Document:

Exhibit 4.3

 

REGISTRATION
RIGHTS AGREEMENT

 

This REGISTRATION
RIGHTS AGREEMENT dated September 23, 2005 (the “Agreement”) is entered
into by and among NBTY, Inc., a Delaware corporation (the “Company”), the
guarantors listed in Schedule 1 hereto (the “Guarantors”)
and J.P. Morgan Securities Inc. (“JPMorgan”), Adams Harkness, Inc., BNP
Paribas Securities Corp., HSBC Securities (USA) Inc. and RBC Capital Markets
Corporation (collectively, the “Initial Purchasers”).

 

The Company,
the Guarantors and the Initial Purchasers are parties to the Purchase Agreement
dated September 16, 2005 (the “Purchase Agreement”), which provides for
the sale by the Company to the Initial Purchasers of $200,000,000 aggregate
principal amount of the Company’s 7 1/8% Senior Subordinated Notes due
2015 (the “Securities”) which will be guaranteed on an unsecured senior subordinated
basis by each of the Guarantors; provided, however, that such guarantees will
not become effective until such time as all of the Company’s issued and
outstanding 8 5/8% senior subordinated notes due 2007 have been repaid in
full.  As an inducement to the Initial
Purchasers to enter into the Purchase Agreement, the Company and the Guarantors
have agreed to provide to the Initial Purchasers and their direct and indirect
transferees the registration rights set forth in this Agreement.  The execution and delivery of this Agreement
is a condition to the closing under the Purchase Agreement.

 

In
consideration of the foregoing, the parties hereto agree as follows:

 

1.             Definitions.  As used in this Agreement, the following
terms shall have the following meanings:

 

“Business Day” shall mean any day that is not a Saturday, Sunday or
other day on which commercial banks in New York City are authorized or required
by law to remain closed.

 

“Closing Date”
shall mean the Closing Date as defined in the Purchase Agreement.

 

“Company”
shall have the meaning set forth in the preamble and shall also include the Company’s
successors.

 

“Exchange Act”
shall mean the Securities Exchange Act of 1934, as amended from time to time.

 

“Exchange
Dates” shall have the meaning set forth in Section 2(a)(ii) hereof.

 

“Exchange
Offer” shall mean the exchange offer by the Company and the Guarantors of Exchange
Securities for Registrable Securities pursuant to Section 2(a) hereof.

 

“Exchange
Offer Registration” shall mean a registration under the Securities Act effected
pursuant to Section 2(a) hereof.

 

“Exchange
Offer Registration Statement” shall mean an exchange offer registration
statement on Form S-4 (or, if applicable, on another appropriate form) and
all amendments and supplements to such registration statement, in each case
including the Prospectus contained therein, all exhibits thereto and any
document incorporated by reference therein.

 

“Exchange
Securities” shall mean senior subordinated notes issued by the Company and
guaranteed by the Guarantors (to the extent required under the Indenture) under
the Indenture containing terms

 

S-1

 

identical to the Securities (except that the
Exchange Securities will not be subject to restrictions on transfer or to any
increase in annual interest rate for failure to comply with this Agreement) and
to be offered to Holders of Securities in exchange for Securities pursuant to
the Exchange Offer.

 

“Guarantors”
shall have the meaning set forth in the preamble and shall also include any
Guarantor’s successors and, as the context requires, any other entities that
are required by the terms of the Indenture to guarantee the Notes.

 

“Holders”
shall mean the Initial Purchasers, for so long as they own any Registrable
Securities, and each of their successors, assigns and direct and indirect
transferees who become owners of Registrable Securities under the Indenture;
provided that for purposes of Sections 4 and 5 of this Agreement, the term “Holders”
shall include Participating Broker-Dealers.

 

“Indenture”
shall mean the Indenture relating to the Securities dated as of September 23,
2005 among the Company, the Guarantors and The Bank of New York, as trustee,
and as the same may be amended from time to time in accordance with the terms
thereof.

 

“Initial
Purchasers” shall have the meaning set forth in the preamble.

 

“Inspector”
shall have the meaning set forth in Section 3(a)(xiii) hereof.

 

“JPMorgan”
shall have the meaning set forth in the preamble.

 

“Majority
Holders” shall mean the Holders of a majority of the aggregate principal amount
of the outstanding Registrable Securities; provided that whenever the consent
or approval of Holders of a specified percentage of Registrable Securities is
required hereunder, any Registrable Securities owned directly or indirectly by
the Company or any of its affiliates shall not be counted in determining
whether such consent or approval was given by the Holders of such required
percentage or amount; and provided, further, that if the Company shall issue
any additional Securities under the Indenture prior to consummation of the
Exchange Offer or, if applicable, the effectiveness of any Shelf Registration
Statement, such additional Securities and the Registrable Securities to which
this Agreement relates shall be treated together as one class for purposes of
determining whether the consent or approval of Holders of a specified percentage
of Registrable Securities has been obtained.

 

“Participating
Broker-Dealers” shall have the meaning set forth in Section 4(a) hereof.

 

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

 

“Prospectus”
shall mean the prospectus included in a Registration Statement, including any
preliminary prospectus, and any such prospectus as amended or supplemented by
any prospectus supplement, including a prospectus supplement with respect to
the terms of the offering of any portion of the Registrable Securities covered
by a Shelf Registration Statement, and by all other amendments and supplements
to such prospectus, and in each case including any document incorporated by
reference therein.

 

“Purchase
Agreement” shall have the meaning set forth in the preamble.

 

“Registrable
Securities” shall mean the Securities; provided that the Securities shall cease
to be Registrable Securities (i) when a Registration Statement with
respect to such Securities has been declared

 

S-2

 

effective under the Securities Act and such
Securities have been exchanged or disposed of pursuant to such Registration
Statement, (ii) when such Securities are eligible to be sold pursuant to Rule 144(k)
(or any similar provision then in force, but not Rule 144A under the
Securities Act) under the Securities Act or (iii) when such Securities
cease to be outstanding.

 

“Registration
Default” shall have the meaning set forth in Section 2(d).

 

“Registration
Expenses” shall mean any and all expenses incident to performance of or compliance
by the Company and the Guarantors with this Agreement, including without
limitation: (i) all SEC, stock exchange or National Association of
Securities Dealers, Inc. registration and filing fees, (ii) all fees
and expenses incurred in connection with compliance with state securities or
blue sky laws (including reasonable fees and disbursements of counsel for any
Underwriters or Holders in connection with blue sky qualification of any
Exchange Securities or Registrable Securities), (iii) all expenses of any
Persons in preparing or assisting in preparing, word processing, printing and
distributing any Registration Statement, any Prospectus and any amendments or
supplements thereto, any underwriting agreements, securities sales agreements
or other similar agreements and any other documents relating to the performance
of and compliance with this Agreement, (iv) all rating agency fees, (v) all
fees and disbursements relating to the qualification of the Indenture under
applicable securities laws, (vi) the fees and disbursements of the Trustee
and its counsel, (vii) the fees and disbursements of counsel for the Company
and the Guarantors and, in the case of a Shelf Registration Statement, the
reasonable fees and disbursements of one counsel for the Holders (which counsel
shall be selected by the Majority Holders and which counsel may also be counsel
for the Initial Purchasers) and (viii) the fees and disbursements of the
independent public accountants of the Company and the Guarantors, including the
expenses of any special audits or “comfort” letters required by or incident to
the performance of and compliance with this Agreement, but excluding fees and
expenses of counsel to the Underwriters (other than fees and expenses set forth
in clause (ii) above) or the Holders and underwriting discounts and
commissions, brokerage commissions and transfer taxes, if any, relating to the
sale or disposition of Registrable Securities by a Holder.

 

“Registration
Statement” shall mean any registration statement of the Company and the
Guarantors that covers any of the Exchange Securities or Registrable Securities
pursuant to the provisions of this Agreement and all amendments and supplements
to any such registration statement, including post-effective amendments, in
each case including the Prospectus contained therein, all exhibits thereto and
any document incorporated by reference therein.

 

“SEC” shall
mean the United States Securities and Exchange Commission.

 

“Securities”
shall have the meaning set forth in the preamble.

 

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

 

“Shelf
Effectiveness Period” shall have the meaning set forth in Section 2(b) hereof.

 

“Shelf
Effectiveness Failure” shall have the meaning set forth in Section 2(d) hereof.

 

 “Shelf Registration” shall mean a registration
effected pursuant to Section 2(b) hereof.

 

“Shelf
Registration Statement” shall mean a “shelf” registration statement of the
Company and the Guarantors that covers all or a portion of the Registrable
Securities (but no other securities unless approved by the Holders whose
Registrable Securities are to be covered by such Shelf Registration Statement)

 

S-3

 

on an appropriate form under Rule 415
under the Securities Act, or any similar rule that may be adopted by the
SEC, and all amendments and supplements to such registration statement,
including post-effective amendments, in each case including the Prospectus
contained therein, all exhibits thereto and any document incorporated by
reference therein.

 

“Staff” shall
mean the staff of the SEC.

 

“Trust
Indenture Act” shall mean the Trust Indenture Act of 1939, as amended from time
to time.

 

“Trustee”
shall mean the trustee with respect to the Securities under the Indenture.

 

“Underwriter”
shall have the meaning set forth in Section 3(e) hereof.

 

“Underwritten
Offering” shall mean an offering in which Registrable Securities are sold to an
Underwriter for reoffering to the public.

 

2.             Registration
Under the Securities Act.  (a) 
To the extent not prohibited by any applicable law, rule, regulation or
applicable interpretations of the Staff, the Company and the Guarantors shall
use their reasonable best efforts to (i) cause to be filed an Exchange
Offer Registration Statement covering an offer to the Holders to exchange all
the Registrable Securities for Exchange Securities and (ii) have such
Registration Statement remain effective until 180 days after the closing of the
Exchange Offer.  The Company and the
Guarantors shall commence the Exchange Offer promptly after the Exchange Offer
Registration Statement is declared effective by the SEC and use their
reasonable best efforts to complete the Exchange Offer not later than 210 days
after the Closing Date.

 

The Company
and the Guarantors shall commence the Exchange Offer by mailing the related
Prospectus, appropriate letters of transmittal and other accompanying documents
to each Holder stating, in addition to such other disclosures as are required
by applicable law, substantially the following:

 

(i)      that
the Exchange Offer is being made pursuant to this Agreement and that all Registrable Securities validly
tendered and not properly withdrawn will be accepted for exchange;

 

(ii)     the
dates of acceptance for exchange (which shall be a period of at least 30 days from
the date such notice is mailed) (the “Exchange Dates”);

 

(iii)    that
any Registrable Security not tendered will remain outstanding and continue to
accrue interest but will not retain any rights under this Agreement;

 

(iv)    that
any Holder electing to have a Registrable Security exchanged pursuant to the
Exchange Offer will be required to surrender such Registrable Security,
together with the appropriate letters of transmittal, to the institution and at
the address (located in the Borough of Manhattan, The City of New York) and in
the manner specified in the notice, prior to the close of business on the last
Exchange Date; and

 

(v)     that
any Holder will be entitled to withdraw its election, not later than the close
of business on the last Exchange Date, by sending to the institution and at the
address (located in the Borough of Manhattan, The City of New York) specified
in the notice, a telegram, telex, facsimile transmission or letter setting
forth the name of such Holder, the principal amount of Registrable

 

S-4

 

Securities delivered for exchange and a statement that such Holder is
withdrawing its election to have such Securities exchanged.

 

As a condition
to participating in the Exchange Offer, a Holder will be required to represent
in writing to the Company and the Guarantors that (i) any Exchange
Securities to be received by it will be acquired in the ordinary course of its
business, (ii) at the time of the commencement of the Exchange Offer it
has no arrangement or understanding with any Person to participate in the
distribution (within the meaning of the Securities Act) of the Exchange
Securities in violation of the provisions of the Securities Act, (iii) it
is not an “affiliate” (within the meaning of Rule 405 under the Securities
Act) of the Company or any Guarantor and (iv) if such Holder is a
broker-dealer that will receive Exchange Securities for its own account in exchange
for Registrable Securities that were acquired as a result of market-making or
other trading activities, then such Holder will deliver a Prospectus in
connection with any resale of such Exchange Securities.  Each Holder shall also be required to make
such other representations as may be reasonably necessary under applicable SEC
rules, regulations or interpretations to render the use of Form S-4 or another
appropriate form under the Securities Act available and will be required to
agree to comply with the agreements and covenants applicable to it set forth in
this Agreement.

 

As soon as
practicable after the last Exchange Date, the Company and the Guarantors shall:

 

(i)       accept
for exchange Registrable Securities or portions thereof validly tendered and
not properly withdrawn pursuant to the Exchange Offer; and

 

(ii)      deliver,
or cause to be delivered, to the Trustee for cancellation all Registrable
Securities or portions thereof so accepted for exchange by the Company and
issue, and cause the Trustee to promptly authenticate and deliver to each
Holder, Exchange Securities equal in principal amount to the principal amount
of the Registrable Securities surrendered by such Holder.

 

The Company
and the Guarantors shall use their reasonable best efforts to complete the
Exchange Offer as provided above and shall comply with the applicable
requirements of the Securities Act, the Exchange Act and other applicable laws
and regulations in connection with the Exchange Offer.  The Exchange Offer shall not be subject to
any conditions, other than (i) that the Exchange Offer does not violate
any applicable law, rule, regulation or applicable interpretations of the Staff
and (ii) that no action or proceeding shall have been instituted in any
court or by or before any governmental agency with respect to the Exchange
Offer which, in the Company’s judgment, would reasonably be expected to prevent
the Company and the Guarantors from proceeding with or completing the Exchange
Offer.

 

(b)           In
the event that (i) the Company determines that the Exchange Offer
Registration provided for in Section 2(a) above is not available or
may not be completed as soon as practicable after the last Exchange Date
because it would violate any applicable law, rule or regulation or
applicable interpretations of the Staff, (ii) the Exchange Offer is not
for any other reason completed by the date that is 210 days after the Closing
Date or (iii) any Initial Purchaser shall so request in writing not later
than 30 Business Days following completion of the Exchange Offer with respect
to the Registrable Securities not eligible to be exchanged for Exchange Securities
in the Exchange Offer and held by it, the Company and the Guarantors shall use
their reasonable best efforts to cause to be filed as soon as practicable after
such determination, date or request, as the case may be, a Shelf Registration
Statement providing for the sale of all the Registrable Securities by the Holders
thereof and to have such Shelf Registration Statement declared effective by the
SEC.

 

S-5

 

In the event
that the Company and the Guarantors are required to file a Shelf Registration
Statement pursuant to clause (iii) of the preceding sentence, the Company
and the Guarantors shall use their reasonable best efforts to file and have
declared effective by the SEC both an Exchange Offer Registration Statement
pursuant to Section 2(a) with respect to all Registrable Securities
and a Shelf Registration Statement (which may be a combined Registration
Statement with the Exchange Offer Registration Statement) with respect to
offers and sales of Registrable Securities held by the Initial Purchasers after
completion of the Exchange Offer.

 

The Company
and the Guarantors agree to use their reasonable best efforts to keep the Shelf
Registration Statement continuously effective until the expiration of the
period referred to in Rule 144(k) (or any similar rule then in force,
but not Rule 144A under the Securities Act) under the Securities Act with
respect to the Registrable Securities or such shorter period that will
terminate when all the Registrable Securities covered by the Shelf Registration
Statement have been sold pursuant to the Shelf Registration Statement (the “Shelf
Effectiveness Period”).  The Company and
the Guarantors further agree to supplement or amend the Shelf Registration
Statement and the related Prospectus if required by the rules, regulations or
instructions applicable to the registration form used by the Company for such
Shelf Registration Statement or by the Securities Act or by any other rules and
regulations thereunder for shelf registration or if reasonably requested by a
Holder of Registrable Securities with respect to information relating to such
Holder, and to use their reasonable best efforts to cause any such amendment to
become effective and such Shelf Registration Statement and Prospectus to become
usable as soon as thereafter practicable.

 

(c)           The
Company and the Guarantors shall pay all Registration Expenses in connection
with any registration pursuant to Section 2(a) or Section 2(b) hereof.  Each Holder shall pay all underwriting
discounts and commissions, brokerage commissions and transfer taxes, if any,
relating to the sale or disposition of such Holder’s Registrable Securities
pursuant to the Shelf Registration Statement.

 

(d)           An
Exchange Offer Registration Statement pursuant to Section 2(a) hereof
or a Shelf Registration Statement pursuant to Section 2(b) hereof
will not be deemed to have become effective unless it has been declared
effective by the SEC.

 

In the event
that either the Exchange Offer is not completed or the Shelf Registration
Statement, if required hereby, is not declared effective on or prior to the
date that is 210 days after the Closing Date (the “Target Registration Date”)
(each, a “Registration Default”), the interest rate on the Registrable
Securities will be increased by (i) 0.25% per annum for the first 90 day
period immediately following the Target Registration Date and (ii) an additional
0.25% per annum with respect to each subsequent 90-day period, in each case
until the Exchange Offer is completed or the Shelf Registration Statement, if
required hereby, is declared effective by the SEC or the Securities become
freely tradable under the Securities Act, up to a maximum of 1.00% per annum (including
any interest payable pursuant to the fourth paragraph of this Section 2(d))
of additional interest for such Registration Default; provided that the Company
and the Guarantors shall in no event be required to increase the interest rate
on the Registrable Securities for more than one Registration Default or any other
event, including a Shelf Effectiveness Failure, at any given time.

 

A Registration
Default referred to in the preceding paragraph shall be deemed not to have
occurred and be continuing in respect of a Registration Statement or the
related Prospectus if (A) such period of time during which any
Registration Statement is not effective or any Registration Statement or the
related Prospectus is not useable (the “Blackout Period”) occurred solely as a
result of (x) the filing of a post-effective amendment to such Registration
Statement to incorporate annual audited financial information with respect to
the Company and the Guarantors where such post-effective amendment is not yet
effective

 

S-6

 

and needs to be declared effective to permit
Holders to use the related prospectus or (y) the occurrence of other material
events with respect to the Company and the Guarantors that would need to be
described in such Registration Statement or the related Prospectus and (b) in
the case of clause (y), the Company and the Guarantors are proceeding promptly
and in good faith to amend or supplement (including by way of filing documents
under the Exchange Act which are incorporated by reference into the
Registration Statement) such Registration Statement and the related Prospectus
to describe such events, provided, however, that in the event a Blackout Period
occurs for a continuous period in excess of 60 days, a Registration Default
shall be deemed to have occurred on the 61st day of such Blackout
Period and additional interest shall be payable in accordance with the above
paragraph from the day such Registration Default occurs until such Registration
Default is cured or until the Company and the Guarantors are not longer
required pursuant to this Agreement to keep such Registration Statement effective
or such Registration Statement or the related Prospectus usable; provided,
further, that in no event shall there be more than two Blackout Periods of no
greater than 60 days each during any 365-day period.

 

If the Shelf
Registration Statement, if required hereby, has been declared effective and
thereafter either ceases to be effective or the Prospectus contained therein
ceases to be usable at any time during the Shelf Effectiveness Period, and such
failure to remain effective or usable (a “Shelf Effectiveness Failure”) exists
for more than 60 days (whether or not consecutive) in any 12-month period, then
the interest rate on the Registrable Securities will be increased by (i) 0.25%
per annum for the first 90 day period immediately following the 61st
day in such 12-month period and (ii) an additional 0.25% per annum with respect
to each subsequent 90-day period, in each case until such date that the Shelf
Registration Statement has again been declared effective or the Prospectus
again becomes usable up to a maximum of 1.00% per annum (including any interest
payable pursuant to the second paragraph of this Section 2(d)) of
additional interest.

 

(e)           Without
limiting the remedies available to the Initial Purchasers and the Holders, the
Company and the Guarantors acknowledge that any failure by the Company or the
Guarantors to comply with their obligations under Section 2(a) and Section 2(b) hereof
may result in material irreparable injury to the Initial Purchasers or the
Holders for which there is no adequate remedy at law, that it will not be
possible to measure damages for such injuries precisely and that, in the event
of any such failure, the Initial Purchasers or any Holder may obtain such
relief as may be required to specifically enforce the Company’s and the
Guarantors’ obligations under Section 2(a) and Section 2(b) hereof.

 

3.             Registration
Procedures.  (a)  In connection
with their obligations pursuant to Section 2(a) and Section 2(b) hereof,
the Company and the Guarantors shall as expeditiously as reasonably possible:

 

(i)      prepare
and file with the SEC a Registration Statement on the appropriate form under
the Securities Act, which form (x) shall be selected by the Company and the
Guarantors, (y) shall, in the case of a Shelf Registration, be available for
the sale of the Registrable Securities by the Holders thereof and (z) shall
comply as to form in all material respects with the requirements of the
applicable form and include all financial statements required by the SEC to be
filed therewith; and use their commercially reasonable efforts to cause such
Registration Statement to become effective and remain effective for the
applicable period in accordance with Section 2 hereof;

 

(ii)     prepare
and file with the SEC such amendments and post-effective amendments to each
Registration Statement as may be necessary to keep such Registration Statement
effective for the applicable period in accordance with Section 2 hereof
and cause each Prospectus to be

 

S-7

 

supplemented by any required prospectus supplement and, as so
supplemented, to be filed pursuant to Rule 424 under the Securities Act;
and keep each Prospectus current during the period described in Section 4(3) of
and Rule 174 under the Securities Act that is applicable to transactions
by brokers or dealers with respect to the Registrable Securities or Exchange
Securities;

 

(iii)    in
the case of a Shelf Registration, furnish to each Holder of Registrable Securities,
to counsel for the Initial Purchasers and to each Underwriter of an
Underwritten Offering of Registrable Securities, if any, without charge, as
many copies of each Prospectus, including each preliminary Prospectus, and any
amendment or supplement thereto, in order to facilitate the sale or other disposition
of the Registrable Securities thereunder; and the Company and the Guarantors
consent to the use of such Prospectus and any amendment or supplement thereto
in accordance with applicable law by each of the Holders of Registrable
Securities and any such Underwriters in connection with the offering and sale
of the Registrable Securities covered by and in the manner described in such
Prospectus or any amendment or supplement thereto in accordance with applicable
law;

 

(iv)    use
their reasonable best efforts to register or qualify the Registrable Securities
under all applicable state securities or blue sky laws of such jurisdictions as
any Holder of Registrable Securities covered by a Registration Statement shall
reasonably request in writing by the time the applicable Registration Statement
is declared effective by the SEC; cooperate with such Holders in connection
with any filings required to be made with the National Association of
Securities Dealers, Inc.; and do any and all other acts and things that may
be reasonably necessary or advisable to enable each Holder to complete the
disposition in each such jurisdiction of the Registrable Securities owned by
such Holder; provided that neither the Company nor any Guarantor shall
be required to (1) qualify as a foreign corporation or other entity or as
a dealer in securities in any such jurisdiction where it would not otherwise be
required to so qualify, (2) file any general consent to service of process
in any such jurisdiction or (3) subject itself to taxation in any such jurisdiction
if it is not so subject;

 

(v)     in
the case of a Shelf Registration, notify each Holder of Registrable Securities,
and counsel for the Initial Purchasers promptly and, if requested by any such
Holder or counsel, confirm such advice in writing (1) when a Registration
Statement has become effective and when any post-effective amendment thereto
has been filed and becomes effective, (2) of any request by the SEC or any
state securities authority for amendments and supplements to a Registration
Statement and Prospectus or for additional information after the Registration
Statement has become effective, (3) of the issuance by the SEC or any
state securities authority of any stop order suspending the effectiveness of a
Registration Statement or the initiation of any proceedings for that purpose, (4) if,
between the effective date of a Registration Statement and the closing of any
sale of Registrable Securities covered thereby, the representations and warranties
of the Company or any Guarantor contained in any underwriting agreement,
securities sales agreement or other similar agreement, if any, relating to an
offering of such Registrable Securities cease to be true and correct in all
material respects or if the Company or any Guarantor receives any notification
with respect to the suspension of the qualification of the Registrable
Securities for sale in any jurisdiction or the initiation of any proceeding for
such purpose, (5) of the happening of any event during the period a Shelf
Registration Statement is effective that makes any statement made in such
Registration Statement or the related Prospectus untrue in any material respect
or that requires the making of any changes in such Registration Statement or
Prospectus in order to make the statements therein not misleading, (6) of
any determination by the Company or any Guarantor

 

S-8

 

that a post-effective amendment to a Registration Statement would be appropriate,
and (7) of any Blackout Period;

 

(vi)    use
their commercially reasonable efforts to obtain the withdrawal of any order
suspending the effectiveness of a Registration Statement at the earliest
possible moment and provide prompt notice to each Holder of the withdrawal of
any such order;

 

(vii)   in
the case of a Shelf Registration, furnish to each Holder of Registrable
Securities, without charge, at least one conformed copy of each Registration
Statement and any post-effective amendment thereto (without any documents
incorporated therein by reference or exhibits thereto, unless requested);

 

(viii)  in
the case of a Shelf Registration, cooperate with the Holders of Registrable
Securities to facilitate the timely preparation and delivery of certificates
representing Registrable Securities to be sold and not bearing any restrictive
legends and enable such Registrable Securities to be issued in such
denominations and registered in such names (consistent with the provisions of
the Indenture) as such Holders may reasonably request at least three Business
Days prior to the closing of any sale of Registrable Securities;

 

(ix)    in
the case of a Shelf Registration, upon the occurrence of any event contemplated
by Section 3(a)(v)(5) hereof, use their reasonable best efforts to
prepare and file with the SEC a supplement or post-effective amendment to such
Shelf Registration Statement or the related Prospectus or any document
incorporated therein by reference or file any other required document so that,
as thereafter delivered to purchasers of the Registrable Securities, such
Prospectus will not contain any untrue statement of a material fact or omit to
state a material fact necessary to make the statements therein, in the light of
the circumstances under which they were made, not misleading; and the Company
and the Guarantors shall notify the Holders of Registrable Securities to
suspend use of the Prospectus as promptly as practicable after the occurrence
of such an event, and such Holders hereby agree to suspend use of the
Prospectus until the Company and the Guarantors have amended or supplemented
the Prospectus to correct such misstatement or omission;

 

(x)     a
reasonable time prior to the filing of any Registration Statement, any
Prospectus, any amendment to a Registration Statement or amendment or
supplement to a Prospectus or of any document that is to be incorporated by
reference into a Registration Statement or a Prospectus after initial filing of
a Registration Statement, provide copies of such document to the Initial
Purchasers and their counsel (and, in the case of a Shelf Registration
Statement, to the Holders of Registrable Securities and their counsel) and make
such of the representatives of the Company and the Guarantors as shall be
reasonably requested by the Initial Purchasers or their counsel (and, in the
case of a Shelf Registration Statement, the Holders of Registrable Securities
or their counsel) available for discussion of such document; and the Company
and the Guarantors shall not, at any time after initial filing of a
Registration Statement, file any Prospectus, any amendment of or supplement to
a Registration Statement or a Prospectus, or any document that is to be
incorporated by reference into a
Registration Statement or a Prospectus, of which the Initial Purchasers and
their counsel (and, in the case of a Shelf Registration Statement, the Holders
of Registrable Securities and their counsel) shall not have previously been
advised and furnished a copy or to which the Initial Purchasers or their
counsel (and, in the case of a Shelf Registration Statement, the Holders of
Registrable Securities or their counsel) shall object;

 

S-9

 

(xi)    obtain
a CUSIP number for all Exchange Securities or Registrable Securities, as the
case may be, not later than the effective date of a Registration Statement;

 

(xii)   cause
the Indenture to be qualified under the Trust Indenture Act in connection with
the registration of the Exchange Securities or Registrable Securities, as the
case may be; cooperate with the Trustee and the Holders to effect such changes
to the Indenture as may be required for the Indenture to be so qualified in
accordance with the terms of the Trust Indenture Act; and execute, and use
their reasonable best efforts to cause the Trustee to execute, all documents as
may be required to effect such changes and all other forms and documents
required to be filed with the SEC to enable the Indenture to be so qualified in
a timely manner;

 

(xiii)  in
the case of a Shelf Registration, make available for inspection by a
representative of the Holders of the Registrable Securities (an “Inspector”),
any Underwriter participating in any disposition pursuant to such Shelf
Registration Statement, any attorneys and accountants designated by the Holders
of Registrable Securities and any attorneys and accountants designated by such
Underwriter, at reasonable times and in a reasonable manner, all pertinent
financial and other records, documents and properties of the Company and the
Guarantors, and cause the respective officers, directors and employees of the
Company and the Guarantors to supply all information reasonably requested by
any such Inspector, Underwriter, attorney or accountant in connection with a
Shelf Registration Statement; provided that if any such information is identified by
the Company or any Guarantor as being confidential or proprietary, each Person
receiving such information shall take such actions as are reasonably necessary
to protect the confidentiality of such information to the extent such action is
otherwise not inconsistent with, an impairment of or in derogation of the
rights and interests of any Inspector, Holder or Underwriter);

 

(xiv)  in
the case of a Shelf Registration, use their reasonable best efforts to cause
all Registrable Securities to be listed on any securities exchange or any
automated quotation system on which similar securities issued or guaranteed by
the Company or any Guarantor are then listed if requested by the Majority
Holders, to the extent such Registrable Securities satisfy applicable listing
requirements;

 

(xv)   if
reasonably requested by any Holder of Registrable Securities covered by a Shelf
Registration Statement, promptly include in a Prospectus supplement or
post-effective amendment such information with respect to such Holder as such
Holder reasonably requests to be included therein and make all required filings
of such Prospectus supplement or such post-effective amendment as soon as reasonably
practicable after the Company has received notification of the matters to be so
included in such filing; and

 

(xvi)  upon
the request of any Holder in the case of a Shelf Registration, enter into such
customary agreements and take all such other actions in connection therewith
(including those requested by the Holders of a majority in principal amount of
the Registrable Securities being sold) as may be reasonably requested by such
Holder in order to expedite or facilitate the disposition of such Registrable
Securities, including but not limited to, an Underwritten Offering and in such
connection (1) to the extent possible, make such representations and
warranties to the Holders and any Underwriters of such Registrable Securities
with respect to the business of the Company and its subsidiaries and the
Registration Statement, Prospectus and documents incorporated by reference or
deemed incorporated by reference, if any, in each case, in form, substance and
scope as are customarily made by issuers to underwriters in underwritten
offerings and confirm the same if and when requested, (2) obtain opinions
of counsel to the Company and the Guarantors

 

S-10

 

(which counsel and opinions, in form, scope and substance, shall be
reasonably satisfactory to the Holders and such Underwriters and their respective
counsel) addressed to each selling Holder and Underwriter of Registrable
Securities, covering the matters customarily covered in opinions requested in
underwritten offerings, (3) obtain “comfort” letters from the independent
certified public accountants of the Company and the Guarantors (and, if
necessary, any other certified public accountant of any subsidiary of the
Company or any Guarantor, or of any business acquired by the Company or any
Guarantor for which financial statements and financial data are or are required
to be included in the Registration Statement) addressed to each selling Holder
and Underwriter of Registrable Securities, such letters to be in customary form
and covering matters of the type customarily covered in “comfort” letters in connection
with underwritten offerings and (4) deliver such documents and
certificates as may be reasonably requested by the Holders of a majority in
principal amount of the Registrable Securities being sold or the Underwriters,
and which are customarily delivered in underwritten offerings, to evidence the
continued validity of the representations and warranties of the Company and the
Guarantors made pursuant to clause (1) above and to evidence compliance
with any customary conditions contained in an underwriting agreement.

 

(b)           In
the case of a Shelf Registration Statement, the Company may require each Holder
of Registrable Securities to furnish to the Company such information regarding
such Holder and the proposed disposition by such Holder of such Registrable
Securities as the Company and the Guarantors may from time to time reasonably
request in writing.

 

(c)           In
the case of a Shelf Registration Statement, each Holder of Registrable
Securities agrees that, upon receipt of any notice from the Company and the
Guarantors of the happening of any event of the kind described in Section 3(a)(v)(3),
(5) and (7) hereof, such Holder will forthwith discontinue
disposition of Registrable Securities pursuant to the Shelf Registration
Statement until such Holder’s receipt of the copies of the supplemented or
amended Prospectus contemplated by Section 3(a)(ix) hereof and, if so
directed by the Company and the Guarantors, such Holder will deliver to the
Company and the Guarantors all copies in its possession, other than permanent
file copies then in such Holder’s possession, of the Prospectus covering such
Registrable Securities that is current at the time of receipt of such notice.

 

(d)           If
the Company and the Guarantors shall give any notice pursuant to Section 3(c) hereof
to suspend the disposition of Registrable Securities pursuant to a Shelf
Registration Statement, the Company and the Guarantors shall extend the period
during which such Shelf Registration Statement shall be maintained effective
pursuant to this Agreement by the number of days during the period from and
including the date of the giving of such notice to and including the date when
the Holders of such Registrable Securities shall have received copies of the
supplemented or amended Prospectus necessary to resume such dispositions. The
Company and the Guarantors may give any such notice only twice during any 365-day
period and any such suspensions shall not exceed 60 days for each suspension
and there shall not be more than two suspensions in effect during any 365-day
period.

 

(e)           The
Holders of Registrable Securities covered by a Shelf Registration Statement who
desire to do so may sell such Registrable Securities in an Underwritten
Offering.  In any such Underwritten
Offering, the investment bank or investment banks and manager or managers (each
an “Underwriter”) that will administer the offering will be selected by the
Holders of a majority in principal amount of the Registrable Securities
included in such offering.

 

S-11

 

4.             Participation
of Broker-Dealers in Exchange Offer. 
(a)  The Staff has taken the position that any broker-dealer that
receives Exchange Securities for its own account in the Exchange Offer in exchange
for Securities that were acquired by such broker-dealer as a result of
market-making or other trading activities (a “Participating Broker-Dealer”) may
be deemed to be an “underwriter” within the meaning of the Securities Act and
must deliver a prospectus meeting the requirements of the Securities Act in connection
with any resale of such Exchange Securities.

 

The Company
and the Guarantors understand that it is the Staff’s position that if the
Prospectus contained in the Exchange Offer Registration Statement includes a
plan of distribution containing a statement to the above effect and the means
by which Participating Broker-Dealers may resell the Exchange Securities,
without naming the Participating Broker-Dealers or specifying the amount of
Exchange Securities owned by them, such Prospectus may be delivered by
Participating Broker-Dealers to satisfy their prospectus delivery obligation
under the Securities Act in connection with resales of Exchange Securities for
their own accounts, so long as the Prospectus otherwise meets the requirements
of the Securities Act.

 

(b)           In
light of the above, and notwithstanding the other provisions of this Agreement,
the Company and the Guarantors agree to amend or supplement the Prospectus
contained in the Exchange Offer Registration Statement for a period of up to 180
days after the last Exchange Date (as such period may be extended pursuant to Section 3(d) of
this Agreement), to the extent necessary to ensure that such Prospectus is available
for sales of the Exchange Securities if requested in writing by the Initial
Purchasers or by one or more Participating Broker-Dealers, in order to permit the
disposition of any Exchange Securities by Participating Broker-Dealers
consistent with the positions of the Staff recited in Section 4(a) above.  The Company and the Guarantors further agree
that Participating Broker-Dealers shall be authorized to deliver such
Prospectus during such period in connection with the resales contemplated by
this Section 4.

 

(c)           The
Initial Purchasers shall have no liability to the Company, any Guarantor or any
Holder with respect to any reasonable request that they may make pursuant to Section 4(b) above.

 

5.             Indemnification
and Contribution.  (a)  The
Company and each Guarantor, jointly and severally, agree to indemnify and hold
harmless each Initial Purchaser and each Holder, their respective affiliates,
directors and officers and each Person, if any, who controls any Initial
Purchaser or any Holder within the meaning of Section 15 of the Securities
Act or Section 20 of the Exchange Act, from and against any and all
losses, claims, damages and liabilities (including, without limitation, legal
fees and other expenses incurred in connection with any suit, action or
proceeding or any claim asserted, as such fees and expenses are incurred), that
arise out of, or are based upon, any untrue statement or alleged untrue
statement of a material fact contained in any Registration Statement or any
Prospectus or any omission or alleged omission to state therein a material fact
required to be stated therein or necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not
misleading, except insofar as such losses, claims, damages or liabilities arise
out of, or are based upon, any untrue statement or omission or alleged untrue
statement or omission made in reliance upon and in conformity with any
information relating to any Initial Purchaser or information relating to any
Holder furnished to the Company in writing through JPMorgan or any selling
Holder expressly for use therein; provided that with respect to any such untrue
statement in or omission from any preliminary prospectus relating to a
Registration Statement, the indemnity agreement contained in this paragraph (a) shall
not inure to the benefit of any Holder to the extent that the sale to the
Person asserting any such loss, claim, damage or liability was an initial
resale by such Holder and any such loss, claim, damage or liability of or with
respect to such Holder results from the fact that both (i) a copy of the
final Prospectus was not sent or given

 

S-12

 

to
such Person at or prior to the written confirmation or the sale of such
Securities to such Person and (ii) the untrue statement in or omission
from such preliminary prospectus was corrected in the final Prospectus relating
to such Registration Statement unless, in either case, such failure to deliver
the Prospectus was a result of non-compliance by the Company or any of the
Guarantors with the provisions of Section 3 hereof.  In connection with any Underwritten
Offering permitted by Section 3, the Company and the Guarantors, jointly
and severally, will also indemnify the Underwriters, if any, selling brokers,
dealers and similar securities industry professionals participating in the
distribution, their respective affiliates and each Person who controls such
Persons (within the meaning of the Securities Act and the Exchange Act) to the
same extent as provided above with respect to the indemnification of the
Holders, if requested in connection with any Registration Statement.

 

(b)           Each
Holder agrees, severally and not jointly, to indemnify and hold harmless the
Company, the Guarantors, the Initial Purchasers and the other selling Holders,
the directors of the Company and the Guarantors, each officer of the Company
and the Guarantors who signed the Registration Statement and each Person, if
any, who controls the Company, the Guarantors, any Initial Purchaser and any
other selling Holder within the meaning of Section 15 of the Securities
Act or Section 20 of the Exchange Act to the same extent as the indemnity
set forth in paragraph (a) above, but only with respect to any losses,
claims, damages or liabilities that arise out of, or are based upon, any untrue
statement or omission or alleged untrue statement or omission made in reliance
upon and in conformity with any information relating to such Holder furnished
to the Company in writing by such Holder expressly for use in any Registration
Statement and any Prospectus.

 

(c)           If
any suit, action, proceeding (including any governmental or regulatory
investigation), claim or demand shall be brought or asserted against any Person
in respect of which indemnification may be sought pursuant to either paragraph (a) or
(b) above, such Person (the “Indemnified Person”) shall promptly notify
the Person against whom such indemnification may be sought (the “Indemnifying
Person”) in writing; provided that the failure to notify the
Indemnifying Person shall not relieve it from any liability that it may have
under this Section 5 except to the extent that it has been materially
prejudiced (through the forfeiture of substantive rights or defenses) by such
failure; and provided, further, that the failure to notify the
Indemnifying Person shall not relieve it from any liability that it may have to
an Indemnified Person otherwise than under this Section 5.  If any such proceeding shall be brought or
asserted against an Indemnified Person and it shall have notified the
Indemnifying Person thereof, the Indemnifying Person shall retain counsel
reasonably satisfactory to the Indemnified Person to represent the Indemnified
Person and any others entitled to indemnification pursuant to this Section 5
that the Indemnifying Person may designate in such proceeding and shall pay the
fees and expenses of such counsel related to such proceeding, as incurred.  In any such proceeding, any Indemnified
Person shall have the right to retain its own counsel, but the fees and
expenses of such counsel shall be at the expense of such Indemnified Person
unless (i) the Indemnifying Person and the Indemnified Person shall have
mutually agreed in writing to the contrary; (ii) the Indemnifying Person
has failed within a reasonable time to retain counsel reasonably satisfactory
to the Indemnified Person; (iii) the Indemnified Person shall have reasonably
concluded that there may be legal defenses available to it that are different
from or in addition to those available to the Indemnifying Person; or (iv) the
named parties in any such proceeding (including any impleaded parties) include
both the Indemnifying Person and the Indemnified Person and representation of
both parties by the same counsel would be inappropriate due to actual or
potential differing interests between them. 
It is understood and agreed that the Indemnifying Person shall not, in
connection with any proceeding or related proceeding in the same jurisdiction,
be liable for the fees and expenses of more than one separate firm (in addition
to any local counsel) for all Indemnified Persons, and that all such fees and
expenses shall be reimbursed as they are incurred.  Any such separate firm (x) for any Initial
Purchaser, its affiliates, directors and officers and any control Persons of
such Initial Purchaser shall be designated in writing by

 

S-13

 

JPMorgan, (y) for any Holder, its directors and officers and any
control Persons of such Holder shall be designated in writing by the Majority
Holders and (z) in all other cases shall be designated in writing by the
Company.  The Indemnifying Person shall
not be liable for any settlement of any proceeding effected without its written
consent, but if settled with such consent or if there be a final judgment for
the plaintiff, the Indemnifying Person agrees to indemnify each Indemnified
Person from and against any loss or liability by reason of such settlement or
judgment.  Notwithstanding the foregoing
sentence, if at any time an Indemnified Person shall have requested that an
Indemnifying Person reimburse the Indemnified Person for fees and expenses of
counsel as contemplated by this paragraph, the Indemnifying Person shall be
liable for any settlement of any proceeding effected without its written
consent if (i) such settlement is entered into more than 30 days after
receipt by the Indemnifying Person of such request and (ii) the
Indemnifying Person shall not have reimbursed the Indemnified Person in
accordance with such request prior to the date of such settlement.  No Indemnifying Person shall, without the
written consent of the Indemnified Person, effect any settlement of any pending
or threatened proceeding in respect of which any Indemnified Person is or could
have been a party and indemnification could have been sought hereunder by such
Indemnified Person, unless such settlement (A) includes an unconditional
release of such Indemnified Person, in form and substance reasonably
satisfactory to such Indemnified Person, from all liability on claims that are
the subject matter of such proceeding and (B) does not include any
statement as to or any admission of fault, culpability or a failure to act by
or on behalf of any Indemnified Person.

 

(d)           If
the indemnification provided for in paragraphs (a) and (b) above is
unavailable to an Indemnified Person or insufficient in respect of any losses,
claims, damages or liabilities referred to therein, then each Indemnifying
Person under such paragraph, in lieu of indemnifying such Indemnified Person
thereunder, shall contribute to the amount paid or payable by such Indemnified
Person as a result of such losses, claims, damages or liabilities (i) in
such proportion as is appropriate to reflect the relative benefits received by
the Company and the Guarantors from the offering of the Securities and the Exchange
Securities, on the one hand, and by the Holders from receiving Securities or
Exchange Securities registered under the Securities Act, on the other hand, or (ii) if
the allocation provided by clause (i) is not permitted by applicable law,
in such proportion as is appropriate to reflect not only the relative benefits
referred to in clause (i) but also the relative fault of the Company and
the Guarantors on the one hand and the Holders on the other in connection with
the statements or omissions that resulted in such losses, claims, damages or
liabilities, as well as any other relevant equitable considerations.  The relative fault of the Company and the
Guarantors on the one hand and the Holders on the other shall be determined by
reference to, among other things, whether the untrue or alleged untrue
statement of a material fact or the omission or alleged omission to state a
material fact relates to information supplied by the Company and the Guarantors
or by the Holders and the parties’ relative intent, knowledge, access to
information and opportunity to correct or prevent such statement or omission.

 

(e)           The
Company, the Guarantors and the Holders agree that it would not be just and
equitable if contribution pursuant to this Section 5 were determined by pro
rata allocation (even if the Holders were treated as one entity for such
purpose) or by any other method of allocation that does not take account of the
equitable considerations referred to in paragraph (d) above.  The amount paid or payable by an Indemnified
Person as a result of the losses, claims, damages and liabilities referred to
in paragraph (d) above shall be deemed to include, subject to the
limitations set forth above, any legal or other expenses incurred by such
Indemnified Person in connection with any such action or claim.  Notwithstanding the provisions of this Section 5,
in no event shall a Holder be required to contribute any amount in excess of
the amount by which the total price at which the Securities or Exchange Securities
sold by such Holder exceeds the amount of any damages that such Holder has otherwise
been required to pay by reason of such untrue or alleged untrue statement or
omission or alleged omission.  No Person
guilty of fraudulent misrepresentation

 

S-14

 

(within the meaning of Section 11(f) of
the Securities Act) shall be entitled to contribution from any Person who was
not guilty of such fraudulent misrepresentation.

 

(f)            The
remedies provided for in this Section 5 are not exclusive and shall not
limit any rights or remedies that may otherwise be available to any Indemnified
Person at law or in equity.

 

(g)           The
indemnity and contribution provisions contained in this Section 5 shall
remain operative and in full force and effect regardless of (i) any
termination of this Agreement, (ii) any investigation made by or on behalf
of the Initial Purchasers or any Holder or any Person controlling any Initial
Purchaser or any Holder, or by or on behalf of the Company or the Guarantors or
the officers or directors of or any Person controlling the Company or the
Guarantors, (iii) acceptance of any of the Exchange Securities and (iv) any
sale of Registrable Securities pursuant to a Shelf Registration Statement.

 

6.             General.

 

(a)           No Inconsistent Agreements.   The Company and the Guarantors represent,
warrant and agree that (i) the rights granted to the Holders hereunder do
not in any way conflict with and are not inconsistent with the rights granted
to the holders of any other outstanding securities issued or guaranteed by the
Company or any Guarantor under any other agreement and (ii) neither the
Company nor any Guarantor has entered into, or on or after the date of this
Agreement will enter into, any agreement that is inconsistent with the rights
granted to the Holders of Registrable Securities in this Agreement or otherwise
conflicts with the provisions hereof.

 

(b)           Amendments and Waivers.   The provisions of this Agreement, including
the provisions of this sentence, may not be amended, modified or supplemented,
and waivers or consents to departures from the provisions hereof may not be
given unless the Company and the Guarantors have obtained the written consent
of Holders of at least a majority in aggregate principal amount of the
outstanding Registrable Securities affected by such amendment, modification,
supplement, waiver or consent; provided that no amendment, modification,
supplement, waiver or consent to any departure from the provisions of Section 5
hereof shall be effective as against any Holder of Registrable Securities
unless consented to in writing by such Holder. 
Any amendments, modifications, supplements, waivers or consents pursuant
to this Section 6(b) shall be by a writing executed by each of the
parties hereto.

 

(c)           Notices.  All notices
and other communications provided for or permitted hereunder shall be made in
writing by hand-delivery, registered first-class mail, telex, telecopier, or
any courier guaranteeing overnight delivery (i) if to a Holder, at the
most current address given by such Holder to the Company by means of a notice
given in accordance with the provisions of this Section 6(c), which
address initially is, with respect to the Initial Purchasers, the address set
forth in the Purchase Agreement; (ii) if to the Company and the
Guarantors, initially at the Company’s address set forth in the Purchase
Agreement and thereafter at such other address, notice of which is given in
accordance with the provisions of this Section 6(c); and (iii) to
such other persons at their respective addresses as provided in the Purchase
Agreement and thereafter at such other address, notice of which is given in
accordance with the provisions of this Section 6(c).  All such notices and communications shall be
deemed to have been duly given: at the time delivered by hand, if personally
delivered; five Business Days after being deposited in the mail, postage
prepaid, if mailed; when answered back, if telexed; when receipt is
acknowledged, if telecopied; and on the next Business Day if timely delivered
to an air courier guaranteeing overnight delivery.  Copies of all such notices, demands or other
communications shall be concurrently delivered by the Person giving the same to
the Trustee, at the address specified in the Indenture.

 

S-15

 

(d)           Successors and Assigns. This Agreement shall inure to the
benefit of and be binding upon the successors, assigns and transferees of each
of the parties, including, without limitation and without the need for an
express assignment, subsequent Holders; provided that nothing herein
shall be deemed to permit any assignment, transfer or other disposition of
Registrable Securities in violation of the terms of the Purchase Agreement or
the Indenture.  If any transferee of any
Holder shall acquire Registrable Securities in any manner, whether by operation
of law or otherwise, such Registrable Securities shall be held subject to all
the terms of this Agreement, and by taking and holding such Registrable Securities
such Person shall be conclusively deemed to have agreed to be bound by and to
perform all of the terms and provisions of this Agreement and such Person shall
be entitled to receive the benefits hereof. 
The Initial Purchasers (in their capacity as Initial Purchasers) shall
have no liability or obligation to the Company or the Guarantors with respect
to any failure by a Holder to comply with, or any breach by any Holder of, any
of the obligations of such Holder under this Agreement.

 

(e)           Third Party Beneficiaries. 
Each Holder shall be a third party beneficiary to the agreements made
hereunder between the Company and the Guarantors, on the one hand, and the
Initial Purchasers, on the other hand, and shall have the right to enforce such
agreements directly to the extent it deems such enforcement necessary or
advisable to protect its rights or the rights of other Holders hereunder.

 

(f)            Counterparts. This Agreement may be executed in any number
of counterparts and by the parties hereto in separate counterparts, each of
which when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.

 

(g)           Headings.  The
headings in this Agreement are for convenience of reference only, are not a
part of this Agreement and shall not limit or otherwise affect the meaning
hereof.

 

(h)           Governing Law.  This
Agreement shall be governed by and construed in accordance with the laws of the
State of New York.

 

(i)            Miscellaneous.  This Agreement contains the entire agreement
between the parties relating to the subject matter hereof and supersedes all
oral statements and prior writings with respect thereto.  If any term, provision, covenant or
restriction contained in this Agreement is held by a court of competent jurisdiction
to be invalid, void or unenforceable or against public policy, the remainder of
the terms, provisions, covenants and restrictions contained herein shall remain
in full force and effect and shall in no way be affected, impaired or
invalidated.  The Company, the Guarantors
and the Initial Purchasers shall endeavor in good faith negotiations to replace
the invalid, void or unenforceable provisions with valid provisions the
economic effect of which comes as close as possible to that of the invalid, void
or unenforceable provisions.

 

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

 

	
   

  	
  NBTY, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/

  	
  Michael C.
  Slade

  	
   

  
	
   

  	
  Name:

  	
  Michael C.
  Slade

  
	
   

  	
  Title:

  	
  Senior Vice
  President 

  

 

S-16

 

	
   

  	
  ARCO
  PHARMACEUTICALS, INC.

  
	
   

  	
  BIOSMART
  DIRECT SALES, LLC

  
	
   

  	
  DE TUINEN
  LTD.

  
	
   

  	
  DIABETES
  AMERICAN RESEARCH CORP.

  
	
   

  	
  DYNAMIC
  ESSENTIALS (DE), INC.

  
	
   

  	
  EUROLEAN
  RESEARCH, LLC

  
	
   

  	
  FOOD
  SYSTEMS, INC.

  
	
   

  	
  HEALTHWATCHERS
  (DE), INC.

  
	
   

  	
  MET-RX
  NUTRITION, INC.

  
	
   

  	
  MET-RX
  SUBSTRATE TECHNOLOGY, INC.

  
	
   

  	
  MET-RX USA,
  INC.

  
	
   

  	
  NABARCO
  ADVERTISING ASSOCIATES, INC.

  
	
   

  	
  NATURAL
  WEALTH NUTRITION CORPORATION

  
	
   

  	
  NATURESMART,
  LLC

  
	
   

  	
  NBTY
  AVIATION, LLC

  
	
   

  	
  NBTY CAM
  COMPANY

  
	
   

  	
  NBTY CANADA
  ACQUISITION, INC.

  
	
   

  	
  NBTY CHINA
  HOLDINGS, INC.

  
	
   

  	
  NBTY CHINA,
  INC.

  
	
   

  	
  NBTY
  DISTRIBUTION, INC.

  
	
   

  	
  NBTY FLIGHT
  SERVICES, LLC

  
	
   

  	
  NBTY PAH,
  LLC

  
	
   

  	
  NBTY
  TRANSPORTATION, INC.

  
	
   

  	
  NBTY UKRAINE
  1, LLC

  
	
   

  	
  NBTY UKRAINE
  2, LLC

  
	
   

  	
  NBTY
  UKRAINE, INC.

  
	
   

  	
  NUTRITION
  HEADQUARTERS (DE), INC.

  
	
   

  	
  OMNI VITAMIN
  AND NUTRITION CORP.

  
	
   

  	
  PHYSIOLOGICS,
  LLC

  
	
   

  	
  PRECISION
  ENGINEERED LIMITED (USA)

  
	
   

  	
  PURITAN’S
  PRIDE, INC.

  
	
   

  	
  REXALL, INC.

  
	
   

  	
  REXALL
  SUNDOWN, INC.

  
	
   

  	
  REXALL US
  DELAWARE, INC.

  
	
   

  	
  RICHARDSON
  LABS, INC.

  
	
   

  	
  RXSD INC.

  
	
   

  	
  SUNDOWN,
  INC.

  
	
   

  	
  THE
  NON-IRRADIATED HERBAL

  
	
   

  	
  MANUFACTURERS
  GROUP, LLC

  
	
   

  	
  UNITED VITAMIN
  MANUFACTURING CORP.

  
	
   

  	
  WORLDWIDE
  SPORT NUTRITIONAL

  
	
   

  	
  SUPPLEMENTS,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/

  	
  Harvey Kamil

  	
   

  
	
   

  	
  Name:

  	
  Harvey Kamil

  
	
   

  	
  Title:

  	
  President

  

 

S-1

 

	
   

  	
  AMERICAN
  HEALTH, INC.

  
	
   

  	
  ARTHRITIS RESEARCH
  CORP.

  
	
   

  	
  GOOD ‘N
  NATURAL MANUFACTURING CORP.

  
	
   

  	
  HOLLAND &
  BARRETT LTD.

  
	
   

  	
  LIFE’S
  FINEST, INC.

  
	
   

  	
  NATURAL
  WEALTH NUTRITION CORPORATION

  
	
   

  	
  NATURE’S
  BOUNTY INC.

  
	
   

  	
  NATURE’S
  BOUNTY MANUFACTURING CORP.

  
	
   

  	
  NATURE’S
  BOUNTY, INC.

  
	
   

  	
  PRECISION
  ENGINEERED LIMITED (USA)

  
	
   

  	
  UNITED
  STATES NUTRITION, INC.

  
	
   

  	
  UNITED VITAMIN
  MANUFACTURING CORP.

  
	
   

  	
  VITAMIN
  WORLD (BOCA), LLC

  
	
   

  	
  VITAMIN
  WORLD (VI), INC.

  
	
   

  	
  VITAMIN
  WORLD OF GUAM LLC

  
	
   

  	
  VITAMIN
  WORLD ONLINE, INC.

  
	
   

  	
  VITAMIN
  WORLD OUTLET STORES, INC.

  
	
   

  	
  VITAMIN
  WORLD, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/

  	
  Michael C. Slade

  	
   

  
	
   

  	
  Name:

  	
  Michael C. Slade

  
	
   

  	
  Title:

  	
  Senior Vice President 

  

 

S-2

 

	
   

  	
  NBTY CAH COMPANY

  
	
   

  	
  NBTY MANUFACTURING, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/

  	
  Dan Parkhideh

  	
   

  
	
   

  	
  Name:

  	
  Dan Parkhideh

  
	
   

  	
  Title:

  	
  Secretary

  

 

 

	
  Confirmed and accepted as of the date first
  above written:

  	
   

  
	
   

  	
   

  
	
  J.P. MORGAN SECURITIES INC.

  	
   

  
	
  For itself and on behalf of the

  	
   

  
	
  several Initial Purchasers

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/Lauren Camp

  	
   

  	
   

  
	
   

  	
   Authorized
  Signatory

  	
   

  
				

 

 

SCHEDULE 1

 

AMERICAN HEALTH, INC.

ARCO PHARMACEUTICALS, INC.

ARTHRITIS RESEARCH CORP.

BIOSMART DIRECT SALES, LLC

DE TUINEN LTD.

DIABETES AMERICAN RESEARCH CORP.

DYNAMIC ESSENTIALS (DE), INC.

EUROLEAN RESEARCH, LLC

FOOD SYSTEMS, INC.

GOOD ‘N NATURAL MANUFACTURING CORP.

HEALTHWATCHERS (DE), INC.

HOLLAND & BARRETT LTD.

LIFE’S FINEST, INC.

MET-RX NUTRITION, INC.

MET-RX SUBSTRATE TECHNOLOGY, INC.

MET-RX USA, INC.

NABARCO ADVERTISING ASSOCIATES, INC.

NATURAL WEALTH NUTRITION CORPORATION

NATURE’S BOUNTY INC.

NATURE’S BOUNTY, MANUFACTURING CORP.

NATURE’S BOUNTY, INC.

NATURESMART, LLC

NBTY AVIATION, LLC

NBTY CAH COMPANY

NBTY CAM COMPANY

NBTY CANADA ACQUISITION, INC.

NBTY CHINA HOLDINGS, INC.

NBTY CHINA, INC.

NBTY DISTRIBUTION, INC.

NBTY FLIGHT SERVICES, LLC

NBTY MANUFACTURING, LLC

NBTY PAH, LLC

NBTY TRANSPORTATION, INC.

NBTY UKRAINE 1, LLC

NBTY UKRAINE 2, LLC

NBTY UKRAINE, INC.

NUTRITION HEADQUARTERS (DE), INC.

OMNI VITAMIN AND NUTRITION CORP.

PHYSIOLOGICS, LLC

PRECISION ENGINEERED LIMITED (USA)

PURITAN’S PRIDE, INC.

REXALL, INC.

REXALL SUNDOWN, INC.

REXALL US DELAWARE, INC.

RICHARDSON LABS, INC.

RXSD INC.

SUNDOWN, INC.

THE NON-IRRADIATED HERBAL

 

 

MANUFACTURERS
GROUP, LLC

UNITED STATES NUTRITION, INC.

UNITED VITAMIN MANUFACTURING CORP.

VITAMIN WORLD (BOCA), LLC

VITAMIN WORLD (VI), INC.

VITAMIN WORLD OF GUAM LLC

VITAMIN WORLD ONLINE, INC.

VITAMIN WORLD OUTLET STORES, INC.

VITAMIN WORLD, INC.

WORLDWIDE SPORT NUTRITIONAL

SUPPLEMENTS,
INC.

 

2Exhibit 10.1

    
      
        

      

    

    Employment
      Agreement

    

    This
      Employment Agreement (“Agreement”),
      dated
      September 21, 2005, is entered into between LIFECELL CORPORATION, a Delaware
      corporation, having its principal place of business at One Millenium Way,
      Branchburg, New Jersey 08876 (“Employer”),
      and
      PAUL G. THOMAS, an individual residing at 7 McKay Drive, Bridgewater, New Jersey
      08807 (“Employee”).

    

    WHEREAS,
      Employer desires to continue to employ Employee; and

    

    WHEREAS,
      Employee is willing to accept such continued employment on the terms and
      conditions set forth in this Agreement.

    

    NOW,
      THEREFORE,
      in
      consideration of the mutual agreements set forth herein, Employer and Employee
      hereby agree as follows:

    

    ARTICLE
      I

    EMPLOYMENT;
      POSITION, DUTIES AND RESPONSIBILITIES

    

    1.01        
      Employment.
      Employer agrees to, and does hereby, continue to employ Employee, and Employee
      agrees to, and does hereby accept, such continued employment, upon the terms
      and
      subject to the conditions set forth in this Agreement. 

    

    1.02        
      Position,
      Duties and Responsibilities.
      During
      the Term (as defined in Section 2.01 below), and prior to a Change in Control
      (as defined in Section 4.02(D)(iv) below), Employee shall serve as President
      and
      Chief Executive Officer of Employer and shall have such responsibilities, duties
      and authority consistent with such position as may, from time to time, be
      assigned by the Board of Directors of Employer (the “Board”).
      During the Term, and after a Change in Control, Employee shall serve as
      President and Chief Executive Officer of Employer and/or in such other executive
      level position or capacity that is consistent with Employee’s education,
      background and experience as Employer shall reasonably request and shall have
      such responsibilities, duties and authority consistent with such position(s)
      as
      may, from time to time, be assigned by the Board. Employee’s employment by
      Employer shall be full-time and exclusive to Employer, Employee shall serve
      Employer faithfully and to the best of Employee’s ability, and Employee shall
      devote all of Employee’s business time, attention, skill and efforts exclusively
      to the business and affairs of Employer (including its affiliates) and the
      promotion of its interests. 

    

    ARTICLE
      II

    TERM

    

    2.01        
      Term
      of Employment.
      Employee’s continued employment under this Agreement shall commence as of the
      date of this Agreement (the “Commencement
      Date”)
      and
      shall continue until terminated by either Employer or Employee pursuant to
      Article IV hereof (the “Term”).

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ARTICLE
      III

    COMPENSATION
      AND EXPENSES

    

    3.01        
      Compensation
      and Benefits.
      For all
      services rendered by Employee in any capacity during the Term, including,
      without limitation, services as an officer, director or member of any committee
      of Employer, or any affiliate or division thereof, Employee shall be compensated
      as follows (subject, in each case, to the provisions of Article IV
      below):

    

    (A)          
      Base
      Salary.
      During
      the Term (and retroactive to June 1, 2005), Employer shall pay to Employee
      a
      base salary at the rate of $455,000 on an annualized basis (the “Base
      Salary”).
      Employee’s Base Salary shall be subject to periodic adjustments (but not
      decreases) as the Board and/or the Compensation Committee of Employer
      (“Compensation
      Committee”)
      shall,
      in its discretion, deem appropriate. As used in this Agreement, the term “Base
      Salary” shall refer to Base Salary as may be adjusted from time to
      time.
      Base
      Salary shall be payable in accordance with the customary payroll practices
      of
      Employer.

    

    (B)         
       Annual
      Bonus.
      During
      the Term, Employee also will be eligible to participate in Employer’s incentive
      compensation plan in place from time to time and applicable to executive level
      employees. Employer reserves the right to amend or rescind the incentive
      compensation plan at any time in its discretion. In connection with Employee’s
      participation in the incentive compensation plan, Employee will be eligible
      to
      receive an annual discretionary bonus (the “Annual
      Bonus”).
      The
      amount of the Annual Bonus, if any, will be determined by the Board and/or
      the
      Compensation Committee in its discretion and will be related to the achievement
      of agreed upon management objectives, which objectives shall be subject to
      Board
      and/or Compensation Committee approval. Employee’s target Annual Bonus for
      calendar year 2005 is 60% of the annualized Base Salary in effect as of the
      Commencement Date. The Annual Bonus, if any, will be determined as of the end
      of
      each calendar year during the Term and shall be payable within thirty (30)
      days
      following the end of such calendar year. Except as otherwise specifically set
      forth in Section 4.02 below, to be eligible to receive the Annual Bonus, or
      any
      portion thereof, Employee must be employed by Employer both at the time the
      amount of the Annual Bonus, if any, is determined, and at the time the Annual
      Bonus, if any, is to be paid.  

    

    (C)          
      Equity
      Compensation.
      

    

    (i)   
      During the Term, pursuant to the terms and conditions of the LifeCell
      Corporation Equity Compensation Plan adopted on July 19, 2005 (the “2005
      Plan”)
      or any
      successor equity compensation plan as may be in place from time to time,
      Employee shall be eligible to receive, from time to time, Awards in amounts,
      and
      subject to such terms, conditions and restrictions, as determined by the
      Compensation Committee in its sole discretion. Awards granted to Employee,
      if
      any, will be subject the terms and conditions established within the 2005 Plan
      (as amended from time to time) or any successor equity compensation plan as
      may
      be in place from time to time, as applicable, and the separate option agreement,
      restricted stock purchase agreement or stock award agreement between Employer
      and Employee that sets forth the terms and conditions of the Award (e.g.,
      exercise price, expiration date and vesting schedule of Options; the restricted
      period and/or other restrictions such as performance objectives relating to
      Stock Awards). Capitalized terms used in this Section 3.01(C)(i) and not
      otherwise defined in this Agreement shall have the meanings assigned thereto
      in
      the 2005 Plan.

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

    (ii)  
      Notwithstanding any provision of the (a) 2005 Plan or any predecessor plan
      thereto, including clause (iii) of Section 16(b) of the 2005 Plan, (b) terms
      of
      any outstanding Nonstatutory Stock Options granted to Employee prior to the
      Commencement Date under the 2005 Plan or any predecessor plan thereof, or (c)
      terms of any Options (whether Nonstatutory Stock Options or Incentive Stock
      Options) that may be granted to Employee under the 2005 Plan on or subsequent
      to
      the Commencement Date to the contrary, Nonstatutory Stock Options granted to
      Employee under the 2005 Plan or any predecessor plan prior to the Commencement
      Date and Options (whether Nonstatutory Stock Options or Incentive Stock Options)
      granted to Employee under the 2005 Plan on or subsequent to the Commencement
      Date shall not be canceled pursuant to the 2005 Plan in connection with a
      Corporate Transaction Event, unless Employee has been provided an opportunity
      to
      exercise such Options (whether or not then exercisable) for a period of no
      less
      than three days prior to the date of such Corporate Transaction Event. For
      purposes of this Section 3.01(C)(ii), capitalized terms used in the preceding
      sentence and not otherwise defined in this Agreement shall have the meanings
      assigned thereto in the 2005 Plan. 

    

    (iii)
      Except as otherwise may be specifically set forth in a separate option
      agreement, restricted stock purchase agreement or stock award agreement entered
      into between Employer and Employee after the Commencement Date, upon the
      occurrence of a Change in Control (as defined in Section 4.02(D)(iv) below)
      during the Term, all stock options and any other equity-based compensation
      shall
      become vested immediately and, if applicable, exercisable by Employee for a
      period of the longer of the exercise period in effect immediately prior to
      the
      Change in Control or the period ending ninety (90) days after the effective
      date
      of the Change in Control. Notwithstanding the foregoing, with respect to the
      restricted stock award consisting of a retention stock award and a performance
      stock award granted to Employee pursuant to the restricted stock award agreement
      between Employer and Employee dated as of July 20, 2005 (the “Special
      2005 Restricted Stock Award Agreement”),
      in
      the event of a Change in Control on or prior to the Vesting Date, the
      restrictions applicable to all of the Retention Shares and the restrictions
      applicable to only 75,862 of the Performance Shares shall lapse. For purposes
      of
      the preceding sentence only, capitalized terms that are otherwise not defined
      in
      this Agreement shall have the meanings assigned thereto in the Special 2005
      Restricted Stock Award Agreement.

    

    (D)        
      Benefits.
      During
      the Term, Employee shall be entitled to participate in all Employer's employee
      benefit plans and programs (excluding severance plans, if any) as Employer
      generally maintains from time to time during the Term for the benefit of its
      employees, in each case subject to the eligibility requirements, enrollment
      criteria and the other terms and provisions of such plans or programs. Employer
      may amend, modify or rescind any employee benefit plan or program and/or change
      employee contribution amounts to benefit costs without notice in its
      discretion.

    

    (E)        
      Vacation
      Sick and Personal Days.
      During
      the Term, Employee shall be entitled to paid sick days and other paid time
      off
      in accordance with Employer's policies with respect to such sick days and other
      paid time off in place from time to time.

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

    (F)        
      Automobile
      Allowance.
      During
      the Term (and retroactive to June 1, 2005), Employee will receive an automobile
      allowance of $15,000 on an annualized basis (or $1,250 monthly).

    

    3.02        
      Expenses.
      Employee shall be entitled to receive reimbursement from Employer for reasonable
      out-of-pocket expenses incurred by Employee during the Term in connection with
      the performance of Employee’s duties and obligations under this Agreement,
      according to Employer's expense account and reimbursement policies in place
      from
      time to time and provided that Employee shall submit reasonable documentation
      with respect to such expenses. 

    

    ARTICLE
      IV

    TERMINATION

    

    4.01        
      Events
      of Termination.
      This
      Agreement and Employee’s employment hereunder shall terminate upon the
      occurrence of any one or more of the following events:

    

    (A)        
      Death.
      In the
      event of Employee’s death, this Agreement and Employee’s employment hereunder
      shall automatically terminate on the date of death.

    

    (B)        
      Disability.
      To the
      extent permitted by law, in the event of Employee’s physical or mental
      disability that prevents Employee from performing Employee’s duties under this
      Agreement for a period of at least 90 consecutive days in any 12-month period
      or
      120 non-consecutive days in any 12-month period, Employer may terminate this
      Agreement and Employee’s employment hereunder upon giving notice of termination
      to Employee.

    

    (C)        
      Termination
      by Employer for Cause.
      Employer may, at its option, terminate this Agreement and Employee’s employment
      hereunder for Cause (as defined below) upon giving notice of termination to
      Employee. Except as set forth in Section 4.02(D) below, as used in this
      Agreement, “Cause”
shall
      mean that the Board in its good faith opinion concludes that any of the
      following events has occurred: (i) Employee has been convicted of a crime
      involving moral turpitude, including, but not limited to fraud, theft,
      embezzlement or any crime that results in or is intended to result in personal
      enrichment at the expense of Employer, (ii) there has been a material breach
      by
      Employee of this Agreement or of the Covenants Agreement that substantially
      impairs Employer’s interest in this Agreement or the Covenants Agreement, or
      (iii) Employee has committed acts that in the judgment of the Board constitutes
      willful misconduct to the material detriment of Employer. 

    

    (D)        
      Without
      Cause by Employer.
      Employer may, at its option, at any time terminate this Agreement and Employee’s
      employment hereunder for no reason or for any reason whatsoever (other than
      for
      Cause or as a result of Employee’s death or Disability) by giving written notice
      of termination to Employee.

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

    (E)        
      Termination
      By Employee.
      Employee
      may terminate this Agreement and Employee’s employment hereunder with or without
      Good Reason (as defined below) by giving thirty (30) days prior written notice
      of termination to Employer; provided, however, that Employer reserves the right
      to accept Employee's notice of termination and to accelerate such notice and
      make Employee's termination effective immediately, or on any other date prior
      to
      Employee's intended last day of work as Employer deems appropriate. Except
      with
      respect to actions by Employer (or its successor) occurring during the period
      beginning six (6) months prior to the effective date of a Change in Control
      and
      ending eighteen (18) months after the Change in Control (in which case the
      definition of “Good Reason” set forth in Section 4.02(D)(iii) below shall
      control), “Good
      Reason”
means
      Employer shall, without Employee’s consent (i) assign to Employee any duties
      inconsistent with Employee’s positions (including offices, titles, and reporting
      requirements), authority, duties or responsibilities with Employer, (ii) remove
      Employee from, or fail to re-elect or appoint Employee to, any duties or
      positions with Employer or any of its affiliates that were assigned or held
      by
      Employee immediately after the Commencement Date, except that (a) provided
      that
      Employee has been nominated or re-nominated by the Board (or a committee thereof
      with the power to so nominate or re-nominate) to a position on the Board, the
      failure of the shareholders to elect Employee to a position on the Board shall
      not constitute “Good Reason,” and (b) a nominal change in Employee’s title that
      is merely descriptive and does not affect rank or status shall not constitute
      “Good Reason,” (iii)
      reduce Employee’s annual Base Salary as in effect immediately after the
      Commencement Date or as Employee’s annual Base Salary may be increased from time
      to time thereafter, (iv) fail to continue to provide Employee with benefits
      substantially similar to those enjoyed by Employee under any of Employer’s
      employee benefits plans, policies, programs and arrangements, including, but
      not
      limited to, life insurance, medical, dental, health, hospital, accident or
      disability plans, in which Employee was a participant immediately after the
      Commencement Date, unless such benefits changes are applicable with respect
      to
      all executive level employees, (v) fail to continue to provide Employee with
      office space, related facilities and support personnel (including, but not
      limited to, administrative and secretarial assistance) (a) that are both
      commensurate with Employee’s responsibilities to and position with Employer
      immediately after the Commencement Date and not materially dissimilar to the
      office space, related facilities and support personnel provided to other
      employees of Employer having comparable responsibility to Employee, or (b)
      that
      are physically located at Employer’s principal executive offices, or (vi)
      require Employee to be relocated to an office that will require Employee to
      commute more than 25 miles more each way than Employee commutes immediately
      prior to the relocation.

    

    (F)        
      Mutual
      Agreement.
      This
      Agreement and Employee's employment hereunder may be terminated at any time
      by
      the mutual agreement of Employer and Employee.

    

    4.02        
      Employer’s
      Obligations Upon Termination.
      

    

    (A)        
      Termination
      by Employer for Cause; Termination by Employee without Good Reason; Mutual
      Agreement.
      In the
      event of a termination of this Agreement and Employee’s employment hereunder
      pursuant to Sections 4.01(C), 4.01(E) (other than a termination for Good
      Reason), or 4.01(F) above, then this Agreement and Employee’s employment with
      Employer shall terminate and Employer’s sole obligation under this Agreement or
      otherwise shall be to (i) pay to Employee any Base Salary earned, but not yet
      paid, prior to the effective date of such termination, (ii) reimburse Employee
      for any expenses incurred by Employee through the effective date of such
      termination in accordance with Section 3.02 hereof, and (iii) pay and/or provide
      any amounts or benefits that are vested amounts or vested benefits or that
      Employee is otherwise entitled to receive under any plan, program, policy or
      practice (with the exception of those, if any, relating to severance) on the
      date of termination, in accordance with such plan, program, policy, or practice
      (clauses (i), (ii) and (iii) of this sentence are collectively referred to
      herein as the “Accrued
      Obligations”).

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

    (B)        
      Death;
      Disability.
      In the
      event of a termination of this Agreement and Employee’s employment hereunder
      pursuant to Sections 4.01(A) or 4.01(B), then this Agreement and Employee’s
      employment with Employer shall terminate and Employer’s sole obligation under
      this Agreement or otherwise shall be to (i) pay and/or provide, as applicable,
      the Accrued Obligations, and (ii) subject to Employee’s or Employee’s estate’s,
      as applicable, execution, delivery, and non-revocation of a general release
      in a
      form satisfactory to Employer (the “Release”)
      (which
      Release, among other things, will include a general release of Employer, its
      affiliates and their respective officers, directors, managers, members,
      shareholders, partners, employees and agents from all liability and other terms
      deemed necessary by Employer for its protection; provided, however, the Release
      will preserve (a) Employee’s rights, if any, to indemnification by Employer, (b)
      Employee’s rights, if any, as a shareholder of Employer, and (c) Employee’s
      rights, if any, under the terms of this Agreement that are intended to survive
      the termination of this Agreement and Employee’s employment hereunder), pay to
      Employee or Employee’s estate, as applicable, the Prorata Bonus (as defined
      below). The Prorata Bonus shall be payable in equal installments over an
      eighteen (18)-month period in accordance with Employer’s customary payroll
      practices, commencing on the next regular paydate following 180 days after
      the
      date of Employee’s termination of employment with Employer; provided, however,
      Employer will commence installment payments of the Prorata Bonus on the next
      regular paydate following the eighth (8th)
      day
      after Employee’s or Employee’s estate’s, as applicable, execution and delivery
      of the Release if commencement of payment at such time will not violate the
      applicable requirements of Section 409(A) of the Internal Revenue Code (the
      “Code”).
      As
      used in this Agreement, “Prorata
      Bonus”
shall
      mean the product of: (i) the greater of (a) the Annual Bonus that Employee
      received attributable to performance during the full fiscal year immediately
      prior to the date of Employee’s termination of employment with Employer, or (b)
      Employee’s target Annual Bonus for the fiscal year in which the date of
      termination of Employee’s employment occurred; and (ii) a fraction, the
      numerator of which is the number of days in the fiscal year in which the date
      of
      termination occurs through the effective date of Employee’s termination of
      employment , and the denominator of which is 365. 

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

    (C)        
      Termination
      by Employer without Cause; Termination by Employee for Good
      Reason.
      In the
      event of a termination of this Agreement and Employee’s employment hereunder by
      Employer pursuant to Section 4.01(D) or a termination of this Agreement and
      Employee’s employment hereunder by Employee for Good Reason (as defined in
      Section 4.01(E) above) pursuant to Section 4.01(E), then this Agreement and
      Employee’s employment with Employer shall terminate and Employer’s sole
      obligation under this Agreement or otherwise shall be to (i) pay and/or provide,
      as applicable, the Accrued Obligations, (ii) subject to Employee’s execution,
      delivery, and non-revocation of the Release, (a) pay to Employee an aggregate
      amount equal to the Salary Continuation Payment (as defined below) and the
      Prorata Bonus (collectively, the “Severance
      Payment”),
      and
      (b) if Employee timely elects COBRA coverage and provided Employee continues
      to
      make contributions to such continuation coverage equal to Employee’s
      contribution in effect immediately preceding the date of Employee’s termination
      of employment with Employer, Employer shall pay the remaining portion of
      Employee’s healthcare continuation payments under COBRA for an eighteen
      (18)-month period following the date of Employee’s termination of employment
      with Employer. In the event that Employee becomes eligible to obtain healthcare
      coverage from a new employer, Employer’s obligation to pay its portion of
      Employee’s healthcare continuation payments shall cease. Employee understands
      and acknowledges that Employee is obligated to inform Employer (or its
      successor) if Employee becomes eligible to obtain healthcare coverage from
      a new
      employer before the eighteen (18)-month anniversary of Employee’s termination of
      employment The Severance Payment shall be payable in equal installments over
      an
      eighteen (18) month period in accordance with Employer’s customary payroll
      practices, commencing on the next regular paydate following 180 days after
      the
      date of Employee’s termination of employment with Employer; provided, however,
      Employer will commence installment payments of the Severance Payment on the
      next
      regular paydate following the eighth (8th)
      day
      after Employee’s execution and delivery of the Release if commencement of
      payment at such time will not violate the applicable requirements of Section
      409(A) of the Code. As used in this Section 4.02(C), the term “Salary
      Continuation Payment”
shall
      mean an amount equal to the product of: (i) one and one-half (1.5); and (ii)
      the
      sum of (a) Employee’s annualized Base Salary in effect immediately prior to the
      date of termination of Employee’s employment, and (b) the greater of (x) the
      Annual Bonus that Employee received attributable to performance during the
      full
      fiscal year immediately prior to the date of Employee’s termination of
      employment with Employer, or (y) Employee’s target Annual Bonus for the fiscal
      year in which the date of termination of Employee’s employment
      occurred

    

    (D)        
      Trigger
      Event Termination.
      Notwithstanding the provisions of Section 4.02(C) above, upon the occurrence
      of
      a Trigger Event (as defined below) and in lieu of any payments or benefits
      pursuant to Sections 4.02(C) above, this Agreement and Employee’s employment
      with Employer shall terminate and Employer’s sole obligations shall be to (i)
      pay and/or provide, as applicable, the Accrued Obligations, and (ii) subject
      to
      Employee’s execution, delivery and non-revocation of the Release, (a) pay to
      Employee an aggregate amount equal to the Trigger Event Amount (as defined
      below), and (b) if Employee timely elects COBRA coverage and provided that
      Employee continues to make contributions to such continuation coverage equal
      to
      Employee’s contribution amount to medical insurance in effect immediately
      preceding the Trigger Event, Employer or its successor shall pay the remaining
      portion of Employee’s healthcare continuation payments under COBRA during the
      18-month period following the Trigger Event (unless Employee becomes eligible
      to
      obtain healthcare coverage from a new employer before the 18-month anniversary
      of the Trigger Event, in which case Employer’s or its successor’s obligation to
      pay its portion of Employee’s health care coverage shall cease). Employee
      understands and acknowledges that Employee is obligated to inform Employer
      (or
      its successor) if Employee becomes eligible to obtain healthcare coverage from
      a
      new employer before the eighteen (18)-month anniversary of the Trigger Event.
      The Trigger Event Amount shall be payable on the next regular paydate following
      180 days after the date of Trigger Event; provided, however, Employer will
      pay
      the Trigger Event Amount on the next regular pay date following the expiration
      of the revocation period set forth in the Release, if payment at such time
      will
      not violate the applicable requirements of Section 409(A) of the Code. As used
      in this Agreement, the following terms shall have the meaning set forth
      below:

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

    (i)   
      “Trigger
      Event”
shall
      mean either (a) termination of Employee’s employment with Employer or any
      successor at any time during the period beginning six (6) months prior to the
      effective date of a Change in Control and ending eighteen (18) months after
      the
      Change in Control, other than (y) a termination by Employer for Cause (as
      defined in this Section 4.02(D) below), or (z) a termination by Employee without
      Good Reason (as defined in this Section 4.02(D) below) pursuant to Section
      4.01(E) above, (b) termination of Employee’s employment with Employer as a
      result of the failure, upon a Change in Control, of either Employer or any
      successor to all or a substantial portion of Employer’s business and/or or
      assets to continue Employee’s employment as an executive officer of Employer or
      such successor for a period of at least eighteen (18) months after the effective
      date of the Change in Control, with a salary at least equal to the Base Amount
      (as defined below) and a bonus each year equal to not less than the Annual
      Bonus
      that Employee received attributable to performance during the full fiscal year
      immediately preceding the effective date of the Change in Control, or (c)
      following a Change in Control, termination of employment by Employee after
      failure of Employer or its successor to acknowledge or assume in writing the
      obligations to Employee set forth in this Agreement after request by Employee.
      

    

    (ii) 
      For purposes of the definition of “Trigger Event” only “Cause”
shall
      mean (a) conviction of any crime that constitutes a felony or a criminal offense
      involving moral turpitude, or (b) intentionally engaging in conduct that is
      materially injurious to Employer or its successor that is not cured within
      a
      reasonable period of time after notice from Employer. 

    

    (iii)
      With respect to actions taken by Employer (or its successor) during the period
      beginning six (6) months prior to a Change in Control and ending eighteen (18)
      months following a Change in Control, “Good
      Reason”
shall
      mean (a) the failure of Employer or its successor, without Employee’s prior
      consent, to pay any amounts due to Employee or to fulfill any other material
      obligations to Employee under this Agreement, other than failures that are
      remedied by Employer or its successor within 15 days after receipt of written
      notice thereof given by Employee, (b) the failure of Employer or its successors,
      without Employee’s consent, to maintain Employee’s position as an executive
      officer with duties consistent with that of an executive officer, and given
      the
      overall size and structure of Employer or its successor, Employee neither is
      the
      functional head of the functional business unit to which Employee is assigned
      nor reports to the functional head of the functional business unit to which
      Employee is assigned, (c) any decrease, without Employee’s consent, in the Base
      Amount, the Annual Bonus (based upon the Annual Bonus that Employee received
      attributable to performance during the full fiscal year immediately preceding
      the effective date of the Change in Control), or in the level or in the value
      of
      Employee’s benefits (unless the benefit(s) changes are applicable to all
      executive level employees), (d) any move of the offices of Employer or its
      successor, without Employee’s consent, such that Employee would be required to
      commute more than 25 miles more each way than Employee commutes immediately
      prior to the relocation, or (e) continued employment of Employee by Employer
      or
      its successor would be substantially likely to cause Employee to breach a
      material obligation that Employee reasonably believes is owed by Employee to
      any
      prior employer or any other third party. Notwithstanding anything set forth
      in
      this Agreement to the contrary, placing Employee on a paid leave for up to
      90
      days, pending a determination of whether there is a basis to terminate Employee
      for “Cause,” (as defined in either Section 4.01(C) or this Section 4.02(D))
      shall not constitute a “Good Reason.” (as defined in either Section 4.01(E) or
      this Section 4.02(D)). Employee shall be deemed to have consented to any act
      or
      event that would otherwise give rise to “Good Reason”(as defined in either
      Section 4.01(E) or this 4.02(D)), unless Employee provides written notice of
      termination for Good Reason to Employer within ninety (90) days following the
      action or event constituting Good Reason.

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

    

    (iv)   
      a “Change
      in Control”
shall
      be deemed to have occurred if: 

    

    (a)  
      Any person, firm or corporation acquires directly or indirectly the Beneficial
      Ownership (as defined in Section 13(d) of the Securities Exchange Act of 1934,
      as amended) of any voting security of Employer and immediately after such
      acquisition, the acquirer has Beneficial Ownership of voting securities
      representing 50% or more of the total voting power of all the then-outstanding
      voting securities of Employer; or

    

    (b) 
      The individuals (x) who, as of the date hereof constitute the Board (the
      "Original
      Directors")
      or (y)
      who thereafter are elected to the Board and whose election, or nomination for
      election, to the Board was approved by a vote of at least 2/3 of the Original
      Directors then still in office (such Directors being called "Additional
      Original Directors")
      or (z)
      who are elected to the Board and whose election or nomination for election
      to
      the Board was approved by a vote of at least 2/3 of the Original Directors
      and
      Additional Original Directors then still in office, cease for any reason to
      constitute a majority of the members of the Board; or

    

    (c) 
      The stockholders of Employer shall approve a merger, consolidation,
      recapitalization or reorganization (or consummation of any such transaction
      if
      stockholder approval is not sought or obtained), other than any such transaction
      which would result in more than 66% of the total voting power represented by
      the
      voting securities of the surviving entity outstanding immediately after such
      transaction being Beneficially Owned by holders of outstanding voting securities
      of Employer immediately prior to the transaction, with the voting power of
      each
      such continuing holder relative to such other continuing holders being not
      altered substantially in the transaction; or

    

    (d) 
      The stockholders of Employer shall approve a plan of complete liquidation of
      Employer or an agreement for the sale, lease or disposition by Employer of
      all
      or a substantial portion of Employer’s assets (i.e.,
      50% or
      more in value of the total assets of Employer) other than to a subsidiary or
      affiliate.

    

    (v)   
      “Trigger
      Event Amount”
shall
      mean two and nine-tenths (2.9) times the sum of (a) the Base Amount (as defined
      below), and (b) the Bonus Amount (as defined below); provided, however, in
      the
      event that the Trigger Event occurs on or after July 1 of any calendar year,
      the
      Trigger Event Amount also shall include an amount equal only to 50% of
      Employee’s target Annual Bonus for the fiscal year in which the Trigger Event
      occurred. 

    

    (vi)  
      “Base
      Amount”
shall
      mean the annualized Base Salary in effect immediately prior to the Trigger
      Event. 

    

    (vii)
      “Bonus
      Amount”
shall
      mean either (a) the Annual Bonus that Employee received attributable to
      performance during the full fiscal year immediately preceding the Trigger Event;
      or (b) Employee’s target Annual Bonus for the fiscal year in which the Trigger
      Event occurred, whichever is higher.

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

    

    ARTICLE
      V

    MISCELLANEOUS

    

    5.01        
      Benefit
      of Agreement and Assignment.
      This
      Agreement shall inure to the benefit of Employer, its affiliates and their
      respective successors and assigns (including, without limitation, the purchaser
      of all or substantially all of the assets) and shall be binding upon Employer
      and its successors and assigns. This Agreement shall also inure to the benefit
      of and be binding upon Employee and Employee’s heirs, administrators, executors
      and assigns. Employee may not assign or delegate Employee’s duties under this
      Agreement, without the prior written consent of Employer.

    

    5.02        
      Notices.
       All
      notices, requests, demands and other communications required or permitted
      hereunder shall be given in writing and shall be deemed to have been duly given
      (i) on the date delivered if personally delivered, (ii) upon receipt by the
      receiving party of any notice sent by registered or certified mail (first-class
      mail, postage pre-paid, return receipt requested) or (iii) on the date targeted
      for delivery if delivered by nationally recognized overnight courier or similar
      courier service, addressed in the case of Employer to:

    

    
      	
              LifeCell
                Corporation.

            	
              with
                a copy to:

            
	
              One
                Millenium Way

            	
              Lowenstein
                Sandler PC

            
	
              Branchburg,
                New Jersey 08876

            	
              65
                Livingston Avenue

            
	 	
              Roseland,
                New Jersey 07068

            
	
              Attn:
                Chair, Compensation Committee 

            	
              Attn:
                Martha L. Lester, Esq.

            

    

    

    and
      in
      the case of Employee to:

    

    

    
      	
              Paul
                G. Thomas

            	
              with
                a copy to:

            
	
              7
                McKay Drive

            	
              Morgan
                Lewis

            
	
              Bridgewater,
                NJ 08807

            	
              1701
                Market Street

            
	 	
              Philadelphia,
                PA 19103

            
	 	
              Attn:
                Robert Lichtenstein, Esq.

            

    

    

    

    Any
      party
      may notify the other party in writing of the change in address by giving notice
      in the manner provided in this Section 5.02. Service of process in connection
      with any suit, action or proceeding (whether arbitration or otherwise) may
      be
      served on each party hereto anywhere in the world by the same methods as are
      specified for the giving of notices under this Agreement. 

    

    5.03        
      Confidentiality,
      Assignment of Contributions and Inventions, Non-Competition and Non-Solicitation
      Agreement.
      Employee acknowledges and confirms that the Confidentiality, Assignment of
      Contributions and Inventions, Non-Competition and Non-Solicitation Agreement
      executed by Employee in favor of Employer on July 20, 2005 (“Covenants
      Agreement”),
      the
      terms of which are incorporated herein by reference, remains in full force
      and
      effect and binding upon Employee. The Covenants Agreement shall survive the
      termination of this Agreement and Employee’s employment by Employer for the
      applicable period(s) set forth therein.

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

    

    5.04        
      Entire
      Agreement.
      Except
      with respect to the terms of any outstanding agreements relating to equity
      compensation grants not modified by the terms of this Agreement, this Agreement
      and the Covenants Agreement contain the entire agreement of the parties hereto
      with respect to the terms and conditions of Employee's employment during the
      Term and activities following termination of this Agreement and Employee’s
      employment with Employer and supersedes any and all prior agreements and
      understandings, whether written or oral, between the parties with respect to
      the
      subject matter of this Agreement or the Covenants Agreement, including, without
      limitation, the offer letter from Employee to Employee dated September 8, 1998,
      as amended by the letter dated September 9, 1998, the agreement between Employer
      and Employee dated October 5, 1998, and the letter agreement re: change in
      control dated December 14, 2000. Neither this Agreement nor the Covenants
      Agreement may be changed or modified except by an instrument in writing, signed
      by both the Chairman
      of the Compensation Committee and Employee.

    

    5.05        
      Indemnification;
      D&O Insurance.
      Employer shall indemnify Employee against all claims arising out of Employee’s
      actions or omissions occurring during Employee’s employment with Employer to the
      fullest extent provided (A) by Employer’s Certificate of Incorporation and/or
      Bylaws, (B) under Employer’s Directors and Officers Liability and general
      insurance policies, and (C) under the Delaware General Corporation Law, as
      each
      may be amended from time to time. Employer agrees it will continue to maintain
      Directors and Officers Liability and general insurance policies to fund the
      indemnity described above in the same amount and to the same extent it maintains
      such coverage for the benefit of its other officers and directors. 

    

    5.06.        
      Representation
      and Warranties.
      Employee represents and warrants to Employer that (i) Employee has the legal
      capacity to execute and perform this Agreement, (ii) this Agreement and the
      Covenants Agreement are valid and binding agreements enforceable against
      Employee according to their terms, and (iii) the execution and performance
      of
      this Agreement by Employee does not violate or conflict with the terms of any
      existing agreement or understanding to which Employee is a party or by which
      Employee may be bound.

    

    5.07        
      No
      Attachment.
      Except
      as required by law, no right to receive payments under this Agreement shall
      be
      subject to anticipation, commutation, alienation, sale, assignment, encumbrance,
      charge, pledge, or hypothecation or to execution, attachment, levy, or similar
      process or assignment by operation of law, and any attempt, voluntary or
      involuntary, to effect any such action shall be null, void and of no effect;
      provided, however, that nothing in this Section 5.07 shall preclude the
      assumption of such rights by executors, administrators or other legal
      representatives of Employer or his estate and their assigning any rights
      hereunder to the person or persons entitled thereto.

    

    5.08        
      Source
      of Payment.
      All
      payments provided for under this Agreement shall be paid in cash from the
      general funds of Employer. Employer shall not be required to establish a special
      or separate fund or other segregation of assets to assure such payments, and,
      if
      Employer shall make any investments to aid it in meeting its obligations
      hereunder, Employee shall have no right, title or interest whatever in or to
      any
      such investments except as may otherwise be expressly provided in a separate
      written instrument relating to such investments. Nothing contained in this
      Agreement, and no action taken pursuant to its provisions, shall create or
      be
      construed to create a trust of any kind, or a fiduciary relationship, between
      Employer and Employee or any other person. To the extent that any person
      acquires a right to receive payments from Employer hereunder, such right,
      without prejudice to rights which employees may have, shall be no greater than
      the right of an unsecured creditor of Employer.

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

      

    

    5.09        
      Limitation
      as to Amounts Payable.
      Notwithstanding anything set forth in this Agreement to the contrary, if any
      payment or benefit Employee would receive from Employer (or its successor)
      pursuant to a Change in Control or otherwise (“Payment”)
      would
      (i) constitute a “parachute payment” within the meaning of Section 280G of the
      Code and (ii) but for this sentence, be subject to the excise tax imposed by
      Section 4999 of the Code (the “Excise
      Tax”),
      then
      such Payment shall be reduced to the Reduced Amount. The “Reduced
      Amount”
shall
      be either (x) the largest portion of the Payment that would result in no portion
      of the Payment being subject to the Excise Tax or (y) the largest portion,
      up to
      and including the total, of the Payment, whichever amount, after taking into
      account all applicable federal, state and local employment taxes, income taxes,
      and the Excise Tax (all computed at the highest applicable marginal rate),
      results in Employee’s receipt, on an after-tax basis, of the greater amount of
      the Payment notwithstanding that all or some portion of the Payment may be
      subject to the Excise Tax. If a reduction in payments or benefits (or a
      cancellation of the acceleration of vesting of stock options or equity awards)
      constituting “parachute payments” is necessary so that the Payment equals the
      Reduced Amount, such reduction and/or cancellation of acceleration shall occur
      in the order that provides the maximum economic benefit to Employee. In the
      event that acceleration of vesting of stock option or equity award compensation
      is to be reduced, such acceleration of vesting also shall be canceled in the
      order that provides the maximum economic benefit to Employee. The accounting
      firm engaged by Employer for general audit purposes as of the day prior to
      the
      effective date of the Change in Control shall perform the foregoing
      calculations. If the accounting firm so engaged by Employer is also serving
      as
      accountant or auditor for the individual, entity or group effecting the Change
      in Control or is otherwise unwilling or unable to make such determinations,
      Employer shall appoint a nationally recognized accounting firm to make the
      determinations required under this Section 5.09. Employer shall bear all
      expenses with respect to the determinations by such accounting firm required
      to
      be made under this Section 5.09. The accounting firm engaged to make the
      determinations under this Section 5.09 shall provide its calculations, together
      with detailed supporting documentation, to Employer and Employee as soon as
      practicable after the date on which Employee’s right to a Payment is triggered
      (if requested at that time by Employer (or its successor) or Employee) or such
      other time as requested by Employer or Employee. If the accounting firm
      determines that no Excise Tax is payable with respect to a Payment, either
      before or after the application of the Reduced Amount, it shall furnish Employer
      (or its successor) with an opinion reasonably acceptable to Employee that no
      Excise Tax will be imposed with respect to such Payment. Any good faith
      determinations of the accounting firm made under this Section 5.09 shall be
      final, binding, and conclusive upon Employer (or its successor) and Employee.
      

    

    5.10        
      No
      Waiver.
      The
      waiver by other party of a breach of any provision of this Agreement shall
      not
      operate or be construed as a continuing waiver or as a consent to or waiver
      of
      any subsequent breach hereof.

    
      
        
        

      

      
        -12-

        
          

        

      

      
        
        

      

    

    5.11        
      Headings.
      The
      Article and Section headings in this Agreement are for the convenience of
      reference only and do not constitute a part of this Agreement and shall not
      be
      deemed to limit or affect any of the provisions hereof.

    

    5.12        
      Governing
      Law and Dispute Resolution.
      Any and
      all actions or controversies arising out of this Agreement, Employee’s
      employment or the termination hereof or thereof, including, without limitation,
      tort claims, shall be construed and enforced in accordance with the internal
      laws of the State of New Jersey, without regard to the choice of law principles
      thereof. Except
      with respect to Employer’s and Employee’s right to seek injunctive or other
      equitable relief (including, without limitation, pursuant to the Covenants
      Agreement), any dispute, controversy or claim based on, arising out of or
      relating to the interpretation and performance of this Agreement, Employee’s
      employment or any termination hereof or thereof or any matter relating to the
      foregoing shall be solely submitted to and finally settled by arbitration by
      a
      single arbitrator in accordance with the then-current rules of the American
      Arbitration Association (“AAA”),
      including without limitation any claims for discrimination under any applicable
      federal, state or local law or regulation. Any such arbitration shall be
      conducted in the New Jersey office of the AAA located closest to Employer’s New
      Jersey office. The single arbitrator shall be appointed from the AAA’s list of
      arbitrators by the mutual consent of the parties or, in the absence of such
      consent, by application of any party to the AAA. A decision of the arbitrator
      shall be final end binding upon the parties. The parties agree that this Section
      5.12 shall be grounds for dismissal of any court action commenced by either
      party with respect to this Agreement, other than (i) post-arbitration actions
      seeking to enforce an arbitration award and (ii) actions seeking appropriate
      equitable or injunctive relief , including, without limitation, pursuant to
      the
      Covenants Agreement. Employer shall pay the pay the fees of the arbitrator
      and
      each party shall be responsible for its own legal fees, costs of its experts
      and
      expenses of its witnesses. The arbitrator’s remedial authority shall equal the
      remedial power that a court with competent jurisdiction over the parties and
      their dispute would have. Any
      award
      rendered shall be final, binding and conclusive (without the right to an appeal,
      unless such appeal is based on fraud by the other party in connection with
      the
      arbitration process) upon the parties and any judgment on such award may be
      enforced in any court having jurisdiction, unless otherwise provided by
      law.
      Employer
      and Employee acknowledge that it is the intention of the parties that this
      Section 5.12 shall
      apply to all disputes, controversies and claims, including, without limitation,
      any rights or claims Employee may have under the Age Discrimination in
      Employment Act of 1967, the Americans with Disabilities Act, Title VII of the
      Civil Rights Act of 1964, the Equal Pay Act, the New Jersey Law Against
      Discrimination, the Conscientious Employee Protection Act, the New Jersey Civil
      Rights Act, and all other federal, state or local laws, rules or regulations
      relating to employment discrimination or otherwise pertaining to this Agreement,
      Employee’s employment or termination thereof. Employer
      and Employee knowingly and voluntarily agree to this arbitration provision
      and
      acknowledge that arbitration shall be instead of any civil litigation, meaning
      that Employee and Employer are each waiving
      any rights to a jury trial.
      

    

    5.13        
      Validity.
      The
      invalidity or enforceability of any provision or provisions of this Agreement
      or
      the Covenants Agreement shall not affect the validity or enforceability of
      any
      other provision or provisions of this Agreement or the Covenants Agreement,
      which shall remain in full force and effect.

    
      
        
        

      

      
        -13-

        
          

        

      

      
        
        

      

    

    5.14        
      Employee
      Withholdings and Deductions.
      All
      payments to Employee hereunder shall be subject to such withholding and other
      employee deductions as may be required by law.

    

    5.15        
      Counterparts.
      This
      Agreement may be executed in one more counterparts, each of which shall be
      deemed to be an original but all of which together will constitute one and
      the
      same instrument.

    

    5.16        
      Agreement
      to Take Actions.
      Each
      party to this Agreement shall execute and deliver such documents, certificates,
      agreements and other instruments, and shall take all other actions, as may
      be
      reasonably necessary or desirable in order to perform his/her or its obligations
      under this Agreement.

    

    5.17        
      Survival.
      The
      terms of Section 4.02 and Article V of this Agreement shall survive the
      termination of this Agreement and Employee’s employment hereunder.

    

    

    IN
      WITNESS WHEREOF, Employer and Employee have duly executed this Agreement as
      of
      the date first written above.

    

    
      	 	
              EMPLOYER:

            	 
	 	 	 	 
	 	
              LIFECELL
                CORPORATION.

            	 
	 	 	 	 
	 	 	 	 
	 	
              BY:

            	
              /s/
                Michael Cahr

            	 
	 	 	
              Michael
                Cahr, Chair

            	 
	 	 	
              Compensation
                Committee

            	 
	 	 	 	 
	 	 	 	 
	 	
              EMPLOYEE:

            	 
	 	 	 	 
	 	
              /s/
                Paul G. Thomas

            	 
	 	
              Paul
                G. Thomas

            	 

    

     

    -14-

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