| 1.   | EMPLOYMENT. |
|----------------|-------------|

| 2.   | DURATION OF      AGREEMENT. |
|----------------|-----------------------------|

2.2
5
6
7

| 3.   | POSITION AND      DUTIES. |
|----------------|---------------------------|

----

| 4.   | COMPENSATION AND      BENEFITS. |
|----------------|---------------------------------|

----

| (a)   | Annual Incentive Bonus      Plan.  Executive shall be entitled to an annual incentive      bonus opportunity, the amount and terms of which shall be determined by      the Compensation Committee of the Board (the “Committee”), except as set      forth in the next sentence.  The Executive’s annual target      (subject to such performance and other criteria as may be established by      the Committee) incentive bonus shall be 90.0% of Base Salary, subject to      proration for partial periods, if any.  Notwithstanding the      foregoing and for purposes of the Executive’s bonus for the 2010 fiscal      year only, the Executive’s target incentive bonus shall be      $293,000.  The performance and other criteria in respect of any      such bonus shall be determined by the Committee in its sole      discretion. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Signing      Payment.  Executive shall be entitled to a one-time      signing payment of $175,000, to be paid at the first regular pay period      after the Effective Date.  The amount of annual incentive bonus      earned pursuant to Section 4.2(a) for the Company’s 2010 fiscal year, if any,      shall be in addition to the amount of the signing  payment. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | Equity      Awards.  The Company shall grant to the Executive the      following equity awards on the EffectiveDate: |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------|

| (i)   | Stock      options to purchase 1,125,000 shares of the Company’s common stock      pursuant to the Option Agreement set forth as Exhibit      A hereto (the “OptionAward”). |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | 135,000      shares of Restricted Stock pursuant to the Restricted Stock Award      Agreement set forth as Exhibit      B hereto (the “Restricted StockAward”). |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | Vacation.  During      each year through the Term, Executive shall be granted four (4) weeks’      paid vacation in accordance with the Company’s vacation policy as in      effect and as approved by the Committee from time to time.  The      timing of paid vacations shall be scheduled in a reasonable manner by the      Executive. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | Business      Expenses.  Executive shall be reimbursed for all      reasonable business expenses incurred in carrying out his duties hereunder      in accordance with the policies, practices and procedures of the Company      as in effect from time to time.  Executive shall be entitled to      be reimbursed for an annual executive medical examination in accordance      with the Company’s policies as in effect from time to  time. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f)   | No Other      Benefits.  Executive will not be entitled to any benefit      or perquisite other than as specifically set out in this Agreement or      agreed to in writing by the Company.  In particular, while the      Board could determine otherwise, |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | neither Executive      nor the Company presently anticipate additional Long-Term Equity Incentive      Plan (the “LTIP Plan”) awards for the initial Term of this Agreement or,      if this Agreement is extended, for either of the first two Contract      Years. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.   | TERMINATION FOR      CAUSE. |
|----------------|-----------------------------|

| (a)   | Any      willful act by Executive involving fraud and any willful breach by      Executive of applicable regulations of competent authorities in relation      to trading or dealing with stocks, securities, investments, regulation of      the Company’s business and the like which, in each case, a majority of the      Board determines in its sole and absolute good faith discretion materially      adversely affects the Company or Executive’s ability to perform his duties      under this Agreement; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Attendance      at work in a state of intoxication or otherwise being found in possession      of any prohibited drug or substance, possession of which would amount to a      criminal offense; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | Executive’s      personal dishonesty or willful misconduct, in each case in connection with      his employment by the Company; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | Breach      of fiduciary duty or breach of the duty of loyalty to the Company which a      majority of the Board determines in its sole and absolute good faith      discretion materially adversely affects the Company or Executive’s ability      to perform his duties under thisAgreement; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | Assault      or other act of violence against any employee of the Company or other      person during the course of hisemployment; |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------|

| (f)   | Indictment      of the Executive for any felony (other than minor traffic offenses) or any      crime involving moral turpitude; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------|

| (g)   | Intentional      breach by the Executive of any provision of this Agreement or of any      Company policy adopted by the Board not cured within 30 days after notice      from the Board; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (h)   | The      willful continued failure of Executive to perform substantially      Executive’s duties with the Company (other than any such failure resulting      from incapacity due to Disability) if not cured within 30 days after a      written demand for substantial performance is delivered to Executive by a      majority of |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | the Board that      specifically identifies the manner in which such Board believes that      Executive has not substantially performed Executive’s      duties.  For clarity, the failure of the Company to meet its      business plans shall not be, in and of itself, grounds for Termination for      Cause. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

5.1

| 6.   | TERMINATION UPON      DEATH. |
|----------------|------------------------------|

8.2(a)
8.2(c)(1)

| 7.   | DISABILITY. |
|----------------|-------------|

8.2(a)
8.2(c)(1)

----

| 8.   | TERMINATION OF      EMPLOYMENT FOR GOOD REASON OR WITHOUT  CAUSE. |
|----------------|-------------------------------------------------------------------|

| (a)   | Other      than his removal for Cause pursuant to Article 5,      without the written consent of Executive, the assignment to Executive of      any duties inconsistent in any material respect with Executive’s position      (including status, offices, titles and reporting requirements), authority,      duties or responsibilities as in effect on the Effective Date, or any      other action by the Company which results in a demonstrable diminution in      such position, authority, duties or responsibilities; but excluding, for      this purpose an isolated, insubstantial and inadvertent action not taken      in bad faith and which is remedied by the Company promptly after receipt      of notice thereof given byExecutive; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | A      reduction by the Company in Executive’s Base Salary as in effect on the      Effective Date or as the same may be increased from time to      time; |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | A      reduction by the Company in Executive’s annual target incentive bonus      (expressed as a percentage of Base Salary) during the Term unless such      reduction is a part of an across-the-board decrease in target incentive      bonuses affecting all other Senior Executives, in which case Good Reason      shall exist only if the decrease (considered as a percentage relative to      the prior percentage used to determine annual target incentive bonus) to      Executive is disproportionatelylarge; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | The      Company’s giving notice under Section 2.2 of its intention not to renew this Agreement      unless at the time of such notice the Company could terminate this      Agreement and Executive’s employment for “Cause,” or for Disability, or if      Executive shall have reached the age of 65 by the applicable Anniversary      Date; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (e)   | The      Company’s requiring Executive, without his consent, to be based at any      office or location more than fifty (50) miles from the Company’s current      headquarters in Irvington, NewYork; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f)   | The      material breach by the Company of any provision of this      Agreement; |
|-----------------|----------------------------------------------------------------------------------|

| (g)   | A      “Change in Control” (as defined in the LTIP Plan) occurs and the successor      (if any and applicable) (whether direct or indirect, by purchase, merger,      consolidation or otherwise) to all or substantially all of the business      and/or assets of the Company fails to assume and agree to perform this      Agreement in the same manner and to the same extent that the Company would      be required to perform it if no such succession had taken place, which      shall be deemed to have occurred if, after the Change in Control,      Executive is not the Chief Executive Officer or equivalent of a company      whose shares are publicly traded on a recognized securities exchange or      inter-dealer quotation system; or |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (h)   | The      failure of the Company to appoint Executive to the Board or, once      Executive has been appointed to the Board, the failure to nominate      Executive for election to the Board pursuant to Section      3.1. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

8
8.2(a)
8.2(c)(1)

| (a)   | The      Company shall pay to Executive in a lump sum in cash within 30 days      following the Executive's Termination of Employment, the sum of (i)      Executive’s Base Salary through the date of termination to the extent not      theretofore paid, (ii) any accrued expenses and vacation pay to the extent      not theretofore paid, and (iii) unless Executive has elected a different      payout date |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | in a prior deferral      election, any compensation previously deferred by Executive under a plan      other than a tax-qualified plan (together with any accrued interest or      earnings thereon) to the extent not theretofore paid (the sum of the      amounts described in subparagraphs (i), (ii) and (iii) shall be referred      to in this Agreement as the “AccruedObligations”); |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Subject      to the Executive’s execution and delivery of a Release, the Company shall      pay to Executive, starting on the 60th day following the Executive’s      Termination of Employment, in installments ratably over twelve (12) months      in accordance with the Company’s normal payroll cycle and procedures, an      amount equal to 1.5 times the sum of:  (i) Executive’s annual      Base Salary in effect as of the date of termination; plus (ii) Executive’s      Average Annual Incentive Bonus (as defined below).  For purposes      of this Agreement, “Average Annual Incentive Bonus” means the average      annual incentive bonus actually earned by Executive in the three fiscal      years immediately preceding the fiscal year in which Executive’s      Termination of Employment date falls, provided, however, that (A) if the      Executive has been employed by the Company for fewer than three fiscal      years, the Average Annual Incentive Bonus shall mean the average annual      incentive bonus actually earned during the Term; (B) if the Executive is      terminated during the Company’s 2010 fiscal year, Average Annual Incentive      Bonus shall mean $293,000; and (C) for purposes of determining the Average      Annual Incentive Bonus for any period after the Company’s 2010 fiscal      year, the calculation of which includes the annual incentive bonus paid in      respect of Company’s 2010 fiscal year, the 2010 annual incentive bonus      shall be deemed to be the sum of (x) the amount earned under Section      4.2(a) for fiscal 2010 plus (y) the amount      paid under Section 4.2(b). |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   |  Code Section 280G      Excise Tax. |
|-----------------|------------------------------------------|

| (1)   | In      the event that any payment or benefit received or to be received by the      Executive pursuant to the terms of this Agreement (the “Contract      Payments”) or in connection with the Executive’s termination of employment      or contingent upon a Change in Control (as defined in Code Section 280G      and the regulations thereunder) pursuant to any plan or arrangement or      other agreement with the Company or from any entity that is a member of      the Company’s “affiliated group” (as defined under Code Section 1504(a)      without regard to Code Section 1504(b)) (“Other Payments” and, together      with the Contract Payments, the “Payments”) would be subject to the excise      tax (the “Excise Tax”) imposed by Code Section 4999, as determined as      provided below, the Company shall pay to the Executive, at the time      specified in Section 8.2(c)(4) below, an additional amount (the      “Gross-Up Payment”) such that the net amount retained by the Executive,      after deduction of all taxes, interest and penalties (in each case      relating to any excise tax under Section 4999, employment or ordinary      income tax and not any tax imposed under Code Section 409A) and other      amounts required to be paid upon the payment |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | provided for by this      Section      8.2(c),      and any such interest, penalties, or additions to employment or ordinary      income tax payable by the Executive with respect thereto, shall be equal      to the total present value of the Excise Taxes imposed upon the Payments;      provided, however, that if the Executive’s Payments are less than 110% of      the amount of the Payments which could be paid to the Executive under Code      Section 280G without causing the imposition of the Excise Tax, then the      Payment shall be limited to the largest amount payable (as described      above) without resulting in the imposition of any Excise Tax (such amount,      the “Capped Amount”). |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | For      purposes of determining the Gross-Up Payment, whether any of the Payments      will be subject to the Excise Tax and the amounts of such Excise Tax, (i)      the total amount of the Payments shall be treated as “parachute payments”      within the meaning of Code Section 280G(b)(2), and all “excess parachute      payments” within the meaning of Code Section 280G(b)(1) shall be treated      as subject to the Excise Tax, except to the extent that, in the opinion of      independent tax counsel selected by the Company’s independent auditors and      reasonably acceptable to the Executive (“Tax Counsel”), a Payment (in      whole or in part) does not constitute a “parachute payment” within the      meaning of Code Section 280G(b)(2), or such “excess parachute payments”      (in whole or in part) are not subject to the Excise Tax, (ii) the amount      of the Payments that shall be treated as subject to the Excise Tax shall      be equal to the lesser of (A) the total amount of the Payments or (B) the      amount of “excess parachute payments” within the meaning of Code Section      280G(b)(1) (after applying clause (i) hereof), and (iii) the value of any      noncash benefits or any deferred payment or benefit shall be determined by      Tax Counsel in accordance with the principles of Code Sections 280G(d)(3)      and (4).  For purposes of determining the amount of the Gross-Up      Payment, the Executive shall be deemed to pay federal income tax at the      highest marginal rates of federal income taxation applicable to      individuals in the calendar year in which the Gross-Up Payment is to be      made and state and local income taxes at the highest effective rates of      taxation applicable to individuals as are in effect in the state and      locality of the Executive’s residence in the calendar year in which the      Gross-Up Payment is to be made, net of the maximum reduction in federal      income taxes that can be obtained from deduction of such state and local      taxes, taking into account any limitations applicable to individuals      subject to federal income tax at the highest marginal    rates. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | If      the Tax Counsel reasonably determines that any Excise Tax is payable by      the Executive and that the criteria for reducing the Payments to the      Capped Amount (as described in Section 8.2(c)(1) above) is met, then the Company shall reduce the      Payments by the amount which, based on the Tax Counsel’s determination and      calculations, would provide the Executive with the Capped Amount, and pay      to the Executive such |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | reduced Payments;      provided that the Company shall first reduce the severance payment under      Section 8.2(b).  If the      Tax Counsel determines that an Excise Tax is payable, without reduction      pursuant to Section 8.2(c)(1), above, the Company      shall pay the required Gross-Up Payment to, or for the benefit of, the      Executive within the time specified in Section 8.2(c)(4).  If the Tax Counsel determines that no Excise Tax      is payable by the Executive, it shall, at the same time as it makes      such determination, furnish the Executive with an opinion that he has      substantial authority not to report any Excise Tax on his federal, state,      local income or other tax return.  Any determination by the Tax      Counsel as to the amount of the Gross-Up Payment shall be binding upon the      Company and the Executive absent a contrary determination by the Internal      Revenue Service or a court of competent jurisdiction; provided, however,      that no such determination shall eliminate or reduce the Company’s      obligation to provide any Gross-Up Payment that shall be due as a result      of such contrarydetermination. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4)   | The      Gross-Up Payments provided for in Section 8.2(c)(1) through Section 8.2(c)(3) hereof shall be made upon the earlier of (i) the      payment to the Executive of any Contract Payment or Other Payment or (ii)      the imposition upon the Executive or payment by the Executive of any      Excise Tax, provided, however, that in the event of Executive’s      termination for Good Reason as provided by Section 8.1(g),      such payment shall be made on the date of the transaction which      constitutes a Change in Control for purposes of such Section      8.1(g). |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5)   | The      Executive shall notify the Company in writing of any claim by the Internal      Revenue Service that, if successful, would require the payment by the      Company of a Gross-Up Payment.  Such notification shall be given      as soon as practicable but no later than 10 business days after the      Executive is informed in writing of such claim and shall apprise the      Company of the nature of such claim and the date on which such claim is      requested to be paid.  The Executive shall not pay such claim      prior to the expiration of the 30-day period following the date on which      the Executive gives such notice to the Company (or such shorter period      ending on the date that any payment of taxes with respect to such claim is      due).  If the Company notifies the Executive in writing prior to      the expiration of such period that it desires to contest such claim, the      Executive shall: |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | give      the Company any information reasonably requested by the Company relating      to such claim; |
|-----------------|--------------------------------------------------------------------------------------------------------|

| (b)   | take      such action in connection with contesting such claim as the Company shall      reasonably request in writing from time to time, including, without      limitation, accepting legal representation with respect to such claim by      an attorney reasonably selected by the Company and reasonably satisfactory      to the Executive; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (c)   | cooperate      with the Company in good faith in order to effectively contest such claim;      and |
|-----------------|----------------------------------------------------------------------------------------------------|

| (d)   | permit      the Company to participate in any proceedings relating to such      claim; |
|-----------------|----------------------------------------------------------------------------------------|

| (6)   | The      Company shall control all proceedings taken in connection with such      contest and, at its sole option, may pursue or forego any and all      administrative appeals, proceedings, hearings and conferences with the      taxing authority in respect of such claim and may, at its sole option,      either direct the Executive to pay the tax claimed and sue for a refund or      contest the claim in any permissible manner, and the Executive agrees to      prosecute such contest to a determination before any administrative      tribunal, in a court of initial jurisdiction and in one or more appellate      courts, as the Company shall determine; provided, however, that if the      Company directs the Executive to pay such claim and sue for a refund, the      Company shall advance the amount of such payment to the Executive on an      interest-free basis, and shall indemnify and hold the Executive harmless,      on an after-tax basis, from any Excise Tax or other tax (including      interest or penalties with respect thereto, but excluding any tax or      penalty associated with Code Section 409A) imposed with respect to such      advance or with respect to any imputed income with respect to such      advance; and provided, further, that if the Executive is required to      extend the statute of limitations to enable the Company to contest such      claim, the Executive may limit this extension solely to such contested      amount.  The Company’s control of the contest shall be limited      to issues with respect to which a Gross-Up Payment would be payable      hereunder and the Executive shall be entitled to settle or contest, as the      case may be, any other issue raised by the Internal Revenue Service or any      other taxing authority.  In addition, no position may be taken      nor any final resolution be agreed to by the Company without the      Executive’s consent if such position or resolution could reasonably be      expected to adversely affect the Executive (including any other tax      position of the Executive unrelated to the matters covered      hereby). |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7)   | As      a result of the uncertainty in the application of Code Section 4999 at the      time of the initial determination by the Company or the Tax Counsel |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | hereunder, it is      possible that Gross-Up Payments which will not have been made by the      Company should have been made (“Underpayment”), consistent with the      calculations required to be made hereunder.  In the event that      the Company exhausts its remedies and the Executive thereafter is required      to pay to the Internal Revenue Service an additional amount in respect of      any Excise Tax, the Company or the Tax Counsel shall determine the amount      of the Underpayment that has occurred and any such Underpayment shall      promptly be paid by the Company to or for the benefit of the      Executive. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (8)   | If,      after the receipt by the Executive of the Gross-Up Payment or an amount      advanced by the Company in connection with the contest of an Excise Tax      claim, the Executive becomes entitled to receive any refund with respect      to such claim, the Executive shall promptly pay to the Company the amount      of such refund (together with any interest paid or credited thereon after      taxes applicable thereto).  If, after the receipt by the      Executive of an amount advanced by the Company in connection with an      Excise Tax claim, a determination is made that the Executive shall not be      entitled to any refund with respect to such claim and the Company does not      notify the Executive in writing of its intent to contest the denial of      such refund prior to the expiration of 30 days after such determination,      such advance shall be forgiven and shall not be required to be      repaid. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (9)   | Notwithstanding      the other provisions of this Section 8.2(c) and Section 12.15, all      Gross-Up Payments shall be made to the Executive not later than the end of      the calendar year following the year in which the Executive remits the      related taxes and any reimbursement of the costs and expenses described in      Section 8.2(c)(5) shall be paid not later than the end of the calendar      year following the year in which there is a final and nonappealable      resolution of, or the taxes are remitted that are the subject of, the      related claim. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

8

8

| (a)   | Release      Requirement.  No payment shall be made under Section 8.2(b) unless the Executive delivers to the Company      a release in the form of Exhibit      C in favor of the Company (a “Release”), without revocation      thereof, no later than forty-five (45) days after Executive’s Termination      of Employment date and no such payment or benefit hereunder shall be      provided to Executive prior to the Company’s receipt of such Release and      the expiration of any period of revocation provided for in the      Release. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (b)   | Restriction on Timing      of Distributions.  Notwithstanding any provision of this      Agreement to the contrary, if the Executive is considered a Specified      Employee at Termination of Employment other than on account of death or      Disability, under such procedures as established by the Company in      accordance with Section 409A of the Internal Revenue Code of 1986, as      amended (the “Code”), all payments hereunder that are subject to Code      Section 409A, and for which the payment event is Termination of Employment      may not commence earlier than six (6) months after the date of Termination      of Employment.  Therefore, in the event this provision is      applicable to the Executive, any such payment which would otherwise be      paid to the Executive within the first six months following termination      shall be accumulated and paid to the Executive in a lump sum on the first      day of the seventh month following Termination of      Employment.  All subsequent distributions shall be paid in the      manner specified.  “Specified Employee” means a “specified      employee” as defined in Code Section 409A and regulations      thereunder. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.   | PUBLICITY; NO      DISPARAGING STATEMENT. |
|----------------|-------------------------------------------|

| 10.   | BUSINESS PROTECTION      PROVISIONS. |
|-----------------|--------------------------------------|

10

10

| (a)   | “Competitive      Position” shall mean any employment, consulting, advisory, directorship,      agency, promotional or independent contractor arrangement between the      Executive and any person or Entity engaged in a line of |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | business that      competes directly with any brand of the Company or any of its affiliates      or subsidiaries (collectively the “PBH Entities”) whereby Executive is      required to or does perform services on behalf of or for the benefit of      such person or Entity which are substantially similar to the services in      which Executive participated or that he directed or oversaw while employed      by the Company. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | “Confidential      Information” shall mean the proprietary or confidential data, information,      documents or materials (whether oral, written, electronic or otherwise)      belonging to or pertaining to the PBH Entities, other than “Trade Secrets”      (as defined below), which is of tangible or intangible value to any of the      PBH Entities and the details of which are not generally known to the      competitors of the PBH Entities.  Confidential Information shall      also include:  any items that any of the PBH Entities have      marked “CONFIDENTIAL” or some similar designation or are otherwise      identified as being confidential. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | “Entity”      or “Entities” shall mean any business, individual, partnership, joint      venture, agency, governmental agency, body or subdivision, association,      firm, corporation, limited liability company or other entity of any      kind. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | “Restricted      Period” shall mean eighteen (18) months following termination of      Executive’s employment hereunder; provided, however, that the Restricted      Period shall be extended for a period of time equal to any period(s) of      time within the eighteen (18) month period following termination of      Executive’s employment hereunder that Executive is determined by a court      of competent jurisdiction to have engaged in any conduct that violates      this Article      10 or any sections or subsections thereof, the      purpose of this provision being to secure for the benefit of the Company      the entire Restricted Period being bargained for by the Company for the      restrictions upon the Executive’sactivities. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | “Territory”      shall mean each of the United States of America or any country other than      the United States of America in which the Company shall transact business      during the Term. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f)   | “Trade      Secrets” shall mean information or data of or about any of the PBH      Entities, including, but not limited to, technical or non-technical data,      customer lists, pricing models, formulas, patterns, compilations,      programs, devices, methods, techniques, drawings, processes, financial      data, financial plans, product plans or lists of actual or potential      suppliers that derives economic value, actual or potential, from not being      generally known to, and not being readily ascertainable by proper means      by, other persons who can obtain economic value from its disclosure or      use; and any other information which is defined as a “trade secret” under      applicable law. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (g)   | “Work      Product” shall mean all tangible work product, property, data,      documentation, “know-how,” concepts or plans, inventions, improvements,      techniques and processes relating to the PBH Entities that were conceived,      discovered, created, written, revised or developed by Executive during the      term of his employment with theCompany. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | In      recognition of the need of the PBH Entities to protect their legitimate      business interests, Confidential Information and Trade Secrets, Executive      hereby covenants and agrees that Executive shall regard and treat Trade      Secrets and all Confidential Information as strictly confidential and      wholly-owned by the PBH Entities and shall not, for any reason, in any      fashion, either directly or indirectly, use, sell, lend, lease,      distribute, license, give, transfer, assign, show, disclose, disseminate,      reproduce, copy, misappropriate or otherwise communicate any such item or      information to any third party or Entity for any purpose other than in      accordance with this Agreement or as required by applicable law, court      order or other legal process. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Executive      shall exercise best efforts to ensure the continued confidentiality of all      Trade Secrets and Confidential Information, and he shall immediately      notify the Company of any unauthorized disclosure or use of any Trade      Secrets or Confidential Information of which Executive becomes      aware.  Executive shall assist the PBH Entities, to the extent      necessary, in the protection of or procurement of any intellectual      property protection or other rights in any of the Trade Secrets or      Confidential Information. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | All      Work Product shall be owned exclusively by the PBH Entities.  To      the greatest extent possible, any Work Product shall be deemed to be “work      made for hire” (as defined in the Copyright Act, 17 U.S.C.A. § 101 et seq., as amended),      and Executive hereby unconditionally and irrevocably transfers and assigns      to applicable PBH Entity all right, title and interest Executive currently      has or may have by operation of law or otherwise in or to any Work      Product, including, without limitation, all patents, copyrights,      trademarks (and the goodwill associated therewith), trade secrets, service      marks (and the goodwill associated therewith) and other intellectual      property rights.  Executive agrees to execute and deliver to the      applicable PBH Entity any transfers, assignments, documents or other      instruments which the Company may deem necessary or appropriate, from time      to time, to protect the rights granted herein or to vest complete title      and ownership of any and all Work Product, and all associated intellectual      property and other rights therein, exclusively in the applicable PBH      Entity. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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10
10
10
10
8

----

| 11.   | RETURN OF MATERIALS;      BOARD RESIGNATION. |
|-----------------|----------------------------------------------|

| 12.   | GENERAL      PROVISIONS. |
|-----------------|--------------------------|

----

|   | If      to Company to: | Prestige      Brands Holdings, Inc. |
|--------|------------------------|-------------------------------------|

|   | Attn:  General      Counsel’s Office |
|--------|------------------------------------------------------|

|   | 90      North Broadway |
|--------|------------------------|

|   | Irvington,      NY  10533 |
|--------|-------------------------------------|

|   | Facsimile:  (914)      524-7488 |
|--------|-------------------------------------------|

|   | If      to Executive to: | Matt      Mannelly |
|--------|--------------------------|--------------------|

|   | 941      Silvermine Road |
|--------|--------------------------|

|   | New      Canaan, CT 06840 |
|--------|---------------------------|

|   | Facsimile:      _____________ |
|--------|-------------------------------|

----

| (a)   | Except      as provided in subsection (b) of this Section 12.13,      the following provisions shall apply to disputes between Company and      Executive arising out of or related to either:  (i) this      Agreement (including any claim that any part of this agreement is invalid,      illegal or otherwise void or voidable), or (ii) the employment      relationship that exists between Company and  Executive: |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | The      parties shall first use their best efforts to discuss and negotiate a      resolution of the dispute. |
|-----------------|----------------------------------------------------------------------------------------------------------------|

| (ii)   | If      efforts to negotiate a resolution do not succeed within 5 business days      after a written request for negotiation has been made, the dispute shall      be resolved timely and exclusively by final and binding arbitration      pursuant to the American Arbitration Association (“AAA”) National Rules      for the Resolution of Employment Disputes (the “AAA      Rules”).  Arbitration must be demanded within ten (10) calendar      days after the expiration of the five (5) day period referred to      above.  The arbitration opinion and award shall be final and      binding on the Company and the Executive and shall be enforceable by any      court sitting within Westchester County, New York.  Company and      Executive shall share equally all costs of arbitration excepting their own      attorney’s fees unless and to the extent ordered by the arbitrator(s) to      pay the attorneys’ fees of the prevailingparty. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iii)   | The      parties recognize that this Section 12.13 means that certain claims will be reviewed      and decided only before an impartial arbitrator or panel of arbitrators      instead of before a court of law and/or a jury, but desire the many      benefits of the arbitration process over court proceedings, including      speed of resolution, lower costs and fees, and more flexible rules of      evidence.  The arbitrator or arbitrators duly selected pursuant      to the AAA’s Rules shall have the same power and authority to order any      remedy for violation of a statute, regulation, or ordinance as a court      would |
|-------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | have; and shall have      the same power to order discovery as a federal district court has under      the Federal Rule of Civil Procedure. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | The      provisions of this Section 12.13 shall not apply to any action by the Company      seeking to enforce its rights arising out of or related to the provisions      of Article      11 of thisAgreement. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | This      Section      12.13 is intended by the Company and the Executive      to be enforceable under the Federal Arbitration Act.  Should it      be determined by any court that the Act does not apply, then this Section 12.13 shall be enforceable under the applicable      arbitration statutes of the State ofDelaware. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | PRESTIGE      BRANDS HOLDINGS, INC.        |                          |
|--------|--------------------------------------------|-------------------------------|
|   |                                       |                          |   |
|   |                                       |                          |   |
|   | By:                                        | /s/ Gary      E. Costley |   |
|   | Name:      Gary E. Costley                 |                          |
|   | Title:   Lead      Director |                          |
|   |                                       |                          |   |
|   |                                       |                          |   |
|   | EXECUTIVE                                  |                          |
|   |                                       |                          |   |
|   |                                       |                          |   |
|   | /s/      Matthew M. Mannelly               |                          |
|   | Matthew      Mannelly                      |                          |
|   |                                       |                          |   |

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|   | (a)   |  that this      Agreement is written in a manner calculated to be understood by    him;                                                                                                                                                                |
|--------|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |            |                                                                                                                                                                                                                                                        |
|   | (b)        |  that he has      been advised in writing to consult with an attorney prior      to executing this Agreement;                                                                                                                                     |
|   |            |                                                                                                                                                                                                                                                        |
|   | (c)             | that      this Agreement represents Executive's knowing and voluntary waiver and      release of any and all claims that he might have, including, but not limited      to any claims arising under the Age Discrimination in Employment Act      ("ADEA"); |
|   |            |                                                                                                                                                                                                                                                        |
|   | (d)             | that      he has not waived any claim under the ADEA that may arise after the date      that this Agreement is executed;                                                                                                                                    |
|   |            |                                                                                                                                                                                                                                                        |
|   | (e)             | that      the consideration that he will receive in exchange for this Agreement is      something of value to which he is not otherwise  entitled;                                                                                                          |
|   |            |                                                                                                                                                                                                                                                        |
|   | (f)             | that      he has been given the option of at least twenty-one (21) days to consider      this Agreement prior to executing it; and                                                                                                                          |
|   |            |                                                                                                                                                                                                                                                        |
|   | (g)             | that,      within seven (7) days of signing this Agreement, he may revoke his      Agreement, and the Agreement will not become effective and enforceable      unless and until that seven (7) day period passes without his      revocation.               |

| IN      WITNESS WHEREOF, and intending to be legally bound hereby, the parties      have executed this General Release. |
|-------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                    |

|   | PRESTIGE BRANDS      HOLDINGS, INC. |
|--------|-------------------------------------|

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                     / |   | By:    |                                                                                                                                             / |
| [____________]                                                                                                   / Date                                                                                                                                                                                    |   |   |                                                                                                                                           / Date        |