Document:

Exhibit 4.4

 

PLEDGE AGREEMENT

 

This
PLEDGE AGREEMENT, dated as of February 19, 2004 (together with all
amendments, modifications and supplements, if any, from time to time hereto,
this “Agreement”) between the Credit Parties that are signatories hereto
(each a “Pledgor” and collectively, the “Pledgors”) and WELLS
FARGO BANK MINNESOTA, NATIONAL ASSOCIATION, in its capacity as trustee (in such
capacity, together with its successors and assigns, the “Trustee”) for
the benefit of holders of Notes (as defined below) (the “Secured Parties”).

 

W I T N E S S E T H:

 

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

 

WHEREAS,
each Pledgor is the record and beneficial owner of the shares of Stock listed
in Part A of Schedule I hereto opposite its name and the owner of
the promissory notes and instruments listed in Part B of Schedule I
hereto opposite its name;

 

WHEREAS,
each Pledgor has agreed to pledge the Pledged Collateral to the Trustee for the
ratable benefit of the Secured Parties and such pledge is intended to be a
second lien on the Pledged Collateral in accordance with the Intercreditor Provisions
of the Indenture (as defined below) and the pledge on the Pledged Collateral
granted to the Agent (as defined below) under the Credit Pledge Agreement (as
defined below) is intended to be a first lien on the Pledged Collateral in
accordance with the Intercreditor Provisions of the Indenture;

 

NOW,
THEREFORE, in consideration of the premises and the covenants hereinafter
contained and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, it is agreed as follows:

 

1.                                       Definitions.  Unless otherwise defined
herein, terms defined in the Indenture are used herein as therein defined, and
the following shall have (unless otherwise provided elsewhere in this
Agreement) the following respective meanings (such meanings being equally
applicable to both the singular and plural form of the terms defined):

 

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

 

“Bankruptcy
Code” means title 11, United States Code, as amended from time to time, and
any successor statute thereto.

 

 

“Credit
Pledge Agreement” means (i) the Pledge Agreement, dated as of the date
hereof, among the Pledgors thereto and the Agent and (ii) any similar Credit
Agreement Security Document securing the Credit Agreement Obligations.

 

 “Domestic Pledged Entity” means a
Pledged Entity that is a Domestic Subsidiary.

 

“Foreign
Pledged Entity” means a Pledged Entity that is a Foreign Subsidiary.

 

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

 

“Pledged
Collateral” has the meaning assigned to such term in Section 2
hereof.

 

“Pledged
Entity” means an issuer of Pledged Shares or Pledged Indebtedness.

 

“Pledged
Indebtedness” means the Indebtedness of any Pledged Entity evidenced by
promissory notes and instruments listed on Part B of Schedule I
hereto.

 

“Pledged
Shares” means those shares of any Pledged Entity listed on Part A of Schedule I
hereto.

 

“Secured
Obligations” has the meaning assigned to such term in Section 3
hereof.

 

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

 

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

 

2.                                       Pledge.  Each Pledgor hereby pledges
to Trustee, and grants to Trustee for the benefit of the Secured Parties, a
security interest in all of the following (collectively, the “Pledged
Collateral”):

 

(a)                                  the Pledged Shares and the certificates
representing the Pledged Shares (if any), and all dividends, distributions,
cash, instruments and other property or proceeds from time to time received,
receivable or otherwise distributed in respect of or in exchange for any or all
of the Pledged Shares; and

 

(b)                                 such portion, as provided in
Section 6(d) below, of any additional shares of stock of a Pledged Entity
from time to time acquired by such Pledgor in any manner

 

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(which
shares shall be deemed to be part of the Pledged Shares), and the certificates
representing such additional shares (if any), and all dividends, distributions,
cash, instruments and other property or proceeds from time to time received,
receivable or otherwise distributed in respect of or in exchange for any or all
of such Stock; and

 

(c)                                  the Pledged Indebtedness and the promissory
notes or instruments evidencing the Pledged Indebtedness, and all interest,
cash, instruments and other property and assets from time to time received,
receivable or otherwise distributed in respect of the Pledged Indebtedness; and

 

(d)                                 all additional Indebtedness arising after the
date hereof and owing to such Pledgor and evidenced by promissory notes or
other instruments, together with such promissory notes and instruments, and all
interest, cash, instruments and other property and assets from time to time
received, receivable or otherwise distributed in respect of that Pledged
Indebtedness.

 

Notwithstanding
the foregoing provisions or any other provision of this Agreement, in no event
shall (i) more than 65% (rounded downwards to avoid fractional shares) of the
issued and outstanding shares of a class of voting stock of Foreign Subsidiary
constitute Pledged Shares or Pledged Collateral hereunder and, if at any time
any Pledgor delivers to the Agent or Trustee, on and after the Transfer Date
(as defined below), certificates representing more than 65% (rounded downwards
to avoid fractional shares) of the issued and outstanding shares of a class of
voting stock of any Foreign Subsidiary that is owned by such Pledgor, such
excess shares shall not constitute Pledged Shares or Pledged Collateral and
shall not be subject to any right of setoff by the Agent, any Lender or the Trustee
(ii) any Stock and other securities of Subsidiaries constitute Pledged Shares
or Pledged Collateral hereunder to the extent the Applicable Value (defined as
the aggregate principal amount, par value or book value as carried by the
Company or the market value, whichever is the greatest of such Stock and other
securities) (on a Subsidiary-by-Subsidiary basis) is equal to or greater than
20% of the aggregate principal amount of Notes then outstanding.

 

3.                                       Security for Obligations. 
This Agreement secures, and the Pledged Collateral is security for, the
prompt payment in full when due, whether at stated maturity, by acceleration or
otherwise, and performance of all Note Obligations of any kind under or in
connection with the Indenture and the Note Security Documents and all
obligations of each Pledgor now or hereafter existing under this Agreement
including, without limitation, all fees, costs and expenses whether in
connection with collection actions hereunder or otherwise (collectively, the “Secured
Obligations”).

 

4.                                       Delivery of Pledged Collateral.  All
certificates and all promissory notes and instruments evidencing the Pledged
Collateral, if any, shall be delivered to and held by or on behalf of Agent,
for itself and the benefit of Lenders, until the Discharge of Credit Agreement
Indebtedness and release of Liens, in whole, in respect of any Additional First
Lien Obligations, if any (such date, the “Transfer Date”), at which
time, all such certificates, promissory notes and instruments, if any, shall be
delivered to the Trustee, in accordance with the Intercreditor Provisions of
the Indenture.  All Pledged Shares shall
be accompanied by duly executed instruments of transfer or assignment in blank,
all in form and substance reasonably satisfactory

 

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to Agent and on and after
the Transfer Date, to Trustee and all promissory notes or other instruments
evidencing the Pledged Indebtedness shall be endorsed by Pledgors, as
applicable.

 

5.                                       Representations and Warranties. 
Each Pledgor represents and warrants to Trustee that:

 

(a)                                  Such Pledgor is, and at the time of delivery
of the Pledged Shares to Agent and, on or after the Transfer Date, to the
Trustee, will be, the sole holder of record and the sole beneficial owner of
such Pledged Collateral pledged by such Pledgor free and clear of any Lien
thereon or affecting the title thereto, except for any Lien created by this
Agreement and Permitted Prior Liens; such Pledgor is and at the time of
delivery of the Pledged Indebtedness to Agent and, on and after the Transfer
Date, Trustee, will be, the sole owner of such Pledged Collateral free and
clear of any Lien thereon or affecting title thereto, except for any Lien
created by this Agreement and Permitted Prior Liens;

 

(b)                                 All of the Pledged Shares have been duly
authorized, validly issued and are fully paid and non-assessable;  and the Pledged Indebtedness has been duly
authorized, authenticated or issued and delivered by, and is the legal, valid
and binding obligations of, the Company or the Pledged Entities which are
Guarantors or Subsidiaries thereof, and no such Pledged Entity is in default
thereunder;

 

(c)                                  Such Pledgor has the right and requisite
authority to pledge, assign, transfer, deposit and set over the Pledged
Collateral pledged by such Pledgor to Agent, and, on and after the Transfer
Date, Trustee as provided herein and in accordance with the Intercreditor
Provisions of the Indenture;

 

(d)                                 None of the Pledged Shares or Pledged
Indebtedness has been issued or transferred in violation of the securities
registration, securities disclosure or similar laws of any jurisdiction to
which such issuance or transfer may be subject;

 

(e)                                  As of the date hereof, all of the Pledged
Shares are presently owned by such Pledgor, and are presently represented by
the certificates listed on Part A of Schedule I hereto.  As of the date hereof, there are no existing
options, warrants, calls or commitments of any character whatsoever relating to
the Pledged Shares;

 

(f)                                    No consent, approval, authorization or other
order or other action by, and no notice to or filing with, any Governmental
Authority or any other Person is required (i) for the pledge by such Pledgor of
the Pledged Collateral pursuant to this Agreement or for the execution,
delivery or performance of this Agreement by such Pledgor, or (ii) for the
exercise by Trustee of the voting or other rights provided for in this
Agreement or the remedies in respect of the Pledged Collateral pursuant to this
Agreement, except as otherwise provided in the Intercreditor Provisions of the
Indenture and as may be required in connection with such disposition by laws
affecting the offering and sale of securities generally or local law in the
case of stock of Foreign Pledged Entities;

 

(g)                                 The pledge and assignment of the Pledged
Collateral pursuant to this Agreement will create a valid second priority Lien
on the Pledged Collateral and the delivery of the Pledged Collateral to the
Trustee on the Transfer Date will create a first

 

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priority
perfected security interest in favor of the Trustee for the benefit of the
Secured Parties in the Pledged Collateral and the proceeds thereof, securing
the payment of the Secured Obligations, subject to no other Lien other than
Permitted Prior Liens;

 

(h)                                 This Agreement has been duly authorized,
executed and delivered by such Pledgor and constitutes a legal, valid and
binding obligation of such Pledgor enforceable against such Pledgor in
accordance with its terms;

 

(i)                                     The Pledged Shares constitute (i) 100% of the
issued and outstanding shares of Stock of each Domestic Pledged Entity owned by
such Pledgor, and (ii) 65% of the issued and outstanding shares of Stock of
each Foreign Pledged Entity owned directly by such Pledgor; and

 

(j)                                     Except as disclosed on Part B of Schedule I,
none of the Pledged Indebtedness is subordinated in right of payment to other
Indebtedness (except for the Credit Agreement Obligations and the Notes) or
subject to the terms of an indenture.

 

The
representations and warranties set forth in this Section 5 shall
survive the execution and delivery of this Agreement.

 

6.                                       Covenants.  Each Pledgor covenants and
agrees that until the Termination Date:

 

(a)                                  Without the prior written consent of Trustee,
such Pledgor will not sell, assign, transfer, pledge, or otherwise encumber any
of its rights in or to the Pledged Collateral, or any unpaid dividends,
interest or other distributions or payments with respect to the Pledged
Collateral or grant a Lien (other than Permitted Prior Liens) in the Pledged
Collateral, unless otherwise expressly permitted by the Indenture;

 

(b)                                 Such Pledgor will, at its expense, promptly
execute, acknowledge and deliver all such instruments and take all such
actions, as Trustee from time to time may reasonably request in order to ensure
to Trustee for the ratable benefit of the Secured Parties the benefits of the
Liens in and to the Pledged Collateral intended to be created by this
Agreement, including the filing of any necessary Code financing statements,
which may be filed by Trustee without the signature of such Pledgor, and will
cooperate with Trustee, at such Pledgor’s expense, in obtaining all necessary
approvals and making all necessary filings under federal, state, local or
foreign law in connection with such Liens or any sale or transfer of the
Pledged Collateral;

 

(c)                                  Except as provided in the Intercreditor
Provisions of the Indenture, such Pledgor has and will defend the title to the
Pledged Collateral and the Liens of Trustee in the Pledged Collateral against
the claim of any Person and will maintain and preserve such Liens; and

 

(d)                                 Such Pledgor will, upon obtaining ownership
of any additional Stock of a Pledged Entity or promissory notes or instruments
(other than promissory notes and instruments the fair market value of which
does not exceed $250,000 in the aggregate), 
which Stock, notes or instruments are not already Pledged Collateral,
promptly (and in

 

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any
event within three (3) Business Days) deliver to Trustee a Pledge Amendment,
duly executed by such Pledgor, in substantially the form of Schedule II
hereto (a “Pledge Amendment”) in respect of any such additional Stock,
notes or instruments, pursuant to which such Pledgor shall pledge to Trustee
(subject to Section 2 hereof) all of such additional Stock, notes
and instruments.  Such Pledgor hereby
authorizes Trustee to attach each Pledge Amendment to this Agreement and agrees
that all Pledged Shares and Pledged Indebtedness listed on any Pledge Amendment
delivered to Trustee shall for all purposes hereunder be considered Pledged
Collateral.

 

7.                                       Pledgor’s Rights.  As
long as no Event of Default shall have occurred and be continuing and until
written notice shall be given to such Pledgor in accordance with Section 8(a)
hereof:

 

(a)                                  Such Pledgor shall have the right, from time
to time, to vote and give consents with respect to the Pledged Collateral, or
any part thereof for all purposes not inconsistent with the provisions of this
Agreement, the Indenture or any Note Security Document; provided, however,
that no vote shall be cast, and no consent shall be given or action taken,
which would have the effect of impairing in any material respect the position
or interest of Trustee in respect of the Pledged Collateral or which would
authorize, effect or consent to (unless and to the extent expressly permitted
by the Indenture):

 

(i)                                     the dissolution or liquidation, in whole or
in part, of a Pledged Entity;

 

(ii)                                  the consolidation or merger of a Pledged
Entity with any other Person;

 

(iii)                               the sale, disposition or encumbrance of all
or substantially all of the assets of a Pledged Entity, except for Liens in
favor of Trustee and Permitted Prior Liens;

 

(iv)                              any change in the authorized number of
shares, the stated capital or the authorized share capital of a Pledged Entity
or the issuance of any additional shares of its Stock unless pledged pursuant
to Section 6(d) hereof; or

 

(v)                                 the alteration of the voting rights with
respect to the Stock of a Pledged Entity in a manner which is materially
adverse to the Trustee or which has a material adverse effect on the rights or
remedies of the Trustee;

 

(b)                                 the Trustee shall execute and deliver to such
Pledgor or cause to be executed and delivered to such Pledgor, all such
proxies, power of attorney and other instruments as such Pledgor may reasonably
request for the purpose of enabling such Pledgor to exercise the voting and/or
consensual rights it is entitled to exercise pursuant to clause (a) above;

 

(c)                                  (i)                                     Such Pledgor shall be entitled, from time to
time, to collect and receive for its own use all cash dividends and principal
and interest paid in respect of the Pledged Shares and Pledged Indebtedness to
the extent not in violation of the Indenture

 

6

 

other
than any and all: (A)
dividends and interest paid or payable other than in cash in respect of any
Pledged Collateral, and instruments and other property received, receivable or
otherwise distributed in respect of, or in exchange for, any Pledged
Collateral; and (B) dividends and other distributions paid or payable in cash
in respect of any Pledged Shares in connection with a partial or total
liquidation or dissolution or in connection with a reduction of capital,
capital surplus or paid-in capital of a Pledged Entity; provided, however,
that until actually paid all rights to such distributions shall remain subject
to the Lien created by this Agreement; and

 

(ii)                                  all dividends and principal and interest
(other than such cash dividends and interest as are permitted to be paid to
such Pledgor in accordance with clause  (i) above) and all other
distributions in respect of any of the Pledged Shares or Pledged Indebtedness,
whenever paid or made, shall be delivered to Agent and, on and after the
Transfer Date, to Trustee to hold as Pledged Collateral and shall, if received
by such Pledgor, be received in trust for the benefit of Agent and the Trustee,
be segregated from the other property or funds of such Pledgor, and be
forthwith delivered to Agent and, on and after the Transfer Date, to the
Trustee as Pledged Collateral in the same form as so received (with any
necessary endorsement), in each case in accordance with the Intercreditor
Provisions of the Indenture.

 

8.                                       Defaults and Remedies; Proxy.

 

Except
as otherwise provided in the Intercreditor Provisions of the Indenture:

 

(a)                                  Upon the occurrence of an Event of Default
and during the continuation of such Event of Default, and concurrently with
written notice to each applicable Pledgor, Trustee (personally or through an
agent) is hereby authorized and empowered to transfer and register in its name
or in the name of its nominee the whole or any part of the Pledged Collateral,
to exchange certificates or instruments representing or evidencing Pledged
Collateral for certificates or instruments of smaller or larger denominations,
to exercise the voting and all other rights as a holder with respect thereto,
to collect and receive all cash dividends, interest, principal and other
distributions made thereon, to sell in a commercially reasonable manner in one
or more sales after ten (10) days’ notice of the time and place of any public
sale or of the time at which a private sale is to take place (which notice each
Pledgor agrees is commercially reasonable) the whole or any part of the Pledged
Collateral and to otherwise act with respect to the Pledged Collateral as
though Trustee was the outright owner thereof. 
Any such sale shall be made at a public or private sale at Trustee’s
place of business, or at any place to be named in the notice of sale, either
for cash or upon credit or for future delivery at such price as Trustee may
deem fair, and Trustee may be the purchaser of the whole or any part of the Pledged
Collateral so sold and hold the same thereafter in its own right free from any
claim of any Pledgor or any right of redemption.  Each such sale shall be made to the highest bidder, but Trustee
reserves the right to reject any and all bids at such sale which, in its
discretion, it shall deem inadequate. 
Demands of performance, except as otherwise herein specifically provided
for, notices of sale, advertisements and the presence of property at sale are
hereby waived and any sale hereunder may be conducted by an auctioneer or any
officer or agent of Trustee.  PLEDGOR
HEREBY IRREVOCABLY CONSTITUTES AND APPOINTS TRUSTEE AS THE PROXY AND

 

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ATTORNEY-IN-FACT
OF SUCH PLEDGOR WITH RESPECT TO THE PLEDGED COLLATERAL, INCLUDING THE RIGHT TO
VOTE THE PLEDGED SHARES, WITH FULL POWER OF SUBSTITUTION TO DO SO.  THE APPOINTMENT OF TRUSTEE AS PROXY AND
ATTORNEY-IN-FACT IS COUPLED WITH AN INTEREST AND SHALL BE IRREVOCABLE UNTIL THE
TERMINATION DATE.  IN ADDITION TO THE RIGHT
TO VOTE THE PLEDGED SHARES, THE APPOINTMENT OF TRUSTEE AS PROXY AND
ATTORNEY-IN-FACT SHALL INCLUDE THE RIGHT TO EXERCISE ALL OTHER RIGHTS, POWERS,
PRIVILEGES AND REMEDIES TO WHICH A HOLDER OF THE PLEDGED SHARES WOULD BE
ENTITLED (INCLUDING GIVING OR WITHHOLDING WRITTEN CONSENTS OF SHAREHOLDERS,
CALLING SPECIAL MEETINGS OF SHAREHOLDERS AND VOTING AT SUCH MEETINGS). SUCH
PROXY SHALL BE EFFECTIVE, AUTOMATICALLY AND WITHOUT THE NECESSITY OF ANY ACTION
(INCLUDING ANY TRANSFER OF ANY PLEDGED SHARES ON THE RECORD BOOKS OF THE ISSUER
THEREOF) BY ANY PERSON (INCLUDING THE ISSUER OF THE PLEDGED SHARES OR ANY
OFFICER OR TRUSTEE THEREOF), UPON THE OCCURRENCE OF AN EVENT OF DEFAULT AND
DURING THE CONTINUATION THEREOF.  NOTWITHSTANDING
THE FOREGOING, TRUSTEE SHALL NOT HAVE ANY DUTY TO EXERCISE ANY SUCH RIGHT OR TO
PRESERVE THE SAME AND SHALL NOT BE LIABLE FOR ANY FAILURE TO DO SO OR FOR ANY
DELAY IN DOING SO.

 

(b)                                 If, at the original time or times appointed
for the sale of the whole or any part of the Pledged Collateral, the highest
bid, if there be but one sale, shall be inadequate to discharge in full all the
Secured Obligations, or if the Pledged Collateral be offered for sale in lots,
if at any of such sales, the highest bid for the lot offered for sale would indicate
to Trustee, in its discretion, that the proceeds of the sales of the whole of
the Pledged Collateral would be unlikely to be sufficient to discharge all the
Secured Obligations, Trustee may, on one or more occasions and in its
discretion, postpone any of said sales by public announcement at the time of
sale or the time of previous postponement of sale, and no other notice of such
postponement or postponements of sale need be given, any other notice being
hereby waived; provided, however, that any sale or sales made
after such postponement shall be after ten (10) days’ notice to, on behalf of
the applicable Pledgor.

 

(c)                                  If, at any time when Trustee shall determine
to exercise its right to sell the whole or any part of the Pledged Collateral
hereunder, such Pledged Collateral or the part thereof to be sold shall not,
for any reason whatsoever, be effectively registered under the Securities Act
of 1933, as amended (or any similar statute then in effect) (the “Act”),
Trustee may, in its discretion (subject only to applicable requirements of
law), sell such Pledged Collateral or part thereof by private sale in such
manner and under such circumstances as Trustee may deem necessary or advisable
in accordance with applicable securities laws and otherwise in a commercially
reasonable manner, but subject to the other requirements of this Section 8,
and shall not be required to effect such registration or to cause the same to
be effected.  Without limiting the
generality of the foregoing, in any such event, Trustee in its discretion (x)
may, in accordance with applicable securities laws, proceed to make such
private sale notwithstanding that a registration statement for

 

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the
purpose of registering such Pledged Collateral or part thereof could be or
shall have been filed under said Act (or similar statute), (y) may approach and
negotiate with a single possible purchaser to effect such sale, and (z) may
restrict such sale to a purchaser who is an accredited investor under the Act
and who will represent and agree that such purchaser is purchasing for its own
account, for investment and not with a view to the distribution or sale of such
Pledged Collateral or any part thereof. 
In addition to a private sale as provided above in this Section 8,
if any of the Pledged Collateral shall not be freely distributable to the
public without registration under the Act (or similar statute) at the time of
any proposed sale pursuant to this Section 8, then Trustee shall
not be required to effect such registration or cause the same to be effected
but, in its discretion (subject only to applicable requirements of law), may
require that any sale hereunder (including a sale at auction) be conducted
subject to restrictions:

 

(i)                                     as to the financial sophistication and
ability of any Person permitted to bid or purchase at any such sale;

 

(ii)                                  as to the content of legends to be placed
upon any certificates representing the Pledged Collateral sold in such sale,
including restrictions on future transfer thereof;

 

(iii)                               as to the representations required to be made
by each Person bidding or purchasing at such sale relating to that Person’s
access to financial information about the applicable Pledgor and such Person’s
intentions as to the holding of the Pledged Collateral so sold for investment
for its own account and not with a view to the distribution thereof; and

 

(iv)                              as to such other matters as Trustee may, in
its discretion, deem necessary or appropriate in order that such sale
(notwithstanding any failure so to register) may be effected in compliance with
the Bankruptcy Law and other laws affecting the enforcement of creditors’
rights and the Act and all applicable state securities laws.

 

(d)                                 Each Pledgor recognizes that Trustee may be
unable to effect a public sale of any or all the Pledged Collateral and may be
compelled to resort to one or more private sales thereof in accordance with clause
(c) above.  Each Pledgor also
acknowledges that any such private sale may result in prices and other terms
less favorable to the seller than if such sale were a public sale and,
notwithstanding such circumstances, agrees that any such private sale shall not
be deemed to have been made in a commercially unreasonable manner solely by
virtue of such sale being private. 
Trustee shall be under no obligation to delay a sale of any of the
Pledged Collateral for the period of time necessary to permit the Pledged
Entity to register such securities for public sale under the Act, or under
applicable state securities laws, even if any Pledgor and any Pledged Entity
would agree to do so.

 

(e)                                  Each Pledgor agrees to the maximum extent
permitted by applicable law that following the occurrence and during the
continuance of an Event of Default it will not at any time plead, claim or take
the benefit of any appraisal, valuation, stay, extension, moratorium or
redemption law now or hereafter in force in order to prevent or delay the
enforcement of this Agreement, or the absolute sale of the whole or any part of

 

9

 

the
Pledged Collateral or the possession thereof by any purchaser at any sale
hereunder, and each Pledgor waives the benefit of all such laws to the extent
it lawfully may do so.  Each Pledgor
agrees that it will not interfere with any right, power and remedy of Trustee
provided for in this Agreement or now or hereafter existing at law or in equity
or by statute or otherwise, or the exercise or beginning of the exercise by
Trustee of any one or more of such rights, powers or remedies.  No failure or delay on the part of Trustee
to exercise any such right, power or remedy and no notice or demand which may
be given to or made upon any Pledgor by Trustee with respect to any such remedies
shall operate as a waiver thereof, or limit or impair Trustee’s right to take
any action or to exercise any power or remedy hereunder, without notice or
demand, or prejudice its rights as against any Pledgor in any respect.

 

(f)                                    Each Pledgor further agrees that a breach of
any of the covenants contained in this Section 8 will cause
irreparable injury to Trustee, that Trustee shall have no adequate remedy at
law in respect of such breach and, as a consequence, agrees that each and every
covenant contained in this Section 8 shall be specifically enforceable
against each Pledgor, and each Pledgor hereby waives and agrees not to assert
any defenses against an action for specific performance of such covenants
except for a defense that the Secured Obligations are not then due and payable
in accordance with the agreements and instruments governing and evidencing such
obligations.

 

9.                                       Waiver.  No delay on Trustee’s part in
exercising any power of sale, Lien, option or other right hereunder, and no
notice or demand which may be given to or made upon any Pledgor by Trustee with
respect to any power of sale, Lien, option or other right hereunder, shall
constitute a waiver thereof, or limit or impair Trustee’s right to take any
action or to exercise any power of sale, Lien, option, or any other right
hereunder, without notice or demand, or prejudice Trustee’s rights as against
any Pledgor in any respect.

 

10.                                 Assignment.  Trustee may assign, indorse
or transfer any instrument evidencing all or any part of the Secured
Obligations as provided in, and in accordance with, the Indenture, and the
holder of such instrument shall be entitled to the benefits of this Agreement.

 

11.                                 Termination.

 

(a)                                  Immediately following the Termination Date,
Trustee shall deliver to each Pledgor the Pledged Collateral pledged by such Pledgor
at the time subject to this Agreement and all instruments of assignment
executed in connection therewith, to the extent it then holds such Pledged
Collateral or instruments, free and clear of the Liens hereof, except as
otherwise provided herein, all of such Pledgor’s obligations hereunder shall at
such time terminate.  Trustee agrees, at
such Pledgor’s expense, to promptly authorize and deliver to such Pledgor any
UCC-3 financing statements or other documents necessary to evidence the
termination of the lien created hereby upon such termination.

 

(b)                                 A Pledgor shall automatically be released
from its obligations hereunder and the security interests in the Pledged
Collateral of such Pledgor shall be automatically released (i) upon the
consummation of any transaction expressly permitted by the

 

10

 

Indenture
(and which would not result in an Event of Default) as a result of which all of
the Pledged Entities of such Pledgor ceases to be Subsidiaries of the Company,
or (ii) otherwise as is permitted in accordance with the terms of the
Indenture.

 

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

 

(d)                                 In connection with any release of Pledged
Collateral of a Pledgor pursuant to paragraph (b) or (c) of this Section 11,
the Trustee shall execute and deliver to such Pledgor at such Pledgor’s sole
expense all documents that such Pledgor shall reasonably request to evidence
such release.  Any execution and
delivery of documents pursuant to this Section 11 shall be without
recourse to or warranty by the Trustee.

 

12.                                 Lien Absolute.  All
rights of Trustee hereunder, and all obligations of each Pledgor hereunder,
shall be absolute and unconditional irrespective of:

 

(a)                                  any lack of validity or enforceability of the
Indenture, any Note Security Document or any other agreement or instrument governing
or evidencing any Secured Obligations;

 

(b)                                 any change in the time, manner or place of
payment of, or in any other term of, all or any part of the Secured
Obligations, or any other amendment or waiver of or any consent to any
departure from the Indenture, any Note Security Document or any other agreement
or instrument governing or evidencing any Secured Obligations;

 

(c)                                  any exchange, release or non-perfection of
any other Collateral, or any release or amendment or waiver of or consent to
departure from any guaranty, for all or any of the Secured Obligations;

 

(d)                                 the insolvency of the Company or any
Guarantor; or

 

(e)                                  any other circumstance which might otherwise
constitute a defense available to, or a discharge of, such Pledgor or any other
Pledgor.

 

13.                                 Release.  Each Pledgor consents and
agrees that Trustee may at any time, or from time to time, in its discretion,
in accordance with the terms of the Indenture:

 

(a)                                  renew, extend or change the time of payment,
and/or the manner, place or terms of payment of all or any part of the Secured
Obligations; and

 

(b)                                 exchange, release and/or surrender all or any
of the Collateral (including the Pledged Collateral), or any part thereof, by
whomsoever deposited, which is now or may hereafter be held by Trustee in
connection with all or any of the Secured Obligations; all in such manner and
upon such terms as Trustee may deem proper, and

 

11

 

without
notice to or further assent from Pledgor, it being hereby agreed that such
Pledgor shall be and remain bound upon this Agreement, irrespective of the
value or condition of any of the Collateral, and notwithstanding any such
change, exchange, settlement, compromise, surrender, release, renewal or
extension, and notwithstanding also that the Secured Obligations may, at any
time, exceed the aggregate principal amount of Notes outstanding under the
Indenture, or any other agreement governing any Secured Obligations.  Each Pledgor hereby waives notice of
acceptance of this Agreement, and also presentment, demand, protest and notice
of dishonor of any and all of the Secured Obligations, and promptness in
commencing suit against any party hereto or liable hereon, and in giving any
notice to or of making any claim or demand hereunder upon such Pledgor.  No act or omission of any kind on Trustee’s
part shall in any event affect or impair this Agreement.

 

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

 

15.                                 Miscellaneous.

 

(a)                                  Trustee may execute any of its duties
hereunder by or through agents or employees and shall be entitled to advice of
counsel concerning all matters pertaining to its duties hereunder.

 

(b)                                 Subject to any limitations in the Indenture,
each Pledgor agrees to promptly reimburse Trustee for reasonable documented
out-of-pocket expenses, including, without limitation, reasonable counsel fees,
incurred by Trustee in connection with the administration and enforcement of
this Agreement.

 

(c)                                  Neither Trustee, nor any of its respective
officers, directors, employees, agents or counsel shall be liable for any
action lawfully taken or omitted to be taken by it or them hereunder or in
connection herewith, except for its or their own gross negligence or willful
misconduct as finally determined by a court of competent jurisdiction.

 

(d)                                 THIS AGREEMENT SHALL BE BINDING UPON EACH
PLEDGOR AND ITS SUCCESSORS AND ASSIGNS (INCLUDING A DEBTOR-IN-POSSESSION ON
BEHALF OF A PLEDGOR), AND SHALL INURE TO THE BENEFIT OF, AND BE ENFORCEABLE BY,
TRUSTEE AND ITS SUCCESSORS AND ASSIGNS, AND SHALL BE GOVERNED BY, AND CONSTRUED
AND

 

12

 

ENFORCED
IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS
MADE AND PERFORMED IN THAT STATE, AND NONE OF THE TERMS OR PROVISIONS OF THIS
AGREEMENT MAY BE WAIVED, ALTERED, MODIFIED OR AMENDED EXCEPT IN WRITING DULY
SIGNED FOR AND ON BEHALF OF TRUSTEE AND EACH PLEDGOR.

 

16.                                 Severability.  If
for any reason any provision or provisions hereof are determined to be invalid
and contrary to any existing or future law, such invalidity shall not impair
the operation of or effect those portions of this Agreement which are valid.

 

17.                                 Notices.  Except as otherwise provided
herein, whenever it is provided herein that any notice, demand, request,
consent, approval, declaration or other communication shall or may be given to
or served upon any of the parties by any other party, or whenever any of the
parties desires to give or serve upon any other a communication with respect to
this Agreement, each such notice, demand, request, consent, approval,
declaration or other communication shall be in writing and either shall be
delivered in person or sent by overnight delivery with a national courier
service, or registered or certified mail, return receipt requested, with proper
postage prepaid, or by facsimile transmission and confirmed by delivery of a
copy by personal delivery or United States Mail as otherwise provided herein:

 

(a)                                  If to Trustee, at:

 

Wells
Fargo Bank Minnesota, National Association

Corporate
Trust Services

213
Court Street, Suite 703

Middletown,
CT 06457

Attention:
Joseph P. O’Donnell

Fax
No.: (860) 704-6219

 

With
copies to:

 

Latham
& Watkins LLP

885
Third Ave. Suite 1000

New
York, NY 10019

Attention:
Carlos Alvarez

Fax
No.: (212) 751-4864

 

If
to a Pledgor, at:

 

Playtex Products, Inc.

300 Nyala Farms Road

Westport, Connecticut  06880

Telecopier No.: 
(203) 341-4260

Attention: Chief Financial Officer

 

13

 

With
a copy to:

 

Hass Wheat & Partners, L.P.

300 Crescent Court

Suite 1700

Dallas, TX 75201

Attention: Todd Robichaux

Telecopier No.: 
(214) 871-8316

 

or
at such other address as may be substituted by notice given as herein provided.
The giving of any notice required hereunder may be waived in writing by the
party entitled to receive such notice. 
Every notice, demand, request, consent, approval, declaration or other
communication hereunder shall be deemed to have been duly served, given or
delivered (a) upon the earlier of actual receipt and three (3) Business Days
after deposit in the United States Mail, registered or certified mail, return
receipt requested, with proper postage prepaid, (b) upon transmission, when
sent by telecopy or other similar facsimile transmission (with such telecopy or
facsimile promptly confirmed by delivery of a copy by personal delivery or
United States Mail as otherwise provided in this Section 17, (c)
one (1) Business Day after deposit with a reputable overnight courier with all
charges prepaid, or (d) when delivered, if hand-delivered by messenger.  Failure or delay in delivering copies of any
notice, demand, request, consent, approval, declaration or other communication
to the persons designated above to receive copies shall in no way adversely
affect the effectiveness of such notice, demand, request, consent, approval,
declaration or other communication.

 

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

 

19.                                 Counterparts. 
This Agreement may be executed in any number of counterparts, which
shall, collectively and separately, constitute one agreement.

 

20.                                 Benefit of holders of Note Obligations.  All
security interests granted or contemplated hereby shall be for the benefit of
holders of Note Obligations, and all proceeds or payments realized from the
Pledged Collateral in accordance herewith shall be applied to the Note
Obligations in accordance with the terms of the Indenture.

 

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

 

[Signature Page Follows]

 

14

 

IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed as of the date first written above.

 

	
  PLEDGORS:

  	
  PLAYTEX
  PRODUCTS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
      /s/
  Glenn A. Forbes

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Glenn
  A. Forbes

  
	
   

  	
   

  	
  Title:

  	
  Executive
  Vice President and

  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  PERSONAL
  CARE HOLDINGS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
      /s/
  Glenn A. Forbes

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Glenn
  A. Forbes

  
	
   

  	
   

  	
  Title:

  	
  Executive
  Vice President and

  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  PERSONAL
  CARE GROUP, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
      /s/
  Glenn A. Forbes

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Glenn
  A. Forbes

  
	
   

  	
   

  	
  Title:

  	
  Executive
  Vice President and

  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  PLAYTEX
  INTERNATIONAL CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
      /s/
  Glenn A. Forbes

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Glenn
  A. Forbes

  
	
   

  	
   

  	
  Title:

  	
  Executive
  Vice President and

  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  TH
  MARKETING CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
      /s/
  Glenn A. Forbes

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Glenn
  A. Forbes

  
	
   

  	
   

  	
  Title:

  	
  Executive
  Vice President and

  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  TRUSTEE:

  	
  WELLS
  FARGO BANK MINNESOTA,

  
	
   

  	
  NATIONAL
  ASSOCIATION, as Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Joseph P. O’Donnell

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Joseph
  P. O’Donnell

  
	
   

  	
   

  	
  Title:

  	
  Assistant
  Vice President

  
							

 

Signature Page to Pledge Agreement

 

S-1

 

SCHEDULE I

 

PART A

 

PLEDGED SHARES

 

	
  Grantor

  	
   

  	
  Stock
  Issuer

  	
   

  	
  Class

  of

  Stock

  	
   

  	
  Stock

  Certificate

  Nos.

  	
   

  	
  Par

  Value

  	
   

  	
  No. of

  Shares

  	
   

  	
  Percentage

  of

  Outstanding

  Shares

  Pledged

  
	
  Playtex
  Products, Inc.

  	
   

  	
  Carewell
  Industries, Inc.

  	
   

  	
  Common

  	
   

  	
  12

  	
   

  	
  Without
  par value

  	
   

  	
  130.2

  	
   

  	
  100%

  
	
  Personal
  Care Holdings, Inc.

  	
   

  	
  Personal
  Care Group, Inc

  	
   

  	
  Common

  	
   

  	
  2

  	
   

  	
  $.01
  per share

  	
   

  	
  1000

  	
   

  	
  100%

  
	
  Playtex
  Products, Inc.

  	
   

  	
  Personal
  Care Holdings, Inc.

  	
   

  	
  Common

  	
   

  	
  2

  	
   

  	
  $.01
  per share

  	
   

  	
  1000

  	
   

  	
  100%

  
	
  TH
  Marketing Corp.

  	
   

  	
  Playtex
  Foreign Sales Corporation

  	
   

  	
  Common

  	
   

  	
  3

  	
   

  	
  Without
  par value

  	
   

  	
  650

  	
   

  	
  65%

  
	
  Playtex
  Products, Inc.

  	
   

  	
  Playtex
  International Corp.

  	
   

  	
  Common

  	
   

  	
  3

  	
   

  	
  $.01
  per share

  	
   

  	
  100

  	
   

  	
  100%

  
	
  Playtex
  Products, Inc.

  	
   

  	
  Playtex
  Investment Corp.

  	
   

  	
  Common

  	
   

  	
  4

  	
   

  	
  $.01
  per share

  	
   

  	
  1000

  	
   

  	
  100%

  
	
  Playtex
  Products, Inc.

  	
   

  	
  Playtex
  Manufacturing, Inc.

  	
   

  	
  Common

  	
   

  	
  2

  	
   

  	
  $.01
  per share

  	
   

  	
  100

  	
   

  	
  100%

  
	
  Personal
  Care Group, Inc.

  	
   

  	
  Playtex
  Products (Australia) PTY Ltd.

  	
   

  	
  Common

  	
   

  	
  2

  	
   

  	
  $.01
  per share

  	
   

  	
  2

  	
   

  	
  65%

  
	
  Playtex
  Products, Inc.

  	
   

  	
  Playtex
  Sales & Services, Inc.

  	
   

  	
  Common

  	
   

  	
  2

  	
   

  	
  $.01
  per share

  	
   

  	
  100

  	
   

  	
  100%

  
	
  Playtex
  Products, Inc.

  	
   

  	
  Smile-Tote,
  Inc.

  	
   

  	
  Common

  	
   

  	
  3

  	
   

  	
  Without
  par value

  	
   

  	
  1000

  	
   

  	
  100%

  
	
  Playtex
  Products, Inc.

  	
   

  	
  Sun
  Pharmaceuticals Corp.

  	
   

  	
  Common

  	
   

  	
  4

  	
   

  	
  $.01
  per share

  	
   

  	
  100

  	
   

  	
  100%

  
	
  Playtex
  International Corp.

  	
   

  	
  Playtex
  Limited

  	
   

  	
  Common

  	
   

  	
  37

  	
   

  	
  $.01
  per share

  	
   

  	
  55

  	
   

  	
  65%

  
	
  Playtex
  International Corp.

  	
   

  	
  TH
  Marketing Corp.

  	
   

  	
  Common

  	
   

  	
  3

  	
   

  	
  $.01
  per share

  	
   

  	
  1000

  	
   

  	
  100%

  
	
  Playtex
  Products, Inc.

  	
   

  	
  Playtex
  Enterprise Risk Mgmt., Ltd.

  	
   

  	
  Common

  	
   

  	
  N/A

  	
  (1)

  	
  $1.00
  per share

  	
   

  	
  120,000

  	
   

  	
  65%

  

 

(1)                                  Non-certificated.

 

 

Execution Version

 

PART B

 

PLEDGED INDEBTEDNESS

 

None.

 

 

SCHEDULE II

 

PLEDGE AMENDMENT

 

This
Pledge Amendment, dated
                ,
    is delivered pursuant to Section 6(d) of the
Pledge Agreement referred to below.  All
defined terms herein shall have the meanings ascribed thereto or incorporated
by reference in the Pledge Agreement. 
The undersigned hereby certifies that the representations and warranties
in Section 5 of the  Pledge
Agreement are and continue to be true and correct, both as to the promissory
notes, instruments and shares pledged prior to this Pledge Amendment and as to
the promissory notes, instruments and shares pledged pursuant to this Pledge
Amendment.  The undersigned further
agrees that this Pledge Amendment may be attached to that certain Pledge
Agreement, dated February 19, 2004, between undersigned, as Pledgor, the
other Pledgors named therein, and Wells Fargo Bank Minnesota, National
Association, as Trustee, (as amended, restated or otherwise modified, the
“Pledge Agreement”) and that the Pledged Shares and Pledged Indebtedness listed
on this Pledge Amendment shall be and become a part of the Pledged Collateral
referred to in said  Pledge Agreement
and shall secure all Secured Obligations referred to in said Pledge Agreement
on the terms and conditions contained in the Pledge Agreement.  Without limiting the generality of the
foregoing, the undersigned hereby grants to the Trustee, for the benefit of the
holders of Note Obligations, a security interest in all of the promissory
notes, instruments and shares listed in this Pledge Amendment.

 

	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

 

	
  Name and

  Address of Pledgor

  	
   

  	
  Pledged
  Entity

  	
   

  	
  Class

  of Stock

  	
   

  	
  Certificate

  Number(s)

  	
   

  	
  Number

  of Shares

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
  Pledged Entity

  	
   

  	
  Initial

  Principal Amount

  	
   

  	
  Issue Date

  	
   

  	
  Maturity
  Date

  	
   

  	
  Interest

  RateExhibit
4.5

 

THIS INSTRUMENT PREPARED

OUTSIDE OF THE STATE OF

OHIO BY AND

AFTER RECORDING RETURN
TO:

 

Latham & Watkins LLP

885 Third Avenue

New York, NY 10022

	
  Attn:  Mathieu Streiff, Esq.

  	
   

  	
  Portage County,
  Ohio

  

 

 

OPEN-END CORRECTION
SECOND MORTGAGE, SECURITY AGREEMENT, ASSIGNMENT OF

LEASES AND RENTS, FINANCING STATEMENT AND

FIXTURE FILING

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

 

BY

 

PLAYTEX MANUFACTURING, INC.,

Mortgagor,

 

TO

 

WELLS
FARGO BANK MINNESOTA, NATIONAL ASSOCIATION,

as Trustee,

 

Relating to Premises in:

 

Portage County, Ohio

 

DATED:  As of February 19, 2004

 

 

 

OPEN-END
CORRECTION SECOND MORTGAGE, SECURITY AGREEMENT,

ASSIGNMENT OF LEASES AND

RENTS,
FINANCING STATEMENT AND FIXTURE FILING

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

 

Portage County, State of
Ohio

 

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

 

I.

RECITALS

 

WHEREAS, an Open-End
Second Mortgage, Security Agreement, Assignment of Leases and Rents, Financing
Statement and Fixture Filing was filed by Mortgagor for the benefit of
Mortgagee with the Portage County Recorder’s Office on February 23, 2004 (the “Original
Filing”);

 

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

 

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

 

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

 

 

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

 

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

 

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

 

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

 

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

 

II.

THE GRANT

 

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

 

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

 

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

 

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

 

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

 

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

 

III.

GENERAL AGREEMENTS

 

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

 

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

 

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

 

 

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

 

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

 

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

 

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

 

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

 

 

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

 

3.6           Maintenance of Property.  Mortgagor shall:

 

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

 

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

 

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

 

3.7           Prohibited Liens;
Prohibited Transfers.

 

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

 

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

 

3.8           Assignment of Leases
and Rents.

 

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

 

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

 

 

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

 

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

 

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

 

3.9           Uniform Commercial Code.

 

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

 

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

 

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

 

 

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

 

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

 

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

 

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

 

IV.

EVENT OF DEFAULT AND REMEDIES

 

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

 

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

 

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

 

 

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

 

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

 

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

 

 

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

 

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

 

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

 

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

 

 

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

 

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

 

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

 

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

 

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

 

 

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

 

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

 

V.

MISCELLANEOUS

 

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

 

Notices shall be
addressed as follows:

 

(i)            If to Mortgagor:

 

PLAYTEX MANUFACTURING, INC.

300 Nyala Farms Road

Westport, Connecticut 06880

ATTN:  William Stammer

Fax:  (203) 341-4260

 

 

with a copy to:

 

HAAS WHEAT & PARTNERS,
L.P.

300 Crescent Court, Suite
1700

Dallas, Texas 75201

ATTN:  Todd Robichaux

Fax:  (214) 871-8316

 

(ii)           If to Mortgagee:

 

WELLS FARGO BANK MINNESOTA, NATIONAL ASSOCIATION
CORPORATE TRUST SERVICES

213 Court Street, Suite 703

Middletown, Connecticut 06547

ATTN: Joseph P. O’Donnell

Fax:  (806)
704-6219

 

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

 

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

 

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

 

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

 

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

 

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

 

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

 

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

 

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

 

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

 

(SIGNATURE PAGE FOLLOWS)

 

 

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

 

	
   

  	
  PLAYTEX MANUFACTURING, INC.,

  
	
   

  	
  a Delaware corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
      /s/ William Stammer

  
	
   

  	
  Name:

  	
      William Stammer

  
	
   

  	
  Title:

  	
      Associate General Counsel

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
      /s/ Glenn A. Forbes

  
	
   

  	
  Name:

  	
      Glenn A. Forbes

  
	
   

  	
  Title:

  	
  Executive Vice President and Chief Financial Officer

  
							

 

S-1

 

	
  STATE OF NEW YORK

  	
  )

  	
   

  
	
   

  	
  )

  	
  SS

  
	
  COUNTY OF NEW YORK

  	
  )

  	
   

  

 

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

 

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

 

 

 

	
   

  	
    /s/ Mathieu B. Streiff

  	
   

  
	
   

  	
  Notary Public in and for

  
	
   

  	
  said County and State

  

 

[SEAL]

 

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

 

S-2

 

EXHIBIT A

 

LEGAL DESCRIPTION

 

A-1

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