
Purchaser Interests from time to time in an aggregate amount not to exceed at
such time the lesser of (i) the Purchase Limit and (ii) the aggregate amount of
the Commitments during the period from the date hereof to but not including the
Facility Termination Date.  Furthermore, with respect to each Conduit
Group, the product of (x) the Purchase Pro Rata Share of such Conduit Group and
(y) the amount of the Purchaser Interests so purchased by the Purchasers in such
Conduit Group from time to time in an aggregate amount shall not exceed at such
time the lesser of (a) the related Group Purchase Limit and (b) the aggregate
amount of the related Commitments for such Conduit Group during the period from
the date hereof to but not including the Facility Termination Date.

     

    Section
1.2 Increases.  Seller
shall provide the Funding Agents with at least one Business Days’ prior notice
in a form set forth as Exhibit II hereto of
each Incremental Purchase (a “Purchase Notice”),
with a written copy thereof delivered simultaneously to the
Agent.  Each Purchase Notice shall be subject to Section 6.2 hereof
and, except as set forth below, shall be irrevocable and shall specify the
requested Purchase Price (which shall be at least $1,000,000 and integral
multiples of $100,000 in excess thereof) and date of purchase and, in the case
of an Incremental Purchase to be funded by the Committed Purchasers, the
requested Discount Rate and Tranche Period.  Following receipt of a
Purchase Notice, the Funding Agents will determine whether the Relevant Conduits
in their respective Conduit Groups agree to make the
purchase.  Without the prior approval of the Relevant Conduit in each
Conduit Group, Seller shall not request more than three proposed purchases in
any calendar month and, unless approved by each Relevant Conduit in its sole
discretion, any such requests in excess of three in any calendar month shall be
void.  If the Relevant Conduit in a Conduit Group declines to make a
proposed purchase, Seller may cancel the Purchase Notice (with a written copy of
the notice of such cancellation delivered simultaneous to the Agent) or, in the
absence of such a cancellation, the Incremental Purchase of the Purchaser
Interest will be made by the Committed Purchasers in the related Conduit
Group.  On the date of each Incremental Purchase, upon satisfaction of
the applicable conditions precedent set forth in Article VI, each
Funding Agent on behalf of the Relevant Conduit or the Committed Purchasers in
each Conduit Group, as applicable, shall deposit to the Facility Account, in
immediately available funds, no later than 3:00 p.m. (New York time), an amount
equal to (i) in the case of the Relevant Conduit, the relevant Purchase Pro Rata
Share of the aggregate Purchase Price of the Purchaser Interests such Relevant
Conduit is then purchasing or (ii) in the case of a Committed Purchaser, such
Committed Purchaser’s Pro Rata Share of the relevant Purchase Pro Rata Share of
the aggregate Purchase Price of the Purchaser Interests the Committed Purchasers
in the related Conduit Group are purchasing.  A default by a Purchaser
in the performance of its obligations under this Agreement shall not relieve the
other Purchasers of their obligations hereunder.

     

    Section
1.3 Decreases.  Seller
shall provide the Funding Agents with prior written notice in conformity with
the Required Notice Period (a “Reduction Notice”) of
any proposed reduction of Aggregate Capital from Collections, with a copy of
such Reduction Notice delivered simultaneously to the Agent.  Such
Reduction Notice shall designate (i) the date (the “Proposed Reduction
Date”) upon which any such reduction of Aggregate Capital shall occur
(which date shall give effect to the applicable Required Notice Period), and
(ii) the amount of Aggregate Capital to be reduced (the “Aggregate
Reduction”), which shall be applied ratably to the Purchaser Interests of
each Conduit Group in accordance with the amount of Capital (if any) owing to
such Conduit Group (ratably, based on their respective Reduction Pro Rata
Shares).  The Reduction Pro Rata Share of such Aggregate Reduction
with respect to a Conduit Group shall in turn be applied ratably to the
Purchaser Interests of the Conduit(s) and the Committed Purchasers in such
Conduit Group in accordance with the amount of Capital (if any) owing to such
Conduit(s), on the one hand, and the amount of Capital (if any) owing to such
Committed Purchasers (ratably, based on their respective Pro Rata Shares), on
the other hand.  Only one (1) Reduction Notice shall be outstanding at
any time.  No Aggregate Reduction will be made following the
occurrence of the Amortization Date without the consent of the Agent and each
Funding Agent.

     

    Section
1.4 Payment
Requirements.  All
amounts to be paid or deposited by any Seller Party pursuant to any provision of
this Agreement shall be paid or deposited in accordance with the terms hereof no
later than 12:00 p.m. (New York time) on the day when due in immediately
available funds, and if not received before 12:00 p.m. (New York time) shall be
deemed to be received on the next succeeding Business Day.  If such
amounts are payable to a Purchaser they shall be paid to the relevant Funding
Agent, for the account of such Purchaser, at 1251 Avenue of the Americas,
New York, New York 10020 (in the case of a Purchaser in the Conduit Group with
Mizuho Corporate Bank Ltd. as a Funding Agent) or 1251 Avenue of the Americas,
New York, New York 10020 or an account or address designated from time to time
by BTMU (in the case of a Purchaser in the Conduit Group with BTMU as a Funding
Agent), as applicable, until the applicable Seller Party is otherwise notified
in writing by the relevant Funding Agent.  Upon notice to Seller, the
relevant Funding Agent may debit the Facility Account for all relevant amounts
due and payable hereunder.  All computations of Yield, per annum fees
calculated as part of any CP Costs, per annum fees hereunder and per annum fees
under the Fee Letter shall be made on the basis of a year of 360 days for the
actual number of days elapsed.  If any amount hereunder shall be
payable on a day which is not a Business Day, such amount shall be payable on
the next succeeding Business Day.

     

     

    Section
1.5 Restated
Agreement.  Upon
the effectiveness of this Agreement, each reference to the Original Agreement in
any other Transaction Document, and any document, instrument or agreement
executed and/or delivered in connection with the Original Agreement or any other
Transaction Document, shall mean and be a reference to this
Agreement.  The other Transaction Documents and all agreements,
instruments and documents executed or delivered in connection with the Original
Agreement or any other Transaction Document shall each be deemed to be amended
to the extent necessary, if any, to give effect to the provisions of this
Agreement, as the same may be amended, modified, supplemented or restated from
time to time.  The effect of this Agreement is to amend and restate
the Original Agreement in its entirety, and to the extent that any rights,
benefits or provisions in favor of the Agent or any Purchaser existed in the
Original Agreement and continue to exist in this Agreement without any written
waiver of any such rights, benefits or provisions prior to the date hereof, then
such rights, benefits or provisions are acknowledged to be and to continue to be
effective from and after April 4, 2000.  This Agreement is not a
novation.  The parties hereto agree and acknowledge that any and all
rights, remedies and payment provisions under the Original Agreement, including,
without limitation, any and all rights, remedies and payment provisions with
respect to (i) any representation and warranty made or deemed to be made
pursuant to the Original Agreement, or (ii) any indemnification provision, shall
continue and survive the execution and delivery of this
Agreement.  The parties hereto agree and acknowledge that any and all
amounts owing as or for Capital, Yield, CP Costs, fees, expenses or otherwise
under or pursuant to the Original Agreement, immediately prior to the
effectiveness of this Agreement, shall be owing as or for Capital, Yield, CP
Costs, fees, expenses or otherwise, respectively, under or pursuant to this
Agreement.

     

     

    ARTICLE II

     

    PAYMENTS AND
COLLECTIONS

     

    Section
2.1 Payments.  Notwithstanding
any limitation on recourse contained in this Agreement, Seller shall immediately
pay to each Funding Agent (or to an account designated by such Funding Agent)
when due, for the account of the Purchaser or Purchasers in the relevant Conduit
Group on a full recourse basis, (i) such relevant fees as set forth in the Fee
Letter (which fees shall be sufficient to pay all fees owing to the relevant
Committed Purchasers), (ii) all relevant CP Costs, (iii) all relevant amounts
payable as Yield, (iv) all relevant amounts payable as Deemed Collections (which
shall be immediately due and payable by Seller and applied to reduce outstanding
Aggregate Capital hereunder in accordance with Sections 2.2 and
2.3 hereof),
(v) all relevant amounts payable to reduce the Purchaser Interest, if required,
pursuant to Section
2.6, (vi) all relevant amounts payable pursuant to Article X, if any,
(vii) all relevant Servicer costs and expenses, including the Servicing Fee, in
connection with servicing, administering and collecting the Receivables, (viii)
all relevant Broken Funding Costs and (ix) all relevant Default Fees
(collectively, the “Obligations”).  If
any Person fails to pay any of the Obligations when due, such Person agrees to
pay, on demand, the Default Fee in respect thereof until
paid.  Notwithstanding the foregoing, no provision of this Agreement
or the Fee Letter shall require the payment or permit the collection of any
amounts hereunder in excess of the maximum permitted by applicable
law.  If at any time Seller receives any Collections or is deemed to
receive any Collections, Seller shall immediately pay such Collections or Deemed
Collections to Servicer for application in accordance with the terms and
conditions hereof and, at all times prior to such payment, such Collections or
Deemed Collections shall be held in trust by Seller for the exclusive benefit of
the Purchasers and the Funding Agents.

     

    Section
2.2 Collections Prior to
Amortization.  Prior
to the Amortization Date, any Collections and/or Deemed Collections received by
Servicer shall be set aside and held in trust by Servicer for the payment of any
accrued and unpaid Aggregate Unpaids or for a Reinvestment as provided in this
Section
2.2.  If at any time any Collections and/or Deemed Collections
are received by Servicer prior to the Amortization Date, (i) Servicer shall set
aside the Termination Percentage (hereinafter defined) of Collections evidenced
by the Purchaser Interests of each Terminating Committed Purchaser and (ii)
Seller hereby requests and the Purchasers (other than any Terminating Committed
Purchasers) hereby agree to make, simultaneously with such receipt, a
reinvestment (each a “Reinvestment”) with
that portion of the balance of each and every Collection and Deemed Collection
received by Servicer that is part of any Purchaser Interest (other than any
Purchaser Interests of Terminating Committed Purchasers), such that after giving
effect to such Reinvestment, the amount of Capital of such Purchaser Interest
immediately after such receipt and corresponding Reinvestment shall be equal to
the amount of Capital immediately prior to such receipt.  On each
Settlement Date prior to the occurrence of the Amortization Date, Servicer shall
remit to the account of, or designated by, each Funding Agent the relevant
portion of the amounts set aside during the preceding Settlement Period that
have not been subject to a Reinvestment and apply such amounts (if not
previously paid in accordance with Section 2.1) first, to reduce the
relevant unpaid Obligations and second, to reduce the
Capital of all Purchaser Interests of Terminating Committed Purchasers in the
relevant Conduit Group, applied ratably to each Terminating Committed Purchaser
according to its respective Termination Percentage.  If such Capital
and Obligations shall be reduced to zero with respect to the Purchasers in a
Conduit Group, any additional Collections received by Servicer (i) if
applicable, shall be remitted to an account designated by the relevant Funding
Agent no later than 12:00 p.m. (New York time) to the extent required to fund
such Conduit Group’s Reduction Pro Rata Share of any Aggregate Reduction on such
Settlement Date and (ii) any balance remaining thereafter shall be remitted from
Servicer to Seller on such Settlement Date.  Each Terminating
Committed Purchaser shall be allocated a ratable portion of Collections from the
Liquidity Termination Date that such Terminating Committed Purchaser did not
consent to extend (as to such Terminating Committed Purchaser, the “Termination Date”)
until such Terminating Financing Institution’s Capital shall be paid in
full.  This ratable portion shall be calculated on the Termination
Date of each Terminating Committed Purchaser as a percentage equal to (i)
Capital of such Terminating Committed Purchaser outstanding on its Termination
Date, divided
by (ii) the
Aggregate Capital outstanding on such Termination Date (the “Termination
Percentage”).  Each Terminating Committed Purchaser’s
Termination Percentage shall remain constant prior to the Amortization
Date.  On and after the Amortization Date, each Termination Percentage
shall be disregarded, and each Terminating Committed Purchaser’s Capital shall
be reduced ratably with all Committed Purchasers in accordance with Section
2.3.

     

    Section
2.3 Collections Following
Amortization.  On the
Amortization Date and on each day thereafter, Servicer shall set aside and hold
in trust, for the holder of each Purchaser Interest, all Collections received on
such day and an additional amount, from Seller’s assets, for the payment of any
accrued and unpaid Obligations owed by Seller and not previously paid by Seller
in accordance with Section
2.1.  On and after the Amortization Date, Servicer shall, at
any time upon the request from time to time by (or pursuant to standing
instructions from) any Funding Agent (i) remit to an account designated by such
Funding Agent the relevant portion of the amounts set aside pursuant to the
preceding sentence, and (ii) apply such relevant amounts to reduce the Capital
associated with each such Purchaser Interest held by a Purchaser in the relevant
Conduit Group and any other relevant Aggregate Unpaids.

     

    Section
2.4 Application of
Collections.  If
there shall be insufficient funds on deposit for Servicer to distribute funds in
payment in full of the aforementioned amounts pursuant to Section 2.2 or 2.3 (as applicable),
Servicer shall distribute such funds:

     

    first, to the payment
of Servicer’s reasonable out-of-pocket costs and expenses in connection with
servicing, administering and collecting the Receivables , including the
Servicing Fee, if Seller or one of its Affiliates is not then acting as
Servicer,

     

    second, to the
reimbursement of the Agent’s costs of collection and enforcement of this
Agreement,

     

    third, for the
ratable payment of all other unpaid Obligations , provided that to the
extent such Obligations relate to the payment of Servicer costs and expenses,
including the Servicing Fee, when Seller or one of its Affiliates is acting as
Servicer, such costs and expenses will not be paid until after the payment in
full of all other Obligations,

     

    fourth, (to the
extent applicable) to the ratable reduction of the Aggregate Capital (without
regard to any Termination Percentage) and

     

    fifth, after the
Aggregate Unpaids have been indefeasibly reduced to zero, to
Seller.

     

     

    Collections applied
to the payment of Aggregate Unpaids shall be distributed in accordance with the
aforementioned provisions, and, giving effect to each of the priorities set
forth in Section
2.4 above, shall be shared ratably (within each priority) among the Agent
and the Purchasers in accordance with the amount of such Aggregate Unpaids owing
to each of them in respect of each such priority.

     

    Section
2.5 Payment
Recission.  No
payment of any of the Aggregate Unpaids shall be considered paid or applied
hereunder to the extent that, at any time, all or any portion of such payment or
application is rescinded by application of law or judicial authority, or must
otherwise be returned or refunded for any reason.  Seller shall remain
obligated for the amount of any payment or application so rescinded, returned or
refunded, and shall promptly pay to the relevant Funding Agent (for application
to the Person or Persons who suffered such recission, return or refund) the full
amount thereof, plus the related Default Fee from the date of any such
recission, return or refunding.

     

    Section
2.6 Maximum Purchaser
Interests.  Seller
shall ensure that the Purchaser Interests of the Purchasers shall at no time
exceed in the aggregate 100%.  If the aggregate of the Purchaser
Interests of the Purchasers exceeds 100%, Seller shall pay to each Funding Agent
within three (3) Business Days an amount to be applied to reduce its Conduit
Group’s Reduction Pro Rata Shares of the Aggregate Capital, such that after
giving effect to such payment the aggregate of the Purchaser Interests equals or
is less than 100%.

     

    Section
2.7 Clean Up
Call.  In
addition to Seller’s rights pursuant to Section 1.3, Seller
shall have the right (after providing written notice to the Funding Agents (with
a copy thereof to the Agent) in accordance with the Required Notice Period), at
any time following the reduction of the Aggregate Capital to a level that is
less than 100.0% of the original Purchase Limit, to repurchase from the
Purchasers all, but not less than all, of the then outstanding Purchaser
Interests.  The purchase price in respect thereof shall be an amount
equal to the Aggregate Unpaids through the date of such repurchase, payable in
immediately available funds to the Funding Agents.  Such repurchase
shall be without representation, warranty or recourse of any kind by, on the
part of, or against any Purchaser, any Funding Agent or the Agent.

     

     

    ARTICLE III

     

    CONDUIT
FUNDING

     

    Section
3.1 CP Costs.  Seller
shall pay the relevant CP Costs with respect to the Capital associated with each
Purchaser Interest of each Conduit for each day that any Capital in respect of
such Purchaser Interest is outstanding.  Each Purchaser Interest
funded substantially with Pooled Commercial Paper will accrue CP Costs each day
on a pro rata basis, based upon the percentage share the Capital in respect of
such Purchaser Interest represents in relation to all assets held by the
relevant Conduit and funded substantially with its Pooled Commercial
Paper.

     

    Section
3.2 CP Costs
Payments.  On
each Settlement Date, Seller shall pay to each Funding Agent (for the benefit of
the Conduit(s) in the relevant Conduit Group) an aggregate amount in each case
equal to all accrued and unpaid CP Costs in respect of the Capital associated
with all Purchaser Interests of the relevant Conduit(s) in such Conduit Group
for the immediately preceding Accrual Period in accordance with Article
II.

     

    Section
3.3 Calculation of CP
Costs.  On the
tenth calendar day of each month or, if such day is not a Business Day, on the
next succeeding Business Day, each Funding Agent shall calculate the aggregate
amount of the relevant CP Costs for the applicable Accrual Period and shall
notify Seller of such aggregate amount.

     

    ARTICLE IV

     

    COMMITTED PURCHASER
FUNDING

     

    Section
4.1 Committed
Purchaser
Funding.  Each
Committed Purchaser Interest shall accrue Yield for each day during its Tranche
Period at either the LIBO Rate or the Prime Rate in accordance with the terms
and conditions hereof.  Until Seller gives notice to the Agent of
another Discount Rate in accordance with Section 4.4, the
initial Discount Rate for any Committed Purchaser Interest shall be the Prime
Rate.  If any Funding Source acquires by assignment from a Conduit any
Purchaser Interest pursuant to any Funding Agreement, each Purchaser Interest so
assigned shall each be deemed to have a new Tranche Period commencing on the
date of any such assignment and shall accrue Yield for each day during its
Tranche Period at either the LIBO Rate or the Prime Rate in accordance with the
terms and conditions hereof as if each such Purchaser Interest was held by a
Committed Purchaser, and with respect to each such Purchaser Interest, the
assignee thereof shall be deemed to be a Committed Purchaser solely for the
purposes of Sections
4.1, 4.2, 4.3, 4.4 and 4.5.

     

    Section
4.2 Yield
Payments.  On the
Settlement Date for each Committed Purchaser Interest , Seller shall pay to each
Funding Agent (for the benefit of the Committed Purchasers in the relevant
Conduit Group) an aggregate amount equal to the accrued and unpaid Yield for the
entire Tranche Period of each such Purchaser Interest held by a Purchaser in
such Conduit Group in accordance with Article
II.

     

    Section
4.3 Selection and Continuation
of Tranche Periods.

     

    (a) With consultation
from (and approval by) the relevant Funding Agent, Seller shall from time to
time request Tranche Periods for the Committed Purchaser Interests in a Conduit
Group, provided that, if at any time the Committed Purchasers shall have a
Purchaser Interest, Seller shall always request Tranche Periods such that at
least one Tranche Period shall end on the date specified in clause (A) of the
definition of Settlement Date.

     

    (b) Seller or the
relevant Funding Agent, upon notice to and consent by the other received at
least three (3) Business Days prior to the end of a Tranche Period (the “Terminating Tranche”)
for any Purchaser Interest, may, effective on the last day of the Terminating
Tranche:  (i) divide any such Purchaser Interest into multiple
Purchaser Interests, (ii) combine any such Purchaser Interest with one or more
other Purchaser Interests that have a Terminating Tranche ending on the same day
as such Terminating Tranche or (iii) combine any such Purchaser Interest with a
new Purchaser Interests to be purchased on the day such Terminating Tranche
ends, provided,
that in no event may a Purchaser Interest of a Conduit be combined with a
Committed Purchaser Interest or of another Conduit, and in no event may a
Committed Purchaser Interest be combined with a Purchaser Interest of a
Purchaser in a different Conduit Group.

     

    Section
4.4 Committed
Purchaser
Discount Rates.  Seller
may select the LIBO Rate or the Prime Rate for each Committed Purchaser
Interest.  Seller shall by 12:00 p.m. (New York time): (i) at least
three (3) Business Days prior to the expiration of any Terminating Tranche with
respect to which the LIBO Rate is being requested as a new Discount Rate and
(ii) at least one (1) Business Day prior to the expiration of any Terminating
Tranche with respect to which the Prime Rate is being requested as a new
Discount Rate, give the relevant Funding Agent irrevocable notice of the new
Discount Rate for the Purchaser Interest associated with such Terminating
Tranche.  Until Seller gives notice to the relevant Funding Agent of
another Discount Rate, the initial Discount Rate for any Purchaser Interest
transferred to the Committed Purchasers pursuant to the terms and conditions
hereof (or assigned or transferred to any Funding Source or to any other Person)
shall be the Prime Rate.

     

    Section
4.5 Suspension of the LIBO
Rate.  

     

    (a)  If
any Committed Purchaser notifies the relevant Funding Agent and the Agent that
it has determined that funding its Pro Rata Share of the Committed Purchaser
Interest at a LIBO Rate would violate any applicable law, rule, regulation or
directive of any governmental or regulatory authority, whether or not having the
force of law, or that (i) deposits of a type and maturity appropriate to match
fund its Purchaser Interests at such LIBO Rate are not available or (ii) such
LIBO Rate does not accurately reflect the cost of acquiring or maintaining a
Purchaser Interest at such LIBO Rate, then the relevant Funding Agent shall
suspend the availability of such LIBO Rate and require Seller to select the
Prime Rate for any Purchaser Interest accruing Yield at such LIBO
Rate.

     

    (b) If less than all of
the Committed Purchasers give a notice to the relevant Funding Agent
pursuant to Section
4.5(a), each Committed Purchaser which gave such a notice shall be
obliged, at the request of Seller, a Conduit in the same Conduit Group or the
Agent, to assign all of its rights and obligations hereunder to (i) another
Committed Purchaser in the same Conduit Group or (ii) another funding
entity nominated by Seller or the Agent that is acceptable to such Conduit and
willing to participate in this Agreement through the Liquidity Termination Date
in the place of such notifying Committed Purchaser; provided that (i) the
notifying Committed Purchaser receives payment in full, pursuant to an
Assignment Agreement, of an amount equal to such notifying Committed Purchaser’s
Pro Rata Share of the Capital and Yield owing to all of the Committed
Purchasers in the same Conduit Group and all accrued but unpaid fees and
other costs and expenses payable in respect of its Pro Rata Share of the
Purchaser Interests of the Committed Purchasers in the same Conduit Group, and
(ii) the replacement Committed Purchaser otherwise satisfies the requirements of
Section
12.1(b).

     

     

    Section
4.6 Extension of Liquidity Termination
Date.

     

    (a) Seller may request one or more 364-day
extensions of the Liquidity Termination Date then in effect by giving written
notice of such request to the Agent (each such notice an “Extension Notice”) at
least 60 days prior to the Liquidity Termination Date then in
effect.  After the Agent’s receipt of any Extension Notice, the Agent
shall promptly advise each Committed Purchaser of such Extension
Notice.  Each Committed Purchaser may, in its sole discretion, by a
revocable notice (a “Consent Notice”) given
to the Agent on or prior to the 30th day prior to the Liquidity Termination Date
then in effect (such period from the date of the Extension Notice to such 30th
day being referred to herein as the “Consent Period”),
consent to such extension of such Liquidity Termination Date; provided, however, that, except
as provided in Section
4.6(b), such extension shall not be effective with respect to any of the
Committed Purchasers if any one or more Committed Purchasers:  (i)
notifies the Agent during the Consent Period that such Committed Purchaser
either does not wish to consent to such extension or wishes to revoke its prior
Consent Notice or (ii) fails to respond to the Agent within the Consent Period
(each Committed Purchaser that does not wish to consent to such extension or
wishes to revoke its prior Consent Notice or fails to respond to the Agent
within the Consent Period is herein referred to as a “Non-Renewing Committed
Purchaser”).  If none of the events described in the foregoing
clauses (i) or (ii) occurs during the Consent Period and all Consent Notices
have been received, then, the Liquidity Termination Date shall be irrevocably
extended until the date that is 364 days after the Liquidity Termination Date
then in effect.  The Agent shall promptly notify Seller of any
Consent Notice or other notice received by the Agent pursuant to this Section
4.6(a).

     

    (b) Upon receipt of notice from the Agent pursuant
to Section
4.6(a) of any Non-Renewing Committed Purchaser or that the Liquidity
Termination Date has not been extended, one or more of the Committed Purchasers
(including any Non-Renewing Committed Purchaser) may proffer to the Agent and
each Funding Agent the names of one or more institutions meeting the
criteria set forth in Section 12.1(b)(i) that are
willing to accept assignments of and assume the rights and obligations under
this Agreement and the other applicable Transaction Documents of the
Non-Renewing Committed Purchaser.  Provided the proffered name(s) are
acceptable to the Agent and each Funding Agent, the Agent shall notify the
remaining Committed Purchasers of such fact, and the then existing Liquidity
Termination Date shall be extended for an additional 364 days upon satisfaction
of the conditions for an assignment in accordance with Section 12.1 and the
Commitment of each Non-Renewing Committed Purchaser shall be reduced to
zero.  If the rights and obligations under this Agreement and the
other applicable Transaction Documents of each Non-Renewing Committed Purchaser
are not assigned as contemplated by this Section 4.6(b) (each
such Non-Renewing Committed Purchaser whose rights and obligations under this
Agreement and the other applicable Transaction Documents are not so assigned is
herein referred to as a “Terminating Committed Purchaser”) and at
least one Committed Purchaser is not a Non-Renewing Committed Purchaser, the
then existing Liquidity Termination Date shall be extended for an additional 364
days; provided,
however, that
(i) each of the Purchase Limit and the relevant Group Purchase Limit shall be
reduced on the Liquidity Termination Date that such Terminating Committed
Purchaser did not consent to extend by an aggregate amount equal to the
Terminating Commitment Availability as of such date of each Terminating
Committed Purchaser and shall thereafter continue to be reduced by amounts equal
to any reduction in the Capital of any Terminating Committed Purchaser (after
application of Collections pursuant to Sections 2.2 and
2.3) and (ii)
the Commitment of each Terminating Committed Purchaser shall be reduced to zero
on the Termination Date applicable to such Terminating Committed
Purchaser.  Upon reduction to zero of the Capital of all of the
Purchaser Interests of a Terminating Committed Purchaser (after application of
Collections thereto pursuant to Sections 2.2 and
2.3) all rights
and obligations of such Terminating Committed Purchaser hereunder shall be
terminated and such Terminating Committed Purchaser shall no longer be a
“Committed Purchaser”; provided, however, that the
provisions of Article
X shall continue in effect for its benefit with respect to Purchaser
Interests held by such Terminating Committed Purchaser prior to its termination
as a Committed Purchaser.

     

    (c) Any requested extension of the Liquidity
Termination Date may be approved or disapproved by a Committed Purchaser in its
sole discretion.  In the event that the Commitments are not extended
in accordance with the provisions of this Section 4.6, the
Commitment of each Committed Purchaser shall be reduced to zero on the Liquidity
Termination Date.  Upon reduction to zero of the Commitment of a
Committed Purchaser and upon reduction to zero of the Capital of all of the
Committed Purchaser Interests all rights and obligations of such Committed
Purchaser hereunder shall be terminated and such Committed Purchaser shall no
longer be a “Committed Purchaser”; provided, however, that the
provisions of Article
X shall continue in effect for its benefit with respect to Purchaser
Interests held by such Committed Purchaser prior to its termination as a
Committed Purchaser.

     

    ARTICLE V

     

    REPRESENTATIONS AND
WARRANTIES

     

    Section
5.1 Representations and
Warranties of the Seller
Parties.  Each
Seller Party hereby represents and warrants to the Agent, the Funding Agents and
the Purchasers, as to itself, as of the date hereof and as of the date of each
Incremental Purchase and the date of each Reinvestment that:

     

    (a) Corporate Existence and
Power.  Such Seller Party is a corporation duly organized,
validly existing and in good standing under the laws of its state of
incorporation.  Such Seller Party is duly qualified to do business and
is in good standing as a foreign corporation, and has and holds all corporate
power and all governmental licenses, authorizations, consents and approvals
required to carry on its business in each jurisdiction in which its
business is conducted, except where the failure to so qualify or so hold could
not reasonably be expected to have a Material Adverse Effect.

     

    (b) Power and Authority; Due
Authorization, Execution and Delivery.  The execution and
delivery by such Seller Party of this Agreement and each other Transaction
Document to which it is a party, and the performance of its obligations
hereunder and thereunder and, in the case of Seller, Seller’s use of the
proceeds of purchases made hereunder, are within its corporate powers and
authority and have been duly authorized by all necessary corporate action on its
part.  This Agreement and each other Transaction Document to which
such Seller Party is a party has been duly executed and delivered by such Seller
Party.

     

    (c) No
Conflict.  The execution and delivery by such Seller Party of
this Agreement and each other Transaction Document to which it is a party, and
the performance of its obligations hereunder and thereunder do not contravene or
violate (i) its certificate or articles of incorporation or by-laws, (ii) any
law, rule or regulation applicable to it, (iii) any restrictions under any
agreement, contract or instrument to which it is a party or by which it or any
of its property is bound, or (iv) any order, writ, judgment, award,
injunction or decree binding on or affecting it or its property, and do not
result in the creation or imposition of any Adverse Claim on assets of such
Seller Party or its Subsidiaries (except as created hereunder), except, in any
case, where such contravention or violation could not reasonably be expected to
have a Material Adverse Effect; and no transaction contemplated hereby requires
compliance with any bulk sales act or similar law.

     

    (d) Governmental
Authorization.  Other than the filing of the financing
statements required hereunder, no authorization or approval or other action by,
and no notice to or filing with, any governmental authority or regulatory body
is required for the due execution and delivery by such Seller Party of this
Agreement and each other Transaction Document to which it is a party and the
performance of its obligations hereunder and thereunder.

     

    (e) Actions,
Suits.  There are no actions, suits or proceedings pending, or
to the best of such Seller Party’s knowledge, threatened, against or affecting
such Seller Party, or any of its properties, in or before any court, arbitrator
or other body, that could reasonably be expected to have a Material Adverse
Effect.  Such Seller Party is not in default with respect to any order
of any court, arbitrator or governmental body, which default, individually or in
the aggregate, could reasonably be expected to have a Material Adverse
Effect.

     

    (f) Binding
Effect.  This Agreement and each other Transaction Document to
which such Seller Party is a party constitute the legal, valid and binding
obligations of such Seller Party enforceable against such Seller Party in
accordance with their respective terms, except as such enforcement may be
limited by applicable bankruptcy, insolvency, reorganization or other similar
laws relating to or limiting creditors’ rights generally and by general
principles of equity (regardless of whether enforcement is sought in a
proceeding in equity or at law).

     

    (g) Accuracy of
Information.  All information heretofore furnished by such
Seller Party or any of its Affiliates to the Agent or the Purchasers for
purposes of or in connection with this Agreement, any of the other Transaction
Documents or any transaction contemplated hereby or thereby is, and all such
information hereafter furnished by such Seller Party or any of its Affiliates to
the Agent or the Purchasers will be, true and accurate in every material respect
on the date such information is stated or certified and does not and will not
contain any material misstatement of fact or omit to state a material fact or
any fact necessary to make the statements contained therein not
misleading.

     

    (h) Use of
Proceeds.  No proceeds of any purchase hereunder will be used
(i) for a purpose that violates, or would be inconsistent with, Regulation T, U
or X promulgated by the Board of Governors of the Federal Reserve System from
time to time or (ii) to acquire any security in any transaction which is subject
to Section 12, 13 or 14 of the Securities Exchange Act of 1934, as
amended.

     

    (i) Good
Title.  Immediately prior to each purchase hereunder, Seller
shall be the legal and beneficial owner of the Receivables and Related Security
with respect thereto, free and clear of any Adverse Claim, except as created by
the Transaction Documents.  There have been duly filed all financing
statements or other similar instruments or documents necessary under the UCC (or
any comparable law) of all appropriate jurisdictions to perfect Seller’s
ownership interest in each Receivable, its Collections and the Related
Security.

     

    (j) Perfection.  This
Agreement, together with the filing of the financing statements contemplated
hereby, is effective to, and shall, upon each purchase hereunder, transfer to
the Agent for the benefit of the relevant Purchaser or Purchasers (and the Agent
for the benefit of such Purchaser or Purchasers shall acquire from Seller) a
valid and perfected first priority undivided percentage ownership or security
interest in each Receivable existing or hereafter arising and in the Related
Security and Collections with respect thereto, free and clear of any Adverse
Claim, except as created by the Transactions Documents.  There have
been duly filed all financing statements or other similar instruments or
documents necessary under the UCC (or any comparable law) of all appropriate
jurisdictions to perfect the Agent’s (on behalf of the Purchasers) ownership or
security interest in the Receivables, the Related Security and the
Collections.

     

    (k) Places of Business and
Locations of Records.  The principal places of business and
chief executive office of such Seller Party and the offices where it keeps all
of its Records are located at the address(es) listed on Exhibit III or such
other locations of which the Agent has been notified in accordance with Section 7.2(a) in
jurisdictions where all action required by Section 14.4(a) has
been taken and completed.  Such Seller Party’s Federal Employer
Identification Number is correctly set forth on Exhibit
III.

     

    (l) Collections.  The
conditions and requirements set forth in Section 7.1(j) and
Section 8.2
have at all times been satisfied and duly performed.  The names and
addresses of all Collection Banks, together with the account numbers of the
Collection Accounts of Seller at each Collection Bank and the post office box
number of each Lock-Box, are listed on Exhibit
IV.  Seller has not granted any Person, other than the Agent as
contemplated by this Agreement, dominion and control of any Lock-Box or
Collection Account, or the right to take dominion and control of any such
Lock-Box or Collection Account at a future time or upon the occurrence of a
future event.

     

    (m) Material Adverse
Effect.  (i) The initial Servicer represents and warrants that
since December 31, 1999, and the initial Sub-Servicer represents and warrants
that since December 31, 2007, no event has occurred that would have a material
adverse effect on the financial condition or operations of the initial Servicer
and its Subsidiaries or the initial Sub-Servicer and its Subsidiaries, as
applicable, or the ability of the initial Servicer or the initial Sub-Servicer
to perform its obligations under this Agreement, and (ii) Seller represents and
warrants that since the date of this Agreement, no event has occurred that would
have a material adverse effect on (A) the financial condition or operations of
Seller, (B) the ability of Seller to perform its obligations under the
Transaction Documents, or (C) the collectibility of the Receivables generally or
any material portion of the Receivables.

     

    (n) Names.  In
the past five (5) years, Seller has not used any corporate names, trade names or
assumed names other than the name in which it has executed this
Agreement.

     

    (o) Ownership of
Seller.  Originator owns, directly or indirectly, 100% of the
issued and outstanding capital stock of Seller, free and clear of any Adverse
Claim.  Such capital stock is validly issued, fully paid and
nonassessable, and there are no options, warrants or other rights to acquire
securities of Seller.

     

    (p) Not an Investment
Company.  Such Seller Party is not an “investment company”
within the meaning of the Investment Company Act of 1940, as amended, or any
successor statute.

     

    (q) Compliance with
Law.  Such Seller Party has complied in all respects with all
applicable laws, rules, regulations, orders, writs, judgments, injunctions,
decrees or awards to which it may be subject, except where the failure to so
comply could not reasonably be expected to have a Material Adverse
Effect.  Each Receivable, together with the Contract related thereto,
does not contravene any laws, rules or regulations applicable thereto (including, without limitation, laws,
rules and regulations relating to truth in lending, fair credit billing, fair
credit reporting, equal credit opportunity, fair debt collection practices and
privacy), and no part of such Contract is in violation of any such law, rule or
regulation, except where such contravention or violation could not reasonably be
expected to have a Material Adverse Effect.

     

    (r) Compliance with Credit and
Collection Policy.  Such Seller Party has complied in all
material respects with the Credit and Collection Policy with regard to each
Receivable and the related Contract, and has not made any change to such Credit
and Collection Policy, except such material change as to which the Agent has
been notified in accordance with Section
7.1(a)(vii).

     

    (s) Payments to
Originator and
Original Sellers.  With respect to each Receivable transferred
to Seller under the Receivables Sale Agreement, Seller has given reasonably
equivalent value to Originator in consideration therefor and such transfer was
not made for or on account of an antecedent debt.  No transfer by
Originator of any Receivable under the Receivables Sale Agreement is or may be
voidable under any section of the Bankruptcy Reform Act of 1978 (11 U.S.C. §§ 101 et seq.), as
amended.  With respect to each Receivable transferred to Originator
under the Transfer Agreement, Originator has given reasonably equivalent value
to the applicable Original Seller in consideration therefor and such transfer
was not made for or on account of an antecedent debt.  No transfer by
any Original Seller of any Receivable under the Transfer Agreement is or may be
voidable under any section of the Bankruptcy Reform Act of 1978 (11 U.S.C. §§
101 et seq.), as amended.

     

    (t) Enforceability of
Contracts.  Each Contract with respect to each Receivable is
effective to create, and has created, a legal, valid and binding obligation of
the related Obligor to pay the Outstanding Balance of the Receivable created
thereunder and any accrued interest thereon, enforceable against the Obligor in
accordance with its terms, except as such enforcement may be limited by
applicable bankruptcy, insolvency, reorganization or other similar laws relating
to or limiting creditors’ rights generally and by general principles of equity
(regardless of whether enforcement is sought in a proceeding in equity or at
law).

     

    (u) Eligible
Receivables.  Each Receivable included in the Net Receivables
Balance as an Eligible Receivable on the date of its purchase under the
Receivables Sale Agreement was an Eligible Receivable on such purchase
date.

     

    (v) Net Receivables
Balance.  Seller has determined that, immediately after giving
effect to each purchase hereunder, the Net Receivables Balance is at least equal
to the sum of (i) the Aggregate Capital, plus (ii) the
Aggregate Reserves.

     

    (w) Accounting.  The
manner in which such Seller Party accounts for the transactions contemplated by
this Agreement and the Receivables Sale Agreement does not jeopardize the true
sale analysis.

     

    Section
5.2 Committed Purchaser Representations and
Warranties.  Each
Committed Purchaser hereby represents and warrants to the Agent and the
Conduit(s) in the related Conduit Group that:

     

    (a) Existence and
Power.  Such Committed Purchaser is a corporation or a banking
association duly organized, validly existing and in good standing under the laws
of its jurisdiction of incorporation or organization, and has all corporate
power to perform its obligations hereunder.

     

    (b) No
Conflict.  The execution and delivery by such Committed
Purchaser of this Agreement and the performance of its obligations hereunder are
within its corporate powers, have been duly authorized by all necessary
corporate action, do not contravene or violate (i) its certificate or articles
of incorporation or association or by-laws, (ii) any law, rule or regulation
applicable to it, (iii) any restrictions under any agreement, contract or
instrument to which it is a party or any of its property is bound, or (iv) any
order, writ, judgment, award, injunction or decree binding on or affecting it or
its property, and do not result in the creation or imposition of any Adverse
Claim on its assets.  This Agreement has been duly authorized,
executed and delivered by such Committed Purchaser.

     

    (c) Governmental
Authorization.  No authorization or approval or other action
by, and no notice to or filing with, any governmental authority or regulatory
body is required for the due execution and delivery by such Committed Purchaser
of this Agreement and the performance of its obligations hereunder.

     

    (d) Binding
Effect.  This Agreement constitutes the legal, valid and
binding obligation of such Committed Purchaser enforceable against such
Committed Purchaser in accordance with its terms, except as such enforcement may
be limited by applicable bankruptcy, insolvency, reorganization or other similar
laws relating to or limiting creditors’ rights generally and by general
principles of equity (regardless of whether such enforcement is sought in a
proceeding in equity or at law).

     

     

    ARTICLE VI

     

    CONDITIONS OF
PURCHASES

     

    Section
6.1 Conditions Precedent to Initial
Incremental Purchase.  The
initial Incremental Purchase of a Purchaser Interest under this Agreement is
subject to the conditions precedent that the Agent shall have received on or
before the date of such purchase those documents listed on Schedule B that are
required to be delivered on or before such date and the Agent and each Funding
Agent shall have received all fees and expenses required to be paid on such date
pursuant to the terms of this Agreement and the Fee Letter.

     

    Section
6.2 Conditions Precedent to All
Purchases and Reinvestments.  Each
purchase of a Purchaser Interest and each Reinvestment shall be subject to the
further conditions precedent that (a) in the case of each such purchase or
Reinvestment: (i) Servicer shall have delivered to the Agent on or prior to the
date of such purchase, in form and substance satisfactory to the Agent, all
Monthly Reports and Interim Reports as and when due under Section 8.5 and (ii)
upon the Agent’s request, Servicer shall have delivered to the Agent at least
three (3) days prior to such purchase or Reinvestment an interim Monthly Report
showing the amount of Eligible Receivables; (b) the Facility Termination Date
shall not have occurred; (c) the Agent shall have received such other approvals,
opinions or documents as it may reasonably request and (d) on the date of each
such Incremental Purchase or Reinvestment, the following statements shall be
true (and acceptance of the proceeds of such Incremental Purchase or
Reinvestment shall be deemed a representation and warranty by Seller that such
statements are then true):

     

    (i)           the
representations and warranties set forth in Section 5.1 are true
and correct in all material respects on and as of the date of such Incremental
Purchase or Reinvestment as though made on and as of such date;

     

    (ii)           no
event has occurred and is continuing, or would result from such Incremental
Purchase or Reinvestment, that would constitute an Amortization Event or a
Potential Amortization Event; and

     

    (iii)           the
Aggregate Capital does not exceed the Purchase Limit and the aggregate Purchaser
Interests do not exceed 100%.

     

    It
is expressly understood that each Reinvestment shall, unless otherwise directed
by the Agent or any Purchaser, occur automatically on each day that Servicer
shall receive any Collections without the requirement that any further action be
taken on the part of any Person and notwithstanding the failure of Seller to
satisfy any of the foregoing conditions precedent in respect of such
Reinvestment.  The failure of Seller to satisfy any of the foregoing
conditions precedent in respect of any Reinvestment shall give rise to a right
of the Agent, which right may be exercised at any time on demand of the Agent,
to rescind the related purchase and direct Seller to pay to the Funding Agents
for the benefit of the Purchasers in their respective Conduit Groups an
aggregate amount equal to the Collections prior to the Amortization Date that
shall have been applied to the affected Reinvestment.

     

     

    ARTICLE VII

     

    COVENANTS

     

    Section
7.1 Affirmative Covenants of
the Seller
Parties.  Until
the date on which the Aggregate Unpaids have been indefeasibly paid in full and
this Agreement terminates in accordance with its terms, each Seller Party hereby
covenants, as to itself, as set forth below:

     

    (a) Financial
Reporting.  Such Seller Party will maintain, for itself and
each of its Subsidiaries, a system of accounting established and administered in
accordance with GAAP, and furnish or cause to be furnished to the
Agent:

     

    (i) Annual
Reporting.  Within 90 days after the close of each of its
respective fiscal years, audited financial statements (which shall include
balance sheets, statements of income and retained earnings and a statement of
cash flows) for Provider for such fiscal year, together with an unqualified
audit report (in form satisfactory to the Agent) on such financial statements
of, and certified in a manner acceptable to the Agent by, PricewaterhouseCoopers
LLP or other  independent public accountants reasonably acceptable to
the Agent.

     

    (ii) Quarterly
Reporting.  Within 45 days after the close of the first three
(3) quarterly periods of each of its fiscal years, balance sheets of Provider as
at the close of each such period and statements of income and retained earnings
and a statement of cash flows for the Provider for the period from the beginning
of such fiscal year to the end of such quarter, all certified by its chief
financial officer on behalf of the Provider.

     

    (iii) Compliance
Certificate.  Together with the financial statements required
hereunder, a compliance certificate in substantially the form of Exhibit V signed by
such Seller Party’s or Provider’s, as applicable, Authorized Officer on behalf
of such Person and dated the date of such annual financial statement or such
quarterly financial statement, as the case may be.

     

    (iv) Shareholders Statements and
Reports.  Promptly upon the furnishing thereof to the
shareholders of such Seller Party or Provider copies of all financial
statements, reports and proxy statements so furnished.

     

    (v) S.E.C.
Filings.  Promptly upon the filing thereof, copies of all
registration statements (other than registration statements on Form S-8) and
annual, quarterly or other reports which Originator, any Original Seller,
Provider or any of their respective Subsidiaries files with the Securities and
Exchange Commission; provided, that Seller Parties
shall not be required to provide any registration statements or reports which
are available on the EDGAR system of the Securities and Exchange
Commission.

     

    (vi) Copies of
Notices.  Promptly upon its receipt of any notice, request for
consent, financial statements, certification, report or other communication
under or in connection with any Transaction Document from any Person other than
the Agent or Conduit, copies of the same.

     

    (vii) Change in Credit and
Collection Policy.  At least thirty (30) days prior to the
effectiveness of any material change in or material amendment to the Credit and
Collection Policy, a copy of the Credit and Collection Policy then in effect and
a notice (A) indicating such change or amendment, and (B) if such proposed
change or amendment would be reasonably likely to adversely affect the
collectibility of the Receivables or decrease the credit quality of any newly
created Receivables, requesting the Agent’s consent thereto; provided that if such
change or amendment was required pursuant to any change in any applicable law,
rule or regulation, such Seller Party shall only be required to give prompt
notice of such change or amendment and shall not be required to request the
consent of the Agent.

     

    (viii) Other Information.  (A)
Within 45 days after a request from the Agent, internally prepared financial
statements  (which shall include balance sheets, statements of income
and retained earnings and a statement of cash flow) for such Seller Party for
any quarterly period in any fiscal year of such Seller Party, all certified by
its chief financial officer, and (B) promptly, from time to time, such other
information, documents, records or reports relating to the Receivables or the
condition or operations, financial or otherwise, of such Seller Party, any
Original Seller or Provider as the Agent may from time to time reasonably
request in order to protect the interests of the Agent and the Purchasers under
or as contemplated by this Agreement.

     

    (b) Notices.  Such
Seller Party will notify the Agent in writing of any of the following promptly
upon becoming aware of the occurrence thereof, describing the same and, if
applicable, the steps being taken with respect thereto:

     

    (i) Amortization Events or
Potential Amortization Events.  The occurrence of each
Amortization Event and each Potential Amortization Event, by a statement of an
Authorized Officer on behalf of such Seller Party.

     

    (ii) Judgment and
Proceedings.  (A) The entry of any judgment or decree against
Provider or any of its Subsidiaries if the aggregate amount of all judgments and
decrees then outstanding against Provider and its Subsidiaries exceeds
$10,000,000 and (B) the institution of any material  litigation,
arbitration proceeding or governmental proceeding against Provider or any of its
Subsidiaries; and (C) the entry of any judgment or decree or the institution of
any litigation, arbitration proceeding or governmental proceeding against
Seller.

     

    (iii) Material Adverse
Effect.  The occurrence of any event or condition that has had,
or could reasonably be expected to have, a Material Adverse Effect.

     

    (iv) Termination
Date.  The occurrence of (A) the “Termination Date”
under and as defined in the Receivables Sale Agreement and (B) the “Termination
Date” under and as defined in the Transfer Agreement.

     

    (v) Defaults Under Other
Agreements.  (A) The occurrence of a default or an event of
default under any other financing arrangement pursuant to which Seller is a
debtor or an obligor and (B) the occurrence of any default or event of default
under any other financing arrangement or arrangements governing Indebtedness,
individually or in the aggregate, greater than or equal to $30,000,000 pursuant
to which Provider or any of its Subsidiaries is a debtor or an
obligor.

     

    (vi) Downgrade of Originator or
Provider.  Any downgrade in the rating of any Indebtedness of
Originator, any Original Seller or Provider by Standard & Poor’s
Ratings Group or by Moody’s Investors Service, Inc., setting forth the
Indebtedness affected and the nature of such change.

     

    (c) Compliance with
Laws and
Preservation of Corporate Existence.  Such Seller Party will
comply in all respects with all applicable laws, rules, regulations, orders,
writs, judgments, injunctions, decrees or awards to which it may be subject,
except where the failure to so comply could not reasonably be expected to have a
Material Adverse Effect.  Such Seller Party will preserve and maintain
its corporate existence, rights, franchises and privileges in the jurisdiction
of its incorporation, and qualify and remain qualified in good standing as a
foreign corporation in each jurisdiction where its business is conducted, except
where the failure to so preserve and maintain or qualify could not reasonably be
expected to have a Material Adverse Effect.

     

    (d) Audits.  Such
Seller Party will furnish to the Agent from time to time such information with
respect to it, any Original Seller and the Receivables as the Agent may
reasonably request.  Such Seller Party will (and will cause Originator
and each Original Seller to), from time to time during regular business hours as
requested by the Agent upon reasonable notice and at the sole cost of such
Seller Party, permit the Agent, or its agents or representatives, (i) to examine
and make copies of and abstracts from all Records in the possession or under the
control of such Person relating to the Receivables and the Related Security,
including, without limitation, the related Contracts, and (ii) to visit the
offices and properties of such Person for the purpose of examining such
materials described in clause (i) above, and to discuss matters relating to
such Person’s financial condition or the Receivables and the Related Security or
any Person’s performance under any of the Transaction Documents or any Person’s
performance under the Contracts and, in each case, with any of the Authorized
Officers or financial officers of Seller, any Original Seller or Servicer having
knowledge of such matters.  So long as no Potential Amortization Event
or Amortization Event exists, the visits under this Section 7.1(d) that
are at the sole cost of the applicable Seller Party shall be limited to once a
calendar year; and upon the occurrence and during the continuance of a Potential
Amortization Event or an Amortization Event, any and all visits shall be at the
sole cost of the applicable Seller Party.

     

    (e) Keeping and Marking of
Records and Books.

     

    (i) Servicer will (and
will cause Originator and each Original Seller to) maintain and implement
administrative and operating procedures (including, without limitation, an
ability to recreate records evidencing Receivables in the event of the
destruction of the originals thereof), and keep and maintain all documents,
books, records and other information reasonably necessary or advisable for the
collection of all Receivables (including, without limitation, records adequate
to permit the immediate identification of each new Receivable and all
Collections of and adjustments to each existing Receivable).  Servicer
will (and will cause Originator and each Original Seller to) give the Agent
notice of any material change in the administrative and operating procedures
referred to in the previous sentence.

     

    (ii) Such Seller Party
will (and will cause Originator and each Original Seller to) (A) not later
than the date hereof, mark its master data processing records and other books
and records relating to the Purchaser Interests with a legend, acceptable to the
Agent, describing the Purchaser Interests and (B) upon the request of the Agent
(x) mark each Contract with a legend describing the Purchaser Interests and (y)
at any time after the occurrence of a Potential Amortization Event, deliver to
the Agent all Contracts (including, without limitation, all multiple originals
of any such Contract) relating to the Receivables.

     

    (f) Compliance with Contracts
and Credit and
Collection Policy.  Such Seller Party will (and will cause
Originator and each Original Seller to) timely and fully (i) perform and comply
with all provisions, covenants and other promises required to be observed by it
under the Contracts related to the Receivables and (ii) comply in all respects
with the Credit and Collection Policy in regard to each Receivable and the
related Contract.

     

    (g) Performance and Enforcement
of Receivables Sale Agreement.  Seller will, and will require
Originator to, perform each of their respective obligations and undertakings
under and pursuant to the Receivables Sale Agreement, will purchase Receivables
thereunder in strict compliance with the terms thereof and will vigorously
enforce the rights and remedies accorded to Seller under the Receivables Sale
Agreement.  Seller will take all actions to perfect and enforce its
rights and interests (and the rights and interests of the Agent and the
Purchasers as assignees of Seller) under the Receivables Sale Agreement as the
Agent may from time to time reasonably request, including, without limitation, making
claims to which it may be entitled under any indemnity, reimbursement or similar
provision contained in the Receivables Sale Agreement.

     

    (h) Performance and Enforcement
of Transfer
Agreement.  Seller
will require Originator and each Original Seller to perform each of their
respective obligations and undertakings under and pursuant to the Transfer
Agreement, will require that Originator purchase Receivables thereunder in
strict compliance with the terms thereof and will require that Originator
vigorously enforce the rights and remedies accorded to Originator under the
Transfer Agreement.  Seller will require Originator to take all
actions to perfect and enforce Originator’s rights and interests (and the rights
and interests of Seller as assignee of Originator, and the rights and interests
of the Agent and the Purchasers as assignees of Seller) under the Transfer
Agreement as Seller or the Agent may from time to time reasonably request, including, without limitation, making
claims to which it may be entitled under any indemnity, reimbursement or similar
provision contained in the Transfer Agreement.

     

    (i) Ownership by
Seller.  Seller will (or will cause Originator to) take all
necessary action to (i) vest legal and equitable title to the Receivables, the
Related Security and the Collections purchased under the Receivables Sale
Agreement irrevocably in Seller, free and clear of any Adverse Claims other than
Adverse Claims in favor of the Agent and the Purchasers (including, without limitation, the
filing of all financing statements or other similar instruments or documents
necessary under the UCC (or any comparable law) of all appropriate jurisdictions
to perfect Seller’s interest in such Receivables, Related Security and
Collections and such other action to perfect, protect or more fully evidence the
interest of Seller therein as the Agent may reasonably request), and (ii)
establish and maintain, in favor of the Agent, for the benefit of the
Purchasers, a valid and perfected first priority undivided percentage ownership
interest (or a valid and perfected first priority security interest) in all
Receivables, Related Security and Collections to the full extent contemplated
herein, free and clear of any Adverse Claims other than Adverse Claims in favor
of the Agent for the benefit of the Purchasers (including, without limitation, the
filing of all financing statements or other similar instruments or documents
necessary under the UCC (or any comparable law) of all appropriate jurisdictions
to perfect the Agent’s (for the benefit of the Purchasers) interest in such
Receivables, Related Security and Collections and such other action to perfect,
protect or more fully evidence the interest of the Agent for the benefit of the
Purchasers as the Agent may reasonably request).

     

    (j) Ownership by
Originator.  Seller will cause Originator to take all necessary
action to (i) vest legal and equitable title to the Receivables, the Related
Security and the Collections purchased under the Transfer Agreement irrevocably
in Originator, free and clear of any Adverse Claims other than Adverse Claims in
favor of Seller, the Agent and the Purchasers (including, without limitation, the
filing of all financing statements or other similar instruments or documents
necessary under the UCC (or any comparable law) of all appropriate jurisdictions
to perfect Originator’s interest in such Receivables, Related Security and
Collections and such other action to perfect, protect or more fully evidence the
interest of Originator therein as Seller or the Agent may reasonably request),
and (ii) establish and maintain, in favor of Seller and the Agent, for the
benefit of the Purchasers, a valid and perfected first priority undivided
percentage ownership interest (or a valid and perfected first priority security
interest) in all Receivables, Related Security and Collections purchased under
the Transfer Agreement, to the full extent contemplated herein, free and clear
of any Adverse Claims other than Adverse Claims in favor of Seller and the Agent
(for the benefit of the Purchasers) (including, without limitation, the
filing of all financing statements or other similar instruments or documents
necessary under the UCC (or any comparable law) of all appropriate jurisdictions
to perfect Seller’s and the Agent’s (for the benefit of the Purchasers) interest
in such Receivables, Related Security and Collections and such other action to
perfect, protect or more fully evidence the interest of Seller and the Agent,
for the benefit of the Purchasers, as Seller or the Agent may reasonably
request).

     

    (k) Purchasers’
Reliance.  Seller acknowledges that the Purchasers are entering
into the transactions contemplated by this Agreement in reliance upon Seller’s
identity as a legal entity that is separate from Originator and any Original
Seller.  Therefore, from and after April 4, 2000, Seller shall take
all reasonable steps, including, without limitation, all steps that the Agent or
any Purchaser may from time to time reasonably request, to maintain Seller’s
identity as a separate legal entity and to make it manifest to third parties
that Seller is an entity with assets and liabilities distinct from those of
Originator, any Original Seller and any Affiliates thereof and not just a
division of Originator, any Original Seller or any such
Affiliate.  Without limiting the generality of the foregoing and in
addition to the other covenants set forth herein, Seller will:

     

     

    (A) conduct its own
business in its own name and require that all full-time employees of Seller, if
any, identify themselves as such and not as employees of Originator or any
Original Seller (including, without limitation, by means of providing
appropriate employees with business or identification cards identifying such
employees as Seller’s employees);

     

     

    (B) compensate all
employees, consultants and agents directly, from Seller’s own funds, for
services provided to Seller by such employees, consultants and agents and, to
the extent any employee, consultant or agent of Seller is also an employee,
consultant or agent of Originator, any Original Seller or any Affiliate thereof,
allocate the compensation of such employee, consultant or agent between Seller
and Originator, any Original Seller or such Affiliate, as applicable, on a basis
that reflects the services rendered to Seller and Originator, such Original
Seller or such Affiliate, as applicable;

     

     

    (C) clearly identify
its offices (by signage or otherwise) as its offices and, if such office is
located in the offices of Originator or any Original Seller, Seller shall lease
such office at a fair market rent;

     

     

    (D) have a separate
telephone number, which will be answered only in its name and separate
stationery, invoices and checks in its own name;

     

     

    (E) conduct all
transactions with Originator, any Original Seller and Servicer (including,
without limitation, any delegation of its obligations hereunder as Servicer)
strictly on an arm’s-length basis, allocate all overhead expenses (including,
without limitation, telephone and other utility charges) for items shared
between Seller and Originator or any Original Seller on the basis of actual use
to the extent practicable and, to the extent such allocation is not practicable,
on a basis reasonably related to actual use;

     

     

    (F) at all times have a
Board of Directors consisting of three members, at least one member of which is
an Independent Director;

     

     

    (G) observe all
corporate formalities as a distinct entity, and ensure that all corporate
actions relating to (A) the selection, maintenance or replacement of the
Independent Director, (B) the dissolution or liquidation of Seller or (C) the
initiation of, participation in, acquiescence in or consent to any bankruptcy,
insolvency, reorganization or similar proceeding involving Seller, are duly
authorized by unanimous vote of its Board of Directors (including the
Independent Director);

     

     

    (H) maintain Seller’s
books and records separate from those of Originator, any Original Seller and any
Affiliate thereof and otherwise readily identifiable as its own assets rather
than assets of Originator, any Original Seller and any Affiliate
thereof;

     

     

    (I) prepare its
financial statements separately from those of Originator  and any
Original Seller and insure that any consolidated financial statements of
Originator, any Original Seller or any Affiliate thereof that include Seller and
that are filed with the Securities and Exchange Commission or any other
governmental agency have notes clearly stating that Seller is a separate
corporate entity and that its assets will be available first and foremost to
satisfy the claims of the creditors of Seller;

     

     

    (J) except as herein
specifically otherwise provided, maintain the funds or other assets of Seller
separate from, and not commingled with, those of Originator, any Original Seller
or any Affiliate thereof and only maintain bank accounts or other depository
accounts to which Seller alone is the account party;

     

     

    (K) pay all of Seller’s
operating expenses from Seller’s own assets (except for certain payments by
Originator, any Original Seller or other Persons pursuant to allocation
arrangements that comply with the requirements of this Section
7.1(i));

     

     

    (L) operate its
business and activities such that:  it does not engage in any business
or activity of any kind, or enter into any transaction or indenture, mortgage,
instrument, agreement, contract, lease or other undertaking, other than the
transactions contemplated and authorized by this Agreement and the Receivables
Sale Agreement; and does not create, incur, guarantee, assume or suffer to exist
any indebtedness or other liabilities, whether direct or contingent, other than
(1) as a result of the endorsement of negotiable instruments for deposit or
collection or similar transactions in the ordinary course of business, (2) the
incurrence of obligations under this Agreement, (3) the incurrence of
obligations, as expressly contemplated in the Receivables Sale Agreement, to
make payment to Originator thereunder for the purchase of Receivables from
Originator under the Receivables Sale Agreement, and (4) the incurrence of
operating expenses in the ordinary course of business of the type otherwise
contemplated by this Agreement;

     

     

    (M) maintain its
corporate charter in conformity with this Agreement, such that it does not
amend, restate, supplement or otherwise modify its Certificate of Incorporation
or By-Laws in any respect that would impair its ability to comply with the terms
or provisions of any of the Transaction Documents, including, without
limitation, Section
7.1(i) of this Agreement;

     

     

    (N) maintain the
effectiveness of, and continue to perform under the Receivables Sale Agreement,
the Transfer Agreement and the Performance Undertaking, such that it does not
amend, restate, supplement, cancel, terminate or otherwise modify the
Receivables Sale Agreement, the Transfer Agreement or the Performance
Undertaking, or give any consent, waiver, directive or approval thereunder or
waive any default, action, omission or breach under the Receivables Sale
Agreement, the Transfer Agreement or the Performance Undertaking or otherwise
grant any indulgence thereunder, without (in each case) the prior written
consent of the Agent;

     

     

    (O) maintain its
corporate separateness such that it does not merge or consolidate with or into,
or convey, transfer, lease or otherwise dispose of (whether in one transaction
or in a series of transactions, and except as otherwise contemplated herein) all
or substantially all of its assets (whether now owned or hereafter acquired) to,
or acquire all or substantially all of the assets of, any Person, nor at any
time create, have, acquire, maintain or hold any interest in any
Subsidiary.

     

     

    (P) maintain at all
times the Required Capital Amount (as defined in the Receivables Sale Agreement)
and refrain from making any dividend, distribution, redemption of capital stock
or payment of any subordinated indebtedness which would cause the Required
Capital Amount to cease to be so maintained; and

     

     

    (Q) take such other
actions as are necessary on its part to ensure that the facts and assumptions
set forth in the opinions issued by Bryan Cave LLP, as counsel for Seller, in
connection with the Original Agreement, this Agreement or initial Incremental
Purchase under this Agreement and relating to substantive consolidation issues,
and in the certificates accompanying such opinions, remain true and correct in
all material respects at all times.

     

    (l) Collections.  Such
Seller Party will cause (1) all proceeds from all Lock-Boxes to be directly
deposited by a Collection Bank into a Collection Account and (2) each Lock-Box
and Collection Account to be subject at all times to a Collection Account
Agreement that is in full force and effect.  In the event any payments
relating to Receivables are remitted directly to any Seller Party or any
Affiliate of any Seller Party, such Seller Party will remit (or will cause all
such payments to be remitted) directly to a Collection Bank and deposited into a
Collection Account within two (2) Business Days following receipt thereof, and,
at all times prior to such remittance, such Seller Party or Affiliate will
itself hold or, if applicable, will cause such payments to be held in trust for
the exclusive benefit of the Agent and the Purchasers.  Seller will
maintain exclusive ownership, dominion and control (subject to the terms of this
Agreement and the applicable Collection Account Agreement) of each Lock-Box and
Collection Account and shall not grant the right to take dominion and control of
any Lock-Box or Collection Account at a future time or upon the occurrence of a
future event to any Person, except to the Agent as contemplated by this
Agreement.  The Agent may cause the name of the lockbox account number
24234 to be changed to “Playtex Products, Inc., as Sub-Servicer for Energizer
Battery, Inc., in its capacity as Servicer.”

     

    (m) Taxes.  Such
Seller Party will file all tax returns and reports required by law to be filed
by it and will promptly pay all taxes and governmental charges at any time owing
by it.  Seller will pay when due any taxes payable in connection with
the Receivables, exclusive of taxes on or measured by income or gross receipts
of any Conduit, the Agent or any Committed Purchaser.

     

    (n) Insurance.  Seller
will maintain in effect, or cause to be maintained in effect, at Seller’s own
expense, such casualty and liability insurance as Seller shall deem appropriate
in its good faith business judgment.  The Agent, for the benefit of
the Purchasers, shall be named as an additional insured with respect to all such
liability insurance maintained by Seller.  Seller will pay or cause to
be paid, the premiums therefor and deliver to the Agent evidence satisfactory to
the Agent of such insurance coverage.  Evidence of each policy shall
be furnished to the Agent and any Purchaser in certificated form upon the
Agent’s or such Purchaser’s request.  The foregoing requirements shall
not be construed to negate, reduce or modify, and are in addition to, Seller’s
obligations hereunder.

     

    (o) Payment to
Originator and
to any Original Seller.  With respect to any Receivable
purchased by Seller from Originator, such sale shall be effected under, and in
strict compliance with the terms of, the Receivables Sale Agreement, including,
without limitation, the terms relating to the amount and timing of payments to
be made to the Originator in respect of the purchase price for such
Receivable.  With respect to any Receivable purchased by
Originator from any Original Seller, such sale shall be effected under, and in
strict compliance with the terms of, the Transfer Agreement, including, without
limitation, the terms relating to the amount and timing of payments to be made
to the applicable Original Seller in respect of the purchase price for such
Receivable.

     

    (p) Certificates and Lien
Searches.  Within thirty (30) days after the date of this
Agreement or such later date to which the Agent shall agree, the Seller Parties
will deliver (i) a good standing certificate for each Seller Party and Provider
issued by the Secretary of State of each jurisdiction in which it has material
operations and (ii) state tax lien and judgment lien searches against Playtex in
each jurisdiction in which it has material operations.

     

    Section
7.2 Negative Covenants of
the Seller
Parties.  Until
the date on which the Aggregate Unpaids have been indefeasibly paid in full and
this Agreement terminates in accordance with its terms, each Seller Party hereby
covenants, as to itself, that:

     

    (a) Name Change, Offices and
Records.  Such
Seller Party will not change its name, identity or corporate structure (within
the meaning of Section 9-402(7) of any applicable enactment of the UCC) or
relocate its chief executive office or any office where Records are kept unless
it shall have:  (i) given the Agent at least thirty (30) days’ prior
written notice thereof and (ii) delivered to the Agent all financing statements,
instruments and other documents requested by the Agent in connection with such
change or relocation.

     

    (b) Change in Payment
Instructions to Obligors

     

    (c) Except as may be
required by the Agent pursuant to Section 8.2(b), such
Seller Party will not add or terminate any bank as a Collection Bank, or make
any change in the instructions to Obligors regarding payments to be made to any
Lock-Box or Collection Account, unless the Agent shall have received, at least
ten (10) days before the proposed effective date therefor, (i) written notice of
such addition, termination or change and (ii) with respect to the addition of a
Collection Bank or a Collection Account or Lock-Box, an executed Collection
Account Agreement with respect to the new Collection Account or Lock-Box; provided, however, that
Servicer may make changes in instructions to Obligors regarding payments if such
new instructions require such Obligor to make payments to another existing
Collection Account.

     

    (d) Modifications to Contracts
and Credit and Collection Policy

     

    .  Such
Seller Party will not, and will not permit Originator or any Original Seller to,
make any change to the Credit and Collection Policy that could adversely affect
the collectibility of the Receivables or decrease the credit quality of any
newly created Receivables.  Except as provided in Section 8.2(d),
Servicer will not, and will not permit Originator or any Original Seller to,
extend, amend or otherwise modify the terms of any Receivable or any Contract
related thereto other than in accordance with the Credit and Collection
Policy.

     

    (e) Sales, Liens.  Seller
will not sell, assign (by operation of law or otherwise) or otherwise dispose
of, or grant any option with respect to, or create or suffer to exist any
Adverse Claim upon (including, without limitation, the filing of any financing
statement) or with respect to, any Receivable, Related Security or Collections,
or upon or with respect to any Contract under which any Receivable arises, or
any Lock-Box or Collection Account, or assign any right to receive income with
respect thereto (other than, in each case, the creation of the interests therein
in favor of the Agent and the Purchasers provided for herein), and Seller will
defend the right, title and interest of the Agent and the Purchasers in, to and
under any of the foregoing property, against all claims of third parties
claiming through or under Seller or Originator or any Original
Seller.

     

    (e) Net Receivables
Balance.  At no
time prior to the Amortization Date shall Seller permit the Net Receivables
Balance to be less than an amount equal to the sum of (i) the Aggregate Capital
plus (ii) the
Aggregate Reserves.

     

    (f) Termination Date
Determination.  Seller
will not designate the Termination Date (as defined in the Receivables Sale
Agreement), or send any written notice to Originator in respect thereof, without
the prior written consent of the Agent, except with respect to the occurrence of
such Termination Date arising pursuant to Section 5.1(d) of the
Receivables Sale Agreement.  Seller will not permit Originator to
designate the Termination Date (as defined in the Transfer Agreement), or to
send any written notice to any Original Seller in respect thereof, without the
prior written consent of Seller and the Agent, except with respect to the
occurrence of such Termination Date arising pursuant to Section 5.1(d) of the
Transfer Agreement.

     

    (g) Restricted Junior
Payments.  From
and after the occurrence of any Amortization Event, Seller will not make any
Restricted Junior Payment if, after giving effect thereto, Seller would fail to
meet its obligations set forth in Section
7.2(e).

     

     

    ARTICLE VIII

     

    ADMINISTRATION AND
COLLECTION

     

    Section
8.1 Designation of
Servicer.  

     

    (a)  The
servicing, administration and collection of the Receivables shall be conducted
by such Person so designated as “Servicer” from time to time in accordance with
this Section
8.1.  Energizer Battery, Inc. is hereby designated as, and
hereby agrees to perform the duties and obligations of, Servicer pursuant to the
terms of this Agreement.  Upon the occurrence and during the
continuance of a Potential Amortization Event or an Amortization Event, the
Agent may designate as Servicer any Person to succeed Energizer Battery, Inc. or
any successor Servicer as “Servicer” hereunder.  With the prior
written consent of the Agent and upon the assumption of all of the duties and
obligations of “Servicer” hereunder
by a successor Servicer acceptable to the Agent, Energizer Battery, Inc. may
resign as Servicer.

     

    (b) In the ordinary
course of business and with the prior consent of the Agent (which consent shall
not be unreasonably withheld), the Servicer may delegate any of its other duties
or responsibilities as Servicer to any Person who agrees to conduct such duties
or responsibilities in accordance with the Contracts, the Credit and Collection
Policy and this Agreement. The Servicer hereby delegates, and Playtex
hereby assumes, all of Servicer’s duties and responsibilities as Servicer with
respect to the Receivables purchased by Seller from Originator and which
Originator has purchased from Playtex pursuant to the Transfer
Agreement.  Playtex agrees to conduct such duties or responsibilities
in accordance with the Contracts, the Credit and Collections Policy the
Receivables Sale Agreement, the Transfer Agreement and this
Agreement.  The fees of Playtex or any other Person to whom such
duties or responsibilities are delegated shall be for the sole account of
Servicer.  Any delegation shall not relieve Servicer of its duties,
responsibilities or liabilities hereunder and shall not constitute a resignation
under Section
8.1(a).  Any Collections or other amounts due to the Agent or
Purchasers hereunder held by any such delegate shall, for the purposes of this
Agreement, be treated as held by Servicer in trust for the holders of the
Purchaser Interests.  Each agreement by which Servicer delegates any
of its duties or responsibilities to any other Person (including, without
limitation, Seller) shall state that if at any time the Agent shall designate as
Servicer any Person other than such delegating Servicer, all duties and
responsibilities theretofore delegated by such Servicer to such Person may, at
the discretion of the Agent, be terminated forthwith on notice given by the
Agent to such delegating Servicer and such Person.  If Servicer shall
delegate any duties or responsibilities to Seller, Seller shall not be permitted
to further delegate to any other Person any of such duties or
responsibilities.

     

    (c) Notwithstanding the
foregoing subsection (b), (i) Servicer shall be and remain primarily liable to
the Agent and the Purchasers for the full and prompt performance of all duties
and responsibilities of Servicer hereunder and (ii) the Agent and the Purchasers
shall be entitled to deal exclusively with Servicer in matters relating to the
discharge by Servicer of its duties and responsibilities
hereunder.  The Agent and the Purchasers shall not be required to give
notice, demand or other communication to any Person other than Servicer in order
for communication to Servicer and its sub-servicer or other delegate with
respect thereto to be accomplished.  Servicer shall be responsible for
providing any sub-servicer or other delegate of Servicer with any notice given
to Servicer under this Agreement.

     

    Section
8.2 Duties of
Servicer.  

     

    (a)  Servicer
shall take or cause to be taken all such actions as may be necessary or
advisable to collect each Receivable from time to time, all in accordance with
applicable laws, rules and regulations, with reasonable care and diligence, and
in accordance with the Credit and Collection Policy.

     

    (b) Servicer will
instruct all Obligors to pay all Collections directly to a Lock-Box or
Collection Account.  Servicer shall effect a Collection Account
Agreement substantially in the form of Exhibit VI with each
bank maintaining a Collection Account at any time.  In the case of any
remittances received in any Lock-Box or Collection Account that shall have been
identified, to the satisfaction of Servicer, to not constitute Collections or
other proceeds of the Receivables or the Related Security, Servicer shall
promptly remit such items to the Person identified to it as being the owner of
such remittances.  From and after the date the Agent delivers to any
Collection Bank a Collection Notice pursuant to Section 8.3, the
Agent may request that Servicer, and Servicer thereupon promptly shall instruct
all Obligors with respect to the Receivables, to remit all payments thereon to a
new depositary account specified by the Agent and, at all times thereafter,
Seller and Servicer shall not deposit or otherwise credit, and shall not permit
any other Person to deposit or otherwise credit to such new depositary account
any cash or payment item other than Collections.

     

    (c) Servicer shall
administer the Collections in accordance with the procedures described herein
and in Article
II.  Servicer shall set aside and hold in trust for the account
of Seller and the Purchasers their respective shares of the Collections in
accordance with Article
II.  Servicer shall, upon the request of the Agent, segregate,
in a manner acceptable to the Agent, all cash, checks and other instruments
received by it from time to time constituting Collections from the general funds
of Servicer or Seller prior to the remittance thereof in accordance with Article
II.  If Servicer shall be required to segregate Collections
pursuant to the preceding sentence, Servicer shall segregate and deposit with a
bank designated by the Agent such allocable share of Collections of Receivables
set aside for the Purchasers on the first Business Day following receipt by
Servicer of such Collections, duly endorsed or with duly executed instruments of
transfer.

     

    (d) Servicer may, in
accordance with the Credit and Collection Policy, extend the maturity of any
Receivable or adjust the Outstanding Balance of any Receivable as Servicer
determines to be appropriate to maximize Collections thereof; provided, however, that such
extension or adjustment shall not alter the status of such Receivable as a
Delinquent Receivable or Charged-Off Receivable or limit the rights of the Agent
or the Purchasers under this Agreement.  Notwithstanding anything to
the contrary contained herein, the Agent shall have the absolute and unlimited
right to direct Servicer to commence or settle any legal action with respect to
any Receivable or to foreclose upon or repossess any Related
Security.

     

    (e) Servicer shall hold
in trust for Seller and the Purchasers all Records that (i) evidence or relate
to the Receivables, the related Contracts and Related Security or (ii) are
otherwise necessary or desirable to collect the Receivables and shall, as soon
as practicable upon demand of the Agent at any time following a Potential
Amortization Event, deliver or make available to the Agent all such Records, at
a place selected by the Agent.  Servicer shall, as soon as practicable
following receipt thereof turn over to Seller any cash collections or other cash
proceeds received with respect to Indebtedness not constituting Receivables and
belonging to Seller.  Servicer shall, from time to time at the request
of any Purchaser, furnish to the Purchasers (promptly after any such request) a
calculation of the amounts set aside for the Purchasers pursuant to Article
II.

     

    (f) Any payment by an
Obligor in respect of any indebtedness owed by it to Originator, any Original
Seller or Seller shall, except as otherwise specified by such Obligor or
otherwise required by contract or law or unless otherwise permitted by the
Agent, be applied as a Collection of any Receivable of such Obligor (starting
with the oldest such Receivable) to the extent of any amounts then due and
payable thereunder before being applied to any other receivable or other
obligation of such Obligor.

     

    Section
8.3 Collection
Notices.  The
Agent is authorized, at any time during the continuance of a Potential
Amortization Event, to date and to deliver to the Collection Banks the
Collection Notices.  Seller hereby transfers to the Agent for the
benefit of the Purchasers, effective when the Agent delivers such notice, the
exclusive ownership and control of each Lock-Box and the Collection
Accounts.  In case any authorized signatory of Seller whose signature
appears on a Collection Account Agreement shall cease to have such authority
before the delivery of such notice, such Collection Notice shall nevertheless be
valid as if such authority had remained in force.  Seller hereby
authorizes the Agent, and agrees that the Agent shall be entitled to, following
the delivery of the Collection Notices, (i) endorse Seller’s name on checks and
other instruments representing Collections, (ii) enforce the Receivables, the
related Contracts and the Related Security and (iii) take such action as shall
be necessary or desirable to cause all cash, checks and other instruments
constituting Collections of Receivables to come into the possession of the Agent
rather than Seller.

     

    Section
8.4 Responsibilities of
Seller.  Anything
herein to the contrary notwithstanding, the exercise by the Agent and the
Purchasers of their rights hereunder shall not release Servicer, Originator, any
Original Seller or Seller from any of their duties or obligations with respect
to any Receivables or under the related Contracts.  The Purchasers
shall have no obligation or liability with respect to any Receivables or related
Contracts, nor shall any of them be obligated to perform the obligations of
Seller.

     

    Section
8.5 Reports.  Servicer
shall prepare and forward to the Agent and each Funding Agent (i) on the tenth
day of each month and at such times as the Agent shall request, a Monthly Report
and (ii) at such times as the Agent shall request, a listing by Obligor of all
Receivables together with an aging of such Receivables and (iii) on the
twenty-second day of each month and at such times as the Agent shall request, an
Interim Report.

     

    Section
8.6 Servicing
Fees.  In
consideration of Energizer Battery, Inc.’s agreement to act as Servicer
hereunder, the Purchasers hereby agree that, so long as Energizer Battery, Inc.
shall continue to perform as Servicer hereunder, Seller shall pay over to
Energizer Battery, Inc., as compensation for its servicing activities, a fee
(the “Servicing
Fee”) on the first calendar day of each month, in arrears for the
immediately preceding month, at such rate as Energizer Battery, Inc. and Seller
shall agree upon from time to time on fair and reasonable basis and no less
favorable to Energizer Battery, Inc. or Seller than a rate Energizer Battery,
Inc. or Seller could obtain in an arm’s-length transaction for servicing with a
Person other than Energizer Battery, Inc. or Seller.

     

     

    ARTICLE IX

     

    AMORTIZATION
EVENTS

     

    Section
9.1 Amortization
Events.  The
occurrence of any one or more of the following events shall constitute an
Amortization Event:

     

    (a) Any Seller Party
shall fail (i) to make any payment or deposit required hereunder when due, or
(ii) to perform or observe any term, covenant or agreement hereunder (other than
as referred to in clause (i) of this paragraph (a) and paragraph 9.1(e)) and
such failure shall continue for three (3) consecutive Business
Days.

     

    (b) Any representation,
warranty, certification or statement made by any Seller Party or Provider in
this Agreement, any other Transaction Document or in any other document
delivered pursuant hereto or thereto shall prove to have been incorrect when
made or deemed made.

     

    (c) Failure of Seller
to pay any Indebtedness when due or the failure of any other Seller Party or
Provider to pay Indebtedness (other than Indebtedness hereunder), which
individually or together with other such Indebtedness as to which any failure
exists (other than Indebtedness hereunder) has an aggregate outstanding
principal amount equal to or greater than $30,000,000, when due; or the default
by any Seller Party in the performance of any term, provision or condition
contained in any agreement under which any such Indebtedness was created or is
governed, the effect of which is to cause, or to permit the holder or holders of
such Indebtedness to cause, such Indebtedness to become due prior to its stated
maturity; or any such Indebtedness of any Seller Party or Provider shall be
declared to be due and payable or required to be prepaid (other than by a
regularly scheduled payment) prior to the date of maturity thereof.

     

    (d) Any Seller Party,
any Subsidiary of Seller, Provider or any Material Provider Subsidiary shall
generally not pay its debts as such debts become due or shall admit in writing
its inability to pay its debts generally or shall make a general assignment for
the benefit of creditors; or (ii) any proceeding shall be instituted by or
against any Seller Party, any Subsidiary of Seller, Provider or any Material
Provider Subsidiary seeking to adjudicate it bankrupt or insolvent, or seeking
liquidation, winding up, reorganization, arrangement, adjustment, protection,
relief or composition of it or its debts under any law relating to bankruptcy,
insolvency or reorganization or relief of debtors, or seeking the entry of an
order for relief or the appointment of a receiver, trustee or other similar
official for it or any substantial part of its property; provided that in the
event any such proceeding shall have been instituted against such Seller Party,
Subsidiary of Seller, Provider or Material Provider Subsidiary, such proceeding
shall have continued undismissed, or unstayed and in effect, for a period of 60
consecutive days or (iii) any Seller Party, any Subsidiary of Seller, Provider
or any Material Provider Subsidiary shall take any corporate action to authorize
any of the actions set forth in clauses (i) or (ii) above in this subsection
(d).

     

    (e) Seller shall fail
to comply with the terms of Section 2.6
hereof.

     

    (f) As at the end of
(i) any calendar month between and including the months of February and July,
the three month rolling average of the Delinquency Ratio shall exceed 19.0%,
(ii) any calendar month between and including the months of August and January,
the three month rolling average of the Delinquency Ratio shall exceed 16.5%,
(iii) any calendar month, the three month rolling average of the
Loss-to-Liquidation Ratio shall exceed 4.5%, (iv) any calendar month between and
including the months of November and May, the three month rolling average of the
Dilution Ratio shall exceed 25.0%, (v) any calendar month between and including
the months of June and October, the three month rolling average of the Dilution
Ratio shall exceed 32.0%, and (vi) any calendar month, the three month rolling
average of the Payment Rate shall be less than 38.0%.

     

    (g) A Change of Control
with respect to Originator, Provider or any Seller Party shall
occur.

     

    (h) (i) One or more
final judgments for the payment of money shall be entered against Seller or (ii)
one or more final judgments for the payment of money in an amount in excess of
$30,000,000, individually or in the aggregate, shall be entered against Provider
or any of its Subsidiaries on claims not covered by insurance or as to which the
insurance carrier has denied its responsibility, and such judgment shall
continue unsatisfied and in effect for fifteen (15) consecutive days without a
stay of execution.

     

    (i) The “Termination
Date” under and as defined in each of the Receivables Sale Agreement and the
Transfer Agreement shall occur under the Receivables Sale Agreement or the
Transfer Agreement or Originator or any Original Seller shall for any reason
cease to transfer, or cease to have the legal capacity to transfer, or otherwise
be incapable of transferring Receivables to Seller under the Receivables Sale
Agreement or to Originator under the Transfer Agreement, as
applicable.

     

    (j) This Agreement
shall terminate in whole or in part (except in accordance with its terms), or
shall cease to be effective or to be the legally valid, binding and enforceable
obligation of Seller, or any Obligor shall directly or indirectly contest in any
manner such effectiveness, validity, binding nature or enforceability, or the
Agent for the benefit of the Purchasers shall cease to have a valid and
perfected first priority security interest in the Receivables, the Related
Security and the Collections with respect thereto and the Collection
Accounts.

     

    (k) Provider shall fail
to perform or observe any term, covenant or agreement required to be performed
by it under the Performance Undertaking, or the Performance Undertaking shall
cease to be effective or to be the legally valid, binding and enforceable
obligation of Provider, or Provider shall directly or indirectly contest in any
manner such effectiveness, validity, binding nature or
enforceability.

     

    (l) Provider shall fail
to perform or observe the covenants set forth in Section 7.4 of the Term Loan
Credit Agreement dated as of December 3, 2007 among the Provider, the
institutions from time to time parties thereto as Lenders, JPMorgan Chase Bank,
N.A., in its capacity as Administrative Agent, Bank of America, N.A., as
Syndication Agent, and Citibank, N.A., The Bank of Tokyo-Mitsubishi UFJ, Ltd.
and Mizuho Corporate Bank, Ltd., as Documentation Agents.  For the
purposes of this Agreement, such covenants shall survive the termination of such
credit agreement, and any waiver, amendment, restatement, supplement or other
modification thereof shall have no effect.

     

    Section
9.2 Remedies. Upon the
occurrence and during the continuation of an Amortization Event, the Agent may,
or upon the direction of any Funding Agent on behalf of the Committed Purchasers
in its Conduit Groups shall, take any of the following actions: (i) replace
the Person then acting as Servicer, (ii) declare the Amortization Date to have
occurred, whereupon the Amortization Date shall forthwith occur, without demand,
protest or further notice of any kind, all of which are hereby expressly waived
by each Seller Party; provided, however, that upon the occurrence of an
Amortization Event described in Section 9.1(d)(ii),
or of an actual or deemed entry of an order for relief with respect to any
Seller Party under the Federal Bankruptcy Code, the Amortization Date shall
automatically occur, without demand, protest or any notice of any kind, all of
which are hereby expressly waived by each Seller Party, (iii) to the fullest
extent permitted by applicable law, declare that the Default Fee shall accrue
with respect to any of the Aggregate Unpaids outstanding at such time, (iv)
deliver the Collection Notices to the Collection Banks, and (v) notify Obligors
of the Purchasers’ interest in the Receivables.  The aforementioned
rights and remedies shall be without limitation, and shall be in addition to all
other rights and remedies of the Agent, the Funding Agents and the Purchasers
otherwise available under any other provision of this Agreement, by operation of
law, at equity or otherwise, all of which are hereby expressly preserved,
including, without limitation, all rights and remedies provided under the UCC,
all of which rights shall be cumulative.

     

     

    ARTICLE X

     

    INDEMNIFICATION

     

    Section
10.1 Indemnities by the Seller
Parties.  Without
limiting any other rights that the Agent or any Purchaser may have hereunder or
under applicable law, (A) Seller hereby agrees to indemnify (and pay upon demand
to) the Agent, each Funding Agent, each Funding Source and each Purchaser and
their respective assigns, officers, directors, agents and employees (each an
“Indemnified
Party”) from and against any and all damages, losses, claims, taxes,
liabilities, costs, expenses and for all other amounts payable, including
reasonable attorneys’ fees (which attorneys may be employees of the Agent, such
Funding Agent, such Funding Source or such Purchaser) and disbursements (all of
the foregoing being collectively referred to as “Indemnified Amounts”)
awarded against or incurred by any of them arising out of or as a result of this
Agreement or the acquisition, either directly or indirectly, by a Purchaser of
an interest in the Receivables, and (B) Servicer hereby agrees to indemnify (and
pay upon demand to) each Indemnified Party for Indemnified Amounts awarded
against or incurred by any of them arising out of Servicer’s activities as
Servicer hereunder excluding, however, in all of the foregoing instances under
the preceding clauses (A) and (B):

     

    (i) Indemnified Amounts
to the extent a final judgment of a court of competent jurisdiction holds that
such Indemnified Amounts resulted from gross negligence or willful misconduct on
the part of the Indemnified Party seeking indemnification;

     

    (ii) Indemnified Amounts
to the extent the same includes losses in respect of Receivables that are
uncollectible on account of the insolvency, bankruptcy or lack of
creditworthiness of the related Obligor; or

     

    (iii) taxes imposed by
the jurisdiction in which such Indemnified Party’s principal executive office is
located, on or measured by the overall net income of such Indemnified Party to
the extent that the computation of such taxes is consistent with the
characterization for income tax purposes of the acquisition by the Purchasers of
Purchaser Interests as a loan or loans by the Purchasers to Seller secured by
the Receivables, the Related Security, the Collection Accounts and the
Collections;

     

    provided, however, that nothing
contained in this sentence shall limit the liability of any Seller Party or
limit the recourse of the Purchasers to any Seller Party for amounts otherwise
specifically provided to be paid by such Seller Party under the terms of this
Agreement.  Without limiting the generality of the foregoing
indemnification, Seller shall indemnify each Indemnified Party for Indemnified
Amounts (including, without limitation, losses in respect of uncollectible
receivables, regardless of whether reimbursement therefor would constitute
recourse to Seller or Servicer) relating to or resulting from:

     

    (i) any representation
or warranty made by any Seller Party, Provider, Originator, or any Original
Seller (or any officers of any such Person) under or in connection with this
Agreement, any other Transaction Document or any other information or report
delivered by any such Person pursuant hereto or thereto, which shall have been
false or incorrect when made or deemed made;

     

    (ii) the failure by
Seller, Servicer, Provider, Originator, or any Original Seller to comply
with any applicable law, rule or regulation with respect to any Receivable or
Contract related thereto, or the nonconformity of any Receivable or Contract
included therein with any such applicable law, rule or regulation or any failure
of Originator or any Original Seller to keep or perform any of its obligations,
express or implied, with respect to any Contract;

     

    (iii) any failure of
Seller, Servicer, Provider, Originator or any Original Seller to perform
its duties, covenants or other obligations in accordance with the provisions of
this Agreement or any other Transaction Document;

     

    (iv) any products
liability, personal injury or damage suit, or other similar claim arising out of
or in connection with merchandise, insurance or services that are the subject of
any Contract or any Receivable;

     

    (v) any dispute, claim,
offset or defense (other than discharge in bankruptcy of the Obligor) of the
Obligor to the payment of any Receivable (including, without limitation, a
defense based on such Receivable or the related Contract not being a legal,
valid and binding obligation of such Obligor enforceable against it in
accordance with its terms), or any other claim resulting from the sale of the
merchandise or service related to such Receivable or the furnishing or failure
to furnish such merchandise or services;

     

    (vi) the commingling of
Collections of Receivables at any time with other funds;

     

    (vii) any investigation,
litigation or proceeding related to or arising from this Agreement or any other
Transaction Document, the transactions contemplated hereby, the use of the
proceeds of an Incremental Purchase or a Reinvestment, the ownership of the
Purchaser Interests or any other investigation, litigation or proceeding
relating to Seller, Servicer, Provider, Originator or any Original Seller in
which any Indemnified Party becomes involved as a result of any of the
transactions contemplated hereby;

     

    (viii) any inability to
litigate any claim against any Obligor in respect of any Receivable as a result
of such Obligor being immune from civil and commercial law and suit on the
grounds of sovereignty or otherwise from any legal action, suit or
proceeding;

     

    (ix) any Amortization
Event described in Section
9.1(d);

     

    (x) any failure of
Seller to acquire and maintain legal and equitable title to, and ownership of
any Receivable and the Related Security and Collections with respect thereto
from Originator, free and clear of any Adverse Claim (other than as created
hereunder); or any failure of Seller to give reasonably equivalent value to
Originator under the Receivables Sale Agreement in consideration of the transfer
by Originator of any Receivable, or any attempt by any Person to void such
transfer under statutory provisions or common law or equitable
action;

     

    (xi) any failure to vest
and maintain vested in the Agent for the benefit of the Purchasers, or to
transfer to the Agent for the benefit of the Purchasers, legal and equitable
title to, and ownership of, a first priority perfected undivided percentage
ownership interest (to the extent of the Purchaser Interests contemplated
hereunder) or security interest in the Receivables, the Related Security and the
Collections, free and clear of any Adverse Claim (except as created by the
Transaction Documents);

     

    (xii) any failure of
Originator to acquire from any Original Seller and maintain legal and equitable
title to, and ownership of any Receivable and the Related Security and
Collections with respect thereto, free and clear of any Adverse Claim (other
than as created by the Transaction Documents); or any failure of Originator to
give reasonably equivalent value to any Original Seller under the Transfer
Agreement in consideration of the transfer by such Original Seller of any
Receivable, or any attempt by any Person to void such transfer under statutory
provisions or common law or equitable action;

     

    (xiii) the failure to have
filed, or any delay in filing, financing statements or other similar instruments
or documents under the UCC of any applicable jurisdiction or other applicable
laws with respect to any Receivable, the Related Security and Collections with
respect thereto, and the proceeds of any thereof, whether at the time of
any Incremental Purchase or Reinvestment or at any subsequent time;

     

    (xiv) any action or
omission by any Seller Party or Provider which reduces or impairs the rights of
the Agent or the Purchasers with respect to any Receivable or the value of any
such Receivable;

     

    (xv) any attempt by any
Person to void any Incremental Purchase or Reinvestment hereunder under
statutory provisions or common law or equitable action; and

     

    (xvi) the failure of any
Receivable included in the calculation of the Net Receivables Balance as an
Eligible Receivable to be an Eligible Receivable at the time so
included.

     

    Section
10.2 Increased Cost and Reduced
Return.  If
after April 4, 2000, any Funding Source shall be charged any fee, expense or
increased cost on account of the adoption of any applicable law, rule or
regulation (including any applicable law, rule or regulation regarding capital
adequacy), any accounting principles or any change in any of the foregoing, or
any change in the interpretation or administration thereof by the Financial
Accounting Standards Board (“FASB”), any
governmental authority, any central bank or any comparable agency charged with
the interpretation or administration thereof, or compliance with any request or
directive (whether or not having the force of law) of any such authority or
agency (a “Regulatory
Change”): (i) that subjects any Funding Source to any charge or
withholding on or with respect to any Funding Agreement or a Funding Source’s
obligations under a Funding Agreement, or on or with respect to the Receivables,
or changes the basis of taxation of payments to any Funding Source of any
amounts payable under any Funding Agreement (except for changes in the rate of
tax on the overall net income of a Funding Source or taxes excluded by Section 10.1) or (ii)
that imposes, modifies or deems applicable any reserve, assessment, insurance
charge, special deposit or similar requirement against assets of, deposits with
or for the account of a Funding Source, or credit extended by a Funding Source
pursuant to a Funding Agreement or (iii) that imposes any other condition
the result of which is to increase the cost to a Funding Source of performing
its obligations under a Funding Agreement, or to reduce the rate of return on a
Funding Source’s capital as a consequence of its obligations under a Funding
Agreement, or to reduce the amount of any sum received or receivable by a
Funding Source under a Funding Agreement or to require any payment calculated by
reference to the amount of interests or loans held or interest received by it,
then, upon demand by the Agent, Seller shall pay to the relevant Funding Agent,
for the benefit of the relevant Funding Source with respect to such Funding
Agent’s Conduit Group, such amounts charged to such Funding Source or such
amounts to otherwise compensate such Funding Source for such increased cost or
such reduction.  For the avoidance of doubt, if the issuance of FASB
Interpretation No. 46, or any other change in accounting standards or the
issuance of any other pronouncement, release or interpretation, causes or
requires the consolidation of all or a portion of the assets and liabilities of
Company or Seller with the assets and liabilities of the Agent, any Committed
Purchaser or any other Funding Source, such event shall constitute a
circumstance on which such Funding Source may base a claim for reimbursement
under this Section.

     

    Section
10.3 Other Costs and
Expenses.  Seller
shall pay to the Agent, the Funding Agents and each Conduit on demand all
reasonable out-of-pocket costs and expenses in connection with the preparation,
execution, delivery and administration of this Agreement, the transactions
contemplated hereby and the other documents to be delivered hereunder, including
without limitation, the cost of each Conduit’s auditors auditing the books,
records and procedures of Seller, reasonable fees and out-of-pocket expenses of
legal counsel for the Conduits, the Funding Agents and the Agent (which such
counsel may be employees of any Conduit, a Funding Agent or the Agent) with
respect thereto and with respect to advising the Conduits, the Funding Agents
and the Agent as to their respective rights and remedies under this
Agreement.  Seller shall pay to the Agent (in the case of costs and
expenses incurred by the Agent) or the relevant Funding Agent (in the case of
costs and expenses incurred by the Purchasers in the related Conduit Group) on
demand any and all costs and expenses of the Agent and the Purchasers, if any,
including reasonable counsel fees and expenses in connection with the
enforcement of this Agreement and the other documents delivered hereunder and in
connection with any restructuring or workout of this Agreement or such
documents, or the administration of this Agreement following an Amortization
Event.  Seller shall reimburse any Conduit on demand for all other
costs and expenses incurred by such Conduit (“Other Costs”),
including, without limitation, the cost of auditing such Conduit’s books by
certified public accountants, the cost of rating its Commercial Paper by
independent financial rating agencies, and the reasonable fees and out-of-pocket
expenses of counsel for such Conduit or any counsel for any shareholder of such
Conduit with respect to advising such Conduit or such shareholder as to matters
relating to such Conduit’s operations.

     

    Section
10.4 Allocations.  Each
Conduit shall allocate the liability for Other Costs among Seller and other
Persons with whom Conduit has entered into agreements to purchase interests in
receivables (“Other
Sellers”).  If any Other Costs are attributable to Seller and
not attributable to any Other Seller, Seller shall be solely liable for such
Other Costs.  However, if Other Costs are attributable to Other
Sellers and not attributable to Seller, such Other Sellers shall be solely
liable for such Other Costs.  All allocations to be made pursuant to
the foregoing provisions of this Article X shall be made by the relevant Conduit
in its sole discretion on a reasonable basis and shall be binding on Seller and
Servicer.

     

     

    ARTICLE XI

     

    THE
AGENT

     

    Section
11.1 Authorization and
Action.  Each
Purchaser hereby designates and appoints Mizuho Corporate Bank, Ltd. to act as
its agent hereunder and under each other Transaction Document, and authorizes
the Agent to take such actions as agent on its behalf and to exercise such
powers as are delegated to the Agent by the terms of this Agreement and the
other Transaction Documents together with such powers as are reasonably
incidental thereto.  The Agent shall not have any duties or
responsibilities, except those expressly set forth herein or in any other
Transaction Document, or any fiduciary relationship with any Purchaser, and no
implied covenants, functions, responsibilities, duties, obligations or
liabilities on the part of the Agent shall be read into this Agreement or any
other Transaction Document or otherwise exist for the Agent.  In
performing its functions and duties hereunder and under the other Transaction
Documents, the Agent shall act solely as agent for the Purchasers and does not
assume nor shall be deemed to have assumed any obligation or relationship of
trust or agency with or for any Seller Party, any Original Seller or any of such
Seller Party’s or Original Seller’s successors or assigns.  The Agent
shall not be required to take any action that exposes the Agent to personal
liability or that is contrary to this Agreement, any other Transaction Document
or applicable law.  The appointment and authority of the Agent
hereunder shall terminate upon the indefeasible payment in full of all Aggregate
Unpaids.  Each Purchaser hereby authorizes the Agent to execute each
of the Uniform Commercial Code financing statements on behalf of such Purchaser
(the terms of which shall be binding on such Purchaser).

     

    Section
11.2 Delegation of
Duties.  The
Agent may execute any of its duties under this Agreement and each other
Transaction Document by or through agents or attorneys-in-fact and shall be
entitled to advice of counsel concerning all matters pertaining to such
duties.  The Agent shall not be responsible for the negligence or
misconduct of any agents or attorneys-in-fact selected by it with reasonable
care.

     

    Section
11.3 Exculpatory
Provisions.  Neither
the Agent nor any of its directors, officers, agents or employees shall be (i)
liable for any action lawfully taken or omitted to be taken by it or them under
or in connection with this Agreement or any other Transaction Document (except
for its, their or such Person’s own gross negligence or willful misconduct), or
(ii) responsible in any manner to any of the Purchasers for any recitals,
statements, representations or warranties made by any Seller Party, any Original
Seller or Provider contained in this Agreement, any other Transaction Document
or any certificate, report, statement or other document referred to or provided
for in, or received under or in connection with, this Agreement, or any other
Transaction Document or for the value, validity, effectiveness, genuineness,
enforceability or sufficiency of this Agreement, or any other Transaction
Document or any other document furnished in connection herewith or therewith, or
for any failure of any Seller Party, any Original Seller or Provider to perform
its obligations hereunder or thereunder, or for the satisfaction of any
condition specified in Article VI, or for the perfection, priority, condition,
value or sufficiency of any collateral pledged in connection
herewith.  The Agent shall not be under any obligation to any
Purchaser to ascertain or to inquire as to the observance or performance of any
of the agreements or covenants contained in, or conditions of, this Agreement or
any other Transaction Document, or to inspect the properties, books or records
of the Seller Parties, the Original Sellers or Provider.  The Agent
shall not be deemed to have knowledge of any Amortization Event or Potential
Amortization Event unless the Agent has received notice from Seller or a
Purchaser.

     

    Section
11.4 Reliance by
Agent.  The
Agent shall in all cases be entitled to rely, and shall be fully protected in
relying, upon any document or conversation believed by it to be genuine and
correct and to have been signed, sent or made by the proper Person or Persons
and upon advice and statements of legal counsel (including, without limitation,
counsel to Seller), independent accountants and other experts selected by the
Agent.  The Agent shall in all cases be fully justified in failing or
refusing to take any action under this Agreement or any other Transaction
Document unless it shall first receive such advice or concurrence of the Funding
Agents on behalf of the Committed Purchasers in their respective Conduit Groups
or all of the Purchasers, as applicable, as it deems appropriate and it shall
first be indemnified to its satisfaction by the Purchasers, provided that unless
and until the Agent shall have received such advice, the Agent may take or
refrain from taking any action, as the Agent shall deem advisable and in the
best interests of the Purchasers.  The Agent shall in all cases be
fully protected in acting, or in refraining from acting, in accordance with a
request of all Funding Agents on behalf of the Committed Purchasers in their
respective Conduit Groups or all of the Purchasers, as applicable, and such
request and any action taken or failure to act pursuant thereto shall be binding
upon all the Purchasers.

     

    Section
11.5 Non-Reliance on
Agent and Other
Purchasers.  Each
Purchaser expressly acknowledges that neither the Agent, nor any of its
officers, directors, employees, agents, attorneys-in-fact or affiliates has made
any representations or warranties to it and that no act by the Agent hereafter
taken, including, without limitation, any review of the affairs of any Seller
Party, any Original Seller or Provider, shall be deemed to constitute any
representation or warranty by the Agent.  Each Purchaser represents
and warrants to the Agent that it has and will, independently and without
reliance upon the Agent or any other Purchaser and based on such documents and
information as it has deemed appropriate, made its own appraisal of and
investigation into the business, operations, property, prospects, financial and
other conditions and creditworthiness of Seller and made its own decision to
enter into this Agreement, the other Transaction Documents and all other
documents related hereto or thereto.

     

    Section
11.6 Reimbursement and
Indemnification.  The
Committed Purchasers agree to reimburse and indemnify the Agent and its
officers, directors, employees, representatives and agents ratably according to
their Pro Rata Shares and the Purchase Pro Rata Shares of their respective
Conduit Groups, to the extent not paid or reimbursed by the Seller Parties (i)
for any amounts for which the Agent, acting in its capacity as Agent, is
entitled to reimbursement by the Seller Parties hereunder and (ii) for any other
expenses incurred by the Agent, in its capacity as Agent and acting on behalf of
the Purchasers, in connection with the administration and enforcement of this
Agreement and the other Transaction Documents.

     

    Section
11.7 Agent in its Individual
Capacity.  The
Agent and its Affiliates may make loans to, accept deposits from and generally
engage in any kind of business with Seller or any Affiliate of Seller as though
the Agent were not the Agent hereunder.  With respect to the
acquisition of Purchaser Interests pursuant to this Agreement, the Agent shall
have the same rights and powers under this Agreement in its individual capacity
as any Purchaser and may exercise the same as though it were not the Agent, and
the terms “Committed Purchaser,” “Purchaser, “ “Committed Purchasers” and
“Purchasers” shall include the Agent in its individual capacity.

     

    Section
11.8 Successor
Agent.  The
Agent may, upon thirty days’ notice to Seller and the Purchasers, and the Agent
will, upon the direction of all of the Purchasers (other than the Agent, in its
individual capacity) resign as Agent.  If the Agent shall resign, then
the Funding Agents, acting on behalf of the Committed Purchasers in their
respective Conduit Groups, during such thirty-day period shall collectively
appoint from among the Purchasers a successor agent.  If for any
reason no successor Agent is collectively appointed by the Funding Agents,
acting on behalf of the Committed Purchasers in their respective Conduit Groups,
during such thirty-day period, then effective upon the termination of such
thirty-day period, the Purchasers shall perform all of the duties of the Agent
hereunder and under the other Transaction Documents and Seller and Servicer (as
applicable) shall make all payments in respect of the Aggregate Unpaids directly
to the applicable Purchasers and for all purposes shall deal directly with the
Purchasers.  After the effectiveness of any retiring Agent’s
resignation hereunder as Agent, the retiring Agent shall be discharged from its
duties and obligations hereunder and under the other Transaction Documents and
the provisions of this Article XI and Article X shall
continue in effect for its benefit with respect to any actions taken or omitted
to be taken by it while it was Agent under this Agreement and under the other
Transaction Documents.

     

     

    ARTICLE XII

     

    ASSIGNMENTS;
PARTICIPATIONS

     

    Section
12.1 Assignments.  

     

    (a)  Seller,
Servicer, Agent and each Committed Purchaser hereby agree and consent to the
complete or partial assignment by a Conduit of all or any portion of its rights
under, interest in, title to and obligations under this Agreement to any Funding
Source or, with the consent of the Seller (which consent shall not be
unreasonably withheld), to any other Person, and upon such assignment, such
Conduit shall be released from its obligations so assigned.  Further,
Seller, Servicer, the Agent and each Committed Purchaser hereby agree that any
assignee of such Conduit of this Agreement or all or any of the Purchaser
Interests of such Conduit shall have all of the rights and benefits under this
Agreement as if the terms _________________________, and/or “Conduit,” as
applicable, explicitly referred to such party (provided that the Purchaser
Interests of any such assignee shall accrue Yield pursuant to Section 4.1), and
no such assignment shall in any way impair the rights and benefits of such
Conduit hereunder.  Neither Seller nor Servicer shall have the right
to assign its rights or obligations under this Agreement.

     

    (b) Any Committed
Purchaser may at any time and from time to time assign to one or more Persons
(“Purchasing
Committed
Purchasers”) all or any part of its rights and obligations under this
Agreement pursuant to an assignment agreement, substantially in the form set
forth in Exhibit
VII hereto (the “Assignment
Agreement”) executed by such Purchasing Committed Purchaser and such
selling Committed Purchaser.  The consent of each Conduit shall be
required prior to the effectiveness of any such assignment; and, in the event of
any such assignment by any Committed Purchaser, other than to an Affiliate of
such Committed Purchaser, another Committed Purchaser or an Affiliate of another
Committed Purchaser, the consent of Seller (which consent shall not be
unreasonably withheld) shall be required prior to the effectiveness of any such
assignment.  Each assignee of a Committed Purchaser must (i) have a
short-term debt rating of A-1 or better by Standard & Poor’s Ratings Group
and P-1 by Moody’s Investor Service, Inc. and (ii) agree to deliver to the
Agent, promptly following any request therefor by the Agent or any Conduit, an
enforceability opinion in form and substance satisfactory to the Agent and such
Conduit.  Upon delivery of the executed Assignment Agreement to the
Agent, such selling Committed Purchaser shall be released from its obligations
hereunder to the extent of such assignment.  Thereafter the Purchasing
Committed Purchaser shall for all purposes be a Committed Purchaser party to
this Agreement and shall have all the rights and obligations of a Committed
Purchaser under this Agreement to the same extent as if it were an original
party hereto and no further consent or action by Seller, the Purchasers or the
Agent shall be required.

     

    (c) Each of the
Committed Purchasers agrees that in the event that it shall cease to have a
short-term debt rating of A-1 or better by Standard & Poor’s Ratings Group
and P-1 by Moody’s Investor Service, Inc. (an “Affected Committed
Purchaser”), such Affected Committed Purchaser shall be obliged, at the
request of any Conduit or the Agent, to assign all of its rights and obligations
hereunder to (x) another Committed Purchaser or (y) another funding entity
nominated by the Agent and acceptable to such Conduit, and willing to
participate in this Agreement through the Liquidity Termination Date in the
place of such Affected Committed Purchaser; provided that the
Affected Committed Purchaser (or the relevant Funding Agent on behalf of the
Affected Committed Purchaser) receives payment in full, pursuant to an
Assignment Agreement, of an amount equal to such Committed Purchaser’s Pro Rata
Share of the Capital and Yield owing to the Committed Purchasers in the same
Conduit Group and all accrued but unpaid fees and other costs and expenses
payable in respect of its Pro Rata Share of the Purchaser Interests of
such Committed Purchasers.

     

    Section
12.2 Participations.  Any
Committed Purchaser may, in the ordinary course of its business at any time sell
to one or more Persons (each a “Participant”)
participating interests in its Pro Rata Share of the Purchaser Interests of the
Committed Purchasers in the same Conduit Group, its obligation hereunder or any
other interest of such Committed Purchaser hereunder.  Notwithstanding
any such sale by a Committed Purchaser of a participating interest to a
Participant, such Committed Purchaser’s rights and obligations under this
Agreement shall remain unchanged, such Committed Purchaser shall remain solely
responsible for the performance of its obligations hereunder, and Seller, each
Conduit, the relevant Funding Agent and the Agent shall continue to deal solely
and directly with such Committed Purchaser in connection with such Committed
Purchaser’s rights and obligations under this Agreement.  Each
Committed Purchaser agrees that any agreement between such Committed Purchaser
and any such Participant in respect of such participating interest shall not
restrict such Committed Purchaser’s right to agree to any amendment, supplement,
waiver or modification to this Agreement, except for any amendment, supplement,
waiver or modification described in Section
14.1(b)(i).

     

     

    ARTICLE XIII

    {RESERVED}

     

     

    ARTICLE XIV

     

    MISCELLANEOUS

     

    Section
14.1 Waivers and
Amendments.  

     

    (a)  No
failure or delay on the part of the Agent or any Purchaser in exercising any
power, right or remedy under this Agreement shall operate as a waiver thereof,
nor shall any single or partial exercise of any such power, right or remedy
preclude any other further exercise thereof or the exercise of any other power,
right or remedy.  The rights and remedies herein provided shall be
cumulative and nonexclusive of any rights or remedies provided by
law.  Any waiver of this Agreement shall be effective only in the
specific instance and for the specific purpose for which given.

     

    (b) No provision of
this Agreement may be amended, supplemented, modified or waived except in
writing in accordance with the provisions of this Section
14.1(b).  Each Conduit, Seller, the Funding Agents and the
Agent, at the direction of all Funding Agents on behalf of the Committed
Purchasers in their respective Conduit Groups, may enter into written
modifications or waivers of any provisions of this Agreement, provided, however, that no such
modification or waiver shall:

     

    (i) without the consent
of each affected Purchaser, (A) extend the Liquidity Termination Date or the
date of any payment or deposit of Collections by Seller or Servicer, (B) reduce
the rate or extend the time of payment of Yield or any CP Costs (or any
component of Yield or CP Costs), (C) reduce any fee payable to the Agent for the
benefit of the Purchasers, (D) except pursuant to Article XII hereof,
change the amount of the Capital of any Purchaser, any Committed Purchaser’s Pro
Rata Share (other than, to the extent applicable in each case, pursuant to Section 4.6 or the
terms of any other Funding Agreement), any Conduit Group’s Purchase Pro Rata
Share (other than, to the extent applicable, pursuant to Section 4.6) or Reduction Pro
Rata Share or any Committed Purchaser’s Commitment, (E) amend, modify or waive
any provision of Section 4.6 or this
Section 14.1(b)
or any provision relating to the number of Conduits or Conduit Groups required
to take any action under or waive any provision in this Agreement, (F)
consent to or permit the assignment or transfer by Seller of any of its rights
and obligations under this Agreement, (G) change the definition of “Eligible
Receivable, “ “Loss Reserve, “ “Loss-to-Liquidation Ratio, “ or
“Loss Percentage” or (H) amend or modify any defined term (or any defined term
used directly or indirectly in such defined term) used in clauses (A) through
(G) above in a manner that would circumvent the intention of the restrictions
set forth in such clauses;

     

    (ii) without the written
consent of the then Agent, amend, modify or waive any provision of this
Agreement if the effect thereof is to affect the rights or duties of such Agent;
or

     

    (iii) without the written
consent of the then Servicer, amend, modify or waive any provision of Article VIII if the
effect thereof is to affect the rights or duties of such Servicer.

     

    Notwithstanding the
foregoing, (i) without the consent of the Committed Purchasers, but with the
consent of Seller, the Agent may amend this Agreement solely to add additional
Persons as Committed Purchasers hereunder; (ii) the Agent, the Funding Agents on
behalf of the Committed Purchasers in their respective Conduit Groups and each
Conduit may enter into amendments to modify any of the terms or provisions of
Article XI,
Article XII,
Section 14.13
or any other provision of this Agreement without the consent of Seller, provided
that such amendment has no negative impact upon Seller.  Any
modification or waiver made in accordance with this Section 14.1 shall
apply to each of the Purchasers equally and shall be binding upon Seller, the
Purchasers, the Funding Agents and the Agent; and (iii) the Agent, acting upon
the direction of both Funding Agents on behalf of the Committed Purchasers in
their respective Conduit Groups, may waive the occurrence of an Amortization
Event.

     

    Section
14.2 Notices.  Except
as provided in this Section 14.2, all
communications and notices provided for hereunder shall be in writing (including
bank wire, telecopy or electronic facsimile transmission or similar writing) and
shall be given to the other parties hereto at their respective addresses or
telecopy numbers set forth on the signature pages hereof or at such other
address or telecopy number as such Person may hereafter specify for the purpose
of notice to each of the other parties hereto.  Each such notice or
other communication shall be effective  if given by telecopy, upon the
receipt thereof,  if given by mail, three (3) Business Days after the time
such communication is deposited in the mail with first class postage prepaid or
 if given by any other means, when received at the address specified in
this Section
14.2.  Seller hereby authorizes the Agent and the Funding
Agents to effect purchases and Tranche Period and Discount Rate selections, as
applicable, based on telephonic notices made by any Person whom the Agent or the
relevant Funding Agent, as applicable, in good faith believes to be acting on
behalf of Seller.  Seller agrees to deliver promptly to the Agent or
the relevant Funding Agent, as applicable, a written confirmation of each
telephonic notice signed by an authorized officer of Seller; provided, however, the absence
of such confirmation shall not affect the validity of such notice.  If
the written confirmation differs from the action taken by the Agent or the
relevant Funding Agent, as applicable, the records of the Agent or such Funding
Agent, as applicable, shall govern absent manifest error.

     

    Section
14.3 Ratable
Payments.  If any
Purchaser, whether by setoff or otherwise, has payment made to it with respect
to any portion of the Aggregate Unpaids owing to such Purchaser (other than
payments received pursuant to Section 10.2 or 10.3) in a greater
proportion than that received by any other Purchaser entitled to receive a
ratable share of such Aggregate Unpaids, such Purchaser agrees, promptly upon
demand, to purchase for cash without recourse or warranty a portion of such
Aggregate Unpaids held by the other Purchasers so that after such purchase each
Purchaser will hold its ratable proportion of such Aggregate Unpaids; provided that if all
or any portion of such excess amount is thereafter recovered from such
Purchaser, such purchase shall be rescinded and the purchase price restored to
the extent of such recovery, but without interest.

     

    Section
14.4 Protection of Ownership
Interests of the Purchasers.  

     

    (a)  Seller
agrees that from time to time, at its expense, it will promptly execute and
deliver all instruments and documents, and take all actions, that may be
necessary or desirable, or that the Agent may request, to perfect, protect or
more fully evidence the Purchaser Interests, or to enable the Agent or the
Purchasers to exercise and enforce their rights and remedies
hereunder.  At any time upon the occurrence and during the continuance
of a Potential Amortization Event, the Agent may, or the Agent may direct Seller
or Servicer to, notify the Obligors of Receivables, at Seller’s expense, of the
ownership or security interests of the Purchasers under this Agreement and may
also direct that payments of all amounts due or that become due under any or all
Receivables be made directly to the Funding Agents or a designee
thereof.  Seller or Servicer (as applicable) shall, at any Purchaser’s
request, withhold the identity of such Purchaser in any such
notification.

     

    (b) If any Seller Party
fails to perform any of its obligations hereunder, the Agent or any Purchaser
may (but shall not be required to) perform, or cause performance of, such
obligations, and the Agent’s or such Purchaser’s reasonable costs and expenses
incurred in connection therewith shall be payable by Seller as provided in Section
10.3.  Each Seller Party irrevocably authorizes the Agent at
any time and from time to time in the sole discretion of the Agent, and appoints
the Agent as its attorney-in-fact, to act on behalf of such Seller Party (i) to
execute on behalf of Seller as debtor and to file financing statements necessary
or desirable in the Agent’s sole discretion to perfect and to maintain the
perfection and priority of the interest of the Purchasers in the Receivables and
(ii) to file a carbon, photographic or other reproduction of this Agreement or
any financing statement with respect to the Receivables as a financing statement
in such offices as the Agent in its sole discretion deems necessary or desirable
to perfect and to maintain the perfection and priority of the interests of the
Purchasers in the Receivables.  This appointment is coupled with an
interest and is irrevocable.

     

    Section
14.5 Confidentiality.  

     

    (a)  Each
Seller Party, each Funding Agent, the Agent and each Purchaser shall maintain
and shall cause each of its employees and officers to maintain the
confidentiality of the Transaction Documents and the other confidential or
proprietary information with respect to the other parties hereto and their
respective businesses obtained by it or them in connection with the structuring,
negotiating and execution of the transactions contemplated herein, except that
such Seller Party, such Funding Agent, the Agent and such Purchaser and its
officers and employees may disclose such information to such Person’s external
accountants and attorneys and as required by any applicable law or order of any
judicial or administrative proceeding.  Anything herein to the
contrary notwithstanding, each Seller Party, each Purchaser, each Funding Agent
and the Agent, each Indemnified Party and any successor or assign of any of the
foregoing (and each employee, representative or other agent of any of the
foregoing) may disclose to any and all Persons, without limitation of any kind,
the “tax treatment” and “tax structure” (in each case, within the meaning of
Treasury Regulation Section 1.6011-4) of the transactions contemplated herein
and all materials of any kind (including opinions or other tax analyses) that
are or have been provided to any of the foregoing relating to such tax treatment
or tax structure, and it is hereby confirmed that each of the foregoing have
been so authorized since the commencement of discussions regarding the
transactions.

     

    (b) Anything herein to
the contrary notwithstanding, each Seller Party hereby consents to the
disclosure of any nonpublic information with respect to it (i) to the Agent, the
Funding Agents, the Committed Purchasers or the Conduits by each other, (ii) by
the Agent, the Funding Agents or the Purchasers to any prospective or actual
assignee or participant of any of them and (iii) by the Agent or a Conduit to
any rating agency, Commercial Paper dealer, any Funding Source or other provider
of a surety, guaranty or credit or liquidity enhancement to a Conduit or any
entity organized for the purpose of purchasing, or making loans secured by,
financial assets for which Mizuho Corporate Bank, Ltd. or BTMU acts as the
administrative agent and to any officers, directors, employees, outside
accountants and attorneys of any of the foregoing.  In addition, the
Purchasers, the Funding Agents and the Agent may disclose any such nonpublic
information pursuant to any law, rule, regulation, direction, request or order
of any judicial, administrative or regulatory authority or proceedings (whether
or not having the force or effect of law).

     

    Section
14.6 Bankruptcy
Petition.  Seller,
Servicer, the Funding Agents, the Agent and each Committed Purchaser hereby
covenant and agree that, prior to the date that is one year and one day after
the payment in full of all outstanding senior indebtedness of a Conduit
(and ________ in its capacity as Committed Purchaser), it will not
institute against, or join any other Person in instituting against, such Conduit
any bankruptcy, reorganization, arrangement, insolvency or liquidation
proceedings or other similar proceeding under the laws of the United States or
any state of the United States.

     

    Section
14.7 Limitation of
Liability.  Except
with respect to any claim arising out of the willful misconduct or gross
negligence of a Conduit, a Funding Agent, the Agent or any Committed Purchaser,
no claim may be made by any Seller Party or any other Person against a Conduit,
a Funding Agent, the Agent or any Committed Purchaser or their respective
Affiliates, directors, officers, employees, attorneys or agents for any special,
indirect, consequential or punitive damages in respect of any claim for breach
of contract or any other theory of liability arising out of or related to the
transactions contemplated by this Agreement, or any act, omission or event
occurring in connection therewith; and each Seller Party hereby waives,
releases, and agrees not to sue upon any claim for any such damages, whether or
not accrued and whether or not known or suspected to exist in its
favor.

     

    Section
14.8 CHOICE OF
LAW.  THIS
AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL
LAWS (AND NOT THE LAW OF CONFLICTS) OF THE STATE OF NEW YORK.

     

    Section
14.9 CONSENT TO
JURISDICTION.  EACH
SELLER PARTY HEREBY IRREVOCABLY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF ANY
UNITED STATES FEDERAL OR NEW YORK STATE COURT SITTING IN THE BOROUGH OF
MANHATTAN, NEW YORK, NEW YORK IN ANY ACTION OR PROCEEDING ARISING OUT OF OR
RELATING TO THIS AGREEMENT OR ANY DOCUMENT EXECUTED BY SUCH PERSON PURSUANT TO
THIS AGREEMENT, AND EACH SELLER PARTY HEREBY IRREVOCABLY AGREES THAT ALL CLAIMS
IN RESPECT OF SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN ANY SUCH
COURT AND IRREVOCABLY WAIVES ANY OBJECTION IT MAY NOW OR HEREAFTER HAVE AS TO
THE VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN SUCH A COURT OR THAT
SUCH COURT IS AN INCONVENIENT FORUM.  NOTHING HEREIN SHALL LIMIT THE
RIGHT OF THE AGENT OR ANY PURCHASER TO BRING PROCEEDINGS AGAINST ANY SELLER
PARTY IN THE COURTS OF ANY OTHER JURISDICTION.  ANY JUDICIAL
PROCEEDING BY ANY SELLER PARTY AGAINST THE AGENT OR ANY PURCHASER OR ANY
AFFILIATE OF THE AGENT OR ANY PURCHASER INVOLVING, DIRECTLY OR INDIRECTLY, ANY
MATTER IN ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTED WITH THIS AGREEMENT
OR ANY DOCUMENT EXECUTED BY SUCH SELLER PARTY PURSUANT TO THIS AGREEMENT SHALL
BE BROUGHT ONLY IN A COURT IN THE BOROUGH OF MANHATTAN, NEW YORK, NEW
YORK.

     

    Section
14.10 WAIVER OF JURY
TRIAL.  EACH
PARTY HERETO HEREBY WAIVES TRIAL BY JURY IN ANY JUDICIAL PROCEEDING INVOLVING,
DIRECTLY OR INDIRECTLY, ANY MATTER (WHETHER SOUNDING IN TORT, CONTRACT OR
OTHERWISE) IN ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTED WITH THIS
AGREEMENT, ANY DOCUMENT EXECUTED BY ANY SELLER PARTY PURSUANT TO THIS AGREEMENT
OR THE RELATIONSHIP ESTABLISHED HEREUNDER OR THEREUNDER.

     

    Section
14.11 Integration; Binding Effect;
Survival of Terms.

     

    (a) This Agreement and
each other Transaction Document contain the final and complete integration of
all prior expressions by the parties hereto with respect to the subject matter
hereof and shall constitute the entire agreement among the parties hereto with
respect to the subject matter hereof superseding all prior oral or written
understandings.

     

    (b) This Agreement
shall be binding upon and inure to the benefit of the parties hereto and their
respective successors and permitted assigns (including any trustee in
bankruptcy).  This Agreement shall create and constitute the
continuing obligations of the parties hereto in accordance with its terms and
shall remain in full force and effect until terminated in accordance with its
terms; provided, however, that the
rights and remedies with respect to (i) any breach of any representation and
warranty made by any Seller Party pursuant to Article V, (ii) the
indemnification and payment provisions of Article X, and
Sections 14.5
and 14.6 shall
be continuing and shall survive any termination of this Agreement.

     

    Section
14.12 Counterparts; Severability;
Section References.  This
Agreement may be executed in any number of counterparts and by different parties
hereto in separate counterparts, each of which when so executed shall be deemed
to be an original and all of which when taken together shall constitute one and
the same Agreement.  Any provisions of this Agreement which are
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.  Unless
otherwise expressly indicated, all references herein to “Article,” “Section,”
“Schedule” or “Exhibit” shall mean articles and sections of, and schedules and
exhibits to, this Agreement.

     

    Section
14.13 Mizuho Corporate Bank
Roles.  Each
of the Committed Purchasers acknowledges that Mizuho Corporate Bank, Ltd. acts,
or may in the future act, (i) as administrative agent and/or funding agent for
any Conduit or any Committed Purchaser or as a Funding Source or agent for any
Funding Source, (ii) as issuing and paying agent for the Commercial Paper, (iii)
to provide credit or liquidity enhancement for the timely payment for the
Commercial Paper and (iv) to provide other services from time to time for any
Conduit or any Committed Purchaser (collectively, the “Mizuho Corporate Bank
Roles”).  Without limiting the generality of this Section 14.13, each
Committed Purchaser hereby acknowledges and consents to any and all Mizuho
Corporate Bank Roles and agrees that in connection with any Mizuho Corporate
Bank Role, Mizuho Corporate Bank, Ltd. may take, or
refrain from taking, any action that it, in its discretion, deems appropriate,
including, without limitation, in its role as administrative agent for
________.

     

    Section
14.14 Characterization.  

     

    (a)  It
is the intention of the parties hereto that each purchase hereunder shall
constitute and be treated as an absolute and irrevocable sale, which purchase
shall provide the applicable Purchaser with the full benefits of ownership of
the applicable Purchaser Interest.  Except as specifically provided in
this Agreement, each sale of a Purchaser Interest hereunder is made without
recourse to Seller; provided, however, that (i)
Seller shall be liable to each Purchaser, each Funding Agent and the Agent for
all representations, warranties, covenants and indemnities made by Seller
pursuant to the terms of this Agreement, and (ii) such sale does not constitute
and is not intended to result in an assumption by any Purchaser, any Funding
Agent or the Agent or any assignee thereof of any obligation of Seller or a
Transferor or any other person arising in connection with the Receivables, the
Related Security, or the related Contracts, or any other obligations of Seller
or a Transferor.

     

    (b) In addition to any
ownership interest which the Agent may from time to time acquire pursuant
hereto, Seller hereby grants to the Agent for the ratable benefit of the
Purchasers a valid and perfected security interest in all of Seller’s right,
title and interest in, to and under all Receivables now existing or hereafter
arising, the Collections, each Lock-Box, each Collection Account, all Related
Security, the Demand Note, all other rights and payments relating to such
Receivables and all proceeds of any thereof prior to all other liens on and
security interests therein to secure the prompt and complete payment of the
Aggregate Unpaids.  The Agent and the Purchasers shall have, in
addition to the rights and remedies that they may have under this Agreement, all
other rights and remedies provided to a secured creditor under the UCC and other
applicable law, which rights and remedies shall be cumulative.

     

    Section
14.15 Withholding.  Any
Purchaser that is not incorporated under the laws of the United States of
America, or a state thereof, agrees to deliver to the Agent (with copies
to  Seller) two duly completed copies of United States Internal
Revenue Service Forms W-8BEN or W-8ECI, certifying in either case that such
Purchaser is entitled to receive payments under this Agreement without deduction
or withholding of any United States federal income taxes.

     

    Section
14.16 Patriot
Act.  Each
Funding Agent and the Agent (for itself and not on behalf of any Funding Agent)
hereby notifies each Seller Party that pursuant to the requirements of the USA
Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001))
(the “Patriot Act”), it is required to obtain, verify and record information
that identifies the Seller, which information includes the name and address of
the Seller and other information that will allow such Funding Agent or the
Agent, as applicable, to identify the Seller in accordance with the Patriot
Act.

     

    [SIGNATURE PAGES
FOLLOW]

     

    

    
      
        
           

          

        

         

      

      
        
        

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
and delivered by their duly authorized officers as of the date
hereof.

     

     

    ENERGIZER
RECEIVABLES FUNDING CORPORATION

    By:      

    Name:

    Title:

     

    
      	
               
      

            	
              Address:

            	
              533 Maryville
      University Drive

            

    

    
      	
               
      

            	
              St. Louis,
      Missouri  63141

            

    

     

     

    ENERGIZER BATTERY,
INC.

    By:

    Name:

    Title:

     

    
      	
               
      

            	
              Address:

            	
              533 Maryville
      University Drive

            

    

    
      	
               
      

            	
              St. Louis,
      Missouri  63141

            

    

     

     

    PLAYTEX PRODUCTS,
INC.

    By:

    Name:

    Title:

     

    
      	
               
      

            	
              Address:

            	
              533 Maryville
      University Drive

            

    

    
      	
               
      

            	
              St. Louis,
      Missouri  63141

            

    

     

    MIZUHO CORPORATE
BANK, LTD., as a Committed Purchaser and as Agent and as a Funding
Agent

    By:

    Name:

    Title:

     

    
      	
               
      

            	
              Address:

            	
              Mizuho
      Corporate Bank, Ltd.

            

    

    
      	
               
      

            	
              1251 Avenue
      of the Americas

            

    

    
      	
               
      

            	
              New York, NY
      10020

            

    

    
      	
               
      

            	
              Attention:
      Conduit Management Group

            

    

    
      	
               
      

            	
              Fax:

            	
              212-282-4105

            

    

     

    

     

    THE BANK OF
TOKYO-MITSUBISHI UFJ, LTD., NEW YORK BRANCH, as a Funding Agent

    By:

    Name:

    Title:

     

    
      	
               
      

            	
              Address:

            	
              The Bank of
      Tokyo-Mitsubishi UFJ, Ltd.

            

    

    
      	
               
      

            	
              1251 Avenue
      of the Americas

            

    

    
      	
               
      

            	
              New York, New
      York  10020

            

    

    
      	
               
      

            	
              Fax:  [                   ]

            

    

     

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    EXHIBIT I

     

    DEFINITIONS

     

    As
used in this Agreement, the following terms shall have the following meanings
(such meanings to be equally applicable to both the singular and plural forms of
the terms defined):

     

    “Accrual Period” means
each calendar month, provided that the initial Accrual Period hereunder means
the period from (and including) the date of the initial purchase hereunder to
(and including) the last day of the calendar month thereafter.

     

    “Adverse Claim” means
a lien, security interest, charge or encumbrance, or other right or claim in, of
or on any Person’s assets or properties in favor of any other
Person.

     

    “Affected Committed
Purchaser” has the meaning specified in Section
12.1(c).

     

    “Affiliate” means,
with respect to any Person, any other Person directly or indirectly controlling,
controlled by, or under direct or indirect common control with, such Person or
any Subsidiary of such Person.  A Person shall be deemed to control
another Person if the controlling Person owns 10% or more of any class of voting
securities of the controlled Person or possesses, directly or indirectly, the
power to direct or cause the direction of the management or policies of the
controlled Person, whether through ownership of stock, by contract or
otherwise.

     

    “Agent” has the
meaning set forth in the preamble to this Agreement.

     

    “Aggregate Capital”
means, on any date of determination, the aggregate amount of Capital of all
Purchaser Interests outstanding on such date.

     

    “Aggregate Reduction”
has the meaning specified in Section
1.3.

     

    “Aggregate Reserves”
means, on any date of determination, the sum of the Loss Reserve, the Yield
Reserve, and the Dilution Reserve.

     

    “Aggregate Unpaids”
means, at any time, an amount equal to the sum of, without duplication, all
Aggregate Capital and all other unpaid Obligations (whether due or accrued) at
such time.

     

    “Agreement” means this
First Amended and Restated Receivables Purchase Agreement, as it may be amended,
restated, supplemented or otherwise modified and in effect from time to
time.

     

    “Amortization Date”
means the earliest to occur of (i) the day on which any of the conditions
precedent set forth in Section 6.2 are not
satisfied, (ii) the Business Day immediately prior to the occurrence of an
Amortization Event set forth in Section 9.1(d)(ii),
(iii) the Business Day specified in a written notice from the Agent following
the occurrence of any other Amortization Event and (iv) the date which is 30
Business Days after the Agent’s receipt of written notice from Seller that it
wishes to terminate the facility evidenced by this Agreement.

     

    “Amortization Event”
has the meaning specified in Article
IX.

     

    “Assignment Agreement”
has the meaning set forth in Section
12.1(b).

     

    “Authorized Officer”
means, with respect to any Person, its president, corporate controller,
treasurer or chief financial officer.

     

    “Broken Funding Costs”
means for any Purchaser Interest which: (i) has its Capital reduced without
compliance by Seller with the notice requirements hereunder or (ii) does not
become subject to an Aggregate Reduction following the delivery of any Reduction
Notice or (iii) is assigned pursuant to any Funding Agreement or otherwise
transferred or terminated prior to the date on which it was originally scheduled
to end; an amount equal to the excess, if any, of (A) the CP Costs or Yield (as
applicable) that would have accrued during the remainder of the Tranche Periods
or the tranche periods for Commercial Paper determined by the Agent to relate to
such Purchaser Interest (as applicable) subsequent to the date of such
reduction, assignment, transfer or termination (or in respect of clause (ii)
above, the date such Aggregate Reduction was designated to occur pursuant to the
Reduction Notice) of the Capital of such Purchaser Interest if such reduction,
assignment, transfer or termination had not occurred or such Reduction Notice
had not been delivered, over (B) the sum of (x) to the extent all or a portion
of such Capital is allocated to another Purchaser Interest, the amount of CP
Costs or Yield actually accrued during the remainder of such period on such
Capital for the new Purchaser Interest, and (y) to the extent such Capital is
not allocated to another Purchaser Interest, the income, if any, actually
received during the remainder of such period by the holder of such Purchaser
Interest from investing the portion of such Capital not so
allocated.  In the event that the amount referred to in clause (B)
exceeds the amount referred to in clause (A), the relevant Purchaser or
Purchasers agree to pay to Seller the amount of such excess.  All
Broken Funding Costs shall be due and payable hereunder upon
demand.

     

    “BTMU” has the meaning
set forth in the preamble to this Agreement.

     

    “BTMU Pooled CP Costs”
means, for each day and with respect to the Capital associated with each
Purchaser Interest of _______ or _______ as to which the BTMU Pooled
CP Costs are applicable, the sum of (i) the discount or yield accrued
(including, without limitation, any associated with financing the discount or
interest component on the roll-over of any relevant Pooled Commercial Paper) on
the Pooled Commercial Paper issued by ________ or _________, as applicable,
on such day, plus (ii) any and all accrued commissions in respect of the
relevant placement agents and commercial paper dealers, and issuing and paying
agent fees incurred, in respect of such Pooled Commercial Paper for such day,
plus (iii) other costs (including without limitation those associated with
funding small or odd-lot amounts) with respect to all receivable purchase,
credit and other investment facilities which are funded by the applicable Pooled
Commercial Paper for such day.  The BTMU Pooled CP Costs shall be
determined by BTMU in its capacity as Funding Agent for the related Conduit
Group, whose determination shall be conclusive.

     

    “Business Day” means
any day on which banks are not authorized or required to close in New York, New
York or St. Louis, Missouri and The Depository Trust Company of New York is open
for business, and, if the applicable Business Day relates to any computation or
payment to be made with respect to the LIBO Rate, any day on which dealings in
dollar deposits are carried on in the London interbank market.

     

    “Capital” of any
Purchaser Interest means, at any time, (A) the Purchase Price of such Purchaser
Interest, minus (B) the sum of the aggregate amount of Collections and other
payments received by the Agent which in each case are applied to reduce such
Capital in accordance with the terms and conditions of this Agreement; provided that such
Capital shall be restored (in accordance with Section 2.5) in the
amount of any Collections or other payments so received and applied if at any
time the distribution of such Collections or payments are rescinded, returned or
refunded for any reason.

     

    “Change of Control”
means the acquisition by any Person, or two or more Persons acting in concert,
of beneficial ownership (within the meaning of Rule 13d-3 of the Securities and
Exchange Commission under the Securities Exchange Act of 1934) of 30% or more of
the outstanding shares of voting stock of any Seller Party or
Provider.

     

    “Charged-Off
Receivable” means a Receivable: (i) as to which the Obligor thereof has
taken any action, or suffered any event to occur, of the type described in Section 9.1(d) (as if
references to Seller Party therein refer to such Obligor); (ii) as to which the
Obligor thereof, if a natural person, is deceased, (iii) which, consistent with
the Credit and Collection Policy, would be written off Seller’s books as
uncollectible, (iv) which has been identified by Seller as uncollectible or (v)
as to which any payment, or part thereof, remains unpaid for 91 days or more
from the original due date for such payment.

     

    “Collection Account”
means each concentration account, depositary account, lock-box account or
similar account in which any Collections are collected or deposited and which is
listed on Exhibit
IV.

     

    “Collection Account
Agreement” means an agreement substantially, as the same may be amended,
restated, supplemented or otherwise modified from time to time in the form of
Exhibit VI-A or
Exhibit VI-B
among a Transferor, Seller, the Agent and a Collection Bank.

     

    “Collection Bank”
means, at any time, any of the banks holding one or more Collection
Accounts.

     

    “Collection Notice”
means a notice, in substantially the form of Annex A to Exhibit VI-A or Exhibit VI-B, as
applicable, from the Agent to a Collection Bank or any similar or analogous
notice from the Agent to a Collection Bank.

     

    “Collections” means,
with respect to any Receivable, all cash collections and other cash proceeds in
respect of such Receivable, including, without limitation, all yield, Finance
Charges or other related amounts accruing in respect thereof and all cash
proceeds of Related Security with respect to such Receivable.

     

    “Commercial Paper”
means promissory notes of a Conduit issued by such Conduit in the commercial
paper market.

     

    “Commitment” means,
for each Committed Purchaser, the commitment of such Committed Purchaser to
purchase Purchaser Interests from Seller, in an amount not to exceed (i) in the
aggregate, the amount set forth opposite such Committed Purchaser’s name on
Schedule A to
this Agreement, as such amount may be modified in accordance with the terms
hereof (including, without limitation, any termination of Commitments pursuant
to Section 4.6
hereof) and (ii) with respect to any individual purchase hereunder, its Pro Rata
Share of the related Conduit Group’s Purchase Pro Rata Share of the Purchase
Price therefor.

     

    “Committed Purchaser”
means (i) BTMU, with respect to _______ and _______ and their Conduit
Group, and (ii) ________, with respect to _______and its Conduit
Group.

     

    “Committed Purchaser
Interest” means a Purchaser Interest funded by a Committed Purchaser
either (i) directly in the case of BTMU, or (ii) pursuant to a Funding Agreement
(other than this Agreement) effected between ________ and any other Funding
Source.

     

    “Concentration Limit”
means, at any time, for any Obligor, (i) an amount equal to 25% of the Loss
Reserve Floor at such time multiplied by the
aggregate Outstanding Balance of all Eligible Receivables at such time or (ii)
such other amount (a “Special Concentration
Limit”) for such Obligor designated by the Agent; provided, that, if
the short term rating of any Obligor set forth in the table below shall decrease
from the level indicated in the table below (with respect to any rating agency)
for such Obligor, the Special Concentration Limit for such Obligor shall
automatically be canceled; provided, further, in the case
of an Obligor and any Affiliate of such Obligor, the Concentration Limit shall
be calculated as if such Obligor and such Affiliate are one Obligor; and provided, further, that either
Funding Agent may, upon not less than three Business Days’ notice to Seller,
cancel any Special Concentration Limit.  The Agent hereby designates
the following Special Concentration Limits with respect to the Obligors set
forth in the table below.

     

    

    
      	
              Obligor

            	
              Special
      Concentration Limit

               

            	
              Short
      Term Rating

            

    

    

    “Conduit” has the
meaning set forth in the preamble to this Agreement.

     

    “Conduit Group” means,
at any time, a group consisting of a Conduit or (in the case of ________
and ________, collectively) Conduits, such Conduit’s or Conduits’ related
Committed Purchasers and such Conduit’s or Conduits’ Funding Agent.

     

    “Consent Notice” has
the meaning set forth in Section
4.6.

     

    “Consent Period” has
the meaning set forth in Section
4.6.

     

    “Contingent
Obligation” of a Person means any agreement, undertaking or arrangement
by which such Person assumes, guarantees, endorses, contingently agrees to
purchase or provide funds for the payment of, or otherwise becomes or is
contingently liable upon, the obligation or liability of any other Person, or
agrees to maintain the net worth or working capital or other financial condition
of any other Person, or otherwise assures any creditor of such other Person
against loss, including, without limitation, any comfort letter, operating
agreement, take-or-pay contract or application for a letter of
credit.

     

    “Contract” means, with
respect to any Receivable, any and all instruments, agreements, invoices or
other writings pursuant to which such Receivable arises or which evidences such
Receivable.

     

    “CP Costs” means, (A)
with respect to the Capital associated with each Purchaser Interest
of _______ and for each day, the sum of (i) discount or yield accrued on
Pooled Commercial Paper issued by _______ on such day, plus (ii) any and
all accrued commissions in respect of placement agents and Commercial Paper
dealers, and issuing and paying agent fees incurred, in respect of such Pooled
Commercial Paper for such day, plus (iii) other costs associated with funding
small or odd-lot amounts with respect to all receivable purchase facilities
which are funded by such Pooled Commercial Paper for such day, minus (iv) any
accrual of income net of expenses received on such day from investment of
collections received under all receivable purchase facilities funded
substantially with such Pooled Commercial Paper, minus (v) any payment received
on such day net of expenses in respect of Broken Funding Costs related to the
prepayment of any Purchaser Interest of _______ pursuant to the terms of
any receivable purchase facilities funded substantially with such Pooled
Commercial Paper, and (B) for any period and with respect to any Capital funded
by Commercial Paper notes issued by ________ or ________, (I)
unless ________ has determined that the BTMU Pooled CP Costs shall be
applicable, the Relevant Conduit’s cost of funding such Capital, taking into
account the weighted daily average interest rate payable in respect of such
Commercial Paper notes during such period (determined in the case of discount
Commercial Paper notes by converting the discount to an interest bearing
equivalent rate per annum), applicable placement fees and commissions, and such
other costs and expenses as BTMU in good faith deems appropriate; and (II) to
the extent BTMU has determined that the BTMU Pooled CP Costs shall be
applicable, the BTMU Pooled CP Costs.  In addition to the foregoing
costs, if Seller shall request any Incremental Purchase during any period of
time determined by __________________ in its capacity as Funding Agent for
the related Conduit Group in its sole discretion to result in incrementally
higher CP Costs applicable to such Incremental Purchase and attributable to
________, the portion of the Capital associated with any such Incremental
Purchase and attributable to ________ shall, during such period, be deemed
to be funded by ________ in a special pool (which may include capital
associated with other receivable purchase facilities) for purposes of
determining such additional CP Costs applicable only to such special pool and
charged each day during such period against such Capital.

     

    “Credit and Collection
Policy” means Seller’s credit and collection policies and practices
relating to Contracts and Receivables existing on the date hereof and summarized
in Exhibit VIII
hereto, as modified from time to time in accordance with this
Agreement.

     

    “Credit Memo” means
any credit, discount or allowance issued to cancel an invoice, cancel and
replace an invoice, record a return, credit a customer for defective
merchandise, adjust for new sales policy changes, credit a customer for goods
and services taxes, provide a trade show credit or allow for other miscellaneous
adjustments, in each case in the ordinary course of business of
Servicer.

     

    “Credit Memo Horizon
Ratio” means, as of the last day of any calendar month, a percentage
equal to (i) the aggregate gross sales of the Transferors during the preceding
two calendar months then most recently ended divided by (ii) the
aggregate Outstanding Balance of all Receivables as to which any payment or part
thereof remains unpaid for no more than 60 days from the original due date for
such payment as of the last day of the most recently ended calendar
month.

     

    “Credit Memo
Percentage” means as of the last day of any calendar month, a percentage
equal to:

     

    

     

    ((2.0 x ED) + (DS - ED) x DS ) x
DHR

                                               ED

    where:

     

    ED           =           the
Expected Credit Memo Ratio at such time.

     

    DS           =           the
Credit Memo Spike Ratio at such time.

     

    DHR           =           the
Credit Memo Horizon Ratio at such time.

     

    “Credit Memo Spike
Ratio” means, as of the last day of any calendar month, the highest four
month rolling average of the Credit Memo-to-Sales Ratio calculated as of the
last day of each of the twelve calendar months then most recently
ended.

     

    “Credit Memo-to-Sales
Ratio” means, at any time, a percentage equal to (i) the aggregate amount
of Credit Memos which occurred during the month then most recently ended, divided by (ii) the
aggregate gross sales of the Transferors during the month three months prior to
such month, calculated on a monthly basis.

     

    “Deemed
Collections”  means the aggregate of all amounts Seller shall
have been deemed to have received as a Collection of a
Receivable.  Seller shall be deemed to have received a Collection in
full of a Receivable if at any time (i) the Outstanding Balance of any such
Receivable is either (x) reduced as a result of any defective or rejected or
returned goods or services, any discount or any adjustment or otherwise by
Seller (other than cash Collections on account of the Receivables) or (y)
reduced or canceled as a result of a setoff in respect of any claim by any
Person (whether such claim arises out of the same or a related transaction or an
unrelated transaction) or (ii) any of the representations or warranties in Article V are no
longer true with respect to any Receivable.

     

    “Default Fee” means
with respect to any amount due and payable by Seller in respect of any Aggregate
Unpaids, an amount equal to the greater of (i) $1000 and (ii) interest on any
such unpaid Aggregate Unpaids at a rate per annum equal to 2% above the Prime
Rate.

     

    “Default Ratio” means,
for any calendar month, a percentage equal to (i) the sum of (A) the aggregate
Outstanding Balance of all Receivables that were unpaid for 91-120 days as of
the last day of such month and (B) the actual write-offs during such calendar
month divided
by (ii) the aggregate gross sales of the Transferors during the calendar month
four calendar months prior to such calendar month.

     

    “Delinquency Ratio”
means, as of the last day of any month, the percentage equal to (i) the sum of
(a) the aggregate Outstanding Balance of all Receivables that were Delinquent
Receivables at such time plus (b) the ending balance of the Transferors’
suspense accounts at such time plus (c) the aggregate amount of unresolved short
pays set forth on the most recent Monthly Report divided by (ii) the
aggregate Outstanding Balance of all Receivables at such time.

     

    “Delinquent
Receivable” means a Receivable as to which any payment, or part thereof,
remains unpaid for 61 days or more from the original due date for such
payment.

     

    “Demand Note” means a
promissory note substantially in the form of Exhibit VIII to the Receivables
Sale Agreement executed by Originator in favor of Seller.

     

    “Designated Obligor”
means an Obligor indicated by the Agent to Seller in writing.

     

    “Dilution Ratio”
means, as of the last day of any calendar month, a percentage equal to (i) the
aggregate amount of Dilutions less Credit Memos as at such day divided by (ii) the
aggregate gross sales of the Transferors during the calendar month three
calendar months prior to such calendar month.

     

    “Dilution Reserve”
means, on any date, an amount equal to (a) the product of (i) the greater of (A)
20% and (B) the sum of (1) the general ledger accrual balance of the Transferors
divided by the
aggregate Outstanding Balance of all Receivables plus (2) the Credit
Memo Percentage multiplied by (ii)
the Net Receivables Balance as of the close of business of the Transferors on
such date minus
(b) $78,000,000 or, if the Provider fails to comply with any Provider Financial
Covenant, $0.00, provided that the Dilution Reserve shall, at no time, be less
than $0.00.

     

    “Dilutions” means, at
any time, the aggregate amount of reductions or cancellations described in
clause (i) of the definition of “Deemed Collections”.

     

    “Discount Rate” means,
the LIBO Rate or the Prime Rate, as applicable, with respect to each Committed
Purchaser Interest.

     

    “Eligible Receivable”
means, at any time, a Receivable:

     

    (i) the Obligor of
which (a) if a natural person, is a resident of the United States or, if a
corporation or other business organization, is organized under the laws of the
United States or any political subdivision thereof and has its chief executive
office in the United States; (b) is not an Affiliate of any of the parties
hereto; (c) is not a Designated Obligor; and (d) is not a government or a
governmental subdivision or agency, provided that a
Government Receivable that otherwise would be an Eligible Receivable under this
definition but for this clause (i) shall be an Eligible Receivable so long as
the aggregate Outstanding Balance of all such Government Receivables does not
exceed 3% of the aggregate Outstanding Balance of all Receivables,

     

    (ii) which is not a
Charged-Off Receivable or a Delinquent Receivable,

     

    (iii) which by its terms
is due and payable within 90 days of the original billing date therefor and has
not had its payment terms extended,

     

    (iv) which is an
“account” or “chattel paper” within the meaning of Section 9-105 and Section
9-106, respectively, of the UCC of all applicable jurisdictions,

     

    (v) which is
denominated and payable only in United States dollars in the United
States,

     

    (vi) which arises under
a Contract in substantially the form of one of the form contracts set forth on
Exhibit IX
hereto or otherwise approved by the Agent in writing, which, together with such
Receivable, has been duly authorized, is in full force and effect and
constitutes the legal, valid and binding obligation of the related Obligor
enforceable against such Obligor in accordance with its terms subject to no
offset, counterclaim or other defense,

     

    (vii) which arises under
a Contract which (A) does not require the Obligor under such Contract to consent
to the transfer, sale or assignment of the rights and duties of any Transferor
or any of its assignees under such Contract and (B) does not contain a
confidentiality provision that purports to restrict the ability of any Purchaser
to exercise its rights under this Agreement, including, without limitation, its
right to review the Contract,

     

    (viii) which arises under
a Contract that contains an obligation to pay a specified sum of money,
contingent only upon the sale of goods or the provision of services by a
Transferor,

     

    (ix) which, together
with the Contract related thereto, does not contravene any law, rule or
regulation applicable thereto (including, without limitation, any law, rule and
regulation relating to truth in lending, fair credit billing, fair credit
reporting, equal credit opportunity, fair debt collection practices and privacy)
and with respect to which no part of the Contract related thereto is in
violation of any such law, rule or regulation,

     

    (x) which satisfies all
applicable requirements of the Credit and Collection Policy,

     

    (xi) which was generated
in the ordinary course of (A) Originator’s business or (B) an Original Seller’s
business and subsequently sold to Originator pursuant to the terms of the
Transfer Agreement, provided that until such time
as the Agent gives irrevocable written notice to Servicer regarding the removal
of this proviso, (i) Receivables under this clause (B) shall be limited to
Receivables, the related Obligor of which are publicly rated BBB- or better by
S&P or Baa3 or better by Moody's, (ii) each such Obligor and its rating
shall be set forth in the Monthly Report, (iii) Playtex shall provide to the
Agent, not later than August 15, 2008, information concerning the Receivables of
Playtex for the period from June 2003 through September 2006, in detail similar
to the detail previously provided to the Agent concerning such Receivables for
the period subsequent to October, 2006 (the Agent acknowledges that the
information to be provided may not be in the same detail and of the same quality
as the information previously provided by Playtex, since Playtex became an
affiliate of the Seller subsequent to the period covered by the information),
and (iv) within 10 business days after receipt of such additional information,
the Agent shall give irrevocable written notice to Servicer indicating whether
they will retain or remove this proviso,

     

    (xii) which arises solely
from the sale of goods or the provision of services to the related Obligor by a
Transferor, and not by any other Person (in whole or in part),

     

    (xiii) as to which the
Funding Agents have not notified Seller that the Funding Agents have, in their
collective reasonable business judgement, determined that such Receivable or
class of Receivables is not acceptable as an Eligible Receivable due to the
credit worthiness of the Obligor, including, without limitation, because such
Receivable arises under a Contract that is not acceptable to the Funding Agents
in their collective reasonable business judgement,

     

    (xiv) which is not
subject to any right of rescission, set-off, counterclaim, any other defense
(including defenses arising out of violations of usury laws) of the applicable
Obligor against a Transferor or any other Adverse Claim, and the Obligor thereon
holds no right as against a Transferor to cause such Transferor to repurchase
the goods or merchandise the sale of which shall have given rise to such
Receivable (except with respect to sale discounts effected pursuant to the
Contract, or defective goods returned in accordance with the terms of the
Contract),

     

    (xv) as to which a
Transferor has satisfied and fully performed all obligations on its part with
respect to such Receivable required to be fulfilled by it, and no further action
is required to be performed by any Person with respect thereto other than
payment thereon by the applicable Obligor,

     

    (xvi) all right, title
and interest to and in which has been validly transferred (A) by Originator
directly to Seller under and in accordance with the Receivables Sale Agreement,
and (B) in the case of any Receivable transferred under the Transfer Agreement,
by an Original Seller directly to Originator under and in accordance with the
Transfer Agreement and subsequently sold by Originator directly to Seller under
and in accordance with the Receivables Sale Agreement, and, in either case, and
Seller has good and marketable title thereto free and clear of any Adverse
Claim,

     

    (xvii) for which the
related Contract represents all or part of the sales price of merchandise,
insurance and services within the meaning of the Investment Company Act of 1940,
Section 3(c)5, as amended,

     

    (xviii) which is a “current
transaction” within Section 3(a)(3) of the Securities Act of 1933,

     

    (xix) which is not a
proceed of inventory that was pledged to any Person,

     

    (xx) the Obligor of
which is not the Obligor of any Charged-Off Receivables, the aggregate
Outstanding Balance of which exceeds an amount equal to 25% of the aggregate
Outstanding Balance of all Receivables of such Obligor, and

     

    (xxi) the inclusion of
which as an Eligible Receivable does not cause the aggregate Outstanding Balance
of all Eligible Receivables considered a “billback receivable” under the
Transferors’ current practices to exceed $5,000,000.

     

    “ERISA” means the
Employee Retirement Income Security Act of 1974, as amended from time to
time.

     

    “Expected Credit Memo
Ratio” means, as of the last day of any calendar month, the average of
each three month rolling average of the Credit Memo-to-Sales Ratio calculated as
of the last day of each of the twelve months then most recently
ended.

     

    “Extension Notice” has
the meaning set forth in Section
4.6.

     

    “Facility Account”
means _____________________________________.

     

    “Facility Termination
Date” means the earliest of (i) May 26, 2009, (ii) the Liquidity
Termination Date and (iii) the Amortization Date.

     

    “Federal Bankruptcy
Code” means Title 11 of the United States Code entitled “Bankruptcy,” as
amended and any successor statute thereto.

     

    “Fee
Letter” means that certain letter agreement dated as of May 27,
2008 among Seller, the Agent, ________________________________, as it may be
amended or modified and in effect from time to time.

     

    “Finance Charges”
means, with respect to a Contract, any finance, interest, late payment charges
or similar charges owing by an Obligor pursuant to such Contract.

     

    “Funding Agent” means
each of ___________________________________ in its respective capacity as a
“Funding Agent” under this Agreement.

     

    “Funding Agreement”
means this Agreement and any agreement or instrument executed by any Funding
Source with or for the benefit of a Conduit.

     

    “Funding Source” means
(i) any Committed Purchaser or (ii) any insurance company, bank or other funding
entity providing liquidity, credit enhancement or back-up purchase support or
facilities to a Conduit.

     

    “GAAP”  means
generally accepted accounting principles in effect in the United States of
America as of the date of this Agreement.

     

    “Government
Receivables” means a Receivable the Obligor of which is the United States
Federal Government, a state or local government, a governmental subdivision of
the United States Federal Government or of a state or local government, or an
agency of the United States Federal Government or of a state or local
government.  For the purposes of this definition the phrase “state or
local government” means a state or local government of a state, city or
municipality located within the fifty states of the United States or the
District of Columbia.

     

    “Group Purchase Limit”
means (i) in the case of the Conduit Group related to ________, $100,000,000 and
(ii) in the case of the Conduit Group related to ____________ and
____________, $100,000,000.

     

    “Incremental Purchase”
means a purchase of one or more Purchaser Interests which increases the total
outstanding Aggregate Capital hereunder.

     

    “Indebtedness” of a
Person means such Person’s (i) obligations for borrowed money, (ii) obligations
representing the deferred purchase price of property or services (other than
accounts payable arising in the ordinary course of such Person’s business
payable on terms customary in the trade), (iii) obligations, whether or not
assumed, secured by liens or payable out of the proceeds or production from
property now or hereafter owned or acquired by such Person, (iv) obligations
which are evidenced by notes, acceptances, or other instruments, (v) capitalized
lease obligations, (vi) net liabilities under interest rate swap, exchange or
cap agreements, (vii) Contingent Obligations and (viii) liabilities in respect
of unfunded vested benefits under plans covered by Title IV of
ERISA.

     

    “Independent Director”
shall mean a member of the Board of Directors of Seller who is not at such time,
and has not been at any time during the preceding five (5) years, (A) a
director, officer, employee or affiliate of Seller, Originator, any Original
Seller or any of their respective Subsidiaries or Affiliates, or (B) the
beneficial owner (at the time of such individual’s appointment as an Independent
Director or at any time thereafter while serving as an Independent Director) of
any of the outstanding common shares of Seller, Originator, any Original Seller
or any of their respective Subsidiaries or Affiliates, having general voting
rights.

     

    “Interim
Report” means a report, appropriately completed and in substantially
the form of Exhibit XII hereto, furnished by Servicer to the Agent pursuant to
Section
8.5.

     

    “LIBO Rate” means the
rate per annum equal to the sum of (i) (a) the applicable British Bankers’
Association Interest Settlement Rate for deposits in U.S. dollars appearing on
Reuters Screen FRBD as of 11:00 a.m. (London time) two Business Days prior to
the first day of the relevant Tranche Period, and having a maturity equal to
such Tranche Period, provided that, (i) if
Reuters Screen FRBD is not available to the Agent for any reason, the applicable
LIBO Rate for the relevant Tranche Period shall instead be the applicable
British Bankers’ Association Interest Settlement Rate for deposits in U.S.
dollars as reported by any other generally recognized financial information
service as of 11:00 a.m. (London time) two Business Days prior to the first day
of such Tranche Period, and having a maturity equal to such Tranche Period, and
(ii) if no such British Bankers’ Association Interest Settlement Rate is
available to the Agent, the applicable LIBO Rate for the relevant Tranche Period
shall instead be the rate determined by the Agent to be the rate at which Mizuho
offers to place deposits in U.S. dollars with first-class banks in the London
interbank market at approximately 11:00 a.m. (London time) two Business Days
prior to the first day of such Tranche Period, in the approximate amount to be
funded at the LIBO Rate and having a maturity equal to such Tranche Period,
divided by (b) one minus the maximum aggregate reserve requirement (including
all basic, supplemental, marginal or other reserves) which is imposed against
the Agent in respect of Eurocurrency liabilities, as defined in Regulation D of
the Board of Governors of the Federal Reserve System as in effect from time to
time (expressed as a decimal), applicable to such Tranche Period plus (ii) 1.50%
per annum.  The LIBO Rate shall be rounded, if necessary, to the next
higher 1/16 of 1%.

     

    “Liquidity Termination
Date” means May 26, 2009.

     

    “Lock-Box” means each
locked postal box with respect to which a bank who has executed a Collection
Account Agreement has been granted exclusive access for the purpose of
retrieving and processing payments made on the Receivables and which is listed
on Exhibit
IV.

     

    “Loss Horizon Ratio”
means, as of any date, a percentage equal to (i) the aggregate gross sales
of the Transferors during the three most recently ended calendar months divided by (ii) the
Outstanding Balance of all Eligible Receivables as of the last day of the most
recently ended calendar month.

     

    “Loss Percentage”
means, at any time, a percentage equal to the greater of (i) two multiplied by
the Loss Ratio multiplied by the Loss Horizon Ratio or (ii) Loss Reserve
Floor.

     

    “Loss Ratio” means, on
any date, the greatest three-month rolling average Default Ratio as calculated
for each of the 12 most recently ended calendar months.

     

    “Loss Reserve” means,
on any date, an amount equal to the Loss Percentage multiplied by the Net
Receivables Balance as of the close of business of Servicer on such
date.

     

    “Loss Reserve Floor”
means 12%.

     

    “Loss-to-Liquidation
Ratio” means, for any calendar month, the percentage equal (i) the sum of
the aggregate Outstanding Balance of all Receivables 91-120 days past due plus the aggregate
Outstanding Balance of all Receivables written off by Servicer in such month
divided by the
aggregate Collections received during such month.

     

    “Material Adverse
Effect” means a material adverse effect on (i) the financial condition or
operations of any Seller Party and its Subsidiaries, (ii) the ability of any
Seller Party to perform its obligations under this Agreement or the Provider to
perform its obligations under the Performance Undertaking, (iii) the legality,
validity or enforceability of this Agreement or any other Transaction Document,
(iv) any Purchaser’s interest in the Receivables generally or in any significant
portion of the Receivables, the Related Security or the Collections with respect
thereto, or (v) the collectibility of the Receivables generally or of any
material portion of the Receivables.

     

    “Material Provider
Subsidiary” means, as long as Energizer and Playtex are each
wholly-owned, direct or indirect subsidiaries of Provider, (a) each consolidated
Subsidiary (other than any SPV) of Provider (i) incorporated under the laws of
any jurisdiction in the United States and (ii) the total assets of which exceed,
as at the end of any calendar quarter or, in the case of consummation of a
Permitted Acquisition, at the time of consummation of such Permitted Acquisition
(calculated by Provider on a pro forma basis taking
into account the consummation of such Permitted Acquisition), three percent
(3.0%) of the total assets of Provider and its Subsidiaries (other than SPVs) on
a consolidated basis and (b) each consolidated Subsidiary (other than any SPV)
of Provider (i) incorporated under the laws of any foreign jurisdiction and (ii)
the total assets of which exceed, as at the end of any calendar quarter or, in
the case of consummation of a Permitted Acquisition, at the time of consummation
of such Permitted Acquisition (calculated by Provider on a pro forma basis taking
into account the consummation of such Permitted Acquisition), five percent
(5.0%) of the total assets of Provider and its Subsidiaries (other than SPVs) on
a consolidated basis; provided that, if
Energizer shall cease to be a wholly-owned, indirect subsidiary of Provider,
then “Material Provider Subsidiary” shall also mean and include any Subsidiary
of Energizer and, provided further
that, if Playtex shall cease to be a wholly-owned, direct subsidiary of
Provider, then “Material Provider Subsidiary” shall also mean and include any
Subsidiary of Playtex.

     

    “Monthly Report” means
a report, in substantially the form of Exhibit X hereto
(appropriately completed), furnished by Servicer to the Agent pursuant to Section
8.5.

     

    “Net Receivables
Balance” means, at any time, the aggregate Outstanding Balance of all
Eligible Receivables at such time reduced by the sum of (i) the aggregate amount
by which the Outstanding Balance of all Eligible Receivables of each Obligor and
its Affiliates exceeds the Concentration Limit for such Obligor and (ii) the
aggregate amount by which the Outstanding Balance of all Eligible Receivables
having payment terms in excess of 60 days following the applicable “expected
receipt of goods date” (under and as defined in each applicable invoice of
Servicer to each applicable Obligor) exceeds 10% of the aggregate Outstanding
Balance of all Eligible Receivables.

     

    “Non-Renewing Committed
Purchaser” has the meaning set forth in Section
4.6.

     

    “Obligations” shall
have the meaning set forth in Section
2.1.

     

    “Obligor” means a
Person obligated to make payments pursuant to a Contract.

     

    “Original Agreement”
has the meaning set forth in the preliminary statements to this
Agreement.

     

    “Original Seller” has
the meaning set forth in the Receivables Sale Agreement.

     

    “Originator” means
Energizer Battery, Inc., in its capacity as seller under the Receivables Sale
Agreement.

     

    “Outstanding Balance”
of any Receivable at any time means the then outstanding principal balance
thereof.

     

    “Participant” has the
meaning set forth in Section
12.2.

     

    “Payment Rate” means,
for any calendar month, the percentage equal to the aggregate Collections
received during such month, divided by the
aggregate Outstanding Balance of all Receivables as at the last day of the month
immediately prior to such month.

     

    “Performance
Undertaking” means that certain Performance Undertaking, dated as of June
30, 2008, by Provider in favor of Seller, substantially in the form of Exhibit XI, as the
same may be amended, restated or otherwise modified from time to
time.

     

    “Permitted
Acquisition” means any transaction, or any series of related
transactions, consummated on or after the date of this Agreement, (a) which are
permitted under all material financing arrangements pursuant to which Provider
is a debtor or an obligor and (b) by which Provider or any of its Subsidiaries
(i) acquires any going business or all or substantially all of the assets of any
firm, corporation or division thereof, whether through purchase of assets,
merger or otherwise or (ii) directly or indirectly acquires (in one transaction
or as the most recent transaction in a series of transactions) at least a
majority (in number of votes) of the securities of a corporation which have
ordinary voting power for the election of directors (other than securities
having such power only by reason of the happening of a contingency) or a
majority (by percentage of voting power) of the outstanding equity interests of
another Person.

     

    “Person” means an
individual, partnership, corporation (including a business trust), limited
liability company, joint stock company, trust, unincorporated association, joint
venture or other entity, or a government or any political subdivision or agency
thereof.

     

    “Playtex” has the
meaning set forth in the preamble to this Agreement.

     

    “Pooled Commercial
Paper” means Commercial Paper notes of a Conduit subject to any
particular pooling arrangement by such Conduit, but excluding Commercial Paper
issued by such Conduit for a tenor and in an amount specifically requested by
any Person in connection with any agreement effected by such
Conduit.

     

    “Potential Amortization
Event” means an event which, with the passage of time or the giving of
notice, or both, would constitute an Amortization Event.

     

    “Prime Rate” means a
rate per annum equal to the prime rate of interest determined from time to time
by Mizuho (which is not necessarily the lowest rate charged to any customer),
changing when and as said prime rate changes.

     

    “Proposed Reduction
Date” has the meaning set forth in Section
1.3.

     

    “Provider” means
Energizer Holdings, Inc., a Missouri corporation.

     

    “Provider Credit
Agreement” means the Term Loan Credit Agreement dated as of December 3,
2007 among the Provider, the institutions from time to time parties thereto as
Lenders, JPMorgan Chase Bank, N.A., in its capacity as Administrative Agent,
Bank of America, N.A., as Syndication Agent, and Citibank, N.A., The Bank of
Tokyo-Mitsubishi UFJ, Ltd. and Mizuho Corporate Bank, Ltd., as Documentation
Agents, as in effect on May 27, 2008, without giving effect to any amendment,
restatement, waiver, release, supplementation, cancellation, termination or
other modification thereof.

     

     “Provider Financial
Covenants” means the Maximum Leverage Ratio covenant and Minimum Interest
Expense Coverage Ratio covenant set forth in Section 7.4 of the Provider Credit
Agreement, it being understood that, for purposes of this Agreement, (i) the
Provider Financial Covenants as in effect on May 27, 2008 shall survive any
termination of the Provider Credit Agreement and (ii) any amendment,
restatement, waiver, release, supplementation, cancellation, termination and/or
other modification with respect to the Provider Credit Agreement shall have no
effect on determining compliance with the Provider Financial
Covenants.

     

    “Pro Rata Share”
means, for each Committed Purchaser in the same Conduit Group, a percentage
equal to (i) the amount of the Commitment of such Committed Purchaser, divided by (ii) the aggregate
amount of all Commitments of all Committed Purchasers in such Conduit Group
hereunder, adjusted as necessary to give effect to the application of the terms
of Section
4.6.

     

    “Purchase Limit” means
$200,000,000.

     

    “Purchase Notice” has
the meaning set forth in Section
1.2.

     

    “Purchase Price”
means, with respect to any Incremental Purchase of a Purchaser Interest, the
amount paid to Seller for such Purchaser Interest which shall not exceed the
least of (i) the amount requested by Seller in the applicable Purchase Notice,
(ii) the unused portion of the Purchase Limit on the applicable purchase date
and (iii) the excess, if any, of the Net Receivables Balance (less the Aggregate
Reserves) on the applicable purchase date over the aggregate outstanding amount
of Aggregate Capital determined as of the date of the most recent Monthly
Report, taking into account such proposed Incremental Purchase.

     

    “Purchase Pro Rata
Share” means, for any Conduit Group, the percentage equivalent of a
fraction, the numerator of which is the relevant Group Purchase Limit, and the
denominator of which is the Purchase Limit.

     

    “Purchasers” means
each Conduit and each Committed Purchaser.

     

    “Purchaser Interest”
means, at any time, an undivided percentage ownership interest (computed as set
forth below) associated with a designated amount of Capital, selected pursuant
to the terms and conditions hereof in (i) each Receivable arising prior to the
time of the most recent computation or recomputation of such undivided interest,
(ii) all Related Security with respect to each such Receivable, and (iii) all
Collections with respect to, and other proceeds of, each such
Receivable.  Each such undivided percentage interest shall
equal:

     

    

     

    
      	 
    	
              
                C
      + AR

              

            	 
    
	 
    	
              NRB

            	 
    

    

    

    where:

     

    C           =           the
Capital of such Purchaser Interest.

     

    AR           =           the
Aggregate Reserves.

     

    NRB           =           the
Net Receivables Balance.

     

    Such undivided
percentage ownership interest shall be initially computed on its date of
purchase.  Thereafter, until the Amortization Date, each Purchaser
Interest shall be automatically recomputed (or deemed to be recomputed) on each
day prior to the Amortization Date.  The variable percentage
represented by any Purchaser Interest as computed (or deemed recomputed) as of
the close of the business day immediately preceding the Amortization Date shall
remain constant at all times thereafter.

     

    “Purchasing Committed
Purchaser” has the meaning set forth in Section
12.1(b).

     

    “Receivable” means all
indebtedness and other obligations owed to Seller or a Transferor (at the time
it arises, and before giving effect to any transfer or conveyance under the
Transfer Agreement, the Receivables Sale Agreement or hereunder) or in which
Seller or a Transferor has a security interest or other interest, including,
without limitation, any indebtedness, obligation or interest constituting an
account, chattel paper, instrument or general intangible, arising in connection
with the sale of goods or the rendering of services by a Transferor, and further
includes, without limitation, the obligation to pay any Finance Charges with
respect thereto.  Indebtedness and other rights and obligations
arising from any one transaction, including, without limitation, indebtedness
and other rights and obligations represented by an individual invoice, shall
constitute a Receivable separate from a Receivable consisting of the
indebtedness and other rights and obligations arising from any other
transaction; provided further, that any
indebtedness, rights or obligations referred to in the immediately preceding
sentence shall be a Receivable regardless of whether the account debtor or
Seller treats such indebtedness, rights or obligations as a separate payment
obligation.

     

    “Receivables Sale
Agreement” means that certain Receivables Sale Agreement, dated as of
April 4, 2000, between Originator and Seller, as the same may be amended,
restated or otherwise modified from time to time.

     

    “Records” means, with
respect to any Receivable, all Contracts and other documents, books, records and
other information (including, without limitation, computer programs, tapes,
disks, punch cards, data processing software and related property and rights)
relating to such Receivable, any Related Security therefor and the related
Obligor.

     

    “Reduction Notice” has
the meaning set forth in Section
1.3.

     

    “Reduction Pro Rata
Share” means, for any Conduit Group and on any date of determination, the
percentage equivalent of a fraction, the numerator of which is the aggregate
amount of Capital of all Purchaser Interests assigned to such Conduit Group and
outstanding as at such date, and the denominator of which is the Aggregate
Capital.

     

    “Regulatory Change”
has the meaning set forth in Section
10.2(a).

     

    “Reinvestment” has the
meaning set forth in Section
2.2.

     

    “Related Security”
means, with respect to any Receivable:

     

    (i) all of Seller’s
interest in the inventory and goods (including returned or repossessed inventory
or goods), if any, the sale of which by a Transferor gave rise to such
Receivable, and all insurance contracts with respect thereto,

     

    (ii) all other security
interests or liens and property subject thereto from time to time, if any,
purporting to secure payment of such Receivable, whether pursuant to the
Contract related to such Receivable or otherwise, together with all financing
statements and security agreements describing any collateral securing such
Receivable,

     

    (iii) all guaranties,
letters of credit, insurance and other agreements or arrangements of whatever
character from time to time supporting or securing payment of such Receivable
whether pursuant to the Contract related to such Receivable or
otherwise,

     

    (iv) all service
contracts and other contracts and agreements associated with such
Receivable,

     

    (v) all Records related
to such Receivable,

     

    (vi) all of Seller’s
right, title and interest in, to and under the Receivables Sale Agreement and
the Transfer Agreement in respect of such Receivable and all of Seller’s right,
title and interest in, to and under the Performance Undertaking,
and

     

    (vii) all proceeds of any
of the foregoing.

     

    “Relevant
Conduit” means (i) with respect to the Conduit Group that
includes ________________ and (ii) with respect to the Conduit Group that
includes ________ as a Committed Purchaser, either ________ or
_________.

     

    “Required Notice
Period” means the number of days required notice set forth below
applicable to the Aggregate Reduction indicated below:

     

    
      	
              
                Aggregate
      Reduction

              

            	
              
                Required
      Notice Period

              

            
	
              ≤$100,000,000

            	
              two Business
      Days

            
	
              >$100,000,000

            	
              five Business
      Days

            

    

    

    “Restricted Junior
Payment” means (i) any dividend or other distribution, direct or
indirect, on account of any shares of any class of capital stock of Seller now
or hereafter outstanding, except a dividend payable solely in shares of that
class of stock or in any junior class of stock of Seller, (ii) any redemption,
retirement, sinking fund or similar payment, purchase or other acquisition for
value, direct or indirect, of any shares of any class of capital stock of Seller
now or hereafter outstanding, (iii) any payment or prepayment of principal of,
premium, if any, or interest, fees or other charges on or with respect to, and
any redemption, purchase, retirement, defeasance, sinking fund or similar
payment and any claim for rescission with respect to the Subordinated Loans (as
defined in the Receivables Sale Agreement), (iv) any payment made to redeem,
purchase, repurchase or retire, or to obtain the surrender of, any outstanding
warrants, options or other rights to acquire shares of any class of capital
stock of Seller now or hereafter outstanding, and (v) any payment of management
fees by Seller (except for reasonable management fees to the Originator or its
Affiliates in reimbursement of actual management services
performed).

     

    “Seller” has the
meaning set forth in the preamble to this Agreement.

     

    “Seller Parties” has
the meaning set forth in the preamble to this Agreement.

     

    “Servicer” means at
any time the Person (which may be the Agent) then authorized pursuant to Article VIII to
service, administer and collect Receivables.

     

    “Servicing Fee” has
the meaning set forth in Section
8.6.

     

    “Settlement Date”
means (A) the sixteenth day at each month, and (B) the last day of the relevant
Tranche Period in respect of each Committed Purchaser Interest.

     

    “Settlement Period”
means (A) in respect of each Purchaser Interest of a Conduit, the immediately
preceding Accrual Period, and (B) in respect of each Committed Purchaser
Interest, the entire Tranche Period of such Purchaser Interest.

     

    “SPV” means any
special purpose entity (including, without limitation, Seller) established for
the purpose of purchasing receivables in connection with a receivables
securitization transaction permitted under all material financing arrangements
pursuant to which Provider is a debtor or an obligor.

     

    “Sub-Servicer” means
Playtex and any other Person in its capacity as a sub-servicer in accordance
with Section
8.1(b).

     

    “Subsidiary” of a
Person means (i) any corporation more than 50% of the outstanding securities
having ordinary voting power of which shall at the time be owned or controlled,
directly or indirectly, by such Person or by one or more of its Subsidiaries or
by such Person and one or more of its Subsidiaries, or (ii) any partnership,
association, limited liability company, joint venture or similar business
organization more than 50% of the ownership interests having ordinary voting
power of which shall at the time be so owned or controlled.  Unless
otherwise expressly provided, all references herein to a “Subsidiary” shall mean
a Subsidiary of Seller.

     

    “Terminating Commitment
Availability” means, with respect to any Terminating Committed Purchaser,
the positive difference (if any) between (a) an amount equal to the Commitment
(without giving effect to clause (ii) of the proviso to the penultimate sentence
of Section
4.6(b)) of such Terminating Committed Purchaser, minus, an amount
equal to 2% of such Commitment, minus, (b) the
Capital of the Purchaser Interests funded by such Terminating Committed
Purchaser.

     

    “Termination Date” has
the meaning set forth in Section
2.2.

     

    “Termination
Percentage” has the meaning set forth in Section
2.2.

     

    “Terminating Committed
Purchaser” has the meaning set forth in Section
4.6.

     

    “Terminating Tranche”
has the meaning set forth in Section
4.3(b).

     

    “Tranche Period”
means, with respect to any Committed Purchaser Interest:

     

    (a)  if
Yield for such Purchaser Interest is calculated on the basis of the LIBO Rate, a
period of one, two, three or six months, or such other period as may be mutually
agreeable to the Agent and Seller, commencing on a Business Day selected by
Seller or the Agent pursuant to this Agreement.  Such Tranche Period
shall end on the day in the applicable succeeding calendar month which
corresponds numerically to the beginning day of such Tranche Period, provided,
however, that if there is no such numerically corresponding day in such
succeeding month, such Tranche Period shall end on the last Business Day of such
succeeding month; or

     

    (b)  if
Yield for such Purchaser Interest is calculated on the basis of the Prime Rate,
a period commencing on a Business Day selected by Seller and agreed to by the
Agent, provided no such period shall exceed one month.

     

    If
any Tranche Period would end on a day which is not a Business Day, such Tranche
Period shall end on the next succeeding Business Day, provided, however, that in the
case of Tranche Periods corresponding to the LIBO Rate, if such next succeeding
Business Day would fall in a new month, such Tranche Period shall end on the
immediately preceding Business Day.  In the case of any Tranche Period
for any Purchaser Interest which commences before the Amortization Date and
would otherwise end on a date occurring after the Amortization Date, such
Tranche Period shall end on the Amortization Date.  The duration of
each Tranche Period which commences after the Amortization Date shall be of such
duration as selected by the Agent.

     

    “Transaction
Documents” means, collectively, this Agreement, each Purchase Notice, the
Receivables Sale Agreement, the Transfer Agreement, each Collection Account
Agreement, the Performance Undertaking, the Fee Letter, the Subordinated Note
(as defined in the Receivables Sale Agreement), each Revolving Note (as defined
in the Transfer Agreement) and all other instruments, documents and agreements
executed and delivered in connection herewith.

     

    “Transferor” means
each of Originator and each Original Seller.

     

    “Transfer Agreement”
has the meaning set forth in the Receivables Sale Agreement.

     

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

     

    “Yield” means for each
respective Tranche Period relating to Committed Purchaser Interests, an amount
equal to the product of the applicable Discount Rate for each Purchaser Interest
multiplied by the Capital of such Purchaser Interest for each day elapsed during
such Tranche Period, annualized on a 360 day basis.

     

    “Yield Reserve” means,
on any date, an amount equal to 1.5% multiplied by the Net Receivables Balance
as of the close of business of Servicer on such date.

     

    All accounting
terms not specifically defined herein shall be construed in accordance with
GAAP.  All terms used in Article 9 of the UCC in the State of New
York, and not specifically defined herein, are used herein as defined in such
Article 9.

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