Document:

Unassociated Document

    EXHIBIT
      10.1

    
      	  	 	 	
              Performance
                Incentive Plan (“Plan”)

              Performance
                Period January 1 - December 31

              Rev.
                July 1, 2006

            

    

    
      

    

     

    
      	I.          
                	
              Purpose
                of the Plan

            

    

     

    The
      purpose of the Plan is to align Boston Scientific and employee interests by
      providing incentives for the achievement of key business milestones and
      individual performance objectives that are critical to the success of Boston
      Scientific. To this end, individual performance
      objectives are established during the annual goal setting process. All incentive
      eligible employees are required to develop a set of written, measurable, annual
      goals that are agreed to and approved by their direct manager as part of the
      Performance Achievement and Development Review (PADR) process. Goal setting
      should be completed
      no later than the end of the first quarter of each calendar year. 

     

     

    
      	II.            	
              Eligible
                Participants

            

    

     

    The
      Plan
      year runs from January 1 - December 31. The Plan covers all United States
      employees determined by Boston Scientific to be regular salaried exempt
      (excluding all term employees) employees
      who are ineligible for commissions under any sales compensation plan. The Plan
      also covers those Boston Scientific International and expatriate/inpatriate
      employees selected by Boston Scientific for participation. The Plan does not
      include any other employees, including those in positions covered by sales
      compensation plans. The plan also does not include any employees who are
      eligible for any other Boston Scientific incentive plan or program unless the
      terms of that plan or program expressly permit participation in both that plan
      or program and this Plan. Employees who meet the above eligibility criteria
      and
      who have at least two full months of eligible service during the Plan year
      may
      participate in the Plan on a prorated basis, proration to be based on the
      percentage of time the employee was eligible to participate under all applicable
      criteria and in the following circumstances: if (1) they have less than one
      year
      of eligibility during the Plan year; (2) their incentive target percent has
      changed during the Plan year; (3) their salary has changed during the Plan
      year;
      or (4) they have changed their business unit during the Plan year. Employees
      who
      have less than two full months of eligible service during the Plan year are
      not
      eligible to participate in the Plan. Boston Scientific may review Plan
      participation eligibility criteria from time to time and may revise such
      criteria at any time, even within a Plan year, with or without notice and within
      its sole discretion.

     

    Employees
      and managers of those employees who do not complete the annual PADR goal setting
      process by the end of the first quarter of a given calendar incentive year
      will
      be ineligible to participate in the Plan for that year.

     

     

    
      	III.	
              Boston
                Scientific Performance Measures and Incentive Pool
                Funding

            

    

     

    For
      each
      quarter of the calendar year, the Boston Scientific Executive Committee will
      identify critical performance measures and the weighting of total Boston
      Scientific and Group/Division/Region performance (See Performance Measurements
      and Funding document), as well as the incentive pool funding that will be
      established for each level of Boston Scientific and Group/Division/Region
      performance. Each quarter’s performance will be measured against quarterly
      targets and will be evaluated and funded separately. The total annual funding
      will be the sum of each quarter’s funding.

     

    The
      performance of the operating plants and distribution centers (“Operations”) will
      be measured quarterly on a year to date basis against annual goals; that is,
      new
      goals will not be established by quarter. A scorecard has been developed to
      track leading performance metrics for each plant and distribution center. The
      total funding will be based on cumulative BSC sales and net income funding
      for
      each quarter, (using a year to date average for each of the first three quarters
      and the actual amounts for the fourth quarter), plus the latest year to date
      plant/distribution center metrics and funding. The individual funding component
      weight will be adjusted year to date based on the 

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      
        	 	 	 	
                Performance
                  Incentive Plan (“Plan”)

                Performance
                  Period January 1 - December 31

                Rev.
                  July 1, 2006

              

      

      
        

      

    above
      results. Since goals are set on an annual basis, over or under operations
      metrics achievement in a given quarter can be offset by subsequent quarters
      reflected in the latest year to date cumulative results.

     

    Except
      as
      noted herein, any payments due to plan participants will be made by March 29,
      of
      the year following the Plan year. Incentive payments are typically paid in
      one
      installment. The unweighted funding levels for Boston Scientific and
      Group/Division/Region and Operations performance will be based on the
      Performance Funding outlined in the Performance Measures and Funding
      document.

     

    The
      Boston Scientific Executive Committee has sole authority over administration
      and
      interpretation of the Plan and retains its right to exercise discretion as
      it
      sees fit. The Boston Scientific Executive Committee will recommend the level
      of
      Plan funding to the Board of Directors for its approval. Subject to the Board’s
      approval, the
      incentive payment for any participant will be based upon the overall funding
      available and the employee’s overall individual performance relative to other
      Plan eligible employees in the applicable business unit, as determined by Boston
      Scientific.

     

     

    
      	IV.       
                	
              Incentive
                Targets

            

    

     

    Incentive
      targets have been established for all eligible participants. These incentive
      targets represent the incentive (as a percent of base salary) that an individual
      is eligible to receive. Funding calculation examples are contained in the
      Performance Measures and Funding document.

     

    For
      some
      participants, there will be one incentive pool (see Performance Measures and
      Funding document) which is funded by a weighted combination of Boston
      Scientific’s overall performance and the applicable
      Group/Division/Region/Operations performance. For other participants there
      will
      be two incentive pools: 1) funded by a weighted combination of Boston
      Scientific’s overall performance and the applicable
      Group/Division/Region/Operations performance and 2) a pool funded
      at a
      minimum of 50% (20% for Operations) of target incentive for eligible
      participants regardless of total BSC’s and Group/Division/Region/Operations
      performance. 

     

    All
      incentive eligible employees must have established annual goals agreed to by
      their direct manager and which link to their appropriate level of
      accountability. An individual participant’s incentive payment will be determined
      based on an assessment of the overall individual performance contribution in
      the
      context of the applicable incentive pool(s).

     

    It
      is Boston Scientific’s aim to provide significant incentive and reward
      opportunities to employees for world-class performance achievement. Since our
      business goals (e.g. sales, profit, etc.) are normally set at a level above
      our
      business competitors (aggressive but realistic), we have set our incentive
      targets aggressively as well. The incentive pool for Corporate/business unit
      performance may be funded as high as 120% of target. Above market rewards can
      be
      earned for above market performance.

     

    Boston
      Scientific performance that meets or that is below its business targets
      (assuming overall individual performance has met or exceeded expectations)
      may
      still provide rewards (salary plus incentive) that are greater than or equal
      to
      our competitors’. See Performance Measures and Funding document for an Incentive
      Calculation example. Except as noted, nothing in this plan guarantees any
      incentive payment will be made to 

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      
        	 	 	 	
                Performance
                  Incentive Plan (“Plan”)

                Performance
                  Period January 1 - December 31

                Rev.
                  July 1, 2006

              

      

      
        

      

    any
      individual. Receipt of an incentive payment in one year does not guarantee
      eligibility in any future year.

     

     

    
      	V.	
              Individual
                Incentive Payments

            

    

     

    The
      incentive payment for any eligible employee may vary from the approved and
      applicable incentive pool funding based on that individual’s overall performance
      and achievement of objectives relative to other eligible employees in the
      applicable business unit. However, the total of incentive payments to all
      eligible individuals may not exceed the total applicable funding
      pool(s).

     

     

    
      	VI.        
               	
              Payment
                Criteria

            

    

     

    A
      participant must be employed by Boston Scientific on December 31 of the Plan
      year to be eligible to receive any award pay-out under the Plan. For example,
      a
      participant who is not required to report to work during any notification period
      applicable under any Boston Scientific severance or separation plan, but who
      is
      still an employee on December 31, will remain eligible to receive any award
      pay-out under the Plan. A participant who specifically has been exempted under
      a
      specially designed, written Boston Scientific plan or program from the
      requirement to be employed on December 31 may remain eligible, depending on
      the
      terms of the applicable written plan document; in such cases, the terms of
      such
      written plan document will govern in all respects, including as to eligibility,
      timing and amount of any incentive payment. Notwithstanding anything herein,
      this Plan does not confer eligibility on any employee on leave of absence
      status. Also notwithstanding anything herein, a participant whose employment
      ceases prior to December 31 of the Plan year but who has otherwise met all
      Plan
      eligibility criteria and who, as of the date of such cessation of employment,
      (1), has attained age 50, (2) has accrued at least five years of service with
      Boston Scientific; and (3) whose age and years of service as of such date equals
      or exceeds 62, may participate in the Plan on a prorated basis, proration to
      be
      based on the percentage of time the participant was employed and eligible to
      participate under all applicable criteria; further, a participant whose
      employment ceases prior to December 31 of the Plan year by reason of death
      but
      who otherwise met all Plan eligibility criteria may participate in the Plan
      on a
      prorated basis, proration to be based on the percentage of time the participant
      was employed and eligible to participate under the applicable criteria.

     

    Except
      as
      noted above, all incentive payments will be based on a participant’s December 31
      salary level. Incentive
      payments will be made by March 29 of the year following the Plan year.

     

     

    
      	VII.	
              Termination,
                Suspension or Modification and Interpretation of the
                Plan

            

    

     

    Boston
      Scientific may terminate, suspend or modify and if suspended, may reinstate
      with
      or without modification all or part of the Plan at any time, with or without
      notice to the participant. Boston Scientific reserves the exclusive right to
      determine eligibility to participate in this Plan and to interpret all
      applicable terms and conditions, including eligibility criteria.

     

     

    
      	VIII.	
              Other

            

    

     

    This
      document sets forth the terms of the Plan and is not intended to be a contract
      or employment agreement between the participant and Boston Scientific. As
      applicable, it is understood that both the participant and Boston Scientific
      have the right to terminate the participant’s employment with Boston Scientific
      at any time, with or without cause and with or without notice, in
      acknowledgement of the fact that their employment relationship is “at
      will.”Form of 2006 Note Purchase Agreement

    EXECUTION
      COPY

    

    

    

    ENERGIZER
      HOLDINGS,
      INC.

    

    

    

    $500,000,000

    Senior
      Notes

    

    

    $80,000,000
      5.99%
      Senior Notes, Series 2006-A, due June 30, 2009

    $140,000,000
      6.05%
      Senior Notes, Series 2006-B, due June 30, 2011

    $140,000,000
      6.13%
      Senior Notes, Series 2006-C, due June 30, 2014

    $140,000,000
      6.24%
      Senior Notes, Series 2006-D, due June 30, 2016

    _________

    

    NOTE
      PURCHASE
      AGREEMENT

    

    _________

    

    

    

    Dated
      as of July 6,
      2006

    

    

    

    

    Series
      2006-A PPN:
      29266R H@ 0

    Series
      2006-B PPN:
      29266R H# 8

    Series
      2006-C PPN:
      29266R J* 0 

    Series
      2006-D PPN:
      29266R J@ 8

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    TABLE
      OF
      CONTENTS

    

    SectionPage

     

     

    
      	1.	AUTHORIZATION OF NOTES.                                                      
              	 	
            

      	 	
              1.1.

            	
              The
                Notes.

            	 

    

    
      	 	
              1.2.

            	
              Additional
                Interest.

            	 

    

    2.   SALE
      AND PURCHASE
      OF NOTES.

    3.   CLOSING.

    4.   CONDITIONS
      TO
      CLOSING.

    
      	 	
              4.1.

            	
              Representations
                and Warranties.

            	 

    

    
      	 	
              4.2.

            	
              Performance;
                No Default.

            	 

    

    
      	 	
              4.3.

            	
              Compliance
                Certificates.

            	 

    

    
      	 	
              4.4.

            	
              Opinions
                of
                Counsel.

            	 

    

    
      	 	
              4.5.

            	
              Purchase
                Permitted By Applicable Law, etc.

            	 

    

    
      	 	
              4.6.

            	
              Sale
                of Other
                Notes.

            	 

    

    
      	 	
              4.7.

            	
              Payment
                of
                Special Counsel Fees.

            	 

    

    
      	 	
              4.8.

            	
              Private
                Placement Numbers.

            	 

    

    
      	 	
              4.9.

            	
              Changes
                in
                Corporate Structure.

            	 

    

    4.10. Subsidiary
      Guaranty.

    4.11. Proceedings
      and
      Documents.

    5.   REPRESENTATIONS
      AND
      WARRANTIES OF THE COMPANY.

    
      	 	
              5.1.

            	
              Organization;
                Power and Authority.

            	 

    

    
      	 	
              5.2.

            	
              Authorization,
                etc.

            	 

    

    
      	 	
              5.3.

            	
              Disclosure.

            	 

    

    
      	 	
              5.4.

            	
              Organization
                and Ownership of Shares of Subsidiaries.

            	 

    

    
      	 	
              5.5.

            	
              Financial
                Statements.

            	 

    

    
      	 	
              5.6.

            	
              Compliance
                with Laws, Other Instruments, etc.

            	 

    

    
      	 	
              5.7.

            	
              Governmental
                 Authorizations, etc.

            	 

    

    
      	 	
              5.8.

            	
              Litigation;
                Observance of Statutes and Orders.

            	 

    

    
      	 	
              5.9.

            	
              Taxes.

            	 

      	 	5.10.	Title
              to
              Property; Leases	 

      	 	5.11.	Licenses,
              Permits, etc.	 

      	 	5.12.	Compliance
              with ERISA.	 

      	 	5.13.	Private
              Offering by the Company	 

      	 	5.14.	Use
              of Proceeds; Margin Regulations	 

      	 	5.15.	Existing
              Indebtedness.	 

      	 	5.16. 	Foreign
              Assets Control Regulations, Anti-Terrorism Order, etc .	 

      	 	5.17.	Status
              under
              Certain Statutes.	 

      	 	5.18.	Solvency
              of
              Subsidiary Guarantors	 

      	 	5.19.	Environmental
              Matters.	 

    

    6.   REPRESENTATIONS
      OF
      THE PURCHASERS.

    
      	 	
              6.1.

            	
              Purchase
                for
                Investment.

            	 

    

    
      	 	
              6.2.

            	
              Source
                of
                Funds.

            	 

    

    7.   INFORMATION
      AS TO
      COMPANY.

    
      	 	
              7.1.

            	
              Financial
                and
                Business Information.

            	 

    

    
      	 	
              7.2.

            	
              Officer’s
                Certificate.

            	 

    

    
      	 	
              7.3.

            	
              Inspection.

            	 

    

    8.   PREPAYMENT
      OF THE
      NOTES.

    
      	 	
              8.1.

            	
              No
                Scheduled
                Prepayments.

            	 

    

    
      	 	
              8.2.

            	
              Optional
                Prepayments with Make-Whole Amount.

            	 

    

    
      	 	
              8.3.

            	
              Allocation
                of
                Partial Prepayments.

            	 

    

    
      	 	
              8.4.

            	
              Maturity;
                Surrender, etc.

            	 

    

    
      	 	
              8.5.

            	
              Purchase
                of
                Notes.

            	 

    

    
      	 	
              8.6.

            	
              Make-Whole
                Amount.

            	 

    

    9.   AFFIRMATIVE
      COVENANTS.

    
      	 	
              9.1.

            	
              Compliance
                with Law.

            	 

    

    
      	 	
              9.2.

            	
              Insurance.

            	 

    

    
      	 	
              9.3.

            	
              Maintenance
                of Properties.

            	 

    

    
      	 	
              9.4.

            	
              Payment
                of
                Taxes and Claims.

            	 

    

    
      	 	
              9.5.

            	
              Corporate
                Existence, etc.

            	 

    

    10.   NEGATIVE
      COVENANTS.

    10.1. Consolidated
      Indebtedness; Indebtedness of Restricted Subsidiaries.

    10.2. Liens. 

    10.3. Sale
      of
      Assets.

    10.4. Mergers,
      Consolidations, etc.

    10.5. Disposition
      of
      Stock of Restricted Subsidiaries.

    10.6. Designation
      of
      Restricted and Unrestricted Subsidiaries.

    10.7. Restricted
      Subsidiary Guaranties.

    10.8. Nature
      of
      Business.

    10.9. Transactions
      with
      Affiliates.

    11.   EVENTS
      OF
      DEFAULT.

    12.    REMEDIES
      ON
      DEFAULT, ETC.

    12.1. Acceleration.

    12.2. Other
      Remedies.

    12.3. Rescission.

    12.4. No
      Waivers or
      Election of Remedies, Expenses, etc.

    13.  
REGISTRATION;
      EXCHANGE; SUBSTITUTION OF NOTES.

    13.1. Registration
      of
      Notes.

    13.2. Transfer
      and
      Exchange of Notes.

    13.3. Replacement
      of
      Notes.

    14.    PAYMENTS
      ON
      NOTES.

    14.1. Place
      of
      Payment.

    14.2. Home
      Office
      Payment.

    15.    EXPENSES,
      ETC.

    15.1. Transaction
      Expenses.

    15.2. Survival.

    16.    SURVIVAL
      OF
      REPRESENTATIONS AND WARRANTIES; ENTIRE AGREEMENT.

    17.    AMENDMENT
      AND
      WAIVER.

    17.1. Requirements.

    17.2. Solicitation
      of
      Holders of Notes.

    17.3. Binding
      Effect,
      etc.

    17.4. Notes
      held by
      Company, etc.

    18.   NOTICES.

    19.   REPRODUCTION
      OF
      DOCUMENTS.

    20.   CONFIDENTIAL
      INFORMATION.

    21.    SUBSTITUTION
      OF
      PURCHASER.

    22.    RELEASE
      OF
      SUBSIDIARY GUARANTOR.

    23.    MISCELLANEOUS.

    23.1. Successors
      and
      Assigns.

    23.2. Payments
      Due on
      Non-Business Days.

    23.3. Severability.

    23.4. Construction.

    23.5. Counterparts.

    23.6. Governing
      Law.

    

    

    SCHEDULE
      A -- Information
      Relating to Purchasers

    SCHEDULE
      B -- Defined
      Terms

    SCHEDULE
      B-1 -- Investments

    SCHEDULE
      4.9 -- Changes
      in
      Corporate Structure

    SCHEDULE
      5.3 -- Disclosure
      Materials

    SCHEDULE
      5.4 -- Subsidiaries
      of the
      Company and Ownership of Subsidiary Stock

    SCHEDULE
      5.5 -- Financial
      Statements

    SCHEDULE
      5.11 -- Licenses,
      Permits,
      etc.

    SCHEDULE
      5.14 -- Use
      of
      Proceeds

    SCHEDULE
      5.15 -- Indebtedness

    SCHEDULE
      10.2 -- Liens

    EXHIBIT
      1
      (a) -- Form
      of Series
      2006-A Note

    EXHIBIT
      1
      (b) -- Form
      of Series
      2006-B Note

    EXHIBIT
      1
      (c) -- Form
      of Series
      2006-C Note

    EXHIBIT
      1
      (d) -- Form
      of Series
      2006-D Note

    EXHIBIT
      1
      (e) -- Form
      of Subsidiary
      Guaranty

    
      EXHIBIT
        4.4(a)--Form
        of Opinion of
        Counsel for the Company and the Subsidiary Guarantors

    

    EXHIBIT
      4.4(b) -- Form
      of Opinion of
      Special Counsel for the Purchasers

    

    

    

    
      
        
          i

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    ENERGIZER
      HOLDINGS,
      INC.

    533
      Maryville
      University Drive

    St.
      Louis, MO
      63141

    (314)
      985-2087

    Fax:
      (314)
      985-2220

    

    

    

    $500,000,000

    Senior
      Notes

    

    

    $80,000,000
      5.99%
      Senior Notes, Series 2006-A, due June 30, 2009

    $140,000,000
      6.05%
      Senior Notes, Series 2006-B, due June 30, 2011

    $140,000,000
      6.13%
      Senior Notes, Series 2006-C, due June 30, 2014

    $140,000,000
      6.24%
      Senior Notes, Series 2006-D, due June 30, 2016

    

    

    Dated
      as of July 6,
      2006

    

    

    TO
      EACH OF THE
      PURCHASERS LISTED IN

    THE
      ATTACHED
      SCHEDULE A:

    

    Ladies
      and
      Gentlemen:

    

    ENERGIZER
      HOLDINGS,
      INC., a Missouri corporation (the “Company”), agrees with you as
      follows:

     

    
      	1.  	
              AUTHORIZATION
                OF NOTES.

            

    

     

    
      	1.1.  	
              The
                Notes. 

            

    

     

    The
      Company has
      authorized the issue and sale of $500,000,000 aggregate principal amount of
      its
      Senior Notes consisting of (i) $80,000,000 aggregate principal amount of its
      5.99% Senior Notes, Series 2006-A, due June 30, 2009 (the “Series 2006-A
      Notes”); (ii) $140,000,000 aggregate principal amount of its 6.05% Senior
      Notes, Series 2006-B, due June 30, 2011 (the “Series 2006-B Notes”); (iii)
      $140,000,000 aggregate principal amount of its 6.13% Senior Notes, Series
      2006-C, due June 30, 2014 (the “Series 2006-C Notes”); and (iv) $140,000,000
      aggregate principal amount of its 6.24% Senior Notes, Series 2006-D, due June
      30, 2016 (the “Series 2006-D Notes” and, together with the Series 2006-A Notes,
      the Series 2006-B Notes and the Series 2006-C Notes, the “Notes,” such term to
      include any such Notes issued in substitution therefor pursuant to Section
      13 of
      this Agreement). The Notes will be substantially in the forms set out in
      Exhibits 1(a), 1(b), 1(c) and 1(d), with such changes therefrom, if any, as
      may
      be approved by the purchasers of such Notes, or series thereof, and the Company.
      Certain capitalized terms used in this Agreement are defined in Schedule B;
      references to a “Schedule” or an “Exhibit” are, unless otherwise specified, to a
      Schedule or an Exhibit attached to this Agreement. Subject to Section 22, the
      Notes will be guaranteed by each Subsidiary that is now or in the future becomes
      a signatory to the Bank Guarantees (individually, a “Subsidiary Guarantor” and
      collectively, the “Subsidiary Guarantors”) pursuant to a guaranty substantially
      in the form of Exhibit 1(e) (the “Subsidiary Guaranty”).

     

    
      	1.2.  	
              Additional
                Interest. 

            

    

     

    If
      the Debt to
      EBITDA Ratio at any time exceeds 3.5 to 1.00, as evidenced by an Officer’s
      Certificate delivered pursuant to Section 7.2(a), the interest rate payable
      on
      each series of Notes shall be increased by 0.75%, commencing on the first day
      of
      the first fiscal quarter following the fiscal quarter in respect of which such
      Certificate was delivered and continuing until the Company has provided an
      Officer’s Certificate pursuant to Section 7.2(a) demonstrating that, as of the
      end of the fiscal quarter in respect of which such Certificate is delivered,
      the
      Debt to EBITDA Ratio is not more than 3.5 to 1.0. Following delivery of an
      Officer’s Certificate demonstrating that the Debt to EBITDA Ratio did not exceed
      3.5 to 1.0, the additional 0.75% interest shall cease to accrue or be payable
      for any fiscal quarter subsequent to the fiscal quarter in respect of which
      such
      Certificate is delivered. 

     

    
      	2.  	
              SALE
                AND PURCHASE OF NOTES.

            

    

     

    Subject
      to the
      terms and conditions of this Agreement, the Company will issue and sell to
      you
      and each of the other purchasers named in Schedule A (the “Other Purchasers”),
      and you and the Other Purchasers will purchase from the Company, at the Closing
      provided for in Section 3, Notes of the series and in the principal amount
      specified opposite your name in Schedule A at the purchase price of 100% of
      the
      principal amount thereof. Your obligation hereunder and the obligations of
      the
      Other Purchasers are several and not joint obligations and you shall have no
      liability to any Person for the performance or non-performance by any Other
      Purchaser hereunder.

     

    
      	3.  	
              CLOSING.

            

    

     

    The
      sale and
      purchase of the Notes to be purchased by you and the Other Purchasers shall
      occur at the offices of Foley & Lardner LLP, 321 North Clark Street,
      Suite 2800, Chicago, Illinois 60610-4764, at 9:00 a.m., Chicago time, at a
      closing (the “Closing”) on July 6, 2006 or on such other Business Day thereafter
      on or prior to July 15, 2006 as may be agreed upon by the Company and you
      and the Other Purchasers. At the Closing the Company will deliver to you the
      Notes to be purchased by you in the form of a single Note (or such greater
      number of Notes in denominations of at least $250,000 as you may request) dated
      the date of the Closing and registered in your name (or in the name of your
      nominee), against delivery by you to the Company or its order of immediately
      available funds in the amount of the purchase price therefor by wire transfer
      of
      immediately available funds for the account of the Company to account number
      12331-33027 at Bank of America, San Francisco, California, ABA
      No. 026-009-593. If at the Closing the Company fails to tender such Notes
      to you as provided above in this Section 3, or any of the conditions specified
      in Section 4 shall not have been fulfilled to your satisfaction, you shall,
      at
      your election, be relieved of all further obligations under this Agreement,
      without thereby waiving any rights you may have by reason of such failure or
      such nonfulfillment.

     

    
      	4.  	
              CONDITIONS
                TO CLOSING.

            

    

     

    Your
      obligation to
      purchase and pay for the Notes to be sold to you at the Closing is subject
      to
      the fulfillment to your satisfaction, prior to or at the Closing, of the
      following conditions:

     

    
      	4.1.  	
              Representations
                and Warranties.

            

    

     

    The
      representations
      and warranties of the Company in this Agreement shall be correct when made
      and
      correct in all material respects at the time of the Closing.

     

    
      	4.2.  	
              Performance;
                No Default.

            

    

     

    The
      Company shall
      have performed and complied with all agreements and conditions contained in
      this
      Agreement required to be performed or complied with by it prior to or at the
      Closing and after giving effect to the issue and sale of the Notes (and the
      application of the proceeds thereof as contemplated by Schedule 5.14) no Default
      or Event of Default shall have occurred and be continuing. 

     

    
      	4.3.  	
              Compliance
                Certificates.

            

    

     

    (a)  Officer’s
      Certificate.
      The Company shall
      have delivered to you an Officer’s Certificate, dated the date of the Closing,
      certifying that the conditions specified in Sections 4.1, 4.2 and 4.9 have
      been
      fulfilled.

     

    (b)  Secretary’s
      Certificate.
      The Company shall
      have delivered to you a certificate certifying as to the resolutions attached
      thereto and other corporate proceedings relating to the authorization, execution
      and delivery of the Notes and the Agreement.

     

    
      	4.4.  	
              Opinions
                of Counsel.

            

    

     

    You
      shall have
      received opinions in form and substance satisfactory to you, dated the date
      of
      the Closing (a) from Bryan Cave LLP, counsel for the Company and the Subsidiary
      Guarantors, covering the matters set forth in Exhibit 4.4(a) and covering such
      other matters incident to the transactions contemplated hereby as you or your
      counsel may reasonably request (and the Company instructs its counsel to deliver
      such opinion to you) and (b) from Foley & Lardner LLP, your special
      counsel in connection with such transactions, substantially in the form set
      forth in Exhibit 4.4(b) and covering such other matters incident to such
      transactions as you may reasonably request.

     

    
      	4.5.  	
              Purchase
                Permitted By Applicable Law,
                etc.

            

    

     

    On
      the date of the
      Closing your purchase of Notes shall (i) be permitted by the laws and
      regulations of each jurisdiction to which you are subject, without recourse
      to
      provisions (such as Section 1405(a)(8) of the New York Insurance Law) permitting
      limited investments by insurance companies without restriction as to the
      character of the particular investment, (ii) not violate any applicable law
      or regulation (including Regulation U, T or X of the Board of Governors of
      the
      Federal Reserve System) and (iii) not subject you to any tax, penalty or
      liability under or pursuant to any applicable law or regulation, which law
      or
      regulation was not in effect on the date hereof. If requested by you, you shall
      have received an Officer’s Certificate certifying as to such matters of fact as
      you may reasonably specify to enable you to determine whether such purchase
      is
      so permitted.

     

    
      	4.6.  	
              Sale
                of Other Notes.

            

    

     

    Contemporaneously
      with the Closing, the Company shall sell to the Other Purchasers and the Other
      Purchasers shall purchase the Notes to be purchased by them at the Closing
      as
      specified in Schedule A.

     

    
      	4.7.  	
              Payment
                of Special Counsel Fees.

            

    

     

    Without
      limiting
      the provisions of Section 15.1, the Company shall have paid on or before
      the Closing the fees, charges and disbursements of your special counsel referred
      to in Section 4.4, to the extent reflected in a statement of such counsel
      rendered to the Company at least one Business Day prior to the
      Closing.

     

    
      	4.8.  	
              Private
                Placement Numbers.

            

    

     

    Private
      Placement
      Numbers issued by Standard & Poor’s CUSIP Service Bureau (in cooperation
      with the Securities Valuation Office of the National Association of Insurance
      Commissioners) shall have been obtained by Foley & Lardner LLP for each
      series of the Notes.

     

    
      	4.9.  	
              Changes
                in Corporate Structure.

            

    

     

    Except
      as specified
      in Schedule 4.9, the Company shall not have changed its jurisdiction of
      incorporation or been a party to any merger or consolidation and shall not
      have
      succeeded to all or any substantial part of the liabilities of any other entity,
      at any time following the date of the most recent financial statements referred
      to in Schedule 5.5. 

     

    
      	4.10.  	
              Subsidiary
                Guaranty.

            

    

     

    Each
      Subsidiary
      Guarantor shall have executed and delivered the Subsidiary Guaranty in favor
      of
      you and the Other Purchasers and you shall have received a copy of a fully
      executed counterpart thereof.

     

    
      	4.11.  	
              Proceedings
                and Documents.

            

    

     

    All
      corporate and
      other proceedings in connection with the transactions contemplated by this
      Agreement and all documents and instruments incident to such transactions shall
      be satisfactory to you and your special counsel, and you and your special
      counsel shall have received all such counterpart originals or certified or
      other
      copies of such documents as you or they may reasonably request.

     

    
      	5.  	
              REPRESENTATIONS
                AND WARRANTIES OF THE
                COMPANY.

            

    

     

    The
      Company
      represents and warrants to you that:

     

    
      	5.1.  	
              Organization;
                Power and Authority.

            

    

     

    The
      Company is a
      corporation duly organized, validly existing and in good standing under the
      laws
      of its jurisdiction of incorporation, and is duly qualified as a foreign
      corporation and is in good standing in each jurisdiction in which such
      qualification is required by law, other than those jurisdictions as to which
      the
      failure to be so qualified or in good standing would not, individually or in
      the
      aggregate, reasonably be expected to have a Material Adverse Effect. The Company
      has the corporate power and authority to own or hold under lease the properties
      it purports to own or hold under lease, to transact the business it transacts
      and proposes to transact, to execute and deliver this Agreement and the Notes
      and to perform the provisions hereof and thereof.

     

    
      	5.2.  	
              Authorization,
                etc.

            

    

     

    This
      Agreement and
      the Notes have been duly authorized by all necessary corporate action on the
      part of the Company, and this Agreement constitutes, and upon execution and
      delivery thereof each Note will constitute, a legal, valid and binding
      obligation of the Company enforceable against the Company in accordance with
      its
      terms, except as such enforceability may be limited by (i) applicable
      bankruptcy, insolvency, reorganization, moratorium or other similar laws
      affecting the enforcement of creditors’ rights generally and (ii) general
      principles of equity (regardless of whether such enforceability is considered
      in
      a proceeding in equity or at law).

     

    The
      Subsidiary
      Guaranty has been duly authorized by all necessary corporate action on the
      part
      of each Subsidiary Guarantor and upon execution and delivery thereof will
      constitute the legal, valid and binding obligation of each Subsidiary Guarantor,
      enforceable against each Subsidiary Guarantor in accordance with its terms,
      except as such enforceability may be limited by (i) applicable bankruptcy,
      insolvency, reorganization, moratorium or other similar laws affecting the
      enforcement of creditors’ rights generally and (ii) general principles of equity
      (regardless of whether such enforceability is considered in a proceeding in
      equity or at law).

     

    
      	5.3.  	
              Disclosure.

            

    

     

    The
      Company,
      through its agent, Banc of America Securities LLC, has delivered to you and
      each
      Other Purchaser a copy of a Private Placement Memorandum, dated June 2006
      and the supplemental financial information referred to therein (the
“Memorandum”), relating to the transactions contemplated hereby. Except as
      disclosed in Schedule 5.3, this Agreement, the Memorandum, the documents,
      certificates or other writings identified in Schedule 5.3 and the financial
      statements listed in Schedule 5.5, taken as a whole, do not contain any
      untrue statement of a material fact or omit to state any material fact necessary
      to make the statements therein not misleading in light of the circumstances
      under which they were made. Except as disclosed in the Memorandum or as
      expressly described in Schedule 5.3, or in one of the documents, certificates
      or
      other writings identified therein, or in the financial statements listed in
      Schedule 5.5, since September 30, 2005, there has been no change in the
      financial condition, operations, business or properties of the Company or any
      Subsidiary except changes that individually or in the aggregate would not
      reasonably be expected to have a Material Adverse Effect. 

     

    
      	5.4.  	
              Organization
                and Ownership of Shares of
                Subsidiaries.

            

    

     

    (a)  Schedule
      5.4 is
      (except as noted therein) a complete and correct list of the Company’s
      Subsidiaries, showing, as to each Subsidiary, the correct name thereof, the
      jurisdiction of its organization, and the percentage of shares of each class
      of
      its capital stock or similar equity interests outstanding owned by the Company
      and each other Subsidiary.

     

    (b)  
      All of the
      outstanding shares of capital stock or similar equity interests of each
      Subsidiary shown in Schedule 5.4 as being owned by the Company and its
      Subsidiaries have been validly issued, are fully paid and nonassessable and
      are
      owned by the Company or another Subsidiary free and clear of any Lien (except
      as
      otherwise disclosed in Schedule 5.4).

     

    (c)  Each
      Subsidiary
      identified in Schedule 5.4 is a corporation or other legal entity duly
      organized, validly existing and in good standing under the laws of its
      jurisdiction of organization, and is duly qualified as a foreign corporation
      or
      other legal entity and is in good standing in each jurisdiction in which such
      qualification is required by law, other than those jurisdictions as to which
      the
      failure to be so qualified or in good standing would not, individually or in
      the
      aggregate, reasonably be expected to have a Material Adverse Effect. Each such
      Subsidiary has the corporate or other power and authority to own or hold under
      lease the properties it purports to own or hold under lease and to transact
      the
      business it transacts and proposes to transact.

     

    
      	5.5.  	
              Financial
                Statements.

            

    

     

    The
      Company has
      delivered to you and each Other Purchaser copies of the financial statements
      of
      the Company and its Subsidiaries listed on Schedule 5.5. All of said financial
      statements (including in each case the related schedules and notes) fairly
      present in all material respects the consolidated financial condition of the
      Company and its Subsidiaries as of the respective dates specified in such
      Schedule and the consolidated results of their operations and cash flows for
      the
      respective periods so specified and have been prepared in accordance with GAAP
      consistently applied throughout the periods involved except as set forth in
      the
      notes thereto (subject, in the case of any interim financial statements, to
      normal year-end adjustments).

     

    
      	5.6.  	
              Compliance
                with Laws, Other Instruments,
                etc.

            

    

     

    The
      execution,
      delivery and performance by the Company of this Agreement and the Notes will
      not
      (i) contravene, result in any breach of, or constitute a default under, or
      result in the creation of any Lien in respect of any property of the Company
      or
      any Restricted Subsidiary under, any Material agreement, or corporate charter
      or
      By-Laws, to which the Company or any Restricted Subsidiary is bound or by which
      the Company or any Restricted Subsidiary or any of their respective properties
      may be bound or affected, (ii) conflict with or result in a breach of any of
      the
      terms, conditions or provisions of any order, judgment, decree, or ruling of
      any
      court, arbitrator or Governmental Authority applicable to the Company or any
      Restricted Subsidiary or (iii) violate any provision of any statute or other
      rule or regulation of any Governmental Authority applicable to the Company
      or
      any Restricted Subsidiary.

     

    The
      execution,
      delivery and performance by each Subsidiary Guarantor of the Subsidiary Guaranty
      will not (i) contravene, result in any breach of, or constitute a default
      under, or result in the creation of any Lien in respect of any property of
      such
      Subsidiary Guarantor under, any agreement, or corporate charter or by-laws,
      to
      which such Subsidiary Guarantor is bound or by which such Subsidiary Guarantor
      or any of its properties may be bound or affected, (ii) conflict with or result
      in a breach of any of the terms, conditions or provisions of any order,
      judgment, decree, or ruling of any court, arbitrator or Governmental Authority
      applicable to such Subsidiary Guarantor or (iii) violate any provision of any
      statute or other rule or regulation of any Governmental Authority applicable
      to
      such Subsidiary Guarantor.

     

    
      	5.7.  	
              Governmental
                Authorizations, etc.

            

    

     

    No
      consent,
      approval or authorization of, or registration, filing or declaration with,
      any
      Governmental Authority is required in connection with the execution, delivery
      or
      performance by the Company of this Agreement or the Notes or the execution,
      delivery or performance by each Subsidiary Guarantor of the Subsidiary Guaranty,
      except for a filing by the Company with the Securities and Exchange Commission
      on Form 8-K.

     

    
      	5.8.  	
              Litigation;
                Observance of Statutes and
                Orders.

            

    

     

    Except
      as disclosed
      in the Memorandum, there are no actions, suits or proceedings pending or, to
      the
      knowledge of the Company, threatened against or affecting the Company or any
      Subsidiary or any property of the Company or any Subsidiary in any court or
      before any arbitrator of any kind or before or by any Governmental Authority
      that, individually or in the aggregate, would reasonably be expected to have
      a
      Material Adverse Effect.

     

    Neither
      the Company
      nor any Subsidiary is in default under any order, judgment, decree or ruling
      of
      any court, arbitrator or Governmental Authority or is in violation of any
      applicable law, ordinance, rule or regulation (including Environmental Laws
      and
      the USA Patriot Act) of any Governmental Authority, which default or violation,
      individually or in the aggregate, would reasonably be expected to have a
      Material Adverse Effect.

     

    
      	5.9.  	
              Taxes.

            

    

     

    The
      Company and its
      Subsidiaries have filed all income tax returns that are required to have been
      filed in any jurisdiction, and have paid all taxes, to the extent such taxes
      are
      payable by them, to the extent such taxes and assessments have become due and
      payable and before they have become delinquent, except for any taxes and
      assessments (i) the amount of which is not individually or in the aggregate
      Material or (ii) the amount, applicability or validity of which is
      currently being contested in good faith by appropriate proceedings and with
      respect to which the Company or a Subsidiary, as the case may be, has
      established adequate reserves in accordance with GAAP. The federal income tax
      liabilities of the Company and its Subsidiaries have been determined by the
      Internal Revenue Service and paid for all fiscal years up to and including
      the
      fiscal year ended September 30, 2002.

     

    
      	5.10.  	
              Title
                to Property; Leases.

            

    

     

    The
      Company and its
      Subsidiaries have good and sufficient title to their respective Material
      properties, including all such properties reflected in the most recent audited
      balance sheet referred to in Section 5.5 or purported to have been acquired
      by
      the Company or any Subsidiary after said date (except as sold or otherwise
      disposed of in the ordinary course of business), in each case free and clear
      of
      Liens prohibited by this Agreement, except for those defects in title and Liens
      that, individually or in the aggregate, would not have a Material Adverse
      Effect. All Material leases are valid and subsisting and are in full force
      and
      effect in all material respects. 

     

    
      	5.11.  	
              Licenses,
                Permits, etc.

            

    

     

    Except
      as disclosed
      in Schedule 5.11, the Company and its Subsidiaries own or possess all licenses,
      permits, franchises, authorizations, patents, copyrights, service marks,
      trademarks and trade names, or rights thereto, that are Material, without known
      conflict with the rights of others, except for those conflicts that,
      individually or in the aggregate, would not have a Material Adverse
      Effect.

     

    
      	5.12.  	
              Compliance
                with ERISA.

            

    

     

    (a)  The
      Company and
      each ERISA Affiliate have operated and administered each Plan in compliance
      with
      all applicable laws except for such instances of noncompliance as have not
      resulted in and would not reasonably be expected to result in a Material Adverse
      Effect. Neither the Company nor any ERISA Affiliate has incurred any liability
      pursuant to Title I or IV of ERISA or the penalty or excise tax provisions
      of
      the Code relating to employee benefit plans (as defined in Section 3 of ERISA),
      and no event, transaction or condition has occurred or exists that would
      reasonably be expected to result in the incurrence of any such liability by
      the
      Company or any ERISA Affiliate, or in the imposition of any Lien on any of
      the
      rights, properties or assets of the Company or any ERISA Affiliate, in either
      case pursuant to Title I or IV of ERISA or to such penalty or excise tax
      provisions or to Section 401(a)(29) or 412 of the Code, other than such
      liabilities or Liens as would not be individually or in the aggregate
      Material.

     

    (b)  The
      present value
      of the aggregate benefit liabilities under each of the Plans (other than
      Multiemployer Plans) that is a defined benefit pension plan qualified under
      Code
      Section 401(a), determined as of the end of such Plan’s most recently ended plan
      year on the basis of the actuarial assumptions specified for funding purposes
      in
      such Plan’s most recent actuarial valuation report, did not exceed the aggregate
      current value of the assets of such Plan allocable to such benefit liabilities.
      The term “benefit liabilities” has the meaning specified in Section 4001 of
      ERISA and the terms “current value” and “present value” have the meaning
      specified in Section 3 of ERISA.

     

    (c)  The
      Company and its
      ERISA Affiliates have not incurred withdrawal liabilities (and are not subject
      to contingent withdrawal liabilities) under Section 4201 or 4204 of ERISA
      in respect of Multiemployer Plans that individually or in the aggregate are
      Material.

     

    (d)  The
      expected
      postretirement benefit obligation (determined as of the last day of the
      Company’s most recently ended fiscal year in accordance with Financial
      Accounting Standards Board Statement No. 106, without regard to liabilities
      attributable to continuation coverage mandated by Section 4980B of the Code)
      of
      the Company and its Subsidiaries is not Material or has been disclosed in the
      most recent audited consolidated financial statements of the Company and its
      Subsidiaries.

     

    (e)  The
      execution and
      delivery of this Agreement and the issuance and sale of the Notes hereunder
      will
      not involve any transaction that is subject to the prohibitions of
      Section 406 of ERISA or in connection with which a tax would be imposed
      pursuant to Section 4975(c)(1)(A)-(D) of the Code. The representation by
      the Company in the first sentence of this Section 5.12(e) is made in reliance
      upon and subject to the accuracy of your representation in Section 6.2 as to
      the
      sources of the funds used to pay the purchase price of the Notes to be purchased
      by you.

     

    
      	5.13.  	
              Private
                Offering by the Company.

            

    

     

    Neither
      the Company
      nor anyone acting on its behalf has offered the Notes, the Subsidiary Guaranty
      or any similar securities for sale to, or solicited any offer to buy any of
      the
      same from, or otherwise approached or negotiated in respect thereof with, any
      Person other than you, the Other Purchasers and not more than 16 other
      Institutional Investors, each of which has been offered the Notes at a private
      sale for investment. Neither the Company nor anyone acting on its behalf has
      taken, or will take, any action that would subject the issuance or sale of
      the
      Notes or the execution and delivery of the Subsidiary Guaranty to the
      registration requirements of Section 5 of the Securities Act.

     

    
      	5.14.  	
              Use
                of Proceeds; Margin
                Regulations.

            

    

     

    The
      Company will
      apply the proceeds of the sale of the Notes for general corporate purposes,
      including repayment of Indebtedness as set forth in Schedule 5.14. No part
      of
      the proceeds from the sale of the Notes will be used, directly or indirectly,
      for the purpose of buying or carrying any margin stock within the meaning of
      Regulation U of the Board of Governors of the Federal Reserve System (12 CFR
      221), or for the purpose of buying or carrying or trading in any securities
      under such circumstances as to involve the Company in a violation of Regulation
      X of said Board (12 CFR 224) or to involve any broker or dealer in a violation
      of Regulation T of said Board (12 CFR 220). Margin stock does not constitute
      more than 5% of the value of the consolidated assets of the Company and its
      Subsidiaries and the Company does not have any present intention that margin
      stock will constitute more than 5% of the value of such assets. As used in
      this
      Section, the terms “margin stock” and “purpose of buying or carrying” shall have
      the meanings assigned to them in said Regulation U.

     

    
      	5.15.  	
              Existing
                Indebtedness.

            

    

     

    Except
      as described
      therein, Schedule 5.15 sets forth a complete and correct list of all outstanding
      Indebtedness of the Company and its Subsidiaries as of March 31, 2006 (except
      as
      otherwise indicated), since which date there has been no Material change in
      the
      amounts, interest rates, sinking funds, installment payments or maturities
      of
      the Indebtedness of the Company or its Subsidiaries. Neither the Company nor
      any
      Restricted Subsidiary is in default and no waiver of default is currently in
      effect, in the payment of any principal or interest on any Indebtedness of
      the
      Company or such Restricted Subsidiary that is outstanding in an aggregate
      principal amount in excess of $5,000,000 and no event or condition exists with
      respect to any Indebtedness of the Company or any Restricted Subsidiary that
      is
      outstanding in an aggregate principal amount in excess of $5,000,000 and that
      would permit (or that with notice or the lapse of time, or both, would permit)
      one or more Persons to cause such Indebtedness to become due and payable before
      its stated maturity or before its regularly scheduled dates of
      payment.

     

    
      	5.16.  	
              Foreign
                Assets Control Regulations, Anti-Terrorism Order, etc
                .

            

    

     

    Neither
      the sale of
      the Notes by the Company hereunder nor its use of the proceeds thereof will
      violate (a) the Trading with the Enemy Act, as amended, (b) any of the foreign
      assets control regulations of the United States Treasury Department (31 CFR,
      Subtitle B, Chapter V, as amended) or any enabling legislation or executive
      order relating thereto or (c) to the knowledge of the Company, the
      Anti-Terrorism Order. Without limiting the foregoing, neither the Company nor
      any Subsidiary (i) is a blocked person described in Section 1 of the
      Anti-Terrorism Order or (ii) engages in any dealings or transactions, or is
      otherwise associated, with any such person.

     

    
      	5.17.  	
              Status
                under Certain Statutes.

            

    

     

    Neither
      the Company
      nor any Restricted Subsidiary is subject to regulation under the Investment
      Company Act of 1940, as amended, the Interstate Commerce Act, as amended by
      the
      ICC Termination Act, as amended, or the Federal Power Act, as
      amended.

     

    
      	5.18.  	
              Solvency
                of Subsidiary Guarantors.

            

    

     

    After
      giving effect
      to the transactions contemplated herein, (i) the present fair salable value
      of the assets of each Subsidiary Guarantor is in excess of the amount that
      will
      be required to pay its probable liability on its existing debts as said debts
      become absolute and matured, (ii) each Subsidiary Guarantor has received
      reasonably equivalent value for executing and delivering the Subsidiary
      Guaranty, (iii) the property remaining in the hands of each Subsidiary
      Guarantor is not an unreasonably small capital, and (iv) each Subsidiary
      Guarantor is able to pay its debts as they mature.

     

    
      	5.19.  	
              Environmental
                Matters.

            

    

     

    Neither
      the Company
      nor any Subsidiary has knowledge of any claim or has received any notice of
      any
      claim, and no proceeding has been instituted raising any claim against the
      Company or any of its Subsidiaries or any of their respective real properties
      now or formerly owned, leased or operated by any of them or other assets,
      alleging any damage to the environment or violation of any Environmental Laws,
      except, in each case, such as could not reasonably be expected to result in
      a
      Material Adverse Effect. Except as otherwise disclosed to you in
      writing,

     

    (a)  neither
      the Company
      nor any Subsidiary has knowledge of any facts which would give rise to any
      claim, public or private, of violation of Environmental Laws or damage to the
      environment emanating from, occurring on or in any way related to real
      properties now or formerly owned, leased or operated by any of them or to other
      assets or their use, except, in each case, such as could not reasonably be
      expected to result in a Material Adverse Effect;

     

    (b)  neither
      the Company
      nor any of its Subsidiaries has stored any Hazardous Materials on real
      properties now or formerly owned, leased or operated by any of them and has
      not
      disposed of any Hazardous Materials in a manner contrary to any Environmental
      Laws in each case in any manner that could reasonably be expected to result
      in a
      Material Adverse Effect; and

     

    (c)  all
      buildings on
      all real properties now owned, leased or operated by the Company or any of
      its
      Subsidiaries are in compliance with applicable Environmental Laws, except where
      failure to comply could not reasonably be expected to result in a Material
      Adverse Effect.

     

    
      	6.  	
              REPRESENTATIONS
                OF THE PURCHASERS.

            

    

     

    
      	6.1.  	
              Purchase
                for Investment.

            

    

     

    You
      represent that
      you are purchasing the Notes for your own account or for one or more separate
      accounts maintained by you or for the account of one or more pension or trust
      funds and not with a view to the distribution thereof, provided that the
      disposition of your or their property shall at all times be within your or
      their
      control. You understand that the Notes have not been registered under the
      Securities Act and may be resold only if registered pursuant to the provisions
      of the Securities Act or if an exemption from registration is available, except
      under circumstances where neither such registration nor such an exemption is
      required by law, and that the Company is not required to register the
      Notes.

     

    
      	6.2.  	
              Source
                of Funds.

            

    

     

    You
      represent that
      at least one of the following statements is an accurate representation as to
      each source of funds (a “Source”) to be used by you to pay the purchase price of
      the Notes to be purchased by you hereunder:

     

    (a)  the
      Source is an
“insurance company general account” (as the term is defined in the United States
      Department of Labor’s Prohibited Transaction Exemption (“PTE”) 95-60) in respect
      of which the reserves and liabilities (as defined by the annual statement for
      life insurance companies approved by the National Association of Insurance
      Commissioners (the “NAIC Annual Statement”)) for the general account contract(s)
      held by or on behalf of any employee benefit plan together with the amount
      of
      the reserves and liabilities for the general account contract(s) held by or
      on
      behalf of any other employee benefit plans maintained by the same employer
      (or
      affiliate thereof as defined in PTE 95-60) or by the same employee organization
      in the general account do not exceed 10% of the total reserves and liabilities
      of the general account (exclusive of separate account liabilities) plus surplus
      as set forth in the NAIC Annual Statement filed with such Purchaser’s state of
      domicile; or

     

    (b)  the
      Source is a
      separate account that is maintained solely in connection with such Purchaser’s
      fixed contractual obligations under which the amounts payable, or credited,
      to
      any employee benefit plan (or its related trust) that has any interest in such
      separate account (or to any participant or beneficiary of such plan (including
      any annuitant)) are not affected in any manner by the investment performance
      of
      the separate account; or

     

    (c)  the
      Source is
      either (i) an insurance company pooled separate account, within the meaning
      of
      PTE 90-1 (issued January 29, 1990), or (ii) a bank collective investment fund,
      within the meaning of PTE 91-38 (issued July 12, 1991) and, except as you have
      disclosed to the Company in writing pursuant to this paragraph (c), no employee
      benefit plan or group of plans maintained by the same employer or employee
      organization beneficially owns more than 10% of all assets allocated to such
      pooled separate account or collective investment fund; or

     

    (d)  the
      Source
      constitutes assets of an “investment fund” (within the meaning of Part V of PTE
      84-14 (the “QPAM Exemption”)) managed by a “qualified professional asset
      manager” or “QPAM” (within the meaning of Part V of the QPAM Exemption), no
      employee benefit plan’s assets that are included in such investment fund, when
      combined with the assets of all other employee benefit plans established or
      maintained by the same employer or by an affiliate (within the meaning of
      Section V(c)(1) of the QPAM Exemption) of such employer or by the same employee
      organization and managed by such QPAM, exceed 20% of the total client assets
      managed by such QPAM, the conditions of Part I(c) and (g) of the QPAM Exemption
      are satisfied, neither the QPAM nor a person controlling or controlled by the
      QPAM (applying the definition of “control” in Section V(e) of the QPAM
      Exemption) owns a 5% or more interest in the Company and (i) the identity of
      such QPAM and (ii) the names of all employee benefit plans whose assets are
      included in such investment fund have been disclosed to the Company in writing
      pursuant to this clause (d); or

     

    (e)  the
      Source
      constitutes assets of a “plan(s)” (within the meaning of Section IV of PTE 96-23
      (the “INHAM Exemption”)) managed by an “in-house asset manager” or “INHAM”
(within the meaning of Part IV of the INHAM exemption), the conditions of Part
      I(a), (g) and (h) of the INHAM Exemption are satisfied, neither the INHAM nor
      a
      person controlling or controlled by the INHAM (applying the definition of
“control” in Section IV(h) of the INHAM Exemption) owns a 5% or more interest in
      the Company and (i) the identity of such INHAM and (ii) the name(s) of the
      employee benefit plan(s) whose assets constitute the Source have been disclosed
      to the Company in writing pursuant to this clause (e); or

     

    (f)  the
      Source is a
      governmental plan; or

     

    (g)  the
      Source is one
      or more employee benefit plans, or a separate account or trust fund comprised
      of
      one or more employee benefit plans, each of which has been identified to the
      Company in writing pursuant to this paragraph (g); or

     

    (h)  the
      Source does not
      include assets of any employee benefit plan, other than a plan exempt from
      the
      coverage of ERISA.

     

    As
      used in this
      Section 6.2, the terms “employee benefit plan”, “governmental plan” and
“separate account” shall have the respective meanings assigned to such terms in
      Section 3 of ERISA.

     

    
      	7.  	
              INFORMATION
                AS TO COMPANY.

            

    

     

    
      	7.1.  	
              Financial
                and Business Information.

            

    

     

    The
      Company will
      deliver to each holder of Notes that is an Institutional Investor:

     

    (a)  Quarterly
      Statements
      -- within 60 days
      after the end of each quarterly fiscal period in each fiscal year of the Company
      (other than the last quarterly fiscal period of each such fiscal year),
      duplicate copies of

     

    (i)  a
      consolidated
      balance sheet of the Company and its Subsidiaries as at the end of such quarter,
      and

     

    (ii)  consolidated
      statements of earnings and stockholders’ equity of the Company and its
      Subsidiaries for such quarter and (in the case of the second and third quarters)
      for the portion of the fiscal year ending with such quarter, and

     

    (iii)  consolidated
      statements of cash flows of the Company and its Subsidiaries for such quarter
      or
      (in the case of the second and third quarters) for the portion of the fiscal
      year ending with such quarter,

     

    setting
      forth in
      each case in comparative form the figures for the corresponding periods in
      the
      previous fiscal year, all in reasonable detail, prepared in accordance with
      GAAP
      applicable to quarterly financial statements generally, and certified by a
      Senior Financial Officer as fairly presenting, in all material respects, the
      financial condition of the companies being reported on and their results of
      operations and cash flows, subject to changes resulting from year-end
      adjustments, provided that delivery within the time period specified above
      of
      copies of the Company’s Quarterly Report on Form 10-Q prepared in compliance
      with the requirements therefor and filed with the Securities and Exchange
      Commission shall be deemed to satisfy the requirements of this Section
      7.1(a);

     

    (b)  Annual
      Statements
      -- within 105 days
      after the end of each fiscal year of the Company, duplicate copies
      of

     

    (i)  a
      consolidated
      balance sheet of the Company and its Subsidiaries, as at the end of such year,
      and

     

    (ii)  consolidated
      statements of income, changes in stockholders’ equity and cash flows of the
      Company and its Subsidiaries, for such year,

     

    setting
      forth in
      each case in comparative form the figures for the previous fiscal year, all
      in
      reasonable detail, prepared in accordance with GAAP, and accompanied by an
      opinion thereon of independent certified public accountants of recognized
      national standing, which opinion shall state that such financial statements
      present fairly, in all material respects, the financial condition of the
      companies being reported upon and their results of operations and cash flows
      and
      have been prepared in conformity with GAAP, and that the examination of such
      accountants in connection with such financial statements has been made in
      accordance with generally accepted auditing standards, and that such audit
      provides a reasonable basis for such opinion in the circumstances, provided
      that
      the delivery within the time period specified above of the Company’s Annual
      Report on Form 10-K for such fiscal year (together with the Company’s annual
      report to shareholders, if any, prepared pursuant to Rule 14a-3 under the
      Exchange Act) prepared in accordance with the requirements therefor and filed
      with the Securities and Exchange Commission shall be deemed to satisfy the
      requirements of this Section 7.1(b);

     

    (c)  Unrestricted
      Subsidiaries
      -- if, at the time
      of delivery of any financial statements pursuant to Section 7.1(a) or (b),
      Unrestricted Subsidiaries account for more than 10% of (i) the consolidated
      total assets of the Company and its Subsidiaries reflected in the balance sheet
      included in such financial statements or (ii) the consolidated revenues of
      the
      Company and its Subsidiaries reflected in the consolidated statement of income
      included in such financial statements, an unaudited balance sheet for all
      Unrestricted Subsidiaries taken as whole as at the end of the fiscal period
      included in such financial statements and the related unaudited statements
      of
      income, stockholders’ equity and cash flows for such Unrestricted Subsidiaries
      for such period, together with consolidating statements reflecting all
      eliminations or adjustments necessary to reconcile such group financial
      statements to the consolidated financial statements of the Company and its
      Subsidiaries;

     

    (d)  SEC
      and Other
      Reports
      -- promptly upon
      their becoming available, one copy of (i) each financial statement, report,
      notice or proxy statement sent by the Company or any Restricted Subsidiary
      to
      public securities holders generally, and (ii) each regular or periodic
      report, each registration statement (other than a Registration Statement on
      Form
      S-8) that shall have become effective (without exhibits except as expressly
      requested by such holder), and each final prospectus and all amendments (other
      than one relating sole to employee benefit plans) thereto filed by the Company
      or any Restricted Subsidiary with the Securities and Exchange
      Commission;

     

    (e)  Notice
      of
      Default or Event of Default
      -- promptly, and
      in any event within five Business Days after a Responsible Officer obtains
      actual knowledge of the existence of any Default or Event of Default, a written
      notice specifying the nature and period of existence thereof and what action
      the
      Company is taking or proposes to take with respect thereto;

     

    (f)  ERISA
      Matters
      -- promptly, and
      in any event within five days after a Responsible Officer becoming aware of
      any
      of the following, a written notice setting forth the nature thereof and the
      action, if any, that the Company or an ERISA Affiliate proposes to take with
      respect thereto:

     

    (i)  with
      respect to any
      Plan, any reportable event, as defined in Section 4043(b) of ERISA and the
      regulations thereunder, for which notice thereof has not been waived pursuant
      to
      such regulations as in effect on the date hereof; or

     

    (ii)  the
      taking by the
      PBGC of steps to institute, or the threatening by the PBGC of the institution
      of, proceedings under Section 4042 of ERISA for the termination of, or the
      appointment of a trustee to administer, any Plan, or the receipt by the Company
      or any ERISA Affiliate of a notice from a Multiemployer Plan that such action
      has been taken by the PBGC with respect to such Multiemployer Plan;
      or

     

    (iii)  any
      event,
      transaction or condition that would result in the incurrence of any liability
      by
      the Company or any ERISA Affiliate pursuant to Title I or IV of ERISA or the
      penalty or excise tax provisions of the Code relating to employee benefit plans,
      or in the imposition of any Lien on any of the rights, properties or assets
      of
      the Company or any ERISA Affiliate pursuant to Title I or IV of ERISA or such
      penalty or excise tax provisions, if such liability or Lien, taken together
      with
      any other such liabilities or Liens then existing, would reasonably be expected
      to have a Material Adverse Effect; and

     

    (g)  Requested
      Information
      -- with reasonable
      promptness, such other data and information relating to the business,
      operations, affairs, financial condition, assets or properties of the Company
      or
      any of its Subsidiaries or relating to the ability of the Company to perform
      its
      obligations hereunder and under the Notes as from time to time may be reasonably
      requested by any such holder of Notes.

     

    
      	7.2.  	
              Officer’s
                Certificate.

            

    

     

    Each
      set of
      financial statements delivered to a holder of Notes pursuant to
      Section 7.1(a) or (b) shall be accompanied by a certificate of a Senior
      Financial Officer setting forth:

     

    (a)  Covenant
      Compliance
      -- the information
      (including detailed calculations) required in order to establish whether the
      Company was in compliance with the requirements of Section 10.1 through
      Section 10.9, inclusive, during the quarterly or annual period covered by
      the statements then being furnished (including with respect to each such
      Section, where applicable, the calculations of the maximum or minimum amount,
      ratio or percentage, as the case may be, permissible under the terms of such
      Sections, and the calculation of the amount, ratio or percentage then in
      existence); and

     

    (b)  Event
      of
      Default
      -- a statement
      that such officer has reviewed the relevant terms hereof and has made, or caused
      to be made, under his or her supervision, a review of the transactions and
      conditions of the Company and its Restricted Subsidiaries from the beginning
      of
      the quarterly or annual period covered by the statements then being furnished
      to
      the date of the certificate and that such review shall not have disclosed the
      existence during such period of any condition or event that constitutes a
      Default or an Event of Default or, if any such condition or event existed or
      exists (including any such event or condition resulting from the failure of
      the
      Company or any Restricted Subsidiary to comply with any Environmental Law),
      specifying the nature and period of existence thereof and what action the
      Company shall have taken or proposes to take with respect thereto.

     

    
      	7.3.  	
              Inspection.

            

    

     

    The
      Company will
      permit the representatives of each holder of Notes that is an Institutional
      Investor:

     

    (a)  No
      Default
      -- if no Default
      or Event of Default then exists, at the expense of such holder and upon
      reasonable prior notice to the Company, to visit the principal executive office
      of the Company, to discuss the affairs, finances and accounts of the Company
      and
      its Subsidiaries with the Company’s officers, and, with the consent of the
      Company (which consent will not be unreasonably withheld), to visit the other
      offices and properties of the Company and each Restricted Subsidiary, all at
      such reasonable times and as often as may be reasonably requested in writing;
      and

     

    (b)  Default
      -- if a Default or
      Event of Default then exists, at the expense of the Company, to visit and
      inspect any of the offices or properties of the Company or any Subsidiary,
      to
      examine all their respective books of account, records, reports and other
      papers, to make copies and extracts therefrom, and to discuss their respective
      affairs, finances, and accounts with their respective officers and independent
      public accountants (and by this provision the Company authorizes said
      accountants to discuss the affairs, finances and accounts of the Company and
      its
      Subsidiaries), all at such times and as often as may be requested.

     

    
      	8.  	
              PREPAYMENT
                OF THE NOTES.

            

    

     

    
      	8.1.  	
              No
                Scheduled Prepayments.

            

    

     

    No
      regularly
      scheduled prepayments are due on the Notes prior to their stated
      maturity.

     

    
      	8.2.  	
              Optional
                Prepayments with Make-Whole
                Amount.

            

    

     

    The
      Company may, at
      its option, upon notice as provided below, prepay at any time all, or from
      time
      to time any part of, the Notes of any series, in an amount not less than
      $1,000,000 in the aggregate in the case of a partial prepayment, at 100% of
      the
      principal amount so prepaid, plus the Make-Whole Amount determined for the
      prepayment date with respect to such principal amount. The Company will give
      each holder of Notes of the series to be prepaid written notice of each optional
      prepayment under this Section 8.2 not less than 30 days and not more than
      60 days prior to the date fixed for such prepayment. Each such notice shall
      specify such date, the aggregate principal amount of the Notes of such series
      to
      be prepaid on such date, the principal amount of each Note of such series held
      by such holder to be prepaid (determined in accordance with Section 8.3), and
      the interest to be paid on the prepayment date with respect to such principal
      amount being prepaid, and shall be accompanied by a certificate of a Senior
      Financial Officer as to the estimated Make-Whole Amount due in connection with
      such prepayment (calculated as if the date of such notice were the date of
      the
      prepayment), setting forth the details of such computation. Two Business Days
      prior to such prepayment, the Company shall deliver to each holder of Notes
      of
      the series to be prepaid a certificate of a Senior Financial Officer specifying
      the calculation of such Make-Whole Amount as of the specified prepayment
      date.

     

    
      	8.3.  	
              Allocation
                of Partial Prepayments.

            

    

     

    In
      the case of each
      partial prepayment of the Notes of a series, the principal amount of the Notes
      of such series to be prepaid shall be allocated among all of the Notes of such
      series at the time outstanding in proportion, as nearly as practicable, to
      the
      respective unpaid principal amounts thereof not theretofore called for
      prepayment. 

     

    
      	8.4.  	
              Maturity;
                Surrender, etc.

            

    

     

    In
      the case of each
      prepayment of Notes pursuant to this Section 8, the principal amount of each
      Note to be prepaid shall mature and become due and payable on the date fixed
      for
      such prepayment, together with interest on such principal amount accrued to
      such
      date and the applicable Make-Whole Amount, if any. From and after such date,
      unless the Company shall fail to pay such principal amount when so due and
      payable, together with the interest and Make-Whole Amount, if any, as aforesaid,
      interest on such principal amount shall cease to accrue. Any Note paid or
      prepaid in full shall be surrendered to the Company and canceled and shall
      not
      be reissued, and no Note shall be issued in lieu of any prepaid principal amount
      of any Note.

     

    
      	8.5.  	
              Purchase
                of Notes.

            

    

     

    The
      Company will
      not and will not permit any Affiliate to purchase, redeem, prepay or otherwise
      acquire, directly or indirectly, any of the outstanding Notes of any series
      except (a) upon the payment or prepayment of the Notes of a series in accordance
      with the terms of this Agreement and the Notes or (b) pursuant to an offer
      to
      purchase made by the Company or an Affiliate pro rata to the holders of all
      Notes of a series at the time outstanding upon the same terms and conditions.
      Any such offer shall provide each holder with sufficient information to enable
      it to make an informed decision with respect to such offer, and shall remain
      open for at least 30 Business Days. If the holders of more than 25% of the
      principal amount of the Notes of a series then outstanding accept such offer,
      the Company shall promptly notify the remaining holders of such fact and the
      expiration date for the acceptance by holders of Notes of such series of such
      offer shall be extended by the number of days necessary to give each such
      remaining holder at least ten Business Days from its receipt of such notice
      to
      accept such offer. The Company will promptly cancel all Notes acquired by it
      or
      any Affiliate pursuant to any payment, prepayment or purchase of Notes pursuant
      to any provision of this Agreement and no Notes may be issued in substitution
      or
      exchange for any such Notes.

     

    
      	8.6.  	
              Make-Whole
                Amount.

            

    

     

    The
      term
“Make-Whole
      Amount”
      means, with
      respect to any Note, an amount equal to the excess, if any, of the Discounted
      Value of the Remaining Scheduled Payments with respect to the Called Principal
      of such Note over the amount of such Called Principal, provided that the
      Make-Whole Amount may in no event be less than zero. For the purposes of
      determining the Make-Whole Amount, the following terms have the following
      meanings:

     

    “Called
      Principal”
      means, with
      respect to any Note, the principal of such Note that is to be prepaid pursuant
      to Section 8.2 or has become or is declared to be immediately due and
      payable pursuant to Section 12.1, as the context requires.

     

    “Discounted
      Value”
      means, with
      respect to the Called Principal of any Note, the amount obtained by discounting
      all Remaining Scheduled Payments with respect to such Called Principal from
      their respective scheduled due dates to the Settlement Date with respect to
      such
      Called Principal, in accordance with accepted financial practice and at a
      discount factor (applied on the same periodic basis as that on which interest
      on
      the Notes is payable) equal to the Reinvestment Yield with respect to such
      Called Principal.

     

    “Reinvestment
      Yield” means,
      with respect
      to the Called Principal of any Note, .50% over the yield to maturity implied
      by
      (i) the yields reported as of 10:00 a.m. (New York City time) on the second
      Business Day preceding the Settlement Date with respect to such Called
      Principal, on the display designated as “Page PX1” (or such other display as may
      replace Page PX1 on Bloomberg Financial Markets (“Bloomberg”) or, if Page PX1
      (or its successor screen on Bloomberg) is unavailable, the Telerate Access
      Service screen which corresponds most closely to Page PX1 for the most recently
      issued actively traded on-the-run U.S. Treasury securities having a maturity
      equal to the Remaining Average Life of such Called Principal as of such
      Settlement Date, or (ii) if such yields are not reported as of such time or
      the
      yields reported as of such time are not ascertainable (including by way of
      interpolation), the Treasury Constant Maturity Series Yields reported, for
      the
      latest day for which such yields have been so reported as of the second Business
      Day preceding the Settlement Date with respect to such Called Principal, in
      Federal Reserve Statistical Release H.15 (519) (or any comparable successor
      publication) for actively traded U.S. Treasury securities having a constant
      maturity equal to the Remaining Average Life of such Called Principal as of
      such
      Settlement Date. Such implied yield will be determined, if necessary, by (a)
      converting U.S. Treasury bill quotations to bond equivalent yields in accordance
      with accepted financial practice and (b) interpolating linearly between (1)
      the
      actively traded U.S. Treasury security with the maturity closest to and greater
      than such Remaining Average Life and (2) the actively traded U.S. Treasury
      security with the maturity closest to and less than such Remaining Average
      Life.
      The Reinvestment Yield shall be rounded to the number of decimal places as
      appears in the interest rate of the applicable Note.

     

    “Remaining
      Average Life”
      means, with
      respect to any Called Principal, the number of years (calculated to the nearest
      one-twelfth year) obtained by dividing (i) such Called Principal into (ii)
      the
      sum of the products obtained by multiplying (a) the principal component of
      each
      Remaining Scheduled Payment with respect to such Called Principal by (b) the
      number of years (calculated to the nearest one-twelfth year) that will elapse
      between the Settlement Date with respect to such Called Principal and the
      scheduled due date of such Remaining Scheduled Payment.

     

    “Remaining
      Scheduled Payments”
      means, with
      respect to the Called Principal of any Note, all payments of such Called
      Principal and interest thereon that would be due after the Settlement Date
      with
      respect to such Called Principal if no payment of such Called Principal were
      made prior to its scheduled due date, provided that if such Settlement Date
      is
      not a date on which interest payments are due to be made under the terms of
      the
      Notes, then the amount of the next succeeding scheduled interest payment will
      be
      reduced by the amount of interest accrued to such Settlement Date and required
      to be paid on such Settlement Date pursuant to Section 8.2 or
      12.1.

     

    “Settlement
      Date”
      means, with
      respect to the Called Principal of any Note, the date on which such Called
      Principal is to be prepaid pursuant to Section 8.2 or has become or is
      declared to be immediately due and payable pursuant to Section 12.1, as the
      context requires.

     

    
      	9.  	
              AFFIRMATIVE
                COVENANTS.

            

    

     

    The
      Company
      covenants that so long as any of the Notes are outstanding:

     

    
      	9.1.  	
              Compliance
                with Law.

            

    

     

    The
      Company will,
      and will cause each Subsidiary to, comply with all laws, ordinances or
      governmental rules or regulations to which each of them is subject, including,
      without limitation, Environmental Laws, and will obtain and maintain in effect
      all licenses, certificates, permits, franchises and other governmental
      authorizations necessary to the ownership of their respective properties or
      to
      the conduct of their respective businesses, in each case to the extent necessary
      to ensure that non-compliance with such laws, ordinances or governmental rules
      or regulations or failures to obtain or maintain in effect such licenses,
      certificates, permits, franchises and other governmental authorizations would
      not, individually or in the aggregate, reasonably be expected to have a
      materially adverse effect on the business, operations, affairs, financial
      condition, properties or assets of the Company and its Restricted Subsidiaries
      taken as a whole.

     

    
      	9.2.  	
              Insurance.

            

    

     

    The
      Company will,
      and will cause each Restricted Subsidiary to, maintain, with financially sound
      and reputable insurers, insurance with respect to their respective properties
      and businesses against such casualties and contingencies, of such types, on
      such
      terms and in such amounts (including deductibles, co-insurance and
      self-insurance, if adequate reserves are maintained with respect thereto) as
      is
      customary in the case of entities of established reputations engaged in the
      same
      or a similar business and similarly situated.

     

    
      	9.3.  	
              Maintenance
                of Properties.

            

    

     

    The
      Company will
      and will cause each Restricted Subsidiary to maintain and keep, or cause to
      be
      maintained and kept, their respective properties in good repair, working order
      and condition (other than ordinary wear and tear), so that the business carried
      on in connection therewith may be properly conducted at all times, provided
      that
      this Section shall not prevent the Company or any Restricted Subsidiary from
      discontinuing the operation and the maintenance of any of its properties if
      such
      discontinuance is desirable in the conduct of its business and the Company
      has
      concluded that such discontinuance would not, individually or in the aggregate,
      reasonably be expected to have a materially adverse effect on the business,
      operations, affairs, financial condition, properties or assets of the Company
      and its Restricted Subsidiaries taken as a whole.

     

    
      	9.4.  	
              Payment
                of Taxes and Claims.

            

    

     

    The
      Company will,
      and will cause each Subsidiary to, file all income tax or similar tax returns
      required to be filed in any jurisdiction and to pay and discharge all taxes
      shown to be due and payable on such returns and all other taxes, assessments,
      governmental charges, or levies payable by any of them, to the extent such
      taxes
      and assessments have become due and payable and before they have become
      delinquent, provided that neither the Company nor any Subsidiary need pay any
      such tax or assessment or claims if (i) the amount, applicability or validity
      thereof is contested by the Company or such Subsidiary on a timely basis in
      good
      faith and in appropriate proceedings, and the Company or a Subsidiary has
      established adequate reserves therefor in accordance with GAAP on the books
      of
      the Company or such Subsidiary or (ii) the nonpayment of all such taxes and
      assessments in the aggregate could not reasonably be expected to have a
      materially adverse effect on the business, operations, affairs, financial
      condition, properties or assets of the Company and its Subsidiaries taken as
      a
      whole.

     

    
      	9.5.  	
              Corporate
                Existence, etc.

            

    

     

    The
      Company will at
      all times preserve and keep in full force and effect its corporate existence.
      Subject to Sections 10.3 and 10.4, the Company will at all times preserve and
      keep in full force and effect the corporate existence of each of its Restricted
      Subsidiaries (unless merged into the Company or a Wholly-Owned Restricted
      Subsidiary) and all rights and franchises of the Company and its Restricted
      Subsidiaries unless, in the good faith judgment of the Company, the termination
      of or failure to preserve and keep in full force and effect a particular
      corporate existence, right or franchise could not, individually or in the
      aggregate, have a materially adverse effect on the business, operations,
      affairs, financial condition, properties or assets of the Company and its
      Restricted Subsidiaries taken as a whole.

     

    
      	10.  	
              NEGATIVE
                COVENANTS.

            

    

     

    The
      Company
      covenants that so long as any of the Notes are outstanding:

     

    
      	10.1.  	
              Consolidated
                Indebtedness; Indebtedness of Restricted
                Subsidiaries.

            

    

     

    The
      Company will
      not permit:

     

    (a)  the
      Debt to EBITDA
      Ratio to be greater than 3.5 to 1.0 at any time; provided that, for any period
      of not more than four successive fiscal quarters, such ratio may be greater
      than
      3.5 to 1.0, but in no event greater than 4.0 to 1.0, if the Company pays the
      additional interest provided for in Section 1.2; and

     

    (b)  any
      Restricted
      Subsidiary to incur any Indebtedness if, after giving effect thereto and to
      the
      application of the proceeds therefrom, Priority Debt outstanding would exceed
      25% of Consolidated Total Capitalization. For purposes of this Section 10.1(b),
      any unsecured Indebtedness of a Restricted Subsidiary that is a Subsidiary
      Guarantor shall be deemed to have been incurred by such Subsidiary at the time
      it ceases to be a Subsidiary Guarantor.

     

    
      	10.2.  	
              Liens.

            

    

     

    The
      Company will
      not, and will not permit any Restricted Subsidiary to, permit to exist, create,
      assume or incur, directly or indirectly, any Lien on its properties or assets,
      whether now owned or hereafter acquired, except:

     

    (a)  Liens
      existing on
      property or assets of the Company or any Restricted Subsidiary as of the date
      of
      this Agreement that are described in Schedule 10.2;

     

    (b)  Liens
      for taxes,
      assessments or governmental charges not then due and delinquent or the
      nonpayment of which is permitted by Section 9.4;

     

    (c)  encumbrances
      in the
      nature of leases, subleases, zoning restrictions, easements, rights of way
      and
      other rights and restrictions of record on the use of real property and defects
      in title arising or incurred in the ordinary course of business, which,
      individually and in the aggregate, do not materially impair the use or value
      of
      the property or assets subject thereto or which relate only to assets that
      in
      the aggregate are not material;

     

    (d)  Liens
      incidental to
      the conduct of business or the ownership of properties and assets (including
      landlords’, lessors’, carriers’, warehousemen’s, mechanics’, materialmen’s and
      other similar liens) and Liens to secure the performance of bids, tenders,
      leases or trade contracts, or to secure statutory obligations (including
      obligations under workers compensation, unemployment insurance and other social
      security legislation), surety or appeal bonds or other Liens of like general
      nature incurred in the ordinary course of business and not in connection with
      the borrowing of money;

     

    (e)  any
      attachment or
      judgment Lien, unless the judgment it secures has not, within 60 days after
      the
      entry thereof, been discharged or execution thereof stayed pending appeal,
      or
      has not been discharged within 60 days after the expiration of any such
      stay;

     

    (f)  Liens
      securing
      Indebtedness of a Restricted Subsidiary to the Company or to another Restricted
      Subsidiary and Liens securing Indebtedness of the Company to a Restricted
      Subsidiary;

     

    (g)  Liens
      (i) existing
      on property at the time of its acquisition by the Company or a Restricted
      Subsidiary and not created in contemplation thereof, whether or not the
      Indebtedness secured by such Lien is assumed by the Company or a Restricted
      Subsidiary; or (ii) on property created contemporaneously with its acquisition
      or within 180 days of the acquisition or completion of construction thereof
      to
      secure or provide for all or a portion of the purchase price or cost of
      construction of such property after the date of Closing; or (iii) existing
      on
      property of a Person at the time such Person is merged or consolidated with,
      or
      becomes a Restricted Subsidiary of, or all or substantially all of its assets
      are acquired by, the Company or a Restricted Subsidiary and not created in
      contemplation thereof; provided that in the case of clauses (i), (ii) and (iii)
      such Liens do not extend to additional property of the Company or any Restricted
      Subsidiary (other than property that is an improvement to or is acquired for
      specific use in connection with the subject property) and, in the case of clause
      (ii) only, that the aggregate principal amount of Indebtedness secured by each
      such Lien does not exceed the lesser of the fair market value (determined in
      good faith by one or more officers of the Company to whom authority to enter
      into such transaction has been delegated by the board of directors of the
      Company) or cost of acquisition or construction of the property subject
      thereto;

     

    (h)  Liens
      incurred in
      connection with Asset Securitization Transactions;

     

    (i)  Liens
      resulting
      from extensions, renewals or replacements of Liens permitted by paragraphs
      (a),
      (f), (g) and (h), provided that (i) there is no increase in the principal amount
      or decrease in maturity of the Indebtedness secured thereby at the time of
      such
      extension, renewal or replacement, (ii) any new Lien attaches only to the same
      property theretofore subject to such earlier Lien and (iii) immediately after
      such extension, renewal or replacement no Default or Event of Default would
      exist; and

     

    (j)  Liens
      securing
      Indebtedness not otherwise permitted by paragraphs (a) through (i) above,
      provided that, at the time of creation, assumption or incurrence thereof and
      immediately after giving effect thereto and to the application of the proceeds
      therefrom, Priority Debt outstanding does not exceed 25% of Consolidated Total
      Capitalization.

     

    
      	10.3.  	
              Sale
                of Assets.

            

    

     

    Except
      as permitted
      by Section 10.4, the Company will not, and will not permit any Restricted
      Subsidiary to, sell, lease, transfer or otherwise dispose of, including by
      way
      of merger (collectively a “Disposition”), any assets, including capital stock of
      Restricted Subsidiaries, in one or a series of transactions, to any Person,
      other than (a) Dispositions in the ordinary course of business, (b) Dispositions
      by the Company to a Restricted Subsidiary or by a Restricted Subsidiary to
      the
      Company or another Restricted Subsidiary or (c) Dispositions not otherwise
      permitted by clauses (a) or (b) of this Section 10.3, provided that the
      aggregate net book value of all assets so disposed of in any fiscal year
      pursuant to this Section 10.3(c) does not exceed 15% of Consolidated Total
      Assets as of the end of the immediately preceding fiscal year. Notwithstanding
      the foregoing, the Company may, or may permit any Restricted Subsidiary to,
      make
      a Disposition (including the sale of receivables in an Asset Securitization
      Transaction) and the assets subject to such Disposition shall not be subject
      to
      or included in the foregoing limitation and computation contained in clause
      (c)
      of the preceding sentence to the extent that (i) such assets were acquired
      or constructed not more than 180 days prior to the date of Closing and are
      leased back by the Company or any Restricted Subsidiary, as lessee, within
      180
      days of the acquisition or construction thereof, or (ii) the net proceeds
      from such Disposition are within one year of such Disposition
      (A) reinvested in productive assets by the Company or a Restricted
      Subsidiary or (B) applied to the payment or prepayment of any outstanding
      Indebtedness of the Company or any Restricted Subsidiary that is not
      subordinated to the Notes. Any prepayment of Notes pursuant to this
      Section 10.3 shall be in accordance with Sections 8.2 and 8.3 without
      regard to the minimum prepayment requirements of Section 8.2.

     

    
      	10.4.  	
              Mergers,
                Consolidations, etc.

            

    

     

    The
      Company will
      not, and will not permit any Restricted Subsidiary to, consolidate with or
      merge
      with any other Person or convey, transfer, sell or lease all or substantially
      all of its assets in a single transaction or series of transactions to any
      Person except that:

     

    (a)  the
      Company may
      consolidate or merge with any other Person or convey, transfer, sell or lease
      all or substantially all of its assets in a single transaction or series of
      transactions to any Person, provided that:

     

    (i)  the
      successor
      formed by such consolidation or the survivor of such merger or the Person that
      acquires by conveyance, transfer, sale or lease all or substantially all of
      the
      assets of the Company as an entirety, as the case may be, is a solvent
      corporation organized and existing under the laws of the United States or any
      state thereof (including the District of Columbia), and, if the Company is
      not
      such corporation, such corporation (y) shall have executed and delivered to
      each
      holder of any Notes its assumption of the due and punctual performance and
      observance of each covenant and condition of this Agreement and the Notes and
      (z) shall have caused to be delivered to each holder of any Notes an opinion
      of
      independent counsel reasonably satisfactory to the Required Holders, to the
      effect that all agreements or instruments effecting such assumption are
      enforceable in accordance with their terms and comply with the terms hereof;
      and

     

    (ii)  immediately
      before
      and after giving effect to such transaction, no Default or Event of Default
      shall exist; and

     

    (b)  Any
      Restricted
      Subsidiary may (x) merge into the Company (provided that the Company is the
      surviving corporation) or another Wholly-Owned Restricted Subsidiary or
      (y) sell, transfer or lease all or any part of its assets to the Company or
      another Wholly-Owned Restricted Subsidiary, or (z) merge or consolidate
      with, or sell, transfer or lease all or substantially all of its assets to,
      any
      Person in a transaction that is permitted by Section 10.3 or, as a result of
      which, such Person becomes a Restricted Subsidiary; provided in each instance
      set forth in clauses (x) through (z) that, immediately before and after giving
      effect thereto, there shall exist no Default or Event of Default; 

     

    No
      such conveyance,
      transfer, sale or lease of all or substantially all of the assets of the Company
      shall have the effect of releasing the Company or any successor corporation
      that
      shall theretofore have become such in the manner prescribed in this
      Section 10.4 from its liability under this Agreement or the
      Notes.

     

    
      	10.5.  	
              Disposition
                of Stock of Restricted
                Subsidiaries.

            

    

     

    The
      Company (i)
      will not permit any Restricted Subsidiary to issue its capital stock, or any
      warrants, rights or options to purchase, or securities convertible into or
      exchangeable for, such capital stock, to any Person other than the Company
      or
      another Restricted Subsidiary (other than directors’ qualifying shares, shares
      satisfying local ownership requirements or shares for any similar statutory
      purposes) and (ii) will not, and will not permit any Restricted Subsidiary
      to,
      sell, transfer or otherwise dispose of any shares of capital stock of a
      Restricted Subsidiary if such sale would be prohibited by Section 10.3. If
      a
      Restricted Subsidiary at any time ceases to be such as a result of a sale or
      issuance of its capital stock, any Liens on property of the Company or any
      other
      Restricted Subsidiary securing Indebtedness owed to such Restricted Subsidiary,
      which is not contemporaneously repaid, together with such Indebtedness, shall
      be
      deemed to have been incurred by the Company or such other Restricted Subsidiary,
      as the case may be, at the time such Restricted Subsidiary ceases to be a
      Restricted Subsidiary.

     

    
      	10.6.  	
              Designation
                of Restricted and Unrestricted
                Subsidiaries.

            

    

     

    The
      Company may
      designate any Restricted Subsidiary as an Unrestricted Subsidiary and any
      Unrestricted Subsidiary as a Restricted Subsidiary; provided that, (a) if such
      Subsidiary initially is designated a Restricted Subsidiary, then such Restricted
      Subsidiary may be subsequently designated as an Unrestricted Subsidiary and
      such
      Unrestricted Subsidiary may be subsequently designated as a Restricted
      Subsidiary, but no further changes in designation may be made, (b) if such
      Subsidiary initially is designated an Unrestricted Subsidiary, then such
      Unrestricted Subsidiary may be subsequently designated as a Restricted
      Subsidiary and such Restricted Subsidiary may be subsequently designated as
      an
      Unrestricted Subsidiary, but no further changes in designation may be made,
      (c)
      immediately before and after designation of a Restricted Subsidiary as an
      Unrestricted Subsidiary there exists no Default or Event of Default and (d)
      a
      Subsidiary Guarantor may not be designated an Unrestricted Subsidiary. If a
      Restricted Subsidiary at any time ceases to be such as a result of a
      redesignation, any Liens on property of the Company or any other Restricted
      Subsidiary securing Indebtedness owed to such Restricted Subsidiary that is
      not
      contemporaneously repaid, together with such Indebtedness, shall be deemed
      to
      have been incurred by the Company or such other Restricted Subsidiary, as the
      case may be, at the time such Restricted Subsidiary ceases to be a Restricted
      Subsidiary.

     

    
      	10.7.  	
              Restricted
                Subsidiary Guaranties.

            

    

     

    The
      Company will
      not permit any Restricted Subsidiary to become a party to the Bank Guarantees
      or
      to directly or indirectly guarantee any of the Company’s obligations under the
      Credit Agreement unless such Restricted Subsidiary is, or concurrently therewith
      becomes, a party to the Subsidiary Guaranty.

     

    
      	10.8.  	
              Nature
                of Business.

            

    

     

    The
      Company will
      not, and will not permit any Restricted Subsidiary to, engage in any business
      if, as a result, the general nature of the business in which the Company and
      its
      Restricted Subsidiaries, taken as a whole, would then be engaged would be
      substantially changed from the general nature of the business in which the
      Company and its Restricted Subsidiaries, taken as a whole, are engaged on the
      date of this Agreement as described in the Memorandum; provided, that the
      foregoing shall not be deemed to prohibit acquisitions by the Company or its
      Restricted Subsidiaries as long as the acquired companies are consumer products
      companies or other companies operating in businesses similar to or related
      to
      the current and future businesses conducted by the Company and its Subsidiaries,
      as well as suppliers to or distributors of products similar to those of the
      Company and its Subsidiaries.

     

    
      	10.9.  	
              Transactions
                with Affiliates.

            

    

     

    The
      Company will
      not and will not permit any Restricted Subsidiary to enter into directly or
      indirectly any Material transaction or Material group of related transactions
      (including without limitation the purchase, lease, sale or exchange of
      properties of any kind or the rendering of any service) with any Affiliate
      (other than the Company or another Restricted Subsidiary), except upon fair
      and
      reasonable terms no less favorable to the Company or such Restricted Subsidiary
      than would be obtainable in a comparable arm’s-length transaction with a Person
      not an Affiliate.

     

    
      	11.  	
              EVENTS
                OF DEFAULT.

            

    

     

    An
“Event
      of
      Default” shall exist if any of the following conditions or events shall occur
      and be continuing:

     

    (a)  the
      Company
      defaults in the payment of any principal or Make-Whole Amount, if any, on any
      Note when the same becomes due and payable, whether at maturity or at a date
      fixed for prepayment or by declaration or otherwise; or

     

    (b)  the
      Company
      defaults in the payment of any interest on any Note for more than five Business
      Days after the same becomes due and payable; or

     

    (c)  the
      Company
      defaults in the performance of or compliance with any term contained in or
      Sections 10.1 through 10.9; or

     

    (d)  the
      Company
      defaults in the performance of or compliance with any term contained herein
      (other than those referred to in paragraphs (a), (b) and (c) of this
      Section 11) and such default is not remedied within 30 days after the
      earlier of (i) a Responsible Officer obtaining actual knowledge of such
      default and (ii) the Company receiving written notice of such default from
      any holder of a Note; or

     

    (e)  any
      representation
      or warranty made in writing by or on behalf of the Company or by any officer
      of
      the Company in this Agreement or in any writing furnished in connection with
      the
      transactions contemplated hereby proves to have been false or incorrect in
      any
      material respect on the date as of which made; or

     

    (f)  (i)
      the Company or
      any Significant Restricted Subsidiary is in default (as principal or as
      guarantor or other surety) in the payment of any principal of or premium or
      make-whole amount or interest on any Indebtedness that is outstanding in an
      aggregate principal amount in excess of $30,000,000 beyond any period of grace
      provided with respect thereto, or (ii) the Company or any Significant Restricted
      Subsidiary is in default in the performance of or compliance with any term
      of
      any evidence of any Indebtedness that is outstanding in an aggregate principal
      amount in excess of $30,000,000 or of any mortgage, indenture or other agreement
      relating thereto or any other condition exists, and as a consequence of such
      default or condition such Indebtedness has become, or has been declared, due
      and
      payable before its stated maturity or before its regularly scheduled dates
      of
      payment; or

     

    (g)  the
      Company or any
      Significant Restricted Subsidiary (i) is generally not paying, or admits in
      writing its inability to pay, its debts as they become due, (ii) files, or
      consents by answer or otherwise to the filing against it of, a petition for
      relief or reorganization or arrangement or any other petition in bankruptcy,
      for
      liquidation or to take advantage of any bankruptcy, insolvency, reorganization,
      moratorium or other similar law of any jurisdiction, (iii) makes an
      assignment for the benefit of its creditors, (iv) consents to the
      appointment of a custodian, receiver, trustee or other officer with similar
      powers with respect to it or with respect to any substantial part of its
      property, (v) is adjudicated as insolvent or to be liquidated, or
      (vi) takes corporate action for the purpose of any of the foregoing;
      or

     

    (h)  a
      court or
      governmental authority of competent jurisdiction enters an order appointing,
      without consent by the Company or any Significant Restricted Subsidiary, a
      custodian, receiver, trustee or other officer with similar powers with respect
      to it or with respect to any substantial part of its property, or constituting
      an order for relief or approving a petition for relief or reorganization or
      any
      other petition in bankruptcy or for liquidation or to take advantage of any
      bankruptcy or insolvency law of any jurisdiction, or ordering the dissolution,
      winding-up or liquidation of the Company or any Significant Restricted
      Subsidiary, or any such petition shall be filed against the Company or any
      Significant Restricted Subsidiary and such petition shall not be dismissed
      within 60 days; or

     

    (i)  a
      final judgment or
      judgments for the payment of money aggregating in excess of $30,000,000 are
      rendered against one or more of the Company and its Significant Restricted
      Subsidiaries, which judgments are not, within 60 days after entry thereof,
      bonded, discharged or stayed pending appeal, or are not discharged within 60
      days after the expiration of such stay; or

     

    (j)  if
      (i) any
      Plan shall fail to satisfy the minimum funding standards of ERISA or the Code
      for any plan year or part thereof or a waiver of such standards or extension
      of
      any amortization period is sought or granted under Section 412 of the Code,
      (ii) a notice of intent to terminate any Plan shall have been or is
      reasonably expected to be filed with the PBGC or the PBGC shall have instituted
      proceedings under ERISA Section 4042 to terminate or appoint a trustee to
      administer any Plan or the PBGC shall have notified the Company or any ERISA
      Affiliate that a Plan may become a subject of any such proceedings,
      (iii) the aggregate “amount of unfunded benefit liabilities” (within the
      meaning of Section 4001(a)(18) of ERISA) under all Plans determined in
      accordance with Title IV of ERISA, shall exceed $30,000,000, (iv) the
      Company or any ERISA Affiliate shall have incurred or is reasonably expected
      to
      incur any liability pursuant to Title I or IV of ERISA or the penalty or excise
      tax provisions of the Code relating to employee benefit plans, (v) the Company
      or any ERISA Affiliate withdraws from any Multiemployer Plan, or (vi) the
      Company or any Subsidiary establishes or amends any employee welfare benefit
      plan that provides post-employment welfare benefits in a manner that would
      increase the liability of the Company or any Subsidiary thereunder; and any
      such
      event or events described in clauses (i) through (vi) above, either individually
      or together with any other such event or events, would reasonably be expected
      to
      have a Material Adverse Effect; or

     

    (k)  any
      Subsidiary
      Guarantor that is a Significant Restricted Subsidiary defaults in the
      performance of or compliance with any term contained in the Subsidiary
      Guaranty or the Subsidiary Guaranty ceases to be in full force and effect as
      a
      result of acts taken by the Company or any Subsidiary Guarantor, except as
      provided in Section 22, or is declared to be null and void in whole or in
      material part by a court or other governmental or regulatory authority having
      jurisdiction or the validity or enforceability thereof shall be contested by
      any
      of the Company or any Subsidiary Guarantor or any of them renounces any of
      the
      same or denies that it has any or further liability thereunder.

     

    As
      used in Section
      11(j), the terms “employee benefit plan” and “employee welfare benefit plan”
shall have the respective meanings assigned to such terms in Section 3 of
      ERISA.

     

    
      	12.  	
              REMEDIES
                ON DEFAULT, ETC.

            

    

     

    
      	12.1.  	
              Acceleration.

            

    

     

    (a)  If
      an Event of
      Default with respect to the Company described in paragraph (g) or (h) of
      Section 11 (other than an Event of Default described in clause (i) of
      paragraph (g) or described in clause (vi) of paragraph (g) by virtue
      of the fact that such clause encompasses clause (i) of paragraph (g)) has
      occurred, all the Notes then outstanding shall automatically become immediately
      due and payable.

     

    (b)  If
      any other Event
      of Default has occurred and is continuing, any holder or holders of a majority
      or more in principal amount of the Notes at the time outstanding may at any
      time
      at its or their option, by notice or notices to the Company, declare all the
      Notes then outstanding to be immediately due and payable.

     

    (c)  If
      any Event of
      Default described in paragraph (a) or (b) of Section 11 has occurred and is
      continuing, any holder or holders of Notes at the time outstanding affected
      by
      such Event of Default may at any time, at its or their option, by notice or
      notices to the Company, declare all the Notes held by it or them to be
      immediately due and payable.

     

    Upon
      any Notes
      becoming due and payable under this Section 12.1, whether automatically or
      by declaration, such Notes will forthwith mature and the entire unpaid principal
      amount of such Notes, plus (w) all accrued and unpaid interest thereon and
      (x)
      any applicable Make-Whole Amount determined in respect of such principal amount
      (to the full extent permitted by applicable law), shall all be immediately
      due
      and payable, in each and every case without presentment, demand, protest or
      further notice, all of which are hereby waived. The Company acknowledges, and
      the parties hereto agree, that each holder of a Note has the right to maintain
      its investment in the Notes free from repayment by the Company (except as herein
      specifically provided for) and that the provision for payment of a Make-Whole
      Amount by the Company in the event any Notes are prepaid or are accelerated
      as a
      result of an Event of Default is intended to provide compensation for the
      deprivation of such right under such circumstances.

     

    
      	12.2.  	
              Other
                Remedies.

            

    

     

    If
      any Default or
      Event of Default has occurred and is continuing, and irrespective of whether
      any
      Notes have become or have been declared immediately due and payable under
      Section 12.1, the holder of any Note at the time outstanding may proceed to
      protect and enforce the rights of such holder by an action at law, suit in
      equity or other appropriate proceeding, whether for the specific performance
      of
      any agreement contained herein or in any Note, or for an injunction against
      a
      violation of any of the terms hereof or thereof, or in aid of the exercise
      of
      any power granted hereby or thereby or by law or otherwise.

     

    
      	12.3.  	
              Rescission.

            

    

     

    At
      any time after
      any Notes have been declared due and payable pursuant to clause (b) or (c)
      of
      Section 12.1, the holders of more than 67% in principal amount of the Notes
      then
      outstanding, by written notice to the Company, may rescind and annul any such
      declaration and its consequences if (a) the Company has paid all overdue
      interest on the Notes, all principal of and any Make-Whole Amount on any Notes
      that are due and payable and are unpaid other than by reason of such
      declaration, and all interest on such overdue principal and any Make-Whole
      Amount and (to the extent permitted by applicable law) any overdue interest
      in
      respect of the Notes, at the Default Rate, (b) all Events of Default and
      Defaults, other than non-payment of amounts that have become due solely by
      reason of such declaration, have been cured or have been waived pursuant to
      Section 17, and (c) no judgment or decree has been entered for the
      payment of any monies due pursuant hereto or to the Notes. No rescission and
      annulment under this Section 12.3 will extend to or affect any subsequent Event
      of Default or Default or impair any right consequent thereon.

     

    
      	12.4.  	
              No
                Waivers or Election of Remedies, Expenses,
                etc.

            

    

     

    No
      course of
      dealing and no delay on the part of any holder of any Note in exercising any
      right, power or remedy shall operate as a waiver thereof or otherwise prejudice
      such holder’s rights, powers or remedies. No right, power or remedy conferred by
      this Agreement or by any Note upon any holder thereof shall be exclusive of
      any
      other right, power or remedy referred to herein or therein or now or hereafter
      available at law, in equity, by statute or otherwise. Without limiting the
      obligations of the Company under Section 15, the Company will pay to the holder
      of each Note on demand such further amount as shall be sufficient to cover
      all
      costs and expenses of such holder incurred in any enforcement or collection
      under this Section 12, including, without limitation, reasonable attorneys’
fees, expenses and disbursements.

     

    
      	13.  	
              REGISTRATION;
                EXCHANGE; SUBSTITUTION OF
                NOTES.

            

    

     

    
      	13.1.  	
              Registration
                of Notes.

            

    

     

    The
      Company shall
      keep at its principal executive office a register for the registration and
      registration of transfers of Notes. The name and address of each holder of
      one
      or more Notes, each transfer thereof and the name and address of each transferee
      of one or more Notes shall be registered in such register. Prior to due
      presentment for registration of transfer, the Person in whose name any Note
      shall be registered shall be deemed and treated as the owner and holder thereof
      for all purposes hereof, and the Company shall not be affected by any notice
      or
      knowledge to the contrary. The Company shall give to any holder of a Note that
      is an Institutional Investor, promptly upon request therefor, a complete and
      correct copy of the names and addresses of all registered holders of
      Notes.

     

    
      	13.2.  	
              Transfer
                and Exchange of Notes.

            

    

     

    Upon
      surrender of
      any Note at the principal executive office of the Company for registration
      of
      transfer or exchange (and in the case of a surrender for registration of
      transfer, duly endorsed or accompanied by a written instrument of transfer
      duly
      executed by the registered holder of such Note or his attorney duly authorized
      in writing and accompanied by the address for notices of each transferee of
      such
      Note or part thereof), the Company shall execute and deliver, at the Company’s
      expense (except as provided below), one or more new Notes (as requested by
      the
      holder thereof) of the same series in exchange therefor, in an aggregate
      principal amount equal to the unpaid principal amount of the surrendered Note.
      Each such new Note shall be payable to such Person as such holder may request
      and shall be substantially in the form of Note established for such series.
      Each
      such new Note shall be dated and bear interest from the date to which interest
      shall have been paid on the surrendered Note or dated the date of the
      surrendered Note if no interest shall have been paid thereon. The Company may
      require payment of a sum sufficient to cover any stamp tax or governmental
      charge imposed in respect of any such transfer of Notes. Notes shall not be
      transferred in denominations of less than $250,000, provided that if necessary
      to enable the registration of transfer by a holder of its entire holding of
      Notes, one Note may be in a denomination of less than $250,000. Any transferee,
      by its acceptance of a Note registered in its name (or the name of its nominee),
      shall be deemed to have made the representation set forth in Section
      6.2.

     

    
      	13.3.  	
              Replacement
                of Notes.

            

    

     

    Upon
      receipt by the
      Company of evidence reasonably satisfactory to it of the ownership of and the
      loss, theft, destruction or mutilation of any Note (which evidence shall be,
      in
      the case of an Institutional Investor, notice from such Institutional Investor
      of such ownership and such loss, theft, destruction or mutilation),
      and

     

    (a)  in
      the case of
      loss, theft or destruction, of indemnity reasonably satisfactory to it (provided
      that if the holder of such Note is, or is a nominee for, an original Purchaser
      or another Institutional Investor holder of a Note with a minimum net worth
      of
      at least $50,000,000, such Person’s own unsecured agreement of indemnity shall
      be deemed to be satisfactory), or

     

    (b)  in
      the case of
      mutilation, upon surrender and cancellation thereof,

     

    the
      Company at its
      own expense shall execute and deliver, in lieu thereof, a new Note of the same
      series, dated and bearing interest from the date to which interest shall have
      been paid on such lost, stolen, destroyed or mutilated Note or dated the date
      of
      such lost, stolen, destroyed or mutilated Note if no interest shall have been
      paid thereon.

     

    
      	14.  	
              PAYMENTS
                ON NOTES.

            

    

     

    
      	14.1.  	
              Place
                of Payment.

            

    

     

    Subject
      to Section
      14.2, payments of principal, Make-Whole Amount, if any, and interest becoming
      due and payable on the Notes shall be made in Chicago, Illinois at the principal
      office of Bank of America in such jurisdiction. The Company may at any time,
      by
      notice to each holder of a Note, change the place of payment of the Notes so
      long as such place of payment shall be either the principal office of the
      Company in such jurisdiction or the principal office of a bank or trust company
      in such jurisdiction.

     

    
      	14.2.  	
              Home
                Office Payment.

            

    

     

    So
      long as you or
      your nominee shall be the holder of any Note, and notwithstanding anything
      contained in Section 14.1 or in such Note to the contrary, the Company will
      pay
      all sums becoming due on such Note for principal, Make-Whole Amount, if any,
      and
      interest by the method and at the address specified for such purpose below
      your
      name in Schedule A, or by such other method or at such other address as you
      shall have from time to time specified to the Company in writing for such
      purpose, without the presentation or surrender of such Note or the making of
      any
      notation thereon, except that upon written request of the Company made
      concurrently with or reasonably promptly after payment or prepayment in full
      of
      any Note, you shall surrender such Note for cancellation, reasonably promptly
      after any such request, to the Company at its principal executive office or
      at
      the place of payment most recently designated by the Company pursuant to Section
      14.1. Prior to any sale or other disposition of any Note held by you or your
      nominee you will, at your election, either endorse thereon the amount of
      principal paid thereon and the last date to which interest has been paid thereon
      or surrender such Note to the Company in exchange for a new Note or Notes
      pursuant to Section 13.2. The Company will afford the benefits of this
      Section 14.2 to any Institutional Investor that is the direct or indirect
      transferee of any Note purchased by you under this Agreement and that has made
      the same agreement relating to such Note as you have made in this Section
      14.2.

     

    
      	15.  	
              EXPENSES,
                ETC.

            

    

     

    
      	15.1.  	
              Transaction
                Expenses.

            

    

     

    Whether
      or not the
      transactions contemplated hereby are consummated, the Company will pay all
      costs
      and expenses (including reasonable attorneys’ fees of one special counsel for
      you and the Other Purchasers collectively and, if reasonably required, local
      or
      other counsel) incurred by you and each Other Purchaser or holder of a Note
      in
      connection with such transactions and in connection with any amendments, waivers
      or consents under or in respect of this Agreement or the Notes (whether or
      not
      such amendment, waiver or consent becomes effective), including, without
      limitation: (a) the reasonable costs and expenses incurred in enforcing or
      defending (or determining whether or how to enforce or defend) any rights under
      this Agreement or the Notes or in responding to any subpoena or other legal
      process or informal investigative demand issued in connection with this
      Agreement or the Notes, or by reason of being a holder of any Note, and (b)
      the
      costs and expenses, including financial advisors’ fees, incurred in connection
      with the insolvency or bankruptcy of the Company or any Subsidiary or in
      connection with any work-out or restructuring of the transactions contemplated
      hereby and by the Notes. The Company will pay, and will save you and each other
      holder of a Note harmless from, all claims in respect of any fees, costs or
      expenses, if any, of brokers and finders (other than those retained by
      you).

     

    
      	15.2.  	
              Survival.

            

    

     

    The
      obligations of
      the Company under this Section 15 will survive the payment or transfer of
      any Note, the enforcement, amendment or waiver of any provision of this
      Agreement or the Notes, and the termination of this Agreement.

     

    
      	16.  	
              SURVIVAL
                OF REPRESENTATIONS AND WARRANTIES; ENTIRE
                AGREEMENT.

            

    

     

    All
      representations
      and warranties contained herein shall survive the execution and delivery of
      this
      Agreement and the Notes, the purchase or transfer by you of any Note or portion
      thereof or interest therein and the payment of any Note, and may be relied
      upon
      by any subsequent holder of a Note, regardless of any investigation made at
      any
      time by or on behalf of you or any other holder of a Note. All statements
      contained in any certificate or other instrument delivered by or on behalf
      of
      the Company pursuant to this Agreement shall be deemed representations and
      warranties of the Company under this Agreement. Subject to the preceding
      sentence, this Agreement and the Notes embody the entire agreement and
      understanding between you and the Company and supersede all prior agreements
      and
      understandings relating to the subject matter hereof.

     

    
      	17.  	
              AMENDMENT
                AND WAIVER.

            

    

     

    
      	17.1.  	
              Requirements.

            

    

     

    This
      Agreement, the
      Notes and the Subsidiary Guaranty may be amended, and the observance of any
      term
      hereof or of the Notes may be waived (either retroactively or prospectively),
      with (and only with) the written consent of the Company and the Required
      Holders, except that (a) no amendment or waiver of any of the provisions of
      Section 1, 2, 3, 4, 5, 6 or 21 hereof, or any defined term (as it is used
      therein), will be effective as to you unless consented to by you in writing,
      and
      (b) no such amendment or waiver may, without the written consent of the holder
      of each Note at the time outstanding affected thereby, (i) subject to the
      provisions of Section 12 relating to acceleration or rescission, change the
      amount or time of any prepayment or payment of principal of, or reduce the
      rate
      or change the time of payment or method of computation of interest or of
      Make-Whole Amount on, the Notes, (ii) change the percentage of the
      principal amount of the Notes the holders of which are required to consent
      to
      any such amendment or waiver, or (iii) amend any of Sections 8, 11(a),
      11(b), 12, 17 or 20.

     

    
      	17.2.  	
              Solicitation
                of Holders of Notes.

            

    

     

    (a)  Solicitation.
      The Company will
      provide each holder of the Notes (irrespective of the amount of Notes then
      owned
      by it) with sufficient information, sufficiently far in advance of the date
      a
      decision is required, to enable such holder to make an informed and considered
      decision with respect to any proposed amendment, waiver or consent in respect
      of
      any of the provisions hereof or of the Notes. The Company will deliver executed
      or true and correct copies of each amendment, waiver or consent effected
      pursuant to the provisions of this Section 17 to each holder of outstanding
      Notes promptly following the date on which it is executed and delivered by,
      or
      receives the consent or approval of, the requisite holders of
      Notes.

     

    (b)  Payment.
      The Company will
      not directly or indirectly pay or cause to be paid any remuneration, whether
      by
      way of supplemental or additional interest, fee or otherwise, or grant any
      security, to any holder of Notes as consideration for or as an inducement to
      the
      entering into by any holder of Notes of any waiver or amendment of any of the
      terms and provisions hereof unless such remuneration is concurrently paid,
      or
      security is concurrently granted, on the same terms, ratably to each holder
      of
      Notes then outstanding even if such holder did not consent to such waiver or
      amendment.

     

    (c)  Consent
      in
      Contemplation of Transfer.
      Any consent made
      pursuant to this Section 17 by a holder of Notes that has transferred or has
      agreed to transfer its Notes to the Company, any Subsidiary or any Affiliate
      of
      the Company and has provided or has agreed to provide such written consent
      as a
      condition to such transfer shall be void and of no force or effect except solely
      as to such holder, and any amendments effected or waivers granted or to be
      effected or granted that would not have been or would not be so effected or
      granted but for such consent (and the consents of other holders of Notes that
      were acquired under the same or similar conditions) shall be void and of no
      force or effect except solely as to such holder.

     

    
      	17.3.  	
              Binding
                Effect, etc.

            

    

     

    Any
      amendment or
      waiver consented to as provided in this Section 17 applies equally to all
      holders of Notes and is binding upon them and upon each future holder of any
      Note and upon the Company without regard to whether such Note has been marked
      to
      indicate such amendment or waiver. No such amendment or waiver will extend
      to or
      affect any obligation, covenant, agreement, Default or Event of Default not
      expressly amended or waived or impair any right consequent thereon. No course
      of
      dealing between the Company and the holder of any Note nor any delay in
      exercising any rights hereunder or under any Note shall operate as a waiver
      of
      any rights of any holder of such Note. As used herein, the term “this Agreement”
or “the Agreement” and references thereto shall mean this Agreement as it may
      from time to time be amended or supplemented.

     

    
      	17.4.  	
              Notes
                held by Company, etc.

            

    

     

    Solely
      for the
      purpose of determining whether the holders of the requisite percentage of the
      aggregate principal amount of Notes then outstanding approved or consented
      to
      any amendment, waiver or consent to be given under this Agreement or the Notes,
      or have directed the taking of any action provided herein or in the Notes to
      be
      taken upon the direction of the holders of a specified percentage of the
      aggregate principal amount of Notes then outstanding, Notes directly or
      indirectly owned by the Company or any of its Affiliates shall be deemed not
      to
      be outstanding.

     

    
      	18.  	
              NOTICES.

            

    

     

    All
      notices and
      communications provided for hereunder shall be in writing and sent (a) by
      telecopy if the sender on the same day sends a confirming copy of such notice
      by
      a recognized overnight delivery service (charges prepaid), or (b) by
      registered or certified mail with return receipt requested (postage prepaid),
      or
      (c) by a recognized overnight delivery service (with charges prepaid). Any
      such notice must be sent:

     

    (i)  if
      to you or your
      nominee, to you or it at the address specified for such communications in
      Schedule A, or at such other address as you or it shall have specified to the
      Company in writing,

     

    (ii)  if
      to any other
      holder of any Note, to such holder at such address as such other holder shall
      have specified to the Company in writing, or

     

    (iii)  if
      to the Company
      or to a Guarantor, to the Company at its address set forth at the beginning
      hereof to the attention of the Office of the Treasurer, or at such other address
      as the Company shall have specified to the holder of each Note in
      writing.

     

    Notices
      under this
      Section 18 will be deemed given only when actually received.

     

    
      	19.  	
              REPRODUCTION
                OF DOCUMENTS.

            

    

     

    This
      Agreement and
      all documents relating thereto, including, without limitation,
      (a) consents, waivers and modifications that may hereafter be executed,
      (b) documents received by you at the Closing (except the Notes themselves),
      and (c) financial statements, certificates and other information previously
      or hereafter furnished to you, may be reproduced by you by any photographic,
      photostatic, microfilm, microcard, miniature photographic or other similar
      process and you may destroy any original document so reproduced. The Company
      agrees and stipulates that, to the extent permitted by applicable law, any
      such
      reproduction shall be admissible in evidence as the original itself in any
      judicial or administrative proceeding (whether or not the original is in
      existence and whether or not such reproduction was made by you in the regular
      course of business) and any enlargement, facsimile or further reproduction
      of
      such reproduction shall likewise be admissible in evidence. This Section 19
      shall not prohibit the Company or any other holder of Notes from contesting
      any
      such reproduction to the same extent that it would contest the original, or
      from
      introducing evidence to demonstrate the inaccuracy of any such
      reproduction.

     

    
      	20.  	
              CONFIDENTIAL
                INFORMATION.

            

    

     

    For
      the purposes of
      this Section 20, “Confidential Information” means information delivered to you
      by or on behalf of the Company or any Subsidiary in connection with the
      transactions contemplated by or otherwise pursuant to this Agreement that is
      proprietary in nature and that was clearly marked or labeled or otherwise
      adequately identified in writing when received by you as being confidential
      information of the Company or such Subsidiary, provided that such term does
      not
      include information that (a) was publicly known or otherwise known to you
      prior to the time of such disclosure, (b) subsequently becomes publicly
      known through no act or omission by you or any Person acting on your behalf,
      (c) otherwise becomes known to you other than through disclosure by the
      Company or any Subsidiary or (d) constitutes financial statements delivered
      to
      you under Section 7.1 that are otherwise publicly available. You will maintain
      the confidentiality of such Confidential Information in accordance with
      procedures adopted by you in good faith to protect confidential information
      of
      third parties delivered to you, provided that you may deliver or disclose
      Confidential Information to (i) your directors, trustees officers,
      employees, agents, attorneys and Affiliates (to the extent such disclosure
      reasonably relates to the administration of the investment represented by your
      Notes), (ii) your financial advisors and other professional advisors who agree
      to hold confidential the Confidential Information substantially in accordance
      with the terms of this Section 20, (iii) any other holder of any Note,
      (iv) any Institutional Investor to which you sell or offer to sell such
      Note or any part thereof or any participation therein (if such Person has agreed
      in writing prior to its receipt of such Confidential Information to be bound
      by
      the provisions of this Section 20), (v) any Person from which you
      offer to purchase any security of the Company (if such Person has agreed in
      writing prior to its receipt of such Confidential Information to be bound by
      the
      provisions of this Section 20), (vi) any federal or state regulatory
      authority having jurisdiction over you, (vii) the National Association of
      Insurance Commissioners or any similar organization, or any nationally
      recognized rating agency that requires access to information about your
      investment portfolio or (viii) any other Person to which such delivery or
      disclosure may be necessary or appropriate (w) to effect compliance with
      any law, rule, regulation or order applicable to you, (x) in response to
      any subpoena or other legal process, (y) in connection with any litigation
      to which you are a party or (z) if an Event of Default has occurred and is
      continuing, to the extent you may reasonably determine such delivery and
      disclosure to be necessary or appropriate in the enforcement or for the
      protection of the rights and remedies under your Notes and this Agreement.
      Each
      holder of a Note, by its acceptance of a Note, will be deemed to have agreed
      to
      be bound by and to be entitled to the benefits of this Section 20 as though
      it
      were a party to this Agreement. On reasonable request by the Company in
      connection with the delivery to any holder of a Note of information required
      to
      be delivered to such holder under this Agreement or requested by such holder
      (other than a holder that is a party to this Agreement or its nominee), such
      holder will enter into an agreement with the Company embodying the provisions
      of
      this Section 20.

     

    
      	21.  	
              SUBSTITUTION
                OF PURCHASER.

            

    

     

    You
      shall have the
      right to substitute any one of your Affiliates as the purchaser of the Notes
      that you have agreed to purchase hereunder, by written notice to the Company,
      which notice shall be signed by both you and such Affiliate, shall contain
      such
      Affiliate’s agreement to be bound by this Agreement and shall contain a
      confirmation by such Affiliate of the accuracy with respect to it of the
      representations set forth in Section 6. Upon receipt of such notice, wherever
      the word “you” is used in this Agreement (other than in this Section 21), such
      word shall be deemed to refer to such Affiliate in lieu of you. In the event
      that such Affiliate is so substituted as a purchaser hereunder and such
      Affiliate thereafter transfers to you all of the Notes then held by such
      Affiliate, upon receipt by the Company of notice of such transfer, wherever
      the
      word “you” is used in this Agreement (other than in this Section 21), such
      word shall no longer be deemed to refer to such Affiliate, but shall refer
      to
      you, and you shall have all the rights of an original holder of the Notes under
      this Agreement.

     

    
      	22.  	
              RELEASE
                OF SUBSIDIARY GUARANTOR.

            

    

     

    You
      and each
      subsequent holder of a Note agree to release any Subsidiary Guarantor from
      the
      Subsidiary Guaranty (i) if such Subsidiary Guarantor ceases to be such as a
      result of a Disposition permitted by Section 10.3 or (ii) at such time as the
      banks party to the Credit Agreement release such Subsidiary from the Bank
      Guarantees; provided, however, that you and each subsequent holder will not
      be
      required to release a Subsidiary Guarantor from the Subsidiary Guaranty upon
      such Subsidiary’s release from the Bank Guarantees if (A) a Default or Event of
      Default has occurred and is continuing, (B) such Subsidiary Guarantor is to
      become a borrower under the Credit Agreement or (C) such release is part of
      a plan of financing that contemplates such Subsidiary Guarantor guaranteeing
      any
      other Indebtedness of the Company. Your obligation to release a Subsidiary
      Guarantor from the Subsidiary Guaranty is conditioned upon your prior receipt
      of
      a certificate from a Senior Financial Officer of the Company stating that none
      of the circumstances described in clauses (A), (B) and (C) above are
      true.

     

    
      	23.  	
              MISCELLANEOUS.

            

    

     

    
      	23.1.  	
              Successors
                and Assigns.

            

    

     

    All
      covenants and
      other agreements contained in this Agreement by or on behalf of any of the
      parties hereto bind and inure to the benefit of their respective successors
      and
      assigns (including, without limitation, any subsequent holder of a Note) whether
      so expressed or not.

     

    
      	23.2.  	
              Payments
                Due on Non-Business Days.

            

    

     

    Anything
      in this
      Agreement or the Notes to the contrary notwithstanding, any payment of principal
      of or Make-Whole Amount or interest on any Note that is due on a date other
      than
      a Business Day shall be made on the next succeeding Business Day without
      including the additional days elapsed in the computation of the interest payable
      on such next succeeding Business Day.

     

    
      	23.3.  	
              Severability.

            

    

     

    Any
      provision of
      this Agreement that is prohibited or unenforceable in any jurisdiction shall,
      as
      to such jurisdiction, be ineffective to the extent of such prohibition or
      unenforceability without invalidating the remaining provisions hereof, and
      any
      such prohibition or unenforceability in any jurisdiction shall (to the full
      extent permitted by law) not invalidate or render unenforceable such provision
      in any other jurisdiction.

     

    
      	23.4.  	
              Construction.

            

    

     

    Each
      covenant
      contained herein shall be construed (absent express provision to the contrary)
      as being independent of each other covenant contained herein, so that compliance
      with any one covenant shall not (absent such an express contrary provision)
      be
      deemed to excuse compliance with any other covenant. Where any provision herein
      refers to action to be taken by any Person, or which such Person is prohibited
      from taking, such provision shall be applicable whether such action is taken
      directly or indirectly by such Person.

     

    
      	23.5.  	
              Counterparts.

            

    

     

    This
      Agreement may
      be executed in any number of counterparts, each of which shall be an original
      but all of which together shall constitute one instrument. Each counterpart
      may
      consist of a number of copies hereof, each signed by less than all, but together
      signed by all, of the parties hereto.

     

    
      	23.6.  	
              Governing
                Law.

            

    

     

    This
      Agreement
      shall be construed and enforced in accordance with, and the rights of the
      parties shall be governed by, the law of the State of Illinois excluding
      choice-of-law principles of the law of such State that would require the
      application of the laws of a jurisdiction other than such State.

     

    

    

    
      
        
          

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    If
      you are in
      agreement with the foregoing, please sign the form of agreement on the
      accompanying counterpart of this Agreement and return it to the Company,
      whereupon the foregoing shall become a binding agreement between you and the
      Company.

     

    Very
      truly
      yours,

    

    

    ENERGIZER
      HOLDINGS,
      INC.

    

    By:
      ________________________

    Name: 

    Title: 

    

    
      
        6

        

        Schedule
          B

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE
      B

     

    

    DEFINED
      TERMS

     

    As
      used herein, the
      following terms have the respective meanings set forth below or set forth in
      the
      Section hereof following such term:

     

    “Adjusted
      Consolidated Net Worth” means,
      as of any
      date, consolidated stockholders’ equity of the Company and its Restricted
      Subsidiaries on such date, determined in accordance with GAAP, less the amount
      by which outstanding Restricted Investments on such date exceed 10% of
      consolidated stockholders’ equity.

     

    “Affiliate”
      means,
      at any time,
      and with respect to any Person, any other Person that at such time directly
      or
      indirectly through one or more intermediaries Controls, or is Controlled by,
      or
      is under common Control with, such first Person. As used in this definition,
      “Control” means the possession, directly or indirectly, of the power to direct
      or cause the direction of the management and policies of a Person, whether
      through the ownership of voting securities, by contract or otherwise. Unless
      the
      context otherwise clearly requires, any reference to an “Affiliate” is a
      reference to an Affiliate of the Company.

     

    “Anti-Terrorism
      Order” means
      Executive
      Order 13224 of September 23, 2001 Blocking Property and Prohibiting
      Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism
      (66 Fed. Reg. 49079 (2001).

     

    “Asset
      Securitization Transaction” means
      any financing
      pursuant to which the Company or any Restricted Subsidiary sells to a special
      purpose entity or any other Person, at a price representing the reasonably
      equivalent value thereof (determined as of the date of such sale), or grants
      a
      security interest in, accounts receivable (and related assets), provided that
      such financing shall be on customary market terms applicable to asset
      securitization transactions and shall be with limited or no recourse to the
      Company and such Restricted Subsidiary (other than such special purpose entity
      or other Person), except to the extent of normal and customary representations
      and warranties (in no event relating to collectibility or ultimate payment
      of
      receivables) made by the Company or such Restricted Subsidiary, and any other
      indicia of recourse substantially comparable to those permitted in asset
      securitization transactions generally (in no event relating to collectibility
      or
      ultimate payment of receivables).

     

    “Bank
      Guarantees” means
      the
      Guarantees of the Subsidiary Guarantors of Indebtedness outstanding under the
      Credit Agreement, as such Guarantees or agreements may be amended, restated
      or
      otherwise modified, and any successors thereto.

     

    “Business
      Day” means
      (a) for the
      purposes of Section 8.6 only, any day other than a Saturday, a Sunday or a
      day
      on which commercial banks in New York City are required or authorized to be
      closed, and (b) for the purposes of any other provision of this Agreement,
      any
      day other than a Saturday, a Sunday or a day on which commercial banks in
      Chicago, Illinois or New York, New York are required or authorized to be
      closed.

     

    “Capital
      Lease” means,
      at any time,
      a lease with respect to which the lessee is required concurrently to recognize
      the acquisition of an asset and the incurrence of a liability in accordance
      with
      GAAP.

     

    “Closing”
      is
      defined in
      Section 3.

     

    “Code”
      means
      the Internal
      Revenue Code of 1986, as amended from time to time, and the rules and
      regulations promulgated thereunder from time to time.

     

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

     

    “Confidential
      Information” is
      defined in
      Section 20.

     

    “Consolidated
      Indebtedness” means,
      as of any
      date, outstanding Indebtedness of the Company and its Restricted Subsidiaries
      as
      of such date determined on a consolidated basis in accordance with
      GAAP.

     

    “Consolidated
      Net Income” means,
      for any
      period, the net income of the Company and its Restricted Subsidiaries for such
      period determined on a consolidated basis in accordance with GAAP, or as
      calculated on a pro forma basis in accordance with Article XI of Securities
      and
      Exchange Commission Regulation S-X for any period, or portion thereof, where
      pro
      forma presentation is required pursuant to rules or regulations of the
      Securities and Exchange Commission.

     

    “Consolidated
      Total Assets” means,
      as of any
      date, the assets and properties of the Company and its Restricted Subsidiaries
      as of such date determined on a consolidated basis in accordance with GAAP,
      less
      any amount of assets reflected therein to the extent that they have been sold
      or
      pledged pursuant to an Asset Securitization Transaction, which amount shall
      be
      deemed to be equal to the amount excluded from the calculation of Indebtedness
      pursuant to the last sentence of the definition thereof.

     

    “Consolidated
      Total Capitalization” means,
      as of any
      date, the sum of Consolidated Indebtedness and Adjusted Consolidated Net Worth
      as of such date.

     

    “Credit
      Agreement” means
      the Revolving
      Credit Agreement dated as of November 16, 2004 among the Company, the lenders
      party thereto, JPMorgan Chase Bank, N.A., as administrative agent, Citibank,
      N.A., as documentation agent, and Bank of America, N.A., as syndication agent,
      as such agreement may be hereafter amended, restated, supplemented, refinanced,
      increased or reduced from time to time, and any successor credit agreement
      or
      similar facility; provided, that such term shall not include (i) the
      Multicurrency Revolving Credit Facility Agreement dated August 24, 2005 among
      Energizer Asia Investments Pte. Ltd., a Singapore Subsidiary of the Company,
      Energizer Singapore Pte. Ltd., a Singapore Subsidiary of the Company, Sonca
      Products Ltd., a Hong Kong Subsidiary of the Company, and Schick Asia Limited,
      a
      Hong Kong Subsidiary of the Company, as borrowers, the Company as guarantor,
      the
      lenders party thereto, Citigroup Global Markets Singapore Pte. Ltd. and Standard
      Chartered Bank as arranger, with Citicorp Investment Bank (Singapore) Limited,
      as agent, or (ii) any other credit facility of any Subsidiary that is not
      organized under the laws of the United States or any state thereof (including
      the District of Columbia) or any possession of the United States.

     

    “Debt
      to
      EBITDA Ratio” means,
      as of any
      date, the ratio of Consolidated Indebtedness (as of the date of determination)
      to EBITDA (for the Company’s then most recently completed four fiscal
      quarters).

     

    “Default”
      means
      an event or
      condition the occurrence or existence of which would, with the lapse of time
      or
      the giving of notice or both, become an Event of Default.

     

    “Default
      Rate” means
      that rate of
      interest that is the greater of (i) 2% per annum above the rate of interest
      stated in clause (a) of the first paragraph of the Notes or (ii) 2% over
      the rate of interest publicly announced by Bank of America in Chicago, Illinois
      as its “base” or “prime” rate.

     

    “Disposition”
      is
      defined in
      Section 10.3. The grant of a security interest by the Company or any Restricted
      Subsidiary in accounts receivable (and related assets) that are the subject
      of
      an Asset Securitization Transaction shall, without duplication, be deemed a
      Disposition of such accounts receivable (and related assets) for purposes of
      Section 10.3.

     

    “Domestic
      Restricted Subsidiary” means
      any
      Restricted Subsidiary organized under the laws of the United States or any
      state
      thereof (including the District of Columbia).

     

    “EBITDA”
      means,
      for any
      period, Consolidated Net Income for such period, plus, to the extent deducted
      in
      calculating Consolidated Net Income, (i) all provisions for federal, state
      and
      other income taxes, (ii) extraordinary losses, (iii) losses on disposition
      of
      discontinued operations, (iv) interest expense, (v) depreciation and
      amortization expense and (vi) other noncash charges, and minus, to the extent
      added in calculating Consolidated Net Income, (x) extraordinary gains, (y)
      gains
      on disposition of discontinued operations and (z) other noncash
      gains.

     

    “Environmental
      Laws” means
      any and all
      federal, state, local, and foreign statutes, laws, regulations, ordinances,
      rules, judgments, orders, decrees, permits, concessions, grants, franchises,
      licenses, agreements or governmental restrictions relating to pollution and
      the
      protection of the environment or the release of any materials into the
      environment, including but not limited to those related to hazardous substances
      or wastes, air emissions and discharges to waste or public systems.

     

    “ERISA”
      means
      the Employee
      Retirement Income Security Act of 1974, as amended from time to time, and the
      rules and regulations promulgated thereunder from time to time in effect.

     

    “ERISA
      Affiliate” means
      any trade or
      business (whether or not incorporated) that is treated as a single employer
      together with the Company under Section 414 of the Code.

     

    “Event
      of
      Default” is
      defined in
      Section 11.

     

    “Exchange
      Act” means
      the
      Securities Exchange Act of 1934, as amended.

     

    “GAAP”
      means
      generally
      accepted accounting principles as in effect from time to time in the United
      States of America.

     

    “Governmental
      Authority” means

     

    (a)  the
      government
      of

     

    (i)  the
      United States
      of America or any state or other political subdivision thereof, or

     

    (ii)  any
      jurisdiction in
      which the Company or any Subsidiary conducts all or any part of its business,
      or
      which asserts jurisdiction over any properties of the Company or any Subsidiary,
      or

     

    (b)  any
      entity
      exercising executive, legislative, judicial, regulatory or administrative
      functions of, or pertaining to, any such government.

     

    “Guaranty”
      means,
      with respect
      to any Person, any obligation (except the endorsement in the ordinary course
      of
      business of negotiable instruments for deposit or collection) of such Person
      guaranteeing or in effect guaranteeing any indebtedness, dividend or other
      obligation of any other Person in any manner, whether directly or indirectly,
      including (without limitation) obligations incurred through an agreement,
      contingent or otherwise, by such Person:

     

    (c)  to
      purchase such
      indebtedness or obligation or any property constituting security
      therefor;

     

    (d)  to
      advance or
      supply funds (i) for the purchase or payment of such indebtedness or obligation,
      or (ii) to maintain any working capital or other balance sheet condition or
      any
      income statement condition of any other Person or otherwise to advance or make
      available funds for the purchase or payment of such indebtedness or
      obligation;

     

    (e)  to
      lease properties
      or to purchase properties or services primarily for the purpose of assuring
      the
      owner of such indebtedness or obligation of the ability of any other Person
      to
      make payment of the indebtedness or obligation; or

     

    (f)  otherwise
      to assure
      the owner of such indebtedness or obligation against loss in respect
      thereof.

     

    In
      any computation
      of the indebtedness or other liabilities of the obligor under any Guaranty,
      the
      indebtedness or other obligations that are the subject of such Guaranty shall
      be
      assumed to be direct obligations of such obligor.

    

    “Hazardous
      Material” means
      any and all
      pollutants, toxic or hazardous wastes or any other substances that might pose
      a
      hazard to health or safety, the removal of which may be required or the
      generation, manufacture, refining, production, processing, treatment, storage,
      handling, transportation, transfer, use, disposal, release, discharge, spillage,
      seepage, or filtration of which is or shall be restricted, prohibited or
      penalized by any applicable law (including, without limitation, asbestos, urea
      formaldehyde foam insulation and polychlorinated biphenyls).

     

    “holder”
      means,
      with respect
      to any Note, the Person in whose name such Note is registered in the register
      maintained by the Company pursuant to Section 13.1.

     

    “Indebtedness”
      with
      respect to any
      Person means, at any time, without duplication,

     

    (a)  its
      liabilities for
      borrowed money;

     

    (b)  its
      liabilities for
      the deferred purchase price of property acquired by such Person (excluding
      accounts payable and other accrued liabilities arising in the ordinary course
      of
      business but including all liabilities created or arising under any conditional
      sale or other title retention agreement with respect to any such
      property);

     

    (c)  all
      liabilities
      appearing on its balance sheet in accordance with GAAP in respect of Capital
      Leases; 

     

    (d)  all
      liabilities for
      borrowed money secured by any Lien with respect to any property owned by such
      Person (whether or not it has assumed or otherwise become liable for such
      liabilities); and

     

    (e)  any
      Guaranty of
      such Person with respect to liabilities of a type described in any of clauses
      (a) through (d) hereof. 

     

    Notwithstanding
      the
      foregoing, there shall be excluded from the Indebtedness of any Person any
      obligations of such Person under an Asset Securitization Transaction regardless
      of whether such obligations would be reflected as Indebtedness on a balance
      sheet of such Person.

     

    “INHAM
      Exemption” is
      defined in
      Section 6.2(e).

     

    “Institutional
      Investor” means
      (a) any
      original purchaser of a Note and (b)  any bank, trust company, savings and
      loan association or other financial institution, any pension plan, any
      investment company, any insurance company, any broker or dealer, or any other
      similar financial institution or entity, regardless of legal form.

     

    “Investments”
      means
      all
      investments made, in cash or by delivery of property, directly or indirectly,
      by
      any Person, in any other Person, whether by acquisition of shares of capital
      stock, indebtedness or other obligations or securities or by loan, advance,
      capital contribution or otherwise.

     

    “Lien”
      means,
      with respect
      to any Person, any mortgage, lien, pledge, charge, security interest or other
      encumbrance, or any interest or title of any vendor, lessor, lender or other
      secured party to or of such Person under any conditional sale or other title
      retention agreement or Capital Lease, upon or with respect to any property
      or
      asset of such Person (including in the case of stock, stockholder agreements,
      voting trust agreements and all similar arrangements).

     

    “Make-Whole
      Amount” is
      defined in
      Section 8.6.

     

    “Material”
      means
      material in
      relation to the business, operations, affairs, financial condition, assets
      or
      properties of the Company and its Restricted Subsidiaries taken as a
      whole.

     

    “Material
      Adverse Effect” means
      a material
      adverse effect on (a) the business, operations, affairs, financial condition,
      assets or properties of the Company and its Restricted Subsidiaries taken as
      a
      whole, or (b) the ability of the Company to perform its obligations under this
      Agreement and the Notes, or (c) the ability of any Subsidiary Guarantor to
      perform its obligations under the Subsidiary Guaranty, or (d) the validity
      or
      enforceability of this Agreement, the Notes or the Subsidiary
      Guaranty.

     

    “Memorandum”
      is
      defined in
      Section 5.3.

     

    “Multiemployer
      Plan” means
      any Plan that
      is a “multiemployer plan” (as such term is defined in Section 4001(a)(3) of
      ERISA).

     

    “Notes”
      is
      defined in
      Section 1.1.

     

    “Officer’s
      Certificate” means
      a certificate
      of a Senior Financial Officer or of any other officer of the Company whose
      responsibilities extend to the subject matter of such certificate.

     

    “Other
      Purchasers” is
      defined in
      Section 2.

     

    “PBGC”
      means
      the Pension
      Benefit Guaranty Corporation referred to and defined in ERISA or any successor
      thereto.

     

    “Person”
      means
      an
      individual, partnership, corporation, limited liability company, association,
      trust, unincorporated organization, or a government or agency or political
      subdivision thereof.

     

    “Plan”
      means
      an “employee
      benefit plan” (as defined in Section 3(3) of ERISA) that is or, within the
      preceding five years, has been established or maintained, or to which
      contributions are or, within the preceding five years, have been made or
      required to be made, by the Company or any ERISA Affiliate or with respect
      to
      which the Company or any ERISA Affiliate may have any liability.

    

      “Priority
        Debt” means,
        as of any
        date, the sum (without duplication) of (a) Indebtedness of Restricted
        Subsidiaries that are not Subsidiary Guarantors on such date (other than
        Indebtedness owed to the Company or another Restricted Subsidiary), (b)
        Indebtedness of the Company guaranteed by any Restricted Subsidiary that
        is not
        a Subsidiary Guarantor and (c) Indebtedness of the Company and its Domestic
        Restricted Subsidiaries secured by Liens not otherwise permitted by
        Sections 10.2(a) through (i) on such date. For the avoidance of doubt,
        Indebtedness outstanding under the Multicurrency Revolving Credit Facility
        Agreement dated August 24, 2005 among Energizer
        Asia
        Investments Pte. Ltd., a Singapore Subsidiary of the Company, Energizer
        Singapore
        Pte. Ltd., a Singapore Subsidiary of the Company, Sonca Products Ltd., a
        Hong
        Kong Subsidiary of the Company, and Schick Asia Limited, a Hong Kong Subsidiary
        of the Company, as borrowers, the Company as guarantor, the lenders party
        thereto, Citigroup Global Markets Singapore Pte. Ltd. and Standard Chartered
        Bank as arranger, with Citicorp Investment Bank (Singapore) Limited, as agent,
        shall be deemed to constitute Priority Debt.

       

      “property”
        or
“properties”
        means,
        unless
        otherwise specifically limited, real or personal property of any kind, tangible
        or intangible, choate or inchoate.

       

    

    “Purchaser”
      means
      each
      purchaser listed in Schedule A.

     

    “QPAM
      Exemption” is
      defined in
      Section 6.2(d).

     

    “Required
      Holders” means,
      at any time,
      the holders of at least a majority in principal amount of the Notes at the
      time
      outstanding (exclusive of Notes then owned by the Company or any of its
      Affiliates).

     

    “Responsible
      Officer” means
      any Senior
      Financial Officer and any other officer of the Company with responsibility
      for
      the administration of the relevant portion of this agreement.

     

    “Restricted
      Investments” means
      all
      Investments of the Company and its Restricted Subsidiaries, other
      than:

     

    (a)  property
      or assets
      to be used or consumed in the ordinary course of business;

     

    (b)  current
      assets
      arising from the sale of goods or services in the ordinary course of
      business;

     

    (c)  Investments
      in
      Restricted Subsidiaries or in any Person which, as a result thereof, becomes
      a
      Restricted Subsidiary;

     

    (d)  Investments
      existing as of the date of this Agreement that are listed in the attached
      Schedule B-1;

     

    (e)  Investments
      in
      treasury stock;

     

    (f)  Investments
      in:

     

    (i)  obligations,
      maturing within one year from the date of acquisition, of or fully guaranteed
      by
      the United States of America or an agency thereof;

     

    (ii)  state
      or municipal
      securities, maturing within one year from the date of acquisition, that are
      rated in one of the top two rating classifications by at least one nationally
      recognized rating agency;

     

    (iii)  certificates
      of
      deposit or banker’s acceptances maturing within one year from the date of
      acquisition of or issued by Bank of America or other commercial banks whose
      long-term unsecured debt obligations (or the long-term unsecured debt
      obligations of the bank holding company owning all of the capital stock of
      such
      bank) are rated in one of the top three rating classifications by at least
      one
      nationally recognized rating agency;

     

    (iv)  commercial
      paper
      maturing within 270 days from the date of issuance that, at the time of
      acquisition, is rated in one of the top two rating classifications by at least
      one credit rating agency of recognized national standing;

     

    (v)  repurchase
      agreements, having a term of not more than 90 days and fully collateralized
      with
      obligations of the type described in clause (i), with a bank satisfying the
      requirements of clause (iii); and

     

    (vi)  money
      market
      instrument programs that are properly classified as current assets in accordance
      with GAAP.

     

    “Restricted
      Subsidiary” means
      any
      Subsidiary (a) of which at least a majority of the voting securities are owned
      by the Company and/or one or more Wholly-Owned Restricted Subsidiaries and
      (b)
      that the Company has not designated an Unrestricted Subsidiary by notice in
      writing given to the holders of the Notes.

     

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

     

    “Senior
      Financial Officer” means
      the chief
      financial officer, principal accounting officer, treasurer or comptroller of
      the
      Company.

     

    “Series
      2006-A Notes” is
      defined in
      Section 1.1. 

     

    “Series
      2006-B Notes” is
      defined in
      Section 1.1.

     

    “Series
      2006-C Notes” is
      defined in
      Section 1.1.

     

    “Series
      2006-D Notes” is
      defined in
      Section 1.1.

     

    “Significant
      Restricted Subsidiary” means,
      as of the
      date of determination, any Subsidiary Guarantor and any other Restricted
      Subsidiary the assets or revenues of which account for (i) more than 15% of
      the
      Consolidated Total Assets of the Company and its Restricted Subsidiaries at
      the
      end of the most recently ended fiscal period or (ii) more than 15% of the
      consolidated revenues of the Company and its Restricted Subsidiaries for the
      most recently completed four fiscal quarters.

     

    “Source”
      is
      defined in
      Section 6.2.

     

    “Subsidiary”
      means,
      as to any
      Person, any corporation, association or other business entity in which such
      Person or one or more of its Subsidiaries or such Person and one or more of
      its
      Subsidiaries owns sufficient equity or voting interests to enable it or them
      (as
      a group) ordinarily, in the absence of contingencies, to elect a majority of
      the
      directors (or Persons performing similar functions) of such entity, and any
      partnership, limited liability company or joint venture if more than a 50%
      interest in the profits or capital thereof is owned by such Person or one or
      more of its Subsidiaries or such Person and one or more of its Subsidiaries
      (unless such partnership can and does ordinarily take major business actions
      without the prior approval of such Person or one or more of its Subsidiaries).
      Unless the context otherwise clearly requires, any reference to a “Subsidiary”
is a reference to a Subsidiary of the Company.

     

    “Subsidiary
      Guarantor” is
      defined in
      Section 1.1.

     

    “Subsidiary
      Guaranty” is
      defined in
      Section 1.1.

     

    “this
      Agreement” or
“the
      Agreement” is
      defined in
      Section 17.3.

     

    “Unrestricted
      Subsidiary” means
      any
      Subsidiary of the Company that has been so designated by notice in writing
      given
      to the holders of the Notes.

     

    “USA
      Patriot Act” means
      Public Law
      107-56 of the United States of America, United and Strengthening America by
      Providing Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT)
      Act
      of 2001.

     

    “Wholly-Owned
      Restricted Subsidiary” means,
      at any time,
      any Restricted Subsidiary 100% of all of the equity interests (except directors’
qualifying shares) and voting interests of which are owned by any one or more
      of
      the Company and the Company’s other Wholly-Owned Restricted Subsidiaries at such
      time.

     

    

    
      
        
          Schedule
            B

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    EXHIBIT
      1(a)

    

    [FORM
      OF
SERIES
      2006-A NOTE]

     

    ENERGIZER
      HOLDINGS,
      INC.

    

    5.99%
      Senior Note,
      Series 2006-A, due June 30, 2009

    

    No.
      RA-[  ]         [Date]

    $[_______]         PPN:
      29266R H@
      0

    

    

    FOR
      VALUE RECEIVED,
      the undersigned, ENERGIZER HOLDINGS, INC. (herein called the “Company”), a
      corporation organized and existing under the laws of the State of Missouri,
      promises to pay to [        ], or
      registered assigns, the principal sum of
      $[           ] on June
      30, 2009, with interest (computed on the basis of a 360-day year of twelve
      30-day months) (a) on the unpaid balance thereof at the rate of 5.99% per
      annum from the date hereof, payable semiannually, on June 30 and December 31
      in
      each year, commencing with the June 30 or December 31 next succeeding the date
      hereof until the principal hereof shall have become due and payable, and
      (b) to the extent permitted by law on any overdue payment (including any
      overdue prepayment) of principal, any overdue payment of interest and any
      overdue payment of any Make-Whole Amount (as defined in the Note Purchase
      Agreement referred to below), payable semiannually as aforesaid (or, at the
      option of the registered holder hereof, on demand), at a rate per annum from
      time to time equal to the greater of (i) 7.99% or (ii) 2% over the
      rate of interest publicly announced by Bank of America from time to time in
      Chicago, Illinois as its “base” or “prime” rate. Under the circumstances
      described in the Note Purchase Agreement, additional interest may be payable
      on
      the unpaid principal amount of this Note.

     

    Payments
      of
      principal of, interest on and any Make-Whole Amount with respect to this Note
      are to be made in lawful money of the United States of America at the principal
      office of Bank of America in Chicago, Illinois or at such other place as the
      Company shall have designated by written notice to the holder of this Note
      as
      provided in the Note Purchase Agreement referred to below.

     

    This
      Note is one of
      a series of Senior Notes (herein called the “Notes”) issued pursuant to a Note
      Purchase Agreement, dated as of July 6, 2006 as from time to time amended and
      supplemented, the “Note Purchase Agreement”), between the Company and the
      respective Purchasers named therein and is entitled to the benefits thereof.
      Each holder of this Note will be deemed, by its acceptance hereof, (i) to have
      agreed to the confidentiality provisions set forth in Section 20 of the Note
      Purchase Agreement and (ii) to have made the representation set forth in Section
      6.2 of the Note Purchase Agreement.

     

    This
      Note is a
      registered Note and, as provided in the Note Purchase Agreement, upon surrender
      of this Note for registration of transfer, duly endorsed, or accompanied by
      a
      written instrument of transfer duly executed, by the registered holder hereof
      or
      such holder’s attorney duly authorized in writing, a new Note for a like
      principal amount will be issued to, and registered in the name of, the
      transferee. Prior to due presentment for registration of transfer, the Company
      may treat the person in whose name this Note is registered as the owner hereof
      for the purpose of receiving payment and for all other purposes, and the Company
      will not be affected by any notice to the contrary.

     

    This
      Note is
      subject to optional prepayment, in whole or from time to time in part, at the
      times and on the terms specified in the Note Purchase Agreement but not
      otherwise.

     

    If
      an Event of
      Default, as defined in the Note Purchase Agreement, occurs and is continuing,
      the principal of this Note may be declared or otherwise become due and payable
      in the manner, at the price (including any applicable Make-Whole Amount) and
      with the effect provided in the Note Purchase Agreement.

     

    Payment
      of the
      principal of, and interest and Make-Whole Amount, if any, on this Note, and
      all
      other amounts due under the Note Purchase Agreement, is guaranteed pursuant
      to
      the terms of a Guaranty dated as of July 6, 2006 of certain Subsidiaries of
      the
      Company.

     

    This
      Note shall be
      construed and enforced in accordance with, and the rights of the parties shall
      be governed by, the law of the State of Illinois excluding choice-of-law
      principles of the law of such State that would require the application of the
      laws of a jurisdiction other than such State.

     

    ENERGIZER
      HOLDINGS,
      INC.

    

    

    By:

    Name:

    Title:

    

    

    

    
      
        
          Exhibit
            1(a)

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    EXHIBIT
      1(b)

    

    [FORM
      OF
SERIES
      2006-B NOTE]

     

    ENERGIZER
      HOLDINGS,
      INC.

    

    6.05%
      Senior Note,
      Series 2006-B, due June 30, 2011

    

    No.
      RB-[  ]         [Date]

    $[_______]         PPN:
      29266R H#
      8

    

    

    FOR
      VALUE RECEIVED,
      the undersigned, ENERGIZER HOLDINGS, INC. (herein called the “Company”), a
      corporation organized and existing under the laws of the State of Missouri,
      promises to pay to [        ], or
      registered assigns, the principal sum of
      $[           ] on June
      30, 2011, with interest (computed on the basis of a 360-day year of twelve
      30-day months) (a) on the unpaid balance thereof at the rate of 6.05% per
      annum from the date hereof, payable semiannually, on June 30 and December 31
      in
      each year, commencing with the June 30 or December 31 next succeeding the date
      hereof until the principal hereof shall have become due and payable, and
      (b) to the extent permitted by law on any overdue payment (including any
      overdue prepayment) of principal, any overdue payment of interest and any
      overdue payment of any Make-Whole Amount (as defined in the Note Purchase
      Agreement referred to below), payable semiannually as aforesaid (or, at the
      option of the registered holder hereof, on demand), at a rate per annum from
      time to time equal to the greater of (i) 8.05% or (ii) 2% over the
      rate of interest publicly announced by Bank of America from time to time in
      Chicago, Illinois as its “base” or “prime” rate. Under the circumstances
      described in the Note Purchase Agreement, additional interest may be payable
      on
      the unpaid principal amount of this Note.

     

    Payments
      of
      principal of, interest on and any Make-Whole Amount with respect to this Note
      are to be made in lawful money of the United States of America at the principal
      office of Bank of America in Chicago, Illinois or at such other place as the
      Company shall have designated by written notice to the holder of this Note
      as
      provided in the Note Purchase Agreement referred to below.

     

    This
      Note is one of
      a series of Senior Notes (herein called the “Notes”) issued pursuant to a Note
      Purchase Agreement, dated as of July 6, 2006 as from time to time amended and
      supplemented, the “Note Purchase Agreement”), between the Company and the
      respective Purchasers named therein and is entitled to the benefits thereof.
      Each holder of this Note will be deemed, by its acceptance hereof, (i) to have
      agreed to the confidentiality provisions set forth in Section 20 of the Note
      Purchase Agreement and (ii) to have made the representation set forth in Section
      6.2 of the Note Purchase Agreement.

     

    This
      Note is a
      registered Note and, as provided in the Note Purchase Agreement, upon surrender
      of this Note for registration of transfer, duly endorsed, or accompanied by
      a
      written instrument of transfer duly executed, by the registered holder hereof
      or
      such holder’s attorney duly authorized in writing, a new Note for a like
      principal amount will be issued to, and registered in the name of, the
      transferee. Prior to due presentment for registration of transfer, the Company
      may treat the person in whose name this Note is registered as the owner hereof
      for the purpose of receiving payment and for all other purposes, and the Company
      will not be affected by any notice to the contrary.

     

    This
      Note is
      subject to optional prepayment, in whole or from time to time in part, at the
      times and on the terms specified in the Note Purchase Agreement but not
      otherwise.

     

    If
      an Event of
      Default, as defined in the Note Purchase Agreement, occurs and is continuing,
      the principal of this Note may be declared or otherwise become due and payable
      in the manner, at the price (including any applicable Make-Whole Amount) and
      with the effect provided in the Note Purchase Agreement.

     

    Payment
      of the
      principal of, and interest and Make-Whole Amount, if any, on this Note, and
      all
      other amounts due under the Note Purchase Agreement, is guaranteed pursuant
      to
      the terms of a Guaranty dated as of July 6, 2006 of certain Subsidiaries of
      the
      Company.

     

    This
      Note shall be
      construed and enforced in accordance with, and the rights of the parties shall
      be governed by, the law of the State of Illinois excluding choice-of-law
      principles of the law of such State that would require the application of the
      laws of a jurisdiction other than such State.

     

    ENERGIZER
      HOLDINGS,
      INC.

    

    

    By:

    Name:

    Title:

    

    

    

    
      
        
          Exhibit
            1(b)

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    EXHIBIT
      1(c)

    

    [FORM
      OF
SERIES
      2006-C NOTE]

     

    ENERGIZER
      HOLDINGS,
      INC.

    

    6.13%
      Senior Note,
      Series 2006-C, due June 30, 2014

    

    No.
      RC-[  ]         [Date]

    $[_______]         PPN:
      29266R J*
      0

    

    

    FOR
      VALUE RECEIVED,
      the undersigned, ENERGIZER HOLDINGS, INC. (herein called the “Company”), a
      corporation organized and existing under the laws of the State of Missouri,
      promises to pay to [        ], or
      registered assigns, the principal sum of
      $[           ] on June
      30, 2014, with interest (computed on the basis of a 360-day year of twelve
      30-day months) (a) on the unpaid balance thereof at the rate of 6.13% per
      annum from the date hereof, payable semiannually, on June 30 and December 31
      in
      each year, commencing with the June 30 or December 31 next succeeding the date
      hereof until the principal hereof shall have become due and payable, and
      (b) to the extent permitted by law on any overdue payment (including any
      overdue prepayment) of principal, any overdue payment of interest and any
      overdue payment of any Make-Whole Amount (as defined in the Note Purchase
      Agreement referred to below), payable semiannually as aforesaid (or, at the
      option of the registered holder hereof, on demand), at a rate per annum from
      time to time equal to the greater of (i) 8.13% or (ii) 2% over the
      rate of interest publicly announced by Bank of America from time to time in
      Chicago, Illinois as its “base” or “prime” rate. Under the circumstances
      described in the Note Purchase Agreement, additional interest may be payable
      on
      the unpaid principal amount of this Note.

     

    Payments
      of
      principal of, interest on and any Make-Whole Amount with respect to this Note
      are to be made in lawful money of the United States of America at the principal
      office of Bank of America in Chicago, Illinois or at such other place as the
      Company shall have designated by written notice to the holder of this Note
      as
      provided in the Note Purchase Agreement referred to below.

     

    This
      Note is one of
      a series of Senior Notes (herein called the “Notes”) issued pursuant to a Note
      Purchase Agreement, dated as of July 6, 2006 as from time to time amended and
      supplemented, the “Note Purchase Agreement”), between the Company and the
      respective Purchasers named therein and is entitled to the benefits thereof.
      Each holder of this Note will be deemed, by its acceptance hereof, (i) to have
      agreed to the confidentiality provisions set forth in Section 20 of the Note
      Purchase Agreement and (ii) to have made the representation set forth in Section
      6.2 of the Note Purchase Agreement.

     

    This
      Note is a
      registered Note and, as provided in the Note Purchase Agreement, upon surrender
      of this Note for registration of transfer, duly endorsed, or accompanied by
      a
      written instrument of transfer duly executed, by the registered holder hereof
      or
      such holder’s attorney duly authorized in writing, a new Note for a like
      principal amount will be issued to, and registered in the name of, the
      transferee. Prior to due presentment for registration of transfer, the Company
      may treat the person in whose name this Note is registered as the owner hereof
      for the purpose of receiving payment and for all other purposes, and the Company
      will not be affected by any notice to the contrary.

     

    This
      Note is
      subject to optional prepayment, in whole or from time to time in part, at the
      times and on the terms specified in the Note Purchase Agreement but not
      otherwise.

     

    If
      an Event of
      Default, as defined in the Note Purchase Agreement, occurs and is continuing,
      the principal of this Note may be declared or otherwise become due and payable
      in the manner, at the price (including any applicable Make-Whole Amount) and
      with the effect provided in the Note Purchase Agreement.

     

    Payment
      of the
      principal of, and interest and Make-Whole Amount, if any, on this Note, and
      all
      other amounts due under the Note Purchase Agreement, is guaranteed pursuant
      to
      the terms of a Guaranty dated as of July 6, 2006 of certain Subsidiaries of
      the
      Company.

     

    This
      Note shall be
      construed and enforced in accordance with, and the rights of the parties shall
      be governed by, the law of the State of Illinois excluding choice-of-law
      principles of the law of such State that would require the application of the
      laws of a jurisdiction other than such State.

     

    ENERGIZER
      HOLDINGS,
      INC.

    

    

    By:

    Name:

    Title:

    

    

    

    

    
      
        
          Exhibit
            1(c)

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    EXHIBIT
      1(d)

    

    [FORM
      OF
SERIES
      2006-D NOTE]

     

    ENERGIZER
      HOLDINGS,
      INC.

    

    6.24%
      Senior Note,
      Series 2006-D, due June 30, 2016

    

    No.
      RD-[  ]         [Date]

    $[_______]         PPN:
      29266R J@
      8

    

    

    FOR
      VALUE RECEIVED,
      the undersigned, ENERGIZER HOLDINGS, INC. (herein called the “Company”), a
      corporation organized and existing under the laws of the State of Missouri,
      promises to pay to [        ], or
      registered assigns, the principal sum of
      $[           ] on June
      30, 2016, with interest (computed on the basis of a 360-day year of twelve
      30-day months) (a) on the unpaid balance thereof at the rate of 6.24% per
      annum from the date hereof, payable semiannually, on June 30 and December 31
      in
      each year, commencing with the June 30 or December 31 next succeeding the date
      hereof until the principal hereof shall have become due and payable, and
      (b) to the extent permitted by law on any overdue payment (including any
      overdue prepayment) of principal, any overdue payment of interest and any
      overdue payment of any Make-Whole Amount (as defined in the Note Purchase
      Agreement referred to below), payable semiannually as aforesaid (or, at the
      option of the registered holder hereof, on demand), at a rate per annum from
      time to time equal to the greater of (i) 8.24% or (ii) 2% over the
      rate of interest publicly announced by Bank of America from time to time in
      Chicago, Illinois as its “base” or “prime” rate. Under the circumstances
      described in the Note Purchase Agreement, additional interest may be payable
      on
      the unpaid principal amount of this Note.

     

    Payments
      of
      principal of, interest on and any Make-Whole Amount with respect to this Note
      are to be made in lawful money of the United States of America at the principal
      office of Bank of America in Chicago, Illinois or at such other place as the
      Company shall have designated by written notice to the holder of this Note
      as
      provided in the Note Purchase Agreement referred to below.

     

    This
      Note is one of
      a series of Senior Notes (herein called the “Notes”) issued pursuant to a Note
      Purchase Agreement, dated as of July 6, 2006 as from time to time amended and
      supplemented, the “Note Purchase Agreement”), between the Company and the
      respective Purchasers named therein and is entitled to the benefits thereof.
      Each holder of this Note will be deemed, by its acceptance hereof, (i) to have
      agreed to the confidentiality provisions set forth in Section 20 of the Note
      Purchase Agreement and (ii) to have made the representation set forth in Section
      6.2 of the Note Purchase Agreement.

     

    This
      Note is a
      registered Note and, as provided in the Note Purchase Agreement, upon surrender
      of this Note for registration of transfer, duly endorsed, or accompanied by
      a
      written instrument of transfer duly executed, by the registered holder hereof
      or
      such holder’s attorney duly authorized in writing, a new Note for a like
      principal amount will be issued to, and registered in the name of, the
      transferee. Prior to due presentment for registration of transfer, the Company
      may treat the person in whose name this Note is registered as the owner hereof
      for the purpose of receiving payment and for all other purposes, and the Company
      will not be affected by any notice to the contrary.

     

    This
      Note is
      subject to optional prepayment, in whole or from time to time in part, at the
      times and on the terms specified in the Note Purchase Agreement but not
      otherwise.

     

    If
      an Event of
      Default, as defined in the Note Purchase Agreement, occurs and is continuing,
      the principal of this Note may be declared or otherwise become due and payable
      in the manner, at the price (including any applicable Make-Whole Amount) and
      with the effect provided in the Note Purchase Agreement.

     

    Payment
      of the
      principal of, and interest and Make-Whole Amount, if any, on this Note, and
      all
      other amounts due under the Note Purchase Agreement, is guaranteed pursuant
      to
      the terms of a Guaranty dated as of July 6, 2006 of certain Subsidiaries of
      the
      Company.

     

    This
      Note shall be
      construed and enforced in accordance with, and the rights of the parties shall
      be governed by, the law of the State of Illinois excluding choice-of-law
      principles of the law of such State that would require the application of the
      laws of a jurisdiction other than such State.

     

    ENERGIZER
      HOLDINGS,
      INC.

    

    

    By:

    Name:

    Title:

    

    

    
      
        
          Exhibit
            1(d)

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    EXHIBIT
      1(e)

    

    [FORM
      OF
      SUBSIDIARY GUARANTY]

     

    

    THIS
      GUARANTY (this
“Guaranty”) dated as of July 6, 2006 is made by the undersigned (each, a
“Guarantor”), in favor of the holders from time to time of the Notes hereinafter
      referred to, including each purchaser named in the Note Purchase Agreement
      hereinafter referred to, and their respective successors and assigns
      (collectively, the “Holders” and each individually, a “Holder”).

     

    W
      I T N E S S E
      T H:

    

    WHEREAS,
      ENERGIZER
      HOLDINGS, INC., a Missouri corporation (the “Company”), and the initial Holders
      have entered into a Note Purchase Agreement dated as of July 6, 2006 (the Note
      Purchase Agreement as amended, supplemented, restated or otherwise modified
      from
      time to time in accordance with its terms and in effect, the “Note Purchase
      Agreement”); 

     

    WHEREAS,
      the Note
      Purchase Agreement provides for the issuance by the Company of $500,000,000
      aggregate principal amount of Notes (as defined in the Note Purchase
      Agreement);

     

    WHEREAS,
      the
      Company owns all of the issued and outstanding capital stock of each Guarantor
      and, by virtue of such ownership and otherwise, each Guarantor will derive
      substantial benefits from the purchase by the Holders of the Company’s Notes;

     

    WHEREAS,
      it is a
      condition precedent to the obligation of the Holders to purchase the Notes
      that
      each Guarantor shall have executed and delivered this Guaranty to the Holders;
      and

     

    WHEREAS,
      each
      Guarantor desires to execute and deliver this Guaranty to satisfy the conditions
      described in the preceding paragraph; 

     

    NOW,
      THEREFORE, in
      consideration of the premises and other benefits to each Guarantor, and of
      the
      purchase of the Company’s Notes by the Holders, and for other good and valuable
      consideration, the receipt and sufficiency of which are acknowledged, each
      Guarantor makes this Guaranty as follows:

     

    SECTION
      1.  Definitions.
      Any capitalized
      terms not otherwise herein defined shall have the meanings attributed to them
      in
      the Note Purchase Agreement.

     

    SECTION
      2.  Guaranty.
      Each Guarantor,
      jointly and severally with each other Guarantor, unconditionally and irrevocably
      guarantees to the Holders the due, prompt and complete payment by the Company
      of
      the principal of, Make-Whole Amount, if any, and interest on, and each other
      amount due under, the Notes or the Note Purchase Agreement, when and as the
      same
      shall become due and payable (whether at stated maturity or by required or
      optional prepayment or by declaration or otherwise) in accordance with the
      terms
      of the Notes and the Note Purchase Agreement (the Notes and the Note Purchase
      Agreement being sometimes hereinafter collectively referred to as the “Note
      Documents” and the amounts payable by the Company under the Note Documents, and
      all other monetary obligations of the Company thereunder (including any
      attorneys’ fees and expenses), being sometimes collectively hereinafter referred
      to as the “Obligations”). This Guaranty is a guaranty of payment and not just of
      collectibility and is in no way conditioned or contingent upon any attempt
      to
      collect from the Company or upon any other event, contingency or circumstance
      whatsoever. If for any reason whatsoever the Company shall fail or be unable
      duly, punctually and fully to pay such amounts as and when the same shall become
      due and payable, each Guarantor, without demand, presentment, protest or notice
      of any kind, will forthwith pay or cause to be paid such amounts to the Holders
      under the terms of such Note Documents, in lawful money of the United States,
      at
      the place specified in the Note Purchase Agreement, or perform or comply with
      the same or cause the same to be performed or complied with, together with
      interest (to the extent provided for under such Note Documents) on any amount
      due and owing from the Company. Each Guarantor, promptly after demand, will
      pay
      to the Holders the reasonable costs and expenses of collecting such amounts
      or
      otherwise enforcing this Guaranty, including, without limitation, the reasonable
      fees and expenses of counsel. Notwithstanding the foregoing, the right of
      recovery against each Guarantor under this Guaranty is limited to the extent
      it
      is judicially determined with respect to any Guarantor that entering into this
      Guaranty would violate Section 548 of the United States Bankruptcy Code or
      any
      comparable provisions of any state law, in which case such Guarantor shall
      be
      liable under this Guaranty only for amounts aggregating up to the largest amount
      that would not render such Guarantor’s obligations hereunder subject to
      avoidance under Section 548 of the United States Bankruptcy Code or any
      comparable provisions of any state law.

     

    SECTION
      3.  Guarantor’s
      Obligations Unconditional.
      The obligations
      of each Guarantor under this Guaranty shall be primary, absolute and
      unconditional obligations of each Guarantor, shall not be subject to any
      counterclaim, set-off, deduction, diminution, abatement, recoupment, suspension,
      deferment, reduction or defense based upon any claim each Guarantor or any
      other
      person may have against the Company or any other person, and to the full extent
      permitted by applicable law shall remain in full force and effect without regard
      to, and shall not be released, discharged or in any way affected by, any
      circumstance or condition whatsoever (whether or not each Guarantor or the
      Company shall have any knowledge or notice thereof), including:

     

    (a)  any
      termination,
      amendment or modification of or deletion from or addition or supplement to
      or
      other change in any of the Note Documents or any other instrument or agreement
      applicable to any of the parties to any of the Note Documents;

     

    (b)  any
      furnishing or
      acceptance of any security, or any release of any security, for the Obligations,
      or the failure of any security or the failure of any person to perfect any
      interest in any collateral;

     

    (c)  any
      failure,
      omission or delay on the part of the Company to conform or comply with any
      term
      of any of the Note Documents or any other instrument or agreement referred
      to in
      paragraph (a) above, including, without limitation, failure to give notice
      to
      any Guarantor of the occurrence of a “Default” or an “Event of Default” under
      any Note Document;

     

    (d)  any
      waiver of the
      payment, performance or observance of any of the obligations, conditions,
      covenants or agreements contained in any Note Document, or any other waiver,
      consent, extension, indulgence, compromise, settlement, release or other action
      or inaction under or in respect of any of the Note Documents or any other
      instrument or agreement referred to in paragraph (a) above or any obligation
      or
      liability of the Company, or any exercise or non-exercise of any right, remedy,
      power or privilege under or in respect of any such instrument or agreement
      or
      any such obligation or liability;

     

    (e)  any
      failure,
      omission or delay on the part of any of the Holders to enforce, assert or
      exercise any right, power or remedy conferred on such Holder in this Guaranty,
      or any such failure, omission or delay on the part of such Holder in connection
      with any Note Document, or any other action on the part of such
      Holder;

     

    (f)  any
      voluntary or
      involuntary bankruptcy, insolvency, reorganization, arrangement, readjustment,
      assignment for the benefit of creditors, composition, receivership,
      conservatorship, custodianship, liquidation, marshaling of assets and
      liabilities or similar proceedings with respect to the Company, any Guarantor
      or
      to any other person or any of their respective properties or creditors, or
      any
      action taken by any trustee or receiver or by any court in any such
      proceeding;

     

    (g)  any
      discharge,
      termination, cancellation, frustration, irregularity, invalidity or
      unenforceability, in whole or in part, of any of the Note Documents or any
      other
      agreement or instrument referred to in paragraph (a) above or any term
      hereof;

     

    (h)  any
      merger or
      consolidation of the Company or any Guarantor into or with any other
      corporation, or any sale, lease or transfer of any of the assets of the Company
      or any Guarantor to any other person;

     

    (i)  any
      change in the
      ownership of any shares of capital stock of the Company or any change in the
      corporate relationship between the Company and any Guarantor, or any termination
      of such relationship;

     

    (j)  any
      release or
      discharge, by operation of law, of any Guarantor from the performance or
      observance of any obligation, covenant or agreement contained in this Guaranty;
      or 

     

    (k)  any
      other
      occurrence, circumstance, happening or event whatsoever, whether similar or
      dissimilar to the foregoing, whether foreseen or unforeseen, and any other
      circumstance which might otherwise constitute a legal or equitable defense
      or
      discharge of the liabilities of a guarantor or surety or which might otherwise
      limit recourse against any Guarantor.

     

    Notwithstanding
      any
      other provision contained in this Guaranty, each Guarantor’s liability with
      respect to the principal amount of the Notes shall be no greater than the
      liability of the Company with respect thereto.

     

    SECTION
      4.  Full
      Recourse
      Obligations.
      The obligations
      of each Guarantor set forth herein constitute the full recourse obligations
      of
      such Guarantor enforceable against it to the full extent of all its assets
      and
      properties.

     

    SECTION
      5.  Waiver.
      Each Guarantor
      unconditionally waives, to the extent permitted by applicable law,
      (a) notice of any of the matters referred to in Section 3, (b) notice
      to such Guarantor of the incurrence of any of the Obligations, notice to such
      Guarantor or the Company of any breach or default by such Company with respect
      to any of the Obligations or any other notice that may be required, by statute,
      rule of law or otherwise, to preserve any rights of the Holders against such
      Guarantor, (c) presentment to or demand of payment from the Company or the
      Guarantor with respect to any amount due under any Note Document or protest
      for
      nonpayment or dishonor, (d) any right to the enforcement, assertion or
      exercise by any of the Holders of any right, power, privilege or remedy
      conferred in the Note Purchase Agreement or any other Note Document or
      otherwise, (e) any requirement of diligence on the part of any of the
      Holders, (f) any requirement to exhaust any remedies or to mitigate the
      damages resulting from any default under any Note Document, (g) any notice
      of any sale, transfer or other disposition by any of the Holders of any right,
      title to or interest in the Note Purchase Agreement or in any other Note
      Document and (h) any other circumstance whatsoever which might otherwise
      constitute a legal or equitable discharge, release or defense of a guarantor
      or
      surety or which might otherwise limit recourse against such
      Guarantor.

     

    SECTION
      6.  Subrogation,
      Contribution, Reimbursement or Indemnity.
      Until one year
      and one day after all Obligations have been indefeasibly paid in full, each
      Guarantor agrees not to take any action pursuant to any rights which may have
      arisen in connection with this Guaranty to be subrogated to any of the rights
      (whether contractual, under the United States Bankruptcy Code, as amended,
      including Section 509 thereof, under common law or otherwise) of any of the
      Holders against the Company or against any collateral security or guaranty
      or
      right of offset held by the Holders for the payment of the Obligations. Until
      one year and one day after all Obligations have been indefeasibly paid in full,
      each Guarantor agrees not to take any action pursuant to any contractual, common
      law, statutory or other rights of reimbursement, contribution, exoneration
      or
      indemnity (or any similar right) from or against the Company which may have
      arisen in connection with this Guaranty. So long as the Obligations remain,
      if
      any amount shall be paid by or on behalf of the Company to any Guarantor on
      account of any of the rights waived in this paragraph, such amount shall be
      held
      by such Guarantor in trust, segregated from other funds of such Guarantor,
      and
      shall, forthwith upon receipt by such Guarantor, be turned over to the Holders
      (duly endorsed by such Guarantor to the Holders, if required), to be applied
      against the Obligations, whether matured or unmatured, in such order as the
      Holders may determine. The provisions of this paragraph shall survive the term
      of this Guaranty and the payment in full of the Obligations.

     

    SECTION
      7.  Effect
      of
      Bankruptcy Proceedings, etc.
      This Guaranty
      shall continue to be effective or be automatically reinstated, as the case
      may
      be, if at any time payment, in whole or in part, of any of the sums due to
      any
      of the Holders pursuant to the terms of the Note Purchase Agreement or any
      other
      Note Document is rescinded or must otherwise be restored or returned by such
      Holder upon the insolvency, bankruptcy, dissolution, liquidation or
      reorganization of the Company or any other person, or upon or as a result of
      the
      appointment of a custodian, receiver, trustee or other officer with similar
      powers with respect to the Company or other person or any substantial part
      of
      its property, or otherwise, all as though such payment had not been made. If
      an
      event permitting the acceleration of the maturity of the principal amount of
      the
      Notes shall at any time have occurred and be continuing, and such acceleration
      shall at such time be prevented by reason of the pendency against the Company
      or
      any other person of a case or proceeding under a bankruptcy or insolvency law,
      each Guarantor agrees that, for purposes of this Guaranty and its obligations
      hereunder, the maturity of the principal amount of the Notes and all other
      Obligations shall be deemed to have been accelerated with the same effect as
      if
      any Holder had accelerated the same in accordance with the terms of the Note
      Purchase Agreement or other applicable Note Document, and such Guarantor shall
      forthwith pay such principal amount, Make-Whole Amount, if any, and interest
      thereon and any other amounts guaranteed hereunder without further notice or
      demand.

     

    SECTION
      8.  Term
      of
      Agreement.
      This Guaranty and
      all guaranties, covenants and agreements of each Guarantor contained herein
      shall continue in full force and effect and shall not be discharged until such
      time as all of the Obligations shall be paid and performed in full and all
      of
      the agreements of such Guarantor hereunder shall be duly paid and performed
      in
      full.

     

    SECTION
      9.  Representations
      and Warranties.
      Each Guarantor
      represents and warrants to each Holder that:

     

    (a)  such
      Guarantor is a
      corporation duly organized, validly existing and in good standing under the
      laws
      of its jurisdiction of organization and has the corporate power and authority
      to
      own and operate its property, to lease the property it operates as lessee and
      to
      conduct the business in which it is currently engaged;

     

    (b)  such
      Guarantor has
      the corporate power and authority and the legal right to execute and deliver,
      and to perform its obligations under, this Guaranty, and has taken all necessary
      corporate action to authorize its execution, delivery and performance of this
      Guaranty;

     

    (c)  this
      Guaranty
      constitutes a legal, valid and binding obligation of such Guarantor enforceable
      in accordance with its terms, except as enforceability may be limited by
      bankruptcy, insolvency, reorganization, moratorium or similar laws affecting
      the
      enforcement of creditors’ rights generally and by general equitable principles
      (regardless of whether such enforceability is considered in a proceeding in
      equity or at law);

     

    (d)  the
      execution,
      delivery and performance of this Guaranty will not violate any provision of
      any
      requirement of law or material contractual obligation of such Guarantor and
      will
      not result in or require the creation or imposition of any Lien on any of the
      properties, revenues or assets of the Guarantor pursuant to the provisions
      of
      any material contractual obligation of such Guarantor or any requirement of
      law;

     

    (e)  no
      consent or
      authorization of, filing with, or other act by or in respect of, any arbitrator
      or governmental authority is required in connection with the execution,
      delivery, performance, validity or enforceability of this Guaranty;

     

    (f)  no
      litigation,
      investigation or proceeding of or before any arbitrator or governmental
      authority is pending or, to the knowledge of such Guarantor, threatened by
      or
      against such Guarantor or any of its properties or revenues (i) with
      respect to this Guaranty or any of the transactions contemplated hereby or
      (ii) which could reasonably be expected to have a material adverse effect
      upon the business, operations or financial condition of such Guarantor and
      its
      Subsidiaries taken as a whole;

     

    (g)  the
      execution,
      delivery and performance of this Guaranty will not violate any provision of
      any
      order, judgment, writ, award or decree of any court, arbitrator or Governmental
      Authority, domestic or foreign, or of the charter or by-laws of such Guarantor
      or of any securities issued by such Guarantor; and

     

    (h)  after
      giving effect
      to the transactions contemplated herein, (i) the present fair salable value
      of the assets of such Guarantor is in excess of the amount that will be required
      to pay its probable liability on its existing debts as said debts become
      absolute and matured, (ii)  such Guarantor has received reasonably
      equivalent value for executing and delivering this Guaranty, (iii) the
      property remaining in the hands of such Guarantor is not an unreasonably small
      capital, and (iv) such Guarantor is able to pay its debts as they
      mature.

     

    SECTION
      10.  Notices.
      All notices under
      the terms and provisions hereof shall be in writing, and shall be delivered
      or
      sent by telex or telecopy or mailed by first-class mail, postage prepaid,
      addressed (a) if to the Company or any Holder at the address set forth in,
      the Note Purchase Agreement or (b) if to a Guarantor, in care of the
      Company at the Company’s address set forth in the Note Purchase Agreement, or in
      each case at such other address as the Company, any Holder or such Guarantor
      shall from time to time designate in writing to the other parties. Any notice
      so
      addressed shall be deemed to be given when actually received.

     

    SECTION
      11.  Survival.
      All warranties,
      representations and covenants made by each Guarantor herein or in any
      certificate or other instrument delivered by it or on its behalf hereunder
      shall
      be considered to have been relied upon by the Holders and shall survive the
      execution and delivery of this Guaranty, regardless of any investigation made
      by
      any of the Holders. All statements in any such certificate or other instrument
      shall constitute warranties and representations by such Guarantor
      hereunder.

     

    SECTION
      12.  Submission
      to
      Jurisdiction.
      Each Guarantor
      irrevocably submits to the jurisdiction of the courts of the State of Illinois
      and of the courts of the United States of America having jurisdiction in the
      State of Illinois for the purpose of any legal action or proceeding in any
      such
      court with respect to, or arising out of, this Guaranty, the Note Purchase
      Agreement or the Notes, the Security Agreements, the Subsidiary Guaranty or
      the
      Notes. Each Guarantor consents to process being served in any suit, action
      or
      proceeding by mailing a copy thereof by registered or certified mail, postage
      prepaid, return receipt requested, to the address of such Guarantor specified
      in
      or designated pursuant to the Note Purchase Agreement. Each Guarantor agrees
      that such service upon receipt (i) shall be deemed in every respect effective
      service of process upon it in any such suit, action or proceeding and (ii)
      shall, to the fullest extent permitted by law, be taken and held to be valid
      personal service upon and personal delivery to such Obligor.

     

    SECTION
      13.  Miscellaneous.
      Any provision of
      this Guaranty which is prohibited or unenforceable in any jurisdiction shall,
      as
      to such jurisdiction, be ineffective to the extent of such prohibition or
      unenforceability without invalidating the remaining provisions hereof, and
      any
      such prohibition or unenforceability in any jurisdiction shall not invalidate
      or
      render unenforceable such provision in any other jurisdiction. To the extent
      permitted by applicable law, each Guarantor hereby waives any provision of
      law
      that renders any provisions hereof prohibited or unenforceable in any respect.
      The terms of this Guaranty shall be binding upon, and inure to the benefit
      of,
      each Guarantor and the Holders and their respective successors and assigns.
      No
      term or provision of this Guaranty may be changed, waived, discharged or
      terminated orally, but only by an instrument in writing signed by each Guarantor
      and the Holders. The section and paragraph headings in this Guaranty and the
      table of contents are for convenience of reference only and shall not modify,
      define, expand or limit any of the terms or provisions hereof, and all
      references herein to numbered sections, unless otherwise indicated, are to
      sections in this Guaranty. This Guaranty shall in all respects be governed
      by,
      and construed in accordance with, the laws of the State of Illinois, including
      all matters of construction, validity and performance.

     

    
      
        10

        

        Exhibit
          1(e)

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF,
      each Guarantor has caused this Guaranty to be duly executed as of the day and
      year first above written.

     

    EVEREADY
      BATTERY
      COMPANY, INC.

    

    By:

    Name:

    Title:

    

    

    ENERGIZER
      BATTERY

    MANUFACTURING,
      INC.

    By:

    Name:

    Title:

    

    

    ENERGIZER
      BATTERY,
      INC.

    By:

    Name:

    Title:

    

    

    ENERGIZER
      INTERNATIONAL, INC.

    By:

    Name:

    Title:

    

    

    SCHICK
      MANUFACTURING, INC.

    By:

    Name:

    Title:

    

    

    
      
        10

        

        Exhibit
          1(e)

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    FORM
      OF
      JOINDER TO SUBSIDIARY GUARANTY

     

    The
      undersigned
      (the “Guarantor”), joins in the Subsidiary Guaranty dated as of July 6, 2006
      from the Guarantors named therein in favor of the Holders, as defined therein,
      and agrees to be bound by all of the terms thereof and represents and warrants
      to the Holders that:

     

    (a) the
      Guarantor is
      duly organized, validly existing and in good standing under the laws of its
      jurisdiction of organization and has the requisite power and authority to own
      and operate its property, to lease the property it operates as lessee and to
      conduct the business in which it is currently engaged;

     

    (b) the
      Guarantor has
      the requisite power and authority and the legal right to execute and deliver
      this Joinder to Subsidiary Guaranty (“Joinder”) and to perform its obligations
      hereunder and under the Subsidiary Guaranty and has taken all necessary action
      to authorize its execution and delivery of this Joinder and its performance
      of
      the Subsidiary Guaranty;

     

    (c) the
      Subsidiary
      Guaranty constitutes a legal, valid and binding obligation of the Guarantor
      enforceable in accordance with its terms, except as enforceability may be
      limited by bankruptcy, insolvency, reorganization, moratorium or similar laws
      affecting the enforcement of creditors’ rights generally and by general
      equitable principles (regardless of whether such enforceability is considered
      in
      a proceeding in equity or at law);

     

    (d) the
      execution,
      delivery and performance of this Joinder will not violate any provision of
      any
      requirement of law or material contractual obligation of the Guarantor and
      will
      not result in or require the creation or imposition of any Lien on any of the
      properties, revenues or assets of the Guarantor pursuant to the provisions
      of
      any material contractual obligation of such Guarantor or any requirement of
      law;

     

    (e) no
      consent or
      authorization of, filing with, or other act by or in respect of, any arbitrator
      or governmental authority is required in connection with the execution,
      delivery, performance, validity or enforceability of this Joinder;

     

    (f) no
      litigation,
      investigation or proceeding of or before any arbitrator or governmental
      authority is pending or, to the knowledge of the Guarantor, threatened by or
      against the Guarantor or any of its properties or revenues (i) with respect
      to this Joinder, the Subsidiary Guaranty or any of the transactions contemplated
      hereby or thereby or (ii) that could reasonably be expected to have a
      material adverse effect upon the business, operations or financial condition
      of
      the Guarantor and its subsidiaries taken as a whole;

     

    (g) the
      execution,
      delivery and performance of this Joinder will not violate any provision of
      any
      order, judgment, writ, award or decree of any court, arbitrator or Governmental
      Authority, domestic or foreign, or of the charter or by-laws of the Guarantor
      or
      of any securities issued by the Guarantor; and

     

    (h) after
      giving effect
      to the transactions contemplated herein, (i) the present fair salable value
      of the assets of the Guarantor is in excess of the amount that will be required
      to pay its probable liability on its existing debts as said debts become
      absolute and matured, (ii)  the Guarantor has received reasonably
      equivalent value for executing and delivering this Guaranty, (iii) the
      property remaining in the hands of the Guarantor is not an unreasonably small
      capital, and (iv) the Guarantor is able to pay its debts as they
      mature.

     

    Capitalized
      Terms
      used but not defined herein have the meanings ascribed in the Subsidiary
      Guaranty.

     

    IN
      WITNESS WHEREOF,
      the undersigned has caused this Joinder to Subsidiary Guaranty to be duly
      executed as of __________, ____.

     

    

    [Name
      of
      Guarantor]

    

    By:

    Name:

    Title:

    

    

    

    
      
        
          Exhibit
            1(e)

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