Document:

Exhibit 10.5

                              MUELLER GROUP, INC.

                              EMPLOYMENT AGREEMENT

     This AGREEMENT (this "Agreement") is entered into as of February 1, 2003,
by and between George P. Bukuras currently of Hampton, New Hampshire and
Dedham, Massachusetts (the "Employee"), and Mueller Group, Inc., a Delaware
corporation'(the "Company").

     WHEREAS, the Employee is currently and has been employed by the Company
continuously since October 1, 2000 pursuant to certain understandings set forth
in an offer of employment letter dated August 16, 2000 and acceptance of
employment letter, inclusive of attachment(s) thereto, dated August 17, 2000;

     WHEREAS, the Company and the Employee desire to continue with this
employment relationship without interruption and by this Agreement to clarify
and modify, as of the Effective Date of this Agreement, certain of the prior
understandings between them concerning such employment;

     NOW, THEREFORE, in consideration of the covenants and conditions herein
contained and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged by each party, the parties hereto
hereby agree as follows:

     1. Employment. The Company shall employ the Employee commencing as of
February 1, 2003 (the "Effective Date") and continuing through the remaining
term hereof, and the Employee hereby accepts such employment, all upon the
terms and conditions set forth herein.

     2. Duties and Authority. The Employee shall hold the positions of Vice
President, General Counsel and Secretary of the Company and shall report to the
Chief Executive Officer of the Company. The Employee shall be the Chief Legal
Officer of the Company.

     3. Term and Termination. The term of this Agreement (the "Term") shall be
one (1) year commencing on the Effective Date and shall renew automatically for
additional one (1) year terms; provided, that:

               (i) The Company may terminate the Employee's employment for
          Cause (as defined below) at any time, effective immediately.

               (ii) The Employee may terminate his employment with the Company
          at any time, whether by voluntary resignation without Good Reason (as
          defined below) or for Good Reason, by not less than thirty (30) days
          prior written notice. For purposes of this

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          Agreement, the effective date of such termination of employment shall
          be deemed to be that date which is thirty (30) days after the date of
          said notice.

               (iii) The Employee's employment may be terminated by mutual
          written agreement with the Company (which, for purposes of this
          Agreement, shall be deemed to be a termination by the Company for
          other than Cause).

               (iv) In the event of termination of the Employee's employment:
          (a) by the Company for Cause, or (b) by the Employee's voluntary
          resignation other than for Good Reason, or (c) due to death of the
          Employee, or (d) due to Disability (as defined below) of the
          Employee, the Company shall continue to compensate the Employee in
          the normal course through the effective date of termination and the
          severance payment obligations of paragraph 4(d) shall be
          inapplicable.

               (v) For purposes of this Agreement. "Cause" shall mean the
          Employee's: (a) failure to substantially perform his duties, where
          the Employee refuses to remedy such failure after written
          notification and a reasonable opportunity to remedy; (b) conviction
          of a felony arising from any act of fraud, embezzlement or willful
          dishonesty in relation to the business or affairs of the Company or
          any other felonious conduct on the part of the Employee that is
          demonstratably detrimental to the best interests of the Company; (c)
          being repeatedly under the influence of illegal drugs or alcohol
          while performing his duties; or, (d) commission of any other willful
          act that is demonstratably injurious to the financial condition or
          business reputation of the Company.

               (vi) For purposes of this Agreement "Good Reason" shall mean:
          (a) a material diminution of the responsibilities, duties, authority
          or station of the Employee's position; (b) the requirement by the
          Company that the Employee relocate his place of employment, without
          the Employee's consent, outside the Southern New Hampshire and/or
          eastern Massachusetts area; or (c) the Requirement that the Employee
          engage in conduct in violation of federal, state or local laws or
          regulations.

               (vii) For purposes of this Agreement "Disability" shall be
          deemed to have occurred if the Employee has been unable to perform
          the duties of his employment due to mental or physical incapacity for
          a period of 6 consecutive months or for any 12 months in any period
          of 24 consecutive months.

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     4. Compensation. In return for his services hereunder, the Employee shall
be entitled to (i) the Salary as specified below, (ii) certain fringe benefits,
to the extent provided below.

          (a) Salary. Starting with the Effective Date, the Employee shall be
     paid a base salary (the "Salary") at an annual rate of not less than Two
     Hundred Thousand ($200,000) Dollars. Salary payments shall be made as
     customarily disbursed by the Company.

          (b) Bonus. The Employee shall receive an annual bonus, payable at the
     conclusion of each fiscal year, equivalent to not less than 5% of the
     bonus pool applicable to compensate executive management of the Company.
     It is acknowledged that prior to the effective date of this Agreement, the
     Employee's share of said bonus pool had been at the rate of 4%.

          (c) Fringe Benefits, Automobile and Expenses. The Employee shall be
     entitled to participate from time to time in all fringe benefits of the
     Company made available to employees generally, and employees of a class
     including the Employee. The Employee shall have use of a Company owned
     automobile. The Company shall promptly reimburse the Employee for all
     ordinary and necessary expenses incurred by the Employee on behalf of the
     Company. Notwithstanding anything contained in this paragraph 4(c) to the
     contrary, Employee acknowledges that: (i) the Company, through its Board
     of Directors, is contemplating the adoption of a plan to provide benefits
     to certain members of the management team in connection with a change of
     control transaction expected to be consummated during the current fiscal
     year, which benefits, if any, (all of which shall be granted prior to
     consummation of said transaction) may include special severance
     arrangements, grants of additional stock options, the acceleration of
     stock option vesting, the issuance of Company Stock, and/or the like (the
     "Transaction Benefits"); and (ii) the benefits afforded Employee pursuant
     to paragraph 4(d) of this agreement are and shall be in lieu of said
     Transaction Benefits.

          (d) Severance Payment. In the event the Employee is terminated: (x)
     by the Company for any reason other than for Cause, or (y) by voluntary
     resignation by the Employee for Good Reason, or (z) by mutual written
     agreement of the parties, whether any such termination occurs during or
     upon the expiration of the stated Term hereof or during or upon the
     expiration of any renewal of said Term, then the Employee shall be
     entitled to severance compensation in an amount equal to the sum of (A)
     eighteen (18) months Salary (at the rate then in effect), plus (B) one
     hundred fifty (150%) percent of the bonus paid or payable to the Employee
     for the fiscal year immediately preceding the fiscal year in

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<PAGE>

     which termination occurs; provided, however, that notwithstanding anything
     set forth in this Paragraph 4(d) to the contrary, the Company's obligation
     to make the severance payments provided for herein is and shall be
     conditioned upon the execution by the Employee and tender to the Company
     of a release of claims against the Company. Said release of claims shall
     be in a form conforming in all material respects to the Release attached
     hereto and incorporated herein as Exhibit #1 (the "Release"). Payment of
     such severance amounts shall be made by means of a single lump sum payment
     upon the later of: (i) that date which is thirty (30) calendar days after
     the effective date of the Employee's termination of employment, or (ii)
     that date which is ten (10) days after the date of delivery to the Company
     the Release as executed by the Employee.

     5. Provisions Relating to Employee Conduct and Termination of Employment.

          (a) Confidentiality. The Employee recognizes and acknowledges that
     certain assets of the Company constitute Confidential Information, as
     defined in Paragraph 5(c) below. The Employee agrees that at all times
     during his employment and thereafter for a period of three (3) years, he
     will keep and maintain all Confidential Information confidential.

          (b) Return of Materials. The Employee agrees that on the termination
     of his employment, however such termination may occur, the Employee will
     promptly return to the Company all materials and other property from time
     to time held by the Employee and proprietary to the Company, that is, all
     Confidential Information which had been reduced to written form.

          (c) Confidential Information. Confidential Information for purposes
     of this Agreement shall mean all trade secrets and other proprietary
     information of the Company not within the public domain.

          (d) Noncompetition. During the Term, inclusive of any renewal
     thereof, and (subject to the payment and performance by the Company of its
     obligations under Sections 3 and 4 hereof) for a period of one (1) year
     after the cessation of the Employee's employment with the Company, the
     Employee will not, directly or indirectly, compete with the Company
     anywhere in the United States or Canada.

     6. Miscellaneous.

          (a) Supercedes Prior Agreements. This Agreement is intended to
     supercede the prior agreement between the Employee and the

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<PAGE>

     Company as memorialized in correspondence between them dated August 16,
     2000 and August 17, 2000.

          (b) Binding Effect. This Agreement shall be binding upon and inure to
     the benefit of the heirs, executors, administrators, successors and
     assigns of the respective parties. In the event of a sale or transfer of
     substantially all of the Company's assets, and/or the businesses of the
     Company, the Company shall make as a condition of said sale or transfer
     the assumption by the purchaser or transferee of the obligations
     hereunder.

          (c) Notices. All notices and other communications hereunder shall be
     in writing or by written telecommunication (i.e., facsimile), and shall be
     deemed to have been duly given if delivered personally or if sent by
     overnight courier or by certified mail, return receipt requested, postage
     prepaid or sent by written telecommunication or telecopy, if to the
     Company, to its corporate headquarters and, if to the Employee to his last
     residence as shown on the records of the Company.

          (d) Venue; Jurisdiction; Fees. The parties hereto agree that any
     dispute hereunder, or otherwise relating to the Employee's employment
     relationship with the Company, whether or not arising during the term of
     this Agreement, shall be submitted to the federal or appropriate state
     court having jurisdiction and located in Massachusetts, and the parties
     consent to the exclusive venue and jurisdiction of such courts; and
     further that, should the Employee seek to enforce the Company's
     obligations hereunder and prevail, Employee shall be entitled to an award
     of attorney fees.

          (e) Governing Law. This Agreement is to be governed and construed
     according to the internal substantive laws of the Commonwealth of
     Massachusetts, without regard to its conflict of laws provisions, and is
     to take effect as an instrument under seal.

          (f) Conflicts. To the extent that this Agreement conflicts with any
     provision, in any handbook, policy manual, rule or regulation, the
     provisions of this Agreement shall take precedence.

                 [ Remainder of Page Intentionally Left Blank ]

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<PAGE>

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

                                      MUELLER GROUP, INC.

                                      BY:
                                          ------------------------------------
                                          Name: Dale B. Smith
                                          Title: Chief Executive Officer

                                      ----------------------------------------
                                      George P. Bukuras

                                       6
<PAGE>

                                   Exhibit #1
                                       To
                     Agreement between Mueller Group, Inc.
                                      And
                               George P. Bukuras
                            Dated February __, 2003

                                                                           DATE

                                    RELEASE

As consideration and a material inducement to Mueller Group, Inc. (the
"Company") to provide to me the Severance Payments ( the "Severance Payment")
referred to in Paragraph 4(d) of a certain Agreement between me and the Company
dated February, 2003 (the "Agreement"), I, George P. Bukuras, hereby
voluntarily, irrevocably, and unconditionally release and forever discharge the
Company's owners, partners, predecessors, successors, assigns, agents,
insurers, directors, officers, employees, representatives, subsidiaries,
affiliates, and all persons acting through, by, under, or in concert with any
of the above, from any and all complaints, claims, demands, liabilities, or
rights, whether known or unknown and whether in law or in equity, that I had,
now have, or may claim to have in the future that arise in whole or in part
from my employment at or termination from the Company. This general release
specifically includes, but is not limited to, claims for unpaid wages, claims
of discrimination under Title VII of the Civil Rights Act of 1964, the Age
Discrimination In Employment Act ("ADEA") (see attached STATEMENT OF RIGHTS
UNDER ADEA), or any other prohibited basis identified under any federal, state
or local statute, regulation or ordinance, claims under the Fair Labor
Standards Act, claims for work-related injury or illness, whether physical in
nature or manifested by psychological or emotional stress, claims of fraud,
conspiracy, breach of employment contract, interference with employment
contract, wrongful discharge in violation of public policy, breach of the
implied covenant of good faith and fair dealing, infliction (negligent or
intentional) of emotional distress, or any other claim arising out of my
employment or severance of my employment with the Company including, but not
limited to, any claims under any federal, state or local statute, regulation,
ordinance or common law. Notwithstanding anything set forth in this general
release to the contrary, nothing herein is intended or shall be construed or
understood to diminish or limit in any way any of the protections and/or
benefits to which I may be entitled, as an employee or former employee of the
Company, pursuant to any directors and officers liability insurance policy
maintained by the Company at any time and from time to time.

<PAGE>

Understanding of Release
------------------------
It is expressly understood and intended that, except as otherwise set forth
herein, this is my complete and final release of any and all claims of whatever
nature against the Company I further acknowledge and agree that this release is
an essential material provision of the Agreement and that without this Release,
the Severance Payment provided for in the Agreement would not be made in
connection with my separation from the Company. I understand, warrant, and
agree that I am responsible for any federal, state, and local taxes, which may
be owed by me by virtue of the receipt of the Severance Payment.

The Company's Non-Admission of Liability
----------------------------------------
I understand that the Company shall tender to me the Severance Payment provided
for in the Agreement solely to ease the impact of the loss of my employment and
to effectuate a mutually acceptable separation from my employment with the
Company. The fact that the Company is making the Severance Payment to me shall
not be understood or construed as an admission that the Company has violated my
rights in any manner whatsoever, or the rights of anyone else.

Miscellaneous
-------------
This Agreement shall be governed by and construed in accordance with the
internal laws of the Commonwealth of Massachusetts without regard to its
conflicts of law principles. The Agreement and this Release shall be binding
upon the respective heirs, legal representatives, successors, and assigns of me
and the Company.

ACKNOWLEDGEMENT
---------------

I ACKNOWLEDGE THAT I HAVE THE RIGHT TO CONSULT MY FINANCIAL, TAX AND LEGAL
ADVISORS REGARDING THIS RELEASE BEFORE SIGNING AND THAT I AM ENCOURAGED BY THE
COMPANY TO CONSULT SUCH ADVISORS BEFORE SIGNING. FURTHER I ACKNOWLEDGE THAT I
HAVE HAD SUFFICIENT TIME TO CONSIDER THE TERMS OF THIS RELEASE.

MY SIGNATURE BELOW IS EVIDENCE THAT I HAVE CAREFULLY READ AND FULLY UNDERSTAND
ALL OF THE PROVISIONS OF THIS RELEASE AND THAT I HAVE HAD SUFFICIENT TIME AND
OPPORTUNITY TO CONSIDER THE SEVERANCE PAYMENT AND RELEASE PROVISIONS CONTAINED
IN THE AGREEMENT AND/OR IN THIS RELEASE AND CONSULTED WITH MY FINANCIAL, TAX,
AND LEGAL ADVISORS BEFORE SIGNING THIS RELEASE. I VOLUNTARILY ACCEPT THE TERMS
STATED IN THIS RELEASE. I ACKNOWLEDGE THAT I AM NOT UNDER DURESS, COERCION, OR

<PAGE>

UNDUE INFLUENCE AND HAVE CHOSEN TO EXECUTE THIS RELEASE VOLUNTARILY.

I ACKNOWLEDGE THAT I AM ENTITLED TO UP TO TWENTY-ONE (21) DAYS TO CONSIDER
WHETHER OR NOT TO SIGN THIS RELEASE. IF I DECIDE TO SIGN, THE EXECUTED RELEASE
MUST BE RETURNED TO DALE SMITH NO LATER THAN 5:00 P.M., ----------2-----. I MAY
SIGN THIS RELEASE PRIOR TO THE END OF THE TWENTY-ONE (21) DAY PERIOD, BUT THE
COMPANY CANNOT REVOKE THIS OFFER BEFORE THEN.

I ACKNOWLEDGE THAT IF I DECIDE TO EXECUTE THIS RELEASE, I HAVE SEVEN (7) DAYS
AFTER DOING SO TO REVOKE THE SEVERANCE PAYMENT AND RELEASE PROVISIONS OF THE
AGREEMENT AND THIS RELEASE. THAT MEANS THAT IF, FOR ANY REASON, I DECIDE THAT
SIGNING THIS RELEASE WAS NOT IN MY BEST INTEREST, I HAVE SEVEN (7) DAYS AFTER
SIGNING TO MAKE THAT DECISION. SUCH REVOCATION MUST BE IN WRITING AND RECEIVED
BY THE COMPANY NO LATER THEN 5:00 P.M. ON THE SEVENTH (7TH) CALENDAR DAY (OR
THE FIRST WORK DAY THEREAFTER), BEGINNING WITH THE DAY AFTER I EXECUTE THIS
AGREEMENT.

The terms of the Agreement (inclusive of the fringe and the other benefits
referred to therein) and this Release constitute the entire understanding
concerning my employment, separation and all other subjects addressed in the
Agreement and this Release. Except as specifically provided herein, the
Agreement and this Release supersede and replace all prior negotiations and all
agreements, proposed or otherwise, whether written or oral, concerning the
subject matter herein.

Attachment                                         George P. Bukuras (date)

<PAGE>

                         STATEMENT OF RIGHTS UNDER ADEA

          NOTE: THIS STATEMENT IS BEING FURNISHED TO YOU IN CONJUNCTION WITH AN
          OFFER TO PROVIDE YOU WITH SEVERANCE PAYMENTS, TO WHICH YOU ARE NOT
          OTHERWISE ENTITLED, IN EXCHANGE FOR YOUR AGREEMENT TO RELEASE OR
          WAIVE CLAIMS UNDER THE FEDERAL AGE DISCRIMINATION IN EMPLOYMENT ACT
          AND CERTAIN OTHER LAWS (HEREINAFTER SOMETIMES REFERRED TO AS THE
          "RELEASE AGREEMENT"). PLEASE READ THIS STATEMENT CAREFULLY AND
          ACKNOWLEDGE BELOW.

          The federal Age Discrimination in Employment Act ("ADEA") (29 U.S.C.
     ss. 621 et seq.) prohibits an employer from discriminating against any
     employee age 40 or over because of that individual's age. The Act
     prohibits discrimination in all terms and conditions of employment,
     including hiring, promotions, transfers, demotions, salary or termination.

          The ADEA also provides employees/former employees with certain rights
     in connection with any release or waiver of claims under the ADEA.
     Specifically, in order for such a release or waiver to be valid, the
     following must occur:

          (1) The release or waiver must be part of an agreement between the
     individual and the employer that is written in a manner that can be
     understood by the individual or by an average individual eligible to
     participate (29 U.S.C. ss. 626(f)(1)(A)).

          (2) The waiver must specifically refer to rights or claims arising
     under the ADEA. (29 U.S.C. ss. 626(f)(1)(B)).

          (3) The individual is not required to waive rights or claims that
     arise after the date the waiveris executed. (29 U.S.C. ss. 626(f)(1)(C)).

          (4) The individual may waive rights or claims only in exchange for
     consideration in addition to anything of value to which he is already
     entitled. (29 U.S.C. ss. 626(f)(1)(D)).

          (5) THE INDIVIDUAL MUST BE ADVISED IN WRITING TO CONSULT WITH AN
     ATTORNEY BEFORE SIGNING THE RELEASE AGREEMENT. (29 U.S.C. ss.
     626(f)(1)(E)).

          (6) THE INDIVIDUAL MUST BE GIVEN A PERIOD OF AT LEAST TWENTY-ONE (21)
     DAYS IN WHICH TO CONSIDER THE RELEASE AGREEMENT. (29 U.S.C. ss. 626
     (f)(1)(F)(i)).

<PAGE>

          (7) THE RELEASE AGREEMENT MUST PROVIDE FOR A PERIOD OF AT LEAST SEVEN
     (7) DAYS AFTER THE RELEASE AGREEMENT'S EXECUTION IN WHICH THE INDIVIDUAL
     MAY REVOKE THE RELEASE AGREEMENT. Furthermore, the Release Agreement must
     not become effective or enforceable until this revocation period has
     passed. (29 U.S.C. ss. 626(f)(1)(G)).

          This statement has been provided to you in conjunction with a request
     or offer to enter into an agreement that provides, among other things,
     that you release or waive your right to make claims under the ADEA.

          In conformance with the requirements set forth above, Employer
     hereby:

          a.   ADVISES YOU TO CONSULT AN ATTORNEY BEFORE YOU SIGN THE RELEASE
               AGREEMENT.

          b.   OFFERS YOU IN EXCESS OF TWENTY-ONE (21) DAYS from your receipt
               of the proposed Release Agreement and this statement to consider
               and sign the Release Agreement. The Release Agreement should be
               returned to us with your signature by -----,2--in order to be
               accepted.

          c.   Allows you SEVEN (7) DAYS after the date you return the Release
               Agreement with your signature to revoke the Release Agreement.
               If we receive no revocation within that period, the Release
               Agreement will become effective and enforceable. Your revocation
               must be in writing, and sent by certified mail or facsimile to:

                        Dale B. Smith
                        President
                        Mueller Group, Inc.
                        500 West El Dorado Street
                        PO Box 671
                        Decatur, IL 62525
                        Telephone:
                        Facsimile:

<PAGE>

     IF YOU DO NOT UNDERSTAND ANYTHING IN OR ABOUT THIS STATEMENT OF RIGHTS,
THE PROPOSED RELEASE AGREEMENT, OR THE RELEASE OR WAIVER OF RIGHTS CONTAINED IN
THE PROPOSED RELEASE AGREEMENT, PLEASE LET US KNOW SO THAT WE CAN PROVIDE
CLARIFICATION. WE WILL ASSUME, AND ASK ANY COURT OR TRIER OF FACT TO ASSUME,
THAT YOU HAVE UNDERSTOOD EVERYTHING ON WHICH CLARIFICATION HAS NOT BEEN SOUGHT.

     In order to document compliance with the various legal requirements
described above, we will need you to sign and date the acknowledgment of
receipt of this Statement and the proposed Release Agreement in which the
release/waiver of claims under the ADEA appears. You will be provided with a
copy of this Statement and your acknowledgment of receipt for your records.

                           ACKNOWLEDGMENT OF RECEIPT

     I HEREBY ACKNOWLEDGE THAT ON THE DATE INDICATED BELOW, I RECEIVED A COPY
OF THE PROPOSED RELEASE AGREEMENT THAT INCLUDES A WAIVER/RELEASE OF CLAIMS
UNDER THE ADEA, AND OF THE STATEMENT OF RIGHTS UNDER THE ADEA.

Dated:               ,
       --------- ----      ------------------------------------------
                                    George P. BukurasExhibit 10.6

                              MUELLER GROUP, INC.

                          KEY EMPLOYEE SEVERANCE PLAN

                         Effective as of March 1, 2003

I.        INTENT

          Mueller Group, Inc. believes in mitigating potential financial
          hardship caused by a cessation of employment under certain
          circumstances. This Key Employee Severance Plan (this "Plan") is
          intended to ensure that the interests of Eligible Employees (as
          defined below) and Mueller Group, Inc. and its subsidiaries and
          affiliated companies (collectively, the "Company") are appropriately
          considered if and when such a cessation of employment occurs. As of
          its effective date, this Plan supersedes and completely replaces any
          prior severance or termination plan, practice or policy previously
          applicable to any Eligible Employee.

II.       SCOPE

          This Plan extends to those employees of the Company listed on Exhibit
          I attached hereto, as may be amended from time to time ("Eligible
          Employees").

III.      POLICY

          In accordance with Section I above, Severance Pay (as defined below)
          shall be paid to any Eligible Employee:

               (a) who is terminated by the Company because of lack of work,
          the elimination of the Eligible Employee's position or any other
          reason other than Cause (as defined below); or

               (b) who resigns as a result of a Constructive Termination
          Without Cause (as defined below).

          in either case where such cessation of employment occurs within 12
          months following a Change of Control. "Severance Pay" shall equal 18
          months of the Eligible Employee's annual base salary (at the rate in
          effect on the effective date of his or her cessation of employment).
          Payment of such amount shall be made in equal monthly installments
          commencing on the first payroll date after the effective date of the
          Eligible Employee's

<PAGE>

          cessation of employment, subject to Section VI for any Eligible
          Employee who is rehired while or after receiving Severance Pay.

          The provision of Severance Pay is conditioned upon the Eligible
          Employee's execution of a release of claims against the Company in
          the form provided by the Company.

IV.       EXAMPLES

          Set forth below are some (but not all) situations in which an
          Eligible Employee shall be entitled to Severance Pay and some (but
          not all) situations in which an Eligible Employee shall not be
          entitled to Severance Pay.

          A.   Examples of cessations of employment for which Severance Pay is
               granted:

          o    A reduction in force that results in a lack of work for the
               Eligible Employee or in the elimination of the Eligible
               Employee's position.

          o    The lack of a position after an Eligible Employee returns from a
               medical leave of absence. The Company shall comply in all
               respects with the Americans with Disabilities Act, the Family
               and Medical Leave Act and all other applicable law in placing
               Eligible Employees when they are able to return to work after
               their medical leaves of absence, as determined by a written
               doctor's clearance which must be submitted to the Administrative
               Committee. The Company shall endeavor to return such Eligible
               Employees to their positions. However, the ability of the
               Company to accomplish the objective of the previous sentence
               depends upon various factors (including business conditions, the
               ability of the Eligible Employee to perform his or her duties
               and responsibilities with his or her available skills, the
               length of the Eligible Employee's leave and Americans with
               Disabilities Act accommodations, if requested). Eligible
               Employees who are unable to return to their positions because of
               such factors shall receive Severance Pay in accordance with this
               Plan.

          o    A sale or other transfer by the Company of a subsidiary or other
               business unit with which the Eligible Employee is associated
               (including a facility or other assets) to a successor, other
               than the Company or its affiliates, where the Eligible Employee
               is not offered continuing employment by the successor.

                                       2
<PAGE>

          B.   Examples of cessations of employment for which Severance Pay is
               not granted:

          o    Death.

          o    Total Disability.

          o    Voluntary resignation for any reason other than a
               ConstructiveTermination Without Cause.

          o    Retirement.

          o    Failure to return to work after an approved leave of absence,
               other than (i) as described in Section IV.A. or (ii) where such
               failure is formally approved by the Administrative Committee.

          o    Discharge for Cause.

          o    A sale or other transfer by the Company of a subsidiary or other
               business unit with which the Eligible Employee is associated
               (including a facility or other assets) to a successor other than
               the Company or its affiliates, where the Eligible Employee is
               offered continuing employment by the successor.

V.        FUNDING

          The Company (or its successor) shall pay Severance Pay from its
          current operating funds. No property of the Company is or shall be,
          by reason of this Plan, held in trust for any employee of the
          Company, nor shall any person have any interest in or any lien or
          prior claim upon any property of the Company by reason of this Plan
          or the Company's obligations to make payments under this Plan.

VI.       RE-EMPLOYMENT

          The payment of Severance Pay to any Eligible Employee who is rehired
          by the Company or its affiliates while receiving such Severance Pay
          shall cease immediately.

          If an Eligible Employee is rehired by the Company or its affiliates
          while or after receiving any Severance Pay and such employment
          thereafter ceases in a manner that qualifies him or her for Severance
          Pay, such Severance Pay shall be adjusted to reflect any amounts
          previously received as Severance Pay, as determined in good faith by
          the Administrative Committee.

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<PAGE>

VII.      SET-OFF

          Any Severance Pay of any Eligible Employee shall be reduced by any
          other severance benefits, pay in lieu of notice or other similar
          benefits payable to the Eligible Employee from or on behalf of the
          Company or any prior employer of the Eligible Employee, which becomes
          payable on account of his or her cessation of employment pursuant to:

               (a) any applicable law, statute, regulation, court order or
          other legal requirement, including without limitation, the Worker
          Adjustment and Retraining Notification Act, as amended from time to
          time;

               (b) a written employment or severance agreement with the
          Company;

               (c) any Company policy providing for an employee to remain on
          the payroll for a limited period of time after he or she is given
          notice of his or her termination of employment; or

               (d) any other obligation by any other individual or entity other
          than the Company to provide a payment to the Eligible Employee in the
          event of an involuntary termination of his or her employment.

VIII.     ADMINISTRATION

          This Plan shall be administered by an Administrative Committee
          appointed by the Board of Directors of the Holding Company (as
          defined below). For purposes of the Employee Retirement Income
          Security Act of 1974, as amended from time to time ("ERISA"), the
          Administrative Committee shall be the "administrator" and the "named
          fiduciary" with respect to the general administration of this Plan.
          The Administrative Committee may, in its discretion, delegate its
          duties to a named administrator or administrators.

          The Administrative Committee shall have absolute discretion to
          construe and interpret any and all provisions of this Plan and to
          decide all matters of fact in granting or denying benefit claims,
          including without limitation the discretion to resolve ambiguities,
          inconsistencies or omissions conclusively; provided, however, that
          all such discretionary interpretations and decisions shall be applied
          in a uniform and nondiscriminatory manner to all Eligible Employees
          who are similarly situated. The decisions of the Administrative
          Committee upon all matters within the scope of its authority shall be
          binding and conclusive upon all persons.

                                       4
<PAGE>

          No member of the Administrative Committee shall have any right to
          vote or decide upon any matter relating solely to himself or herself
          under this Plan or to vote in any case in which his or her individual
          right to claim any benefit under this Plan is particularly involved.
          In any case in which an Administrative Committee member is so
          disqualified to act and the remaining members cannot agree, the Board
          of Directors of the Holding Company shall appoint a temporary
          substitute member to exercise all the powers of the disqualified
          member concerning the matter in which he or she is disqualified.

          The members of the Administrative Committee shall not receive
          compensation with respect to their services for the Administrative
          Committee. To the extent required by ERISA or other applicable law,
          or required by the Company, members of the Administrative Committee
          shall furnish bond or security for the performance of their duties
          under this Plan, which shall be paid pursuant to the last paragraph
          of this Section VIII.

          The reasonable expenses incident to the administration of this Plan,
          including the compensation of legal counsel, advisors, other
          technical or clerical assistance as may be required, the payment of
          any bond or security pursuant to this Plan and any other expenses
          incidental to the operation of this Plan, which the Administrative
          Committee determines are proper, shall be paid by the Company.
          Expenses of this Plan may be prorated among entities comprising the
          Company, as determined by the Administrative Committee.

IX.       INDEMNIFICATION

          The Company shall indemnify and hold harmless each member of the
          Administrative Committee and each employee of the Company who is a
          fiduciary under this Plan against any and all expenses and
          liabilities arising out of his or her administrative functions or
          fiduciary responsibilities relating to this Plan, including any
          expenses and liabilities that are caused by or result from an act or
          omission constituting the negligence of such individual in the
          performance of such functions or responsibilities, but excluding
          expenses and liabilities arising out of such individual's own gross
          negligence or willful misconduct. Expenses against which such person
          shall be indemnified under this Plan include, without limitation, the
          amounts of any settlement or judgment, costs, counsel fees and
          related charges reasonably incurred in connection with a claim
          asserted or a proceeding brought or settlement thereof.

                                       5
<PAGE>

X.        CLAIMS PROCEDURES

          The Administrative Committee shall determine the rights of any
          Eligible Employee or former Eligible Employee of the Company to any
          Severance Pay under this Plan. Any such individual who believes that
          he or she has been denied Severance Pay under this Plan to which he
          or she believes that he or she is entitled may file a claim in
          writing with the Administrative Committee. The Administrative
          Committee shall, within 90 days after receipt of a claim, either
          allow or deny the claim in writing. If a claimant does not receive
          written notice of the decision on his claim within 90 days, the claim
          shall be deemed to have been denied in full.

          Within 60 days after any denial of a claim, the denial maybe appealed
          by filing a written request with the Administrative Committee which
          shall conduct a review and file a written decision thereof. Written
          decisions shall be written in a manner intended to be understood by
          the claimant and shall state the specific reasons for the decision
          and the Plan provisions on which the decision was based and shall, to
          the extent permitted by law, be binding on all interested persons.

XI.       AMENDMENT OR TERMINATION OF THIS PLAN

          Notwithstanding any communication, either oral or written, made by
          the Company, the Administrative Committee or any other individual or
          entity, Mueller Group, Inc. reserves the absolute and unconditional
          right to amend this Plan from time to time, including without
          limitation, the right to reduce or eliminate benefits provided
          pursuant to the provisions of this Plan as such provisions currently
          exist or may hereafter exist; provided that any amendment that would
          adversely affect an Eligible Employee shall not be effective without
          the consent of the affected Eligible Employee. All amendments to this
          Plan shall be (a) authorized or ratified by the Administrative
          Committee and (b) in writing and signed by an authorized officer of
          Mueller Group, Inc. Any oral statements or representations made by
          the Company, the Administrative Committee or any other individual or
          entity that alter, modify, amend or are inconsistent with the written
          terms of this Plan shall be invalid and unenforceable and may not be
          relied upon by any person.

          Notwithstanding any communication, either oral or written, made by
          the Company, the Administrative Committee or any other individual or
          entity, Mueller Group, Inc. reserves the absolute and unconditional
          right to terminate this Plan, in whole or in part with respect to
          some or all Eligible Employees; provided that any termination that
          would adversely affect an Eligible Employee shall not be effective
          without the consent of the

                                       6
<PAGE>

          affected Eligible Employee. Any such termination of this Plan
          shall be authorized or ratified by the Board of Directors of the
          Holding Company.

          In the event of an amendment to or termination of this Plan as
          provided under this Section XI, each Eligible Employee shall have no
          further rights under this Plan, and the Company shall have no further
          obligations under this Plan, except as otherwise specifically
          provided under this Plan; provided, however, that no amendment or
          termination shall be made that would reduce any accrued benefits
          arising from incurred but unpaid claims of Eligible Employees
          existing prior to the effective date of such amendment or
          termination.

XII.      MISCELLANEOUS

          Neither this Plan nor any provisions contained in this Plan shall be
          construed to be a contract between the Company and an Eligible
          Employee, or to be consideration for, or an inducement of, the
          employment of any Eligible Employee by the Company. Nothing contained
          in this Plan shall grant any Eligible Employee the right to be
          retained in the service of the Company or limit in any way the right
          of the Company to discharge or to terminate the service of any
          Eligible Employee at any time, without regard to the effect such
          discharge or termination may have on any rights under this Plan.

          Except as the Administrative Committee may otherwise permit by rule
          or regulation, no interest in or benefit payable under this Plan
          shall be subject in any manner to anticipation, alienation, sale,
          transfer, assignment, pledge, encumbrance or charge, and any action
          by an Eligible Employee to anticipate, alienate, sell, transfer,
          assign, pledge, encumber or charge the same shall be void and of no
          effect, nor shall any interest in or benefit payable under this Plan
          be in any way subject to any legal or equitable process, including
          without limitation, garnishment, attachment, levy or seizure, or to
          the lien of any person. This provision shall be construed to provide
          each Eligible Employee, or other person claiming any interest or
          benefit in this Plan through a Eligible Employee, with the maximum
          protection permitted by law against alienation, encumbrance and any
          legal and equitable process, including without limitation,
          attachment, garnishment, levy, seizure or other lien, afforded his or
          her interest in this Plan (and the benefits provided under this Plan)
          by law and any applicable regulations. Notwithstanding the preceding
          sentence, however, the Company may withhold from any amounts payable
          under this Plan such federal, state or local taxes as shall be
          required to be withheld pursuant to any applicable law or regulation.

                                       7
<PAGE>

          In case any provision of this Plan is held to be illegal, invalid or
          unenforceable for any reason, such illegal, invalid or unenforceable
          provision shall not affect the remaining provisions of this Plan, but
          this Plan shall be construed and enforced as if such illegal, invalid
          or unenforceable provision had not been included in this Plan.

          Except to the extent that ERISA or any other federal law applies to
          this Plan and preempts state law, this Plan shall be construed,
          enforced and administered according to the laws of the state of New
          York.

XIII.     DEFINITIONS

          For purposes of this Plan, the following definitions shall apply:

               (a) "Cause" means, with respect to any Eligible Employee, the
          Eligible Employee's (i) failure to act in accordance with the lawful
          instructions of the Board of Directors of the Holding Company or his
          or her superiors (other than where such failure results from the
          Eligible Employee's death or Total Disability, as defined below),
          where the Eligible Employee refuses to remedy such failure after
          notification; (ii) any willful violation by the Executive of any of
          the Company's policies of which the Executive has been given prior
          notice and which violation is demonstrably detrimental to the best
          interests of the Company or its affiliates (other than where such
          failure results from the Eligible Employee's death or Total
          Disability), where the Eligible Employee refuses to remedy such
          failure after notification; (iii) commission of a felony arising from
          or any act of fraud, embezzlement or willful dishonesty in relation
          to the business or affairs of the Company or its affiliates or any
          other felonious conduct on the part of the Eligible Employee that is
          demonstrably detrimental to the best interests of the Company or its
          affiliates; (iv) being repeatedly under the influence of illegal
          drugs or alcohol; or (v) commission of any other willful act that is
          demonstrably injurious to the financial condition or business
          reputation of the Company or its affiliates, including the Eligible
          Employee's breach of the provisions of any written noncompetition,
          nonsolicitation or confidentiality covenant in favor of the Company
          binding upon the Eligible Employee; provided, however, that a finding
          of Cause shall only be determined by the Administrative Committee in
          good faith.

               (b) "Change of Control" means:

               (i) any "person" (as such term is used in Section 3(a)(9) and
          l3(d)(3) of the Securities Exchange Act of 1934, as amended from time
          to time), other than (A) the DLJ Entities (as defined in the
          Stockholders Agreement) and/or their respective Permitted Transferees
          (as defined in

                                       8
<PAGE>

          the Stockholders Agreement) or (B) any "group" (within the
          meaning of such Section 13(d)(3)) of which the DLJ Entities
          constitute a majority (on the basis of ownership interest), acquires,
          directly or indirectly, by virtue of the consummation of any
          purchase, merger or other combination, securities of the Holding
          Company representing more than 51% of the combined voting power of
          the Holding Company's then outstanding voting securities with respect
          to matters submitted to a vote of the stockholders generally;

               (ii) a sale or transfer by the Holding Company or any of its
          subsidiaries of all or substantially all of the consolidated assets
          of the Company and/or of its subsidiaries to an entity which is not
          an affiliate of the Company prior to such sale or transfer; provided,
          however, that such a sale or transfer shall not constitute a Change
          of Control with respect to any Eligible Employee who is not
          associated with the entity or the assets being so sold or
          transferred; or

               (iii) approval by the stockholders of the Holding Company of a
          liquidation or dissolution of the Holding Company.

               (c) "Constructive Termination Without Cause" means, with respect
          to any Eligible Employee, a termination of the Eligible Employee's
          employment at his or her initiative following the occurrence, without
          the Eligible Employee's prior written consent, of one or more of the
          following events:

               (i) the material diminution of the Eligible Employee's position,
          duties or responsibilities as in effect immediately prior to a Change
          of Control, excluding immaterial actions not taken in bad faith and
          which, if capable of being remedied, are remedied by the Company
          within 30 days after receipt of notice thereof given by the Eligible
          Employee; or

               (ii) the Company relocates its principal offices, or requires
          the Eligible Employee to have his or her principal location of work
          changed, to any location that is in excess of 100 miles from the
          location thereof on the date immediately prior to a Change of Control
          (other than any relocation recommended or approved by the Eligible
          Employee).

               (d) "Holding Company" means Mueller Holdings (N.A.), Inc.

               (e) "Stockholders Agreement" means the Stockholders Agreement
          dated as of August 16, 1999 among (i) the Company, (ii) DLJ Merchant
          Banking Partners II, L.P., DLJ Merchant Banking Partners II-A, L.P.,
          DLJ Offshore Partners II, C.V., DLJ Diversified Partners, L.P., DLJ
          Diversified Partners-A, L.P., DLJMB Funding II, Inc., DLJ Millennium

                                       9
<PAGE>

          Partners, L.P., DLJ Millennium Partners-A, L.P., DLJ EAB Partners,
          L.P., DLJ ESC II, L.P. and DLJ First ESC, L.P. and (iii) certain
          other persons listed on the signature pages thereof, as amended from
          time to time.

               (f) "Total Disability", with respect to any Eligible Employee,
          shall be deemed to have occurred if the Eligible Employee shall have
          been unable to perform the duties of his or her employment due to
          mental or physical incapacity for a period of 6 consecutive months or
          for any 12 months in any period of 24 consecutive months.

                                      10
<PAGE>

                                                                      EXHIBIT I

                               Eligible Employees

Ernie Chuter

Brad Eldredge

Tom Fish

Nikki Kennett

Bob Kim

Ron Pound

Walt Smith

Bill Strouss

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