Document:

Amendment No. 3 to Credit Agreement

Exhibit 10.4

BRAND
SERVICES, INC.

 

AMENDMENT
NO. 3 TO CREDIT AGREEMENT

 

This
AMENDMENT
NO. 3 TO CREDIT AGREEMENT (this
"Amendment") is
dated as of January 14, 2005, and entered into by and among BRAND
SERVICES, INC. ("Borrower"),
THE
FINANCIAL INSTITUTIONS LISTED ON THE SIGNATURE PAGES HEREOF
("Lenders"), and
CREDIT
SUISSE FIRST BOSTON, as
administrative agent for Lenders (in such capacity, "Administrative
Agent"), and,
solely for purposes of Section 4 hereof, the CREDIT
SUPPORT PARTIES LISTED ON THE SIGNATURE PAGES HEREOF, and is
made with reference to that certain Credit Agreement dated as of
October 16, 2002, by and among Borrower, Lenders, JPMorgan Chase Bank, as
syndication agent for Lenders, Administrative Agent, Credit Suisse First Boston
and J.P. Morgan Securities Inc., as joint lead arrangers and book managers, and
Antares Capital Corporation and General Electric Capital Corporation, as
co-documentation agents for Lenders, as amended by that certain First Amendment
and Limited Waiver to Credit Agreement dated as of February 3, 2004, and
that certain Amendment No. 2 and Limited Waiver No. 3 to Credit
Agreement dated as of November 9, 2004 (as so amended, the "Credit
Agreement").
Capitalized terms used herein without definition shall have the same meanings
herein as set forth in the Credit Agreement as amended by this Agreement (the
"Amended
Credit Agreement").

 

R
E C I T A L S

 

WHEREAS, the
parties hereto desire to amend the Credit Agreement as set forth herein, on and
subject to the terms, conditions and agreements set forth herein; 

 

NOW,
THEREFORE, in
consideration of the representations, warranties, covenants and agreements
herein contained, the parties hereto agree as follows: 

 

SECTION
1.    AMENDMENT TO CREDIT
AGREEMENT

 

Subsection
7.7(i) of the Credit Agreement is hereby amended by inserting the following text
immediately before the semicolon at the end of such subsection: 

 

"and
(z) any Subsidiary of Borrower may (1) convert from a corporation to a
limited liability company, or vice versa, or (2) change its jurisdiction of
incorporation or formation, in either case so long as (a) if such
Subsidiary was a Domestic Subsidiary before giving effect to such conversion or
change, it will continue to be a Domestic Subsidiary after giving effect to such
conversion or change, (b) if such Subsidiary was a Subsidiary Guarantor
before giving effect to such conversion or change, it will continue to be a
Subsidiary Guarantor after giving effect to such conversion or change,
(c) if the Capital Stock of such Subsidiary was pledged to Administrative
Agent (or to any Supplemental Collateral Agent), for the benefit of Lenders,
before giving effect to such conversion or change, it will continue to be (or
will immediately become) pledged to Administrative Agent (or to a Supplemental
Collateral Agent), for the benefit of Lenders, after giving effect to such
conversion or change, (d) Borrower shall deliver a written notice under
subsection 6.1(xv) with respect to such Subsidiary as though such
Subsidiary had become a Subsidiary of Parent or Borrower as a result of such
conversion or change (it being understood that such written notice shall be
deemed to supplement Schedule 5.1 annexed
hereto for all purposes of this Agreement), and (e) Borrower shall, and
shall cause the other Loan Parties to, give notice of such conversion or change
in accordance with the Security Agreement, deliver updated schedules to the
Security Agreement, take such other actions as may be required under the
Security Agreement, this Agreement, and the other Loan Documents, and take such
further actions (including, without limitation, actions similar to those
contemplated by subsections 6.8 and 6.9 of this Agreement) as may be
necessary or, in the opinion of Administrative Agent, desirable in order to
continue and maintain the existence, attachment, perfection, and priority of all
Liens in favor of Administrative Agent (or any Supplemental Collateral Agent),
for the benefit of Lenders, on the Capital Stock or assets of such Subsidiary as
in effect before giving effect to such conversion or change". 

 

SECTION
2.    CONDITIONS TO
EFFECTIVENESS

 

Section 1
of this Amendment shall become effective only upon the satisfaction of all of
the following conditions precedent (the date of satisfaction of such conditions
being referred to herein as the "Amendment
Effective Date"):

 

A.    Execution and
Delivery. The
Borrower, the Administrative Agent, the Credit Support Parties, and a sufficient
percentage of the Lenders to approve this Amendment in accordance with
subsection 10.6 of the Credit Agreement shall have signed one or more
counterparts to this Amendment and delivered such counterparts to O’Melveny
& Myers LLP, counsel to the Administrative Agent (including, without
limitation, delivery via facsimile or electronic mail). 

 

B.    Legal Fees
and Other Amounts Owing to Agents. Borrower
shall have paid to each Agent all amounts owing to such Agent (other than
amounts owing to such Agent solely in its capacity as a Lender or Issuing
Lender) as of such date under subsection 10.2 of the Credit Agreement or
otherwise, to the extent then invoiced, including, without limitation, all of
such Agent’s reasonable costs and expenses as described in subsection 10.2
of the Credit Agreement (including, without limitation, the reasonable fees,
expenses and disbursements of O’Melveny & Myers LLP) in connection with the
Credit Agreement and this Amendment and all documents and transactions related
thereto and hereto. 

 

SECTION
3.    BORROWER’S
REPRESENTATIONS AND WARRANTIES

 

In order
to induce Lenders to enter into this Amendment, Borrower represents and warrants
to each Lender that the following statements are true, correct and complete:

 

A.    Corporate
Power and Authority.
Borrower has all requisite corporate power and authority to enter into this
Amendment and to carry out the transactions contemplated by the Amended Credit
Agreement. 

 

B.    Authorization
of Agreements. The
execution and delivery of this Amendment and the performance of the Amended
Agreement have been duly authorized by all necessary corporate action on the
part of Borrower. 

 

C.    No
Conflict. The
execution and delivery by Borrower of this Amendment and the performance by
Borrower of the Amended Credit Agreement do not and will not (i) violate
any provision of any law or any governmental rule or regulation applicable to
Parent or any of its Subsidiaries, the Organizational Documents of Parent or any
of its Subsidiaries or any order, judgment or decree of any court or other
Government Authority binding on Parent or any of its Subsidiaries,
(ii) conflict with, result in a breach of or constitute (with due notice or
lapse of time or both) a default under any Contractual Obligation of Parent or
any of its Subsidiaries, (iii) result in or require the creation or
imposition of any Lien upon any of the properties or assets of Parent or any of
its Subsidiaries (other than Liens created under any of the Loan Documents in
favor of Administrative Agent on behalf of Lenders or as otherwise permitted
under the Amended Agreement), or (iv) require any approval of stockholders
or any approval or consent of any Person under any Contractual Obligation of
Parent or any of its Subsidiaries, except for such approvals or consents which
will be obtained on or before the Amendment Effective Date and except, in each
case, to the extent such violation, conflict, breach, Lien or failure to obtain
such approval or consent could not reasonably be expected to result in a
Material Adverse Effect. 

 

D.    Governmental
Consents. The
execution and delivery by Borrower of this Amendment and the performance by
Borrower of the Amended Credit Agreement do not and will not require any
Governmental Authorization, except as has been duly obtained and is in full
force and effect unless the failure to obtain such Governmental Authorization
could not reasonably be expected to have a Material Adverse Effect.

 

E.    Binding
Obligation. This
Amendment and the Amended Credit Agreement have been duly executed and delivered
by Borrower and are the legally valid and binding obligations of Borrower,
enforceable against Borrower in accordance with their respective terms, except
as may be limited by bankruptcy, insolvency, fraudulent conveyance,
reorganization, moratorium or similar laws relating to or limiting creditors’
rights generally or by equitable principles (whether considered in a proceeding
in equity or at law) relating to enforceability. 

 

F.    Incorporation
of Representations and Warranties from Credit Agreement. The
representations and warranties contained in Section 5 of the Credit
Agreement are and will be true, correct and complete in all material respects on
and as of the date hereof and the Amendment Effective Date (as defined below) to
the same extent as though made on and as of such dates, except to the extent
such representations and warranties specifically relate to an earlier date, in
which case they were true, correct and complete in all material respects on and
as of such earlier date. 

 

G.    Absence of
Default. No
event has occurred and is continuing or will result from the consummation of the
transactions contemplated by this Amendment that would constitute an Event of
Default or a Potential Event of Default. 

 

-3-

SECTION
4.    ACKNOWLEDGEMENT AND
CONSENT

 

Parent
and each Subsidiary of Borrower (each individually a "Credit
Support Party" and
collectively, the "Credit
Support Parties") hereby
acknowledges that it has read this Amendment and consents to the terms hereof
and further hereby confirms and agrees that, notwithstanding the effectiveness
of this Amendment, the obligations of such Credit Support Party under each of
the Loan Documents to which such Credit Support Party is a party shall not be
impaired and each of the Loan Documents to which such Credit Support Party is a
party are, and shall continue to be, in full force and effect and are hereby
confirmed and ratified in all respects. 

 

Parent
and each Subsidiary of Borrower acknowledges and agrees that nothing in the
Credit Agreement, this Amendment or any other Loan Document shall be deemed to
require the consent of such Credit Support Party to any future amendments to the
Credit Agreement. 

 

SECTION
5.    MISCELLANEOUS

 

A.    Reference to
and Effect on the Credit Agreement and the Other Loan Documents.

 

(i)    On and after
the Amendment Effective Date, each reference in the Credit Agreement to "this
Agreement", "hereunder", "hereof", "herein" or words of like import referring to
the Credit Agreement and each reference in the other Loan Documents to the
"Credit Agreement", "thereunder", "thereof" or words of like import referring to
the Credit Agreement shall mean and be a reference to the Credit Agreement as
amended hereby. 

 

(ii)    Except as
specifically amended by this Amendment, the Credit Agreement and the other Loan
Documents shall remain in full force and effect and are hereby ratified and
confirmed. 

 

(iii)    The
execution, delivery and performance of this Amendment shall not, except as
expressly provided herein, constitute a waiver of any provision of, or operate
as a waiver of any right, power or remedy of Administrative Agent or any Lender
under the Credit Agreement or any of the other Loan Documents. 

 

B.    Fees and
Expenses.
Borrower acknowledges that all costs, fees and expenses as described in
subsection 10.2 of the Credit Agreement incurred by Administrative Agent or
its counsel (including, without limitation, the reasonable fees, expenses and
disbursements of O’Melveny & Myers LLP, counsel to the Administrative Agent)
with respect to this Amendment and the documents and transactions contemplated
hereby shall be for the account of Borrower. 

 

C.    Headings. Section
and subsection headings in this Amendment are included herein for convenience of
reference only and shall not constitute a part of this Amendment for any other
purpose or be given any substantive effect. 

 

    D.    Applicable
Law. THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER
SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH,
THE INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING WITHOUT LIMITATION SECTION
5-1401 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK), WITHOUT REGARD
TO CONFLICT OF LAWS PRINCIPLES THAT WOULD REQUIRE THE APPLICATION OF ANOTHER
LAW. 

 

E.    Counterparts;
Effectiveness. This
Amendment may be executed in any number of counterparts and by different parties
hereto in separate counterparts, each of which when so executed and delivered
shall be deemed an original, but all such counterparts together shall constitute
but one and the same instrument; signature pages may be detached from multiple
separate counterparts and attached to a single counterpart so that all signature
pages are physically attached to the same document. This Amendment (other than
the provisions of Section 1 hereof, the effectiveness of which is governed
by Section 2 hereof) shall become effective on the date when counterparts
hereof signed by the Borrower, Administrative Agent, Credit Support Parties, and
a sufficient percentage of the Lenders to approve this Amendment in accordance
with subsection 10.6 of the Credit Agreement shall have been delivered to
O’Melveny & Myers LLP, counsel to the Administrative Agent (including,
without limitation, delivery via facsimile or electronic mail). 

 

* * * *
*

-4-

 

IN
WITNESS WHEREOF, the
parties hereto have caused this Amendment to be duly executed and delivered by
their respective officers thereunto duly authorized as of the date first written
above.

 

BORROWER:

	 	 	 
	 	BRAND SERVICES, 
      INC.
	 
 	 
 	 
 
		By:  	/s/ 
	 	
      

    
	 	Title 

 

	 	 	 
	 	CREDIT SUPPORT PARTIES:  BRAND
      INTERMEDIATE HOLDINGS,  INC.
	 
 	 
 	 
 
		By:  	/s/ 
	 	
      

    
	 	Title 

 

	 	 	 
	 	BRAND SCAFFOLD BUILDERS, 
      INC.
	 
 	 
 	 
 
		By:  	/s/ 
	 	
      

    
	 	Title 

 

	 	 	 
	 	CREDIT SUPPORT
      PARTIES:  BRAND SCAFFOLD RENTAL & ERECTION, INC.  (for
      purposes of Section 4 only)
	 
 	 
 	 
 
		By:  	/s/ 
	 	
      

    
	 	Title 

 

	 	 	 
	 	HIGHTOWER
      STAFFING, INC.
	 
 	 
 	 
 
		By:  	/s/ 
	 	
      

    
	 	Title 

 

	 	 	 
	 	BRAND SCAFFOLD
      SERVICES,  INC.
	 
 	 
 	 
 
		By:  	/s/ 
	 	
      

    
	 	Title 

 

-5-

	 	 	 
	 	BRAND STAFFING
      SERVICES,  INC.
	 
 	 
 	 
 
		By:  	/s/ 
	 	
      

    
	 	Title 

 

	 	 	 
	 	CREDIT SUPPORT
      PARTIES:  BRAND SPECIAL EVENTS, INC. (for purposes of Section 4
      only)
	 
 	 
 	 
 
		By:  	/s/ 
	 	
      

    
	 	Title 

 

	 	 	 
	 	BRAND SCAFFOLD
      ERECTORS,  INC.
	 
 	 
 	 
 
		By:  	/s/ 
	 	
      

    
	 	Title 

	 	 	 
	 	SCAFFOLD
      BUILDING SERVICES, INC.
	 
 	 
 	 
 
		By:  	/s/ 
	 	
      

    
	 	Title 

 

	 	 	 
	 	SKYVIEW
      STAFFING, INC.
	 
 	 
 	 
 
		By:  	/s/ 
	 	
      

    
	 	Title 

 

	 	 	 
	 	
      CREDIT SUPPORT
      PARTIES:  BRANDCRAFT LABOR, INC. 

      (for purposes of Section
      4 only)

	 
 	 
 	 
 
		By:  	/s/ 
	 	
      

    
	 	Title 

	 	 	 
	 	SKYVIEW SAFETY
      SERVICES, INC.
	 
 	 
 	 
 
		By:  	/s/ 
	 	
      

    
	 	Title 

 

	 	 	 
	 	SCAFFOLD-JAX,
      INC.
	 
 	 
 	 
 
		By:  	/s/ 
	 	
      

    
	 	Title 

 

	 	 	 
	 	CREDIT SUPPORT
      PARTIES:  MIKE BROWN-GRANDSTANDS, INC. (for purposes of Section 4
      only)
	 
 	 
 	 
 
		By:  	/s/ 
	 	
      

    
	 	Title 

 

	 	 	 
	 	KWIKRIG,
      INC.
	 
 	 
 	 
 
		By:  	/s/ 
	 	
      

    
	 	Title 

 

-7-

LENDERS

	 	 	 
	 	
      CREDIT SUISSE FIRST
      BOSTON

      acting through its Cayman Islands Branch, as
      Administrative Agent, Co-Arranger and Lender

	 
 	 
 	 
 
		By:  	/s/ 
	 	
      

    
	 	Title 

 

	 	 	 
	 	JPMORGAN CHASE
      BANK, as Syndication Agent
	 
 	 
 	 
 
		By:  	/s/ 
	 	
      

    
	 	Title 

 

	 	 	 
	 	J.P.MORGAN
      SECURITIES INC.
	 
 	 
 	 
 
		By:  	/s/ 
	 	
      

    
	 	Title 

 

	 	 	 
	 	
      GENERAL ELECTRIC CAPITAL
      CORPORATION

      as Co-Documentation Agent and
      Lender

	 
 	 
 	 
 
		By:  	/s/ 
	 	
      

      
	 	Title 

 

	 	 	 
	 	
      ANTARES CAPITAL
      CORPORATION

      as Co-Documentation Agent and
      Lender

	 
 	 
 	 
 
		By:  	/s/ 
	 	
      

    
	 	Title 

 

	 	 	 
	 	[NAME OF
      LENDER]
	 
 	 
 	 
 Name of Investment
      Advisor
		By:  	
       

	 	
      

    
	 	TitleEmployment Agreements

Exhibit 10.8

EMPLOYMENT
AGREEMENT

 

THIS
EMPLOYMENT AGREEMENT (the "Agreement") is
entered into effective as of October 16, 2004 (the "Effective
Date"), by and
between BRAND SERVICES, INC., a Delaware corporation (the "Company") and
David R. Cichy ("Executive").

 

WHEREAS,
Executive has been employed by the Company pursuant to an employment agreement;
and

 

WHEREAS,
the Company desires to continue to employ Executive, and Executive desires to
continue employment with the Company, subject to and in accordance with the
terms, conditions and covenants set forth in this Agreement.

 

NOW,
THEREFORE, in consideration of the premises and mutual covenants contained
herein and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

 

1.  Agreement
Term.
Executive’s continued employment by the Company pursuant to the terms of this
Agreement shall commence on the Effective Date, and shall, unless extended as
set forth below, terminate on October 16, 2007 (the "Expiration
Date").
Executive’s employment shall be automatically extended on a year to year basis
following the Expiration Date, unless a written notice to terminate is given by
the Company to Executive not less than thirty (30), nor more than sixty (60),
days prior to the scheduled Expiration Date. The period commencing on the
Effective Date and ending on the Expiration Date, as the same may be extended
from time to time hereunder, is hereinafter referred to as the "Employment
Term".
Notwithstanding the foregoing, the Employment Term shall terminate in any and
all events upon the termination of Executive’s employment hereunder as
hereinafter provided.

 

2.  Position. During
the Employment Term, Executive shall serve as Region Operations Vice President
(ROVP). Executive shall have such duties and authority commensurate with such
position as shall be determined by the company from time to time. Executive
shall devote substantially all of his business time and best efforts to the
performance of his duties hereunder and shall not engage in any other business,
profession or occupation for compensation or otherwise. 

 

3.  Base
Salary. During
the Employment Term, the Company shall pay Executive a base salary (the
"Base
Salary") at the
annual rate of not less than $170,527 payable bi-weekly in arrears, in
accordance with the usual payment practices of the Company. Executive’s Base
Salary shall be subject to periodic review by the Compensation Committee of the
Board of Directors of the Company (the "Compensation
Committee"), not
less frequently than annually, beginning January 1, 2005.

 

4.  Bonus.

 

(a)  With
respect to each fiscal year in the Employment Term, Executive shall be eligible
for a bonus of up to 120% of his Base Salary (the "Annual
Bonus") to be
determined annually in accordance with the Company’s annual bonus plan, as
earned through the achievement of certain profitability and performance
objectives which are annually developed by the CEO and as reviewed and approved
by the Compensation Committee (the "Bonus
Plan"). The
Bonus Plan shall have terms (including the terms of calculating bonuses)
consistent with the terms of the Company’s 2004 bonus plan, a copy of which is
annexed hereto as Annex
I.

 

(b)  Any bonus
payable hereunder shall be paid at or about the same time bonuses are paid to
the Company’s other senior executives and, in the case of the Annual Bonus, in
accordance with the terms of the Bonus Plan.

 

 

 

5.  Employee
Benefits.

 

(a)  During
the Employment Term, Executive shall be entitled to participate on a basis no
less favorable than other similarly-situated senior executives of the Company in
all retirement, welfare benefit, incentive compensation, perquisite and other
plans and arrangements of the Company applicable to senior executives of the
Company, as in effect from time to time.

 

(b)  The
Company has established a nonqualified deferred compensation plan ("Deferred
Compensation Plan"), dated
October 16, 2002 which has a term of five (5) years and, for each year of the
Employment Term or thereafter during which the Executive is employed by the
Company, for the duration of the Deferred Compensation Plan, the Company shall
provide Executive with an annual contribution to such plan in an amount equal to
15 percent of Executive’s Base Salary for such year (pro rated to reflect any
period of less than 12 months). Executive’s rights with respect to his benefits
under the Deferred Compensation Plan shall be exclusively as described in the
Deferred Compensation Plan. Amounts contributed by the Company to the Deferred
Compensation Plan shall not be taken into account for any purpose under any
other plan, program, policy or arrangement of the Company or its
affiliates.

 

6.  Business
Expenses. During
the Employment Term, the Company shall reimburse such of Executive’s travel,
entertainment and other business expenses as are reasonably and necessarily
incurred by Executive during the Employment Term in the performance of his
duties hereunder, in accordance with the Company’s policies as in effect from
time to time.

 

7.  Termination. The
Employment Term shall expire on the Expiration Date (after giving effect to any
extensions set forth in Section
1 hereof).
In the event the Employment Term expires, Executive shall only be entitled to
receive the amounts described in Section 7(a) below. The Employment Term may be
terminated prior to its scheduled expiration for any of the reasons set forth in
this Section
7. Upon a
termination of the Employment Term prior to its scheduled expiration, Executive
shall be entitled to the payments, if any, described in this Section
7.

 

(a)  Termination
by the Company or Executive for any Reason or for No Reason. The
Employment Term may be terminated prior to its scheduled expiration by the
Company or by Executive for any reason or for no reason. If, prior to the
Expiration Date, the Employment Term is terminated by the Company or by
Executive for any reason or for no reason, then, except as set forth in
Section
7(c)(i) below,
Executive shall be entitled to receive his Base Salary through the date of
termination, any Bonus that has been earned in accordance with Section
4 for a
prior fiscal year but not yet paid and any unreimbursed business expenses,
payable promptly following the later of the date of such termination and the
date on which the appropriate documentation is provided. All other benefits
following termination of the Employment Term pursuant to this Section
7(a) shall be
determined in accordance with the plans, policies and practices of the
Company.

 

(b)  Death
or Disability. The
Employment Term shall terminate prior to its scheduled expiration upon
Executive’s death or, at the Company’s election, if Executive incurs a
Disability (as defined below). Except as set forth in Section
7(c)(ii) below,
if the Employment Term is terminated prior to the Expiration Date by reason of
Executive’s death or, at the Company’s election, if Executive incurs a
Disability, Executive’s estate or, in the case of Executive’s Disability,
Executive (or such other person duly appointed by a court of competent
jurisdiction to manage Executive’s affairs) shall receive the amounts described
under Section
7(a). All
other benefits following termination of the Employment Term pursuant to this
Section
7(b) shall be
determined in accordance with the plans, policies and practices of the
Company.

 

-2-

(c)  Change
of Control.

 

(i) Notwithstanding
the provisions of Section
7(a) to the
contrary, if, within 24 months following a Change in Control (as defined below),
Executive’s position described in Section
2 of this
Agreement is eliminated, Executive’s title, job responsibilities and/or work
location are changed from those described in Section
2 of this
Agreement, Executive’s Base Salary is reduced, Executive’s opportunity to earn
an annual bonus up to 120% of Base Salary as set forth in Section
4 of this
Agreement is eliminated, or Executive’s employment is terminated by the Company
without Cause (as defined below), Executive shall have the option for a period
equal to the earlier of (A) 24 months after the date of the Change in
Control, and (B) the scheduled expiration of Employment Term, to terminate
his employment with the Company (if such employment has not otherwise been
terminated as contemplated above) and, subject to Executive’s continued
compliance with the covenants set forth in Section
8, to
receive (X) the amounts described under Section
7(a); (Y)
continued payment of Base Salary through the last day of the 24th month
following the date of termination; and (Z) continued coverage under the
Company’s welfare benefit arrangements as in effect from time to time through
the earlier of (1) the end of the Severance Period, and (2) such time as
Executive is eligible to receive comparable welfare benefits from a subsequent
employer. All other benefits following termination of the Employment Term
pursuant to this Section
7(c)(ii) shall be
determined in accordance with the plans, policies and practices of the
Company.

 

(ii) Notwithstanding
the provisions of Section
7(b) to the
contrary, if, within 24 months following a Change in Control (as defined below),
Executive dies or if Executive incurs a Disability, Executive shall have the
option for a period equal to the earlier of (A) 24 months after the date of
the Change in Control, and (B) the scheduled expiration of Employment Term,
to terminate his employment with the Company (if such employment has not
otherwise been terminated as contemplated above) and, subject to Executive’s
continued compliance with the covenants set forth in Section
8, to
receive (X) the amounts described under Section
7(a); (Y)
continued payment of Base Salary through the first anniversary of the date of
death or the date of Executive’s termination of employment due to Disability;
and (Z) continued coverage under the Company’s welfare benefit arrangements as
in effect from time to time through the earlier of (1) the end of the Severance
Period, and (2) such time as Executive is eligible to receive comparable welfare
benefits from a subsequent employer. All other benefits following termination of
the Employment Term pursuant to this Section
7(c)(ii) shall be
determined in accordance with the plans, policies and practices of the
Company.

 

(d)  Definitions. For
purposes of this Section
7, the
following terms shall have the following meanings:

 

(i)  "Cause" shall
mean:

 

(A)  Executive’s
willful and continued failure substantially to perform his duties under this
Agreement (other than as a result of total or partial incapacity due to physical
or mental illness);

 

(B)  An act or
acts on Executive’s part constituting a felony under the laws of the United
States or any other state thereof or any other jurisdiction in which the Company
conducts business;

 

(C)  Executive’s
being under the influence of illegal drugs or alcohol while performing his
duties hereunder;

 

(D)  Any other
act or omission which is materially injurious to the financial condition or
business reputation of the Company or any of its affiliates; or

 

(E)  Executive’s
breach of the provisions of Section
8.

 

For
purposes of this definition, no act or failure to act shall be deemed "willful"
unless effected by Executive not in good faith and without a reasonable belief
that such action or failure to act was in or not opposed to the Company’s best
interests.

 

-3-

(ii)  
"Change
in Control" shall
mean a change of control of more than fifty percent (50%) of the common stock or
equity units of the Company or Brand Holdings, LLC (other than through a sale
into the public markets) occurring at any time after the Effective
Date.

 

(iii)  "Disability" shall
mean Executive’s inability, as a result of physical or mental illness, to
perform the duties of the position(s) specified in Section
2 for a
period of 90 consecutive days or for an aggregate of 90 days in any twelve
consecutive month period. Any question as to the existence of the Disability of
Executive as to which Executive and the Company cannot agree shall be determined
in writing by a qualified independent physician selected by the Company and
reasonably acceptable to Executive. The determination of Disability made in
writing to the Company and Executive shall be final and conclusive for all
purposes of the Agreement.

 

(iv)  "Severance
Period" shall
mean the applicable period of time under Section
7(c) of this
Agreement that it is contemplated that Executive is to receive his Base Salary
after termination of the Employment Term.

 

(e)  Notice
of Termination. Any
purported termination of the Employment Term prior to the Expiration Date by the
Company or by Executive shall be communicated by written notice of termination
to the other party hereto.

 

(f)  Release. Any
payments by the Company to Executive under this Section
7 or in
connection with any dispute arising under or in connection with this Agreement
or relating to Executive’s employment with the Company (including payments
pursuant to arbitration as provided for in Section
10(k) hereof)
will be contingent upon the execution by Executive of a release of any claims
Executive may have against the Company, its affiliates or any successor to the
Company, such release to be in a form satisfactory to the Company in its sole
discretion. 

 

8.  Non-Competition/Confidential
Information.

 

(a)  Executive
acknowledges and recognizes the highly competitive nature of the businesses of
the Company and its affiliates and accordingly agrees that during the Employment
Term and through the later of the Severance Period or twenty-four
(24) months
following the date of termination of employment:

 

(i)  Executive
will not directly or indirectly engage in any business which is in competition
with any line of business conducted by the Company or its affiliates (including
without limitation by performing or soliciting the performance of services for
any person who is a customer or client of the Company or any of its affiliates)
whether such engagement is as an officer, director, proprietor, employee,
partner, investor (other than as holder of less than 1% of the outstanding
capital stock of a publicly traded corporation), consultant, advisor, agent,
sales representative or other participant, in any geographic area in which the
Company or any of its affiliates conducted any such competing line of
business.

 

(ii)  Executive
will not directly or indirectly assist others in engaging in any of the
activities in which Executive is prohibited from engaging in by clause (i)
above.

 

(b)  Executive
will not directly or indirectly induce any employee of the Company or any of its
affiliates to engage in any activity in which Executive is prohibited to engage
by paragraph (a) above or to terminate his employment with the Company or any of
its affiliates, and will not directly or indirectly employ or offer employment
to any person who was employed by the Company or any of its affiliates unless
such person shall have ceased to be employed by the Company or any of its
affiliates for a period of at least 12 months.

 

-4-

(c)  Executive
will not at any time (whether during or after his employment with the Company)
disclose or use for his own benefit or purposes or the benefit or purposes of
any other person, firm, partnership, joint venture, association, corporation or
other business organization, entity or enterprise other than the Company and any
of its subsidiaries or affiliates, any trade secrets, information, data, or
other confidential information relating to customers, development programs,
costs, marketing, trading, investment, sales activities, promotion, credit and
financial data, manufacturing processes, financing methods, plans, or the
business and affairs of the Company generally or of any subsidiary or affiliate
of the Company, provided that the
foregoing shall not apply to information which is not unique to the Company or
which is generally known to the industry or the public other than as a result of
Executive’s breach of this covenant. Executive agrees that upon termination of
his employment with the Company for any reason, he will return to the Company
immediately all memoranda, books, papers, plans, information, letters and other
data, and all copies thereof or therefrom, in any way relating to the business
of the Company and its affiliates, except that he may retain personal notes,
notebooks and diaries. Executive further agrees that he will not retain or use
for his account at any time any trade names, trademark or other proprietary
business designation used or owned in connection with the business of the
Company or its affiliates.

 

9.  Specific
Performance and Other Remedies.
Executive acknowledges and agrees that the Company has no adequate remedy at law
for a breach or threatened breach of any of the provisions of Section
8 and, in
recognition of this fact, Executive agrees that, in the event of such a breach
or threatened breach, in addition to any remedies at law, the Company, without
posting any bond and without notice to Executive, shall be entitled to obtain
equitable relief in the form of specific performance, temporary restraining
order, temporary or permanent injunction or any other equitable remedy which may
then be available. Nothing in this Agreement shall be construed as prohibiting
the Company from pursuing any other remedies at law or in equity that it may
have or any other rights that it may have under any other
agreement.

 

10.  Miscellaneous.

 

(a)  Governing
Law. This
Agreement shall be governed by and construed in accordance with the laws of the
State of Missouri without reference to principles of conflict of
laws.

 

(b)  Entire
Agreement/Amendments. This
Agreement contains the entire understanding of the parties with respect to the
subject matter hereof and supersedes any prior agreements between the Company
and Executive relating to the subject matter hereof, including without
limitation, any and all employment agreements (including any and all amendments,
restatements or continuations thereto or thereof). There are no restrictions,
agreements, promises, warranties, covenants or undertakings between the parties
with respect to the subject matter herein other than those expressly set forth
herein. No provision in this Agreement may be amended unless such amendment is
agreed to in writing.

 

(c)  No
Waiver. The
failure of a party to insist upon strict adherence to any term of this Agreement
on any occasion shall not be considered a waiver of such party’s rights or
deprive such party of the right thereafter to insist upon strict adherence to
that term or any other term of this Agreement. No waiver by either party of any
breach by the other party of any condition or provision contained in this
Agreement to be performed by such other party shall be deemed a waiver of a
similar or dissimilar condition or provision at the same or any prior or
subsequent time. Any waiver must be in writing and signed by Executive or the
Company, as the case may be.

 

-5-

(d)  Severability. It is
expressly understood and agreed that although Executive and the Company consider
the restrictions contained in Section
8 to be
reasonable, if a final judicial determination is made by a court of competent
jurisdiction that the time or territory restriction in Section
8 or any
other restriction contained in Section
8 is an
unenforceable restriction against Executive, such provision shall not be
rendered void but shall be deemed amended to apply to such maximum time and
territory, if applicable, or otherwise to such maximum extent as such court may
judicially determine or indicate to be enforceable. Alternatively, if any court
of competent jurisdiction finds that any restriction contained in Section
8 is
unenforceable, and such restriction cannot be amended so as to make it
enforceable, such finding shall not affect the enforceability of any of the
other restrictions contained herein. In the event that any one or more of the
other provisions of this Agreement shall be or become invalid, illegal or
unenforceable in any respect, the validity, legality and enforceability of the
remaining provisions of this Agreement shall not be affected
thereby.

 

(e)  Assignment. This
Agreement shall not be assignable by either party without the consent of the
other party.

 

(f)  Successors. This
Agreement shall inure to the benefit of and be binding upon the personal or
legal representatives, executors, administrators, successors, heirs,
distributees, devisees and legatees of the parties hereto. Executive shall be
entitled to select (and change, to the extent permitted under any applicable
law) a beneficiary or beneficiaries to receive any compensation or benefit
payable hereunder following Executive’s death by giving the Company written
notice thereof. In the event of Executive’s death or a judicial determination of
his incompetence, reference in this Agreement to Executive shall be deemed,
where appropriate, to refer to his beneficiary, estate or other legal
representative.

 

(g)  Communications. For the
purpose of this Agreement, notices and all other communications provided for in
this Agreement shall be in writing and shall be deemed to have been duly given
when faxed or delivered or two business days after being mailed by United States
registered or certified mail, return receipt requested, postage prepaid,
addressed (i) to Executive at his address then appearing in the personnel
records of the Company and; (ii) to the Company at the Company’s then current
headquarters; or (iii) to such other address as either party may have furnished
to the other in writing in accordance herewith, with such notice of change of
address being effective only upon receipt.

 

(h)  Withholding
Taxes. The
Company may withhold from any and all amounts payable under this Agreement such
federal, state, local and any other applicable taxes as may be required to be
withheld pursuant to any applicable law or regulation.

 

(i)  Survivorship. The
respective rights and obligations of the parties hereunder shall survive any
termination of Executive’s employment to the extent necessary to assure the
agreed preservation of such rights and obligations.

 

(j)  Representations. Each
party represents and warrants to the other that he or it is fully authorized and
empowered to enter into this Agreement and that the performance of his or its
obligations under this Agreement will not violate any agreement between him or
it and any other person or entity.

 

(k)  Arbitration. The
parties agree that all disputes arising under or in connection with this
Agreement, and any and all claims by Executive relating to his employment with
the Company, including any claims of discrimination arising under Title VII of
the Civil Rights Act of 1964, as amended, the Age Discrimination in Employment
Act, the Americans with Disabilities Act or any similar federal, state or local
law will be submitted to arbitration in the County of St. Louis of the State of
Missouri to the American Arbitration Association ("AAA") under
its rules then prevailing for the type of claim in issue.

 

In any
action or proceeding relating to this Agreement, the parties agree that no
damages other than compensatory damages shall be sought or claimed by either
party and each party waives any claim, right or entitlement to punitive,
exemplary, statutory or consequential damages, or any other damages, and each
relevant arbitration panel is specifically divested of any power to award any
damages in the nature of punitive, exemplary, statutory or consequential
damages, or any other damages of any kind or nature in excess of compensatory
damages.

 

-6-

(l)  Fees
and Expenses. In the
event of a dispute by the Company or Executive as to the validity or
enforceability of, or liability under, any provision of this Agreement and with
respect to any claims arising in connection with Executive’s employment with the
Company, each party shall pay its own legal fees and expenses incurred in
connection with such dispute or claim; provided, however, and notwithstanding
the foregoing, in the event of a breach of this Agreement by the Company at any
time after a Change of Control, whether or not litigation is commenced, then the
Company shall pay to Executive, in addition to any damages incurred by
Executive, the costs and expenses incurred by Executive in connection with any
such breach (including, without limitation, all court costs and reasonable
attorneys’ fees and costs).

 

(m)  Counterparts. This
Agreement may be signed in counterparts, each of which shall be an original,
with the same effect as if the signatures thereto and hereto were upon the same
instrument.

 

(n)  Headings. The
headings of the sections contained in this Agreement are for convenience only
and shall not be deemed to control or affect the meaning or construction of any
provision of this Agreement. Any reference to Executive in the masculine gender
herein is for convenience and is not intended to express any preference by the
Company for executives of any gender.

 

IN
WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the
Effective Date.

 

 

[EXECUTIVE]

 

"Executive"

 

[The
Executive acknowledges that this Agreement contains an arbitration provision
which may be enforced by either party hereto]

BRAND
SERVICES, INC.

By:

Title:
President and CEO

the
"Company"

 

 

-7-

EMPLOYMENT
AGREEMENT

 

THIS
EMPLOYMENT AGREEMENT (the "Agreement") is
entered into effective as of October 16, 2004 (the "Effective
Date"), by
and between BRAND SERVICES, INC., a Delaware corporation (the "Company") and
Raymond L. Edwards ("Executive").

 

WHEREAS,
Executive has been employed by the Company pursuant to an employment agreement;
and

 

WHEREAS,
the Company desires to continue to employ Executive, and Executive desires to
continue employment with the Company, subject to and in accordance with the
terms, conditions and covenants set forth in this Agreement.

 

NOW,
THEREFORE, in consideration of the premises and mutual covenants contained
herein and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

 

1.  Agreement
Term.
Executive’s continued employment by the Company pursuant to the terms of this
Agreement shall commence on the Effective Date, and shall, unless extended as
set forth below, terminate on October 16, 2007 (the "Expiration
Date").
Executive’s employment shall be automatically extended on a year to year basis
following the Expiration Date, unless a written notice to terminate is given by
the Company to Executive not less than thirty (30), nor more than sixty (60),
days prior to the scheduled Expiration Date. The period commencing on the
Effective Date and ending on the Expiration Date, as the same may be extended
from time to time hereunder, is hereinafter referred to as the "Employment
Term".
Notwithstanding the foregoing, the Employment Term shall terminate in any and
all events upon the termination of Executive’s employment hereunder as
hereinafter provided.

 

2.  Position. During
the Employment Term, Executive shall serve as Vice President, Operations
Support. Executive shall have such duties and authority commensurate with such
position as shall be determined by the company from time to time. Executive
shall devote substantially all of his business time and best efforts to the
performance of his duties hereunder and shall not engage in any other business,
profession or occupation for compensation or otherwise. 

 

3.  Base
Salary. During
the Employment Term, the Company shall pay Executive a base salary (the
"Base
Salary") at the
annual rate of not less than $179,662 payable bi-weekly in arrears, in
accordance with the usual payment practices of the Company. Executive’s Base
Salary shall be subject to periodic review by the Compensation Committee of the
Board of Directors of the Company (the "Compensation
Committee"), not
less frequently than annually, beginning January 1, 2005.

 

4.  Bonus.

 

(a)  With
respect to each fiscal year in the Employment Term, Executive shall be eligible
for a bonus of up to 120% of his Base Salary (the "Annual
Bonus") to be
determined annually in accordance with the Company’s annual bonus plan, as
earned through the achievement of certain profitability and performance
objectives which are annually developed by the CEO and as reviewed and approved
by the Compensation Committee (the "Bonus
Plan"). The
Bonus Plan shall have terms (including the terms of calculating bonuses)
consistent with the terms of the Company’s 2004 bonus plan, a copy of which is
annexed hereto as Annex
I.

 

(b)  Any bonus
payable hereunder shall be paid at or about the same time bonuses are paid to
the Company’s other senior executives and, in the case of the Annual Bonus, in
accordance with the terms of the Bonus Plan.

 

-8-

5.  Employee
Benefits.

 

(a)  During
the Employment Term, Executive shall be entitled to participate on a basis no
less favorable than other similarly-situated senior executives of the Company in
all retirement, welfare benefit, incentive compensation, perquisite and other
plans and arrangements of the Company applicable to senior executives of the
Company, as in effect from time to time.

 

(b)  The
Company has established a nonqualified deferred compensation plan ("Deferred
Compensation Plan"), dated
October 16, 2002 which has a term of five (5) years and, for each year of the
Employment Term or thereafter during which the Executive is employed by the
Company, for the duration of the Deferred Compensation Plan, the Company shall
provide Executive with an annual contribution to such plan in an amount equal to
15 percent of Executive’s Base Salary for such year (pro rated to reflect any
period of less than 12 months). Executive’s rights with respect to his benefits
under the Deferred Compensation Plan shall be exclusively as described in the
Deferred Compensation Plan. Amounts contributed by the Company to the Deferred
Compensation Plan shall not be taken into account for any purpose under any
other plan, program, policy or arrangement of the Company or its
affiliates.

 

6.  Business
Expenses. During
the Employment Term, the Company shall reimburse such of Executive’s travel,
entertainment and other business expenses as are reasonably and necessarily
incurred by Executive during the Employment Term in the performance of his
duties hereunder, in accordance with the Company’s policies as in effect from
time to time.

 

7.  Termination. The
Employment Term shall expire on the Expiration Date (after giving effect to any
extensions set forth in Section
1 hereof).
In the event the Employment Term expires, Executive shall only be entitled to
receive the amounts described in Section 7(a) below. The Employment Term may be
terminated prior to its scheduled expiration for any of the reasons set forth in
this Section
7. Upon a
termination of the Employment Term prior to its scheduled expiration, Executive
shall be entitled to the payments, if any, described in this Section
7.

 

(a)  Termination
by the Company or Executive for any Reason or for No Reason. The
Employment Term may be terminated prior to its scheduled expiration by the
Company or by Executive for any reason or for no reason. If, prior to the
Expiration Date, the Employment Term is terminated by the Company or by
Executive for any reason or for no reason, then, except as set forth in
Section
7(c)(i) below,
Executive shall be entitled to receive his Base Salary through the date of
termination, any Bonus that has been earned in accordance with Section
4 for a
prior fiscal year but not yet paid and any unreimbursed business expenses,
payable promptly following the later of the date of such termination and the
date on which the appropriate documentation is provided. All other benefits
following termination of the Employment Term pursuant to this Section
7(a) shall be
determined in accordance with the plans, policies and practices of the
Company.

 

(b)  Death
or Disability. The
Employment Term shall terminate prior to its scheduled expiration upon
Executive’s death or, at the Company’s election, if Executive incurs a
Disability (as defined below). Except as set forth in Section
7(c)(ii) below,
if the Employment Term is terminated prior to the Expiration Date by reason of
Executive’s death or, at the Company’s election, if Executive incurs a
Disability, Executive’s estate or, in the case of Executive’s Disability,
Executive (or such other person duly appointed by a court of competent
jurisdiction to manage Executive’s affairs) shall receive the amounts described
under Section
7(a). All
other benefits following termination of the Employment Term pursuant to this
Section
7(b) shall be
determined in accordance with the plans, policies and practices of the
Company.

 

-9-

(c)  Change
of Control.

 

(i) Notwithstanding
the provisions of Section
7(a) to the
contrary, if, within 24 months following a Change in Control (as defined below),
Executive’s position described in Section
2 of this
Agreement is eliminated, Executive’s title, job responsibilities and/or work
location are changed from those described in Section
2 of this
Agreement, Executive’s Base Salary is reduced, Executive’s opportunity to earn
an annual bonus up to 120% of Base Salary as set forth in Section
4 of this
Agreement is eliminated, or Executive’s employment is terminated by the Company
without Cause (as defined below), Executive shall have the option for a period
equal to the earlier of (A) 24 months after the date of the Change in
Control, and (B) the scheduled expiration of Employment Term, to terminate
his employment with the Company (if such employment has not otherwise been
terminated as contemplated above) and, subject to Executive’s continued
compliance with the covenants set forth in Section
8, to
receive (X) the amounts described under Section
7(a); (Y)
continued payment of Base Salary through the last day of the 24th month
following the date of termination; and (Z) continued coverage under the
Company’s welfare benefit arrangements as in effect from time to time through
the earlier of (1) the end of the Severance Period, and (2) such time as
Executive is eligible to receive comparable welfare benefits from a subsequent
employer. All other benefits following termination of the Employment Term
pursuant to this Section
7(c)(ii) shall be
determined in accordance with the plans, policies and practices of the
Company.

 

(ii) Notwithstanding
the provisions of Section
7(b) to the
contrary, if, within 24 months following a Change in Control (as defined below),
Executive dies or if Executive incurs a Disability, Executive shall have the
option for a period equal to the earlier of (A) 24 months after the date of
the Change in Control, and (B) the scheduled expiration of Employment Term,
to terminate his employment with the Company (if such employment has not
otherwise been terminated as contemplated above) and, subject to Executive’s
continued compliance with the covenants set forth in Section
8, to
receive (X) the amounts described under Section
7(a); (Y)
continued payment of Base Salary through the first anniversary of the date of
death or the date of Executive’s termination of employment due to Disability;
and (Z) continued coverage under the Company’s welfare benefit arrangements as
in effect from time to time through the earlier of (1) the end of the Severance
Period, and (2) such time as Executive is eligible to receive comparable welfare
benefits from a subsequent employer. All other benefits following termination of
the Employment Term pursuant to this Section
7(c)(ii) shall be
determined in accordance with the plans, policies and practices of the
Company.

 

(d)  Definitions. For
purposes of this Section
7, the
following terms shall have the following meanings:

 

(i)  "Cause" shall
mean:

 

(A)  Executive’s
willful and continued failure substantially to perform his duties under this
Agreement (other than as a result of total or partial incapacity due to physical
or mental illness);

 

(B)  An act or
acts on Executive’s part constituting a felony under the laws of the United
States or any other state thereof or any other jurisdiction in which the Company
conducts business;

 

(C)  Executive’s
being under the influence of illegal drugs or alcohol while performing his
duties hereunder;

 

(D)  Any other
act or omission which is materially injurious to the financial condition or
business reputation of the Company or any of its affiliates; or

 

(E)  Executive’s
breach of the provisions of Section
8.

 

 

For
purposes of this definition, no act or failure to act shall be deemed "willful"
unless effected by Executive not in good faith and without a reasonable belief
that such action or failure to act was in or not opposed to the Company’s best
interests.

 

-10-

(ii)  
"Change
in Control" shall
mean a change of control of more than fifty percent (50%) of the common stock or
equity units of the Company or Brand Holdings, LLC (other than through a sale
into the public markets) occurring at any time after the Effective
Date.

 

(iii)  "Disability" shall
mean Executive’s inability, as a result of physical or mental illness, to
perform the duties of the position(s) specified in Section
2 for a
period of 90 consecutive days or for an aggregate of 90 days in any twelve
consecutive month period. Any question as to the existence of the Disability of
Executive as to which Executive and the Company cannot agree shall be determined
in writing by a qualified independent physician selected by the Company and
reasonably acceptable to Executive. The determination of Disability made in
writing to the Company and Executive shall be final and conclusive for all
purposes of the Agreement.

 

(iv)  "Severance
Period" shall
mean the applicable period of time under Section
7(c) of this
Agreement that it is contemplated that Executive is to receive his Base Salary
after termination of the Employment Term.

 

(e)  Notice
of Termination. Any
purported termination of the Employment Term prior to the Expiration Date by the
Company or by Executive shall be communicated by written notice of termination
to the other party hereto.

 

(f)  Release. Any
payments by the Company to Executive under this Section
7 or in
connection with any dispute arising under or in connection with this Agreement
or relating to Executive’s employment with the Company (including payments
pursuant to arbitration as provided for in Section
10(k) hereof)
will be contingent upon the execution by Executive of a release of any claims
Executive may have against the Company, its affiliates or any successor to the
Company, such release to be in a form satisfactory to the Company in its sole
discretion. 

 

8.  Non-Competition/Confidential
Information.

 

(a)  Executive
acknowledges and recognizes the highly competitive nature of the businesses of
the Company and its affiliates and accordingly agrees that during the Employment
Term and through the later of the Severance Period or twenty-four (24) months
following the date of termination of employment:

 

(i)  Executive
will not directly or indirectly engage in any business which is in competition
with any line of business conducted by the Company or its affiliates (including
without limitation by performing or soliciting the performance of services for
any person who is a customer or client of the Company or any of its affiliates)
whether such engagement is as an officer, director, proprietor, employee,
partner, investor (other than as holder of less than 1% of the outstanding
capital stock of a publicly traded corporation), consultant, advisor, agent,
sales representative or other participant, in any geographic area in which the
Company or any of its affiliates conducted any such competing line of
business.

 

(ii)  Executive
will not directly or indirectly assist others in engaging in any of the
activities in which Executive is prohibited from engaging in by clause (i)
above.

 

(b)  Executive
will not directly or indirectly induce any employee of the Company or any of its
affiliates to engage in any activity in which Executive is prohibited to engage
by paragraph (a) above or to terminate his employment with the Company or any of
its affiliates, and will not directly or indirectly employ or offer employment
to any person who was employed by the Company or any of its affiliates unless
such person shall have ceased to be employed by the Company or any of its
affiliates for a period of at least 12 months.

 

-11-

(c)  Executive
will not at any time (whether during or after his employment with the Company)
disclose or use for his own benefit or purposes or the benefit or purposes of
any other person, firm, partnership, joint venture, association, corporation or
other business organization, entity or enterprise other than the Company and any
of its subsidiaries or affiliates, any trade secrets, information, data, or
other confidential information relating to customers, development programs,
costs, marketing, trading, investment, sales activities, promotion, credit and
financial data, manufacturing processes, financing methods, plans, or the
business and affairs of the Company generally or of any subsidiary or affiliate
of the Company, provided that the
foregoing shall not apply to information which is not unique to the Company or
which is generally known to the industry or the public other than as a result of
Executive’s breach of this covenant. Executive agrees that upon termination of
his employment with the Company for any reason, he will return to the Company
immediately all memoranda, books, papers, plans, information, letters and other
data, and all copies thereof or therefrom, in any way relating to the business
of the Company and its affiliates, except that he may retain personal notes,
notebooks and diaries. Executive further agrees that he will not retain or use
for his account at any time any trade names, trademark or other proprietary
business designation used or owned in connection with the business of the
Company or its affiliates.

 

9.  Specific
Performance and Other Remedies.
Executive acknowledges and agrees that the Company has no adequate remedy at law
for a breach or threatened breach of any of the provisions of Section
8 and, in
recognition of this fact, Executive agrees that, in the event of such a breach
or threatened breach, in addition to any remedies at law, the Company, without
posting any bond and without notice to Executive, shall be entitled to obtain
equitable relief in the form of specific performance, temporary restraining
order, temporary or permanent injunction or any other equitable remedy which may
then be available. Nothing in this Agreement shall be construed as prohibiting
the Company from pursuing any other remedies at law or in equity that it may
have or any other rights that it may have under any other
agreement.

 

10.  Miscellaneous.

 

(a)  Governing
Law. This
Agreement shall be governed by and construed in accordance with the laws of the
State of Missouri without reference to principles of conflict of
laws.

 

(b)  Entire
Agreement/Amendments. This
Agreement contains the entire understanding of the parties with respect to the
subject matter hereof and supersedes any prior agreements between the Company
and Executive relating to the subject matter hereof, including without
limitation, any and all employment agreements (including any and all amendments,
restatements or continuations thereto or thereof). There are no restrictions,
agreements, promises, warranties, covenants or undertakings between the parties
with respect to the subject matter herein other than those expressly set forth
herein. No provision in this Agreement may be amended unless such amendment is
agreed to in writing.

 

(c)  No
Waiver. The
failure of a party to insist upon strict adherence to any term of this Agreement
on any occasion shall not be considered a waiver of such party’s rights or
deprive such party of the right thereafter to insist upon strict adherence to
that term or any other term of this Agreement. No waiver by either party of any
breach by the other party of any condition or provision contained in this
Agreement to be performed by such other party shall be deemed a waiver of a
similar or dissimilar condition or provision at the same or any prior or
subsequent time. Any waiver must be in writing and signed by Executive or the
Company, as the case may be.

 

-12-

(d)  Severability. It is
expressly understood and agreed that although Executive and the Company consider
the restrictions contained in Section
8 to be
reasonable, if a final judicial determination is made by a court of competent
jurisdiction that the time or territory restriction in Section
8 or any
other restriction contained in Section
8 is an
unenforceable restriction against Executive, such provision shall not be
rendered void but shall be deemed amended to apply to such maximum time and
territory, if applicable, or otherwise to such maximum extent as such court may
judicially determine or indicate to be enforceable. Alternatively, if any court
of competent jurisdiction finds that any restriction contained in Section
8 is
unenforceable, and such restriction cannot be amended so as to make it
enforceable, such finding shall not affect the enforceability of any of the
other restrictions contained herein. In the event that any one or more of the
other provisions of this Agreement shall be or become invalid, illegal or
unenforceable in any respect, the validity, legality and enforceability of the
remaining provisions of this Agreement shall not be affected
thereby.

 

(e)  Assignment. This
Agreement shall not be assignable by either party without the consent of the
other party.

 

(f)  Successors. This
Agreement shall inure to the benefit of and be binding upon the personal or
legal representatives, executors, administrators, successors, heirs,
distributees, devisees and legatees of the parties hereto. Executive shall be
entitled to select (and change, to the extent permitted under any applicable
law) a beneficiary or beneficiaries to receive any compensation or benefit
payable hereunder following Executive’s death by giving the Company written
notice thereof. In the event of Executive’s death or a judicial determination of
his incompetence, reference in this Agreement to Executive shall be deemed,
where appropriate, to refer to his beneficiary, estate or other legal
representative.

 

(g)  Communications. For the
purpose of this Agreement, notices and all other communications provided for in
this Agreement shall be in writing and shall be deemed to have been duly given
when faxed or delivered or two business days after being mailed by United States
registered or certified mail, return receipt requested, postage prepaid,
addressed (i) to Executive at his address then appearing in the personnel
records of the Company and; (ii) to the Company at the Company’s then current
headquarters; or (iii) to such other address as either party may have furnished
to the other in writing in accordance herewith, with such notice of change of
address being effective only upon receipt.

 

(h)  Withholding
Taxes. The
Company may withhold from any and all amounts payable under this Agreement such
federal, state, local and any other applicable taxes as may be required to be
withheld pursuant to any applicable law or regulation.

 

(i)  Survivorship. The
respective rights and obligations of the parties hereunder shall survive any
termination of Executive’s employment to the extent necessary to assure the
agreed preservation of such rights and obligations.

 

(j)  Representations. Each
party represents and warrants to the other that he or it is fully authorized and
empowered to enter into this Agreement and that the performance of his or its
obligations under this Agreement will not violate any agreement between him or
it and any other person or entity.

 

(k)  Arbitration. The
parties agree that all disputes arising under or in connection with this
Agreement, and any and all claims by Executive relating to his employment with
the Company, including any claims of discrimination arising under Title VII of
the Civil Rights Act of 1964, as amended, the Age Discrimination in Employment
Act, the Americans with Disabilities Act or any similar federal, state or local
law will be submitted to arbitration in the County of St. Louis of the State of
Missouri to the American Arbitration Association ("AAA") under
its rules then prevailing for the type of claim in issue.

 

In any
action or proceeding relating to this Agreement, the parties agree that no
damages other than compensatory damages shall be sought or claimed by either
party and each party waives any claim, right or entitlement to punitive,
exemplary, statutory or consequential damages, or any other damages, and each
relevant arbitration panel is specifically divested of any power to award any
damages in the nature of punitive, exemplary, statutory or consequential
damages, or any other damages of any kind or nature in excess of compensatory
damages.

 

-13-

(l)  Fees
and Expenses. In the
event of a dispute by the Company or Executive as to the validity or
enforceability of, or liability under, any provision of this Agreement and with
respect to any claims arising in connection with Executive’s employment with the
Company, each party shall pay its own legal fees and expenses incurred in
connection with such dispute or claim; provided, however, and notwithstanding
the foregoing, in the event of a breach of this Agreement by the Company at any
time after a Change of Control, whether or not litigation is commenced, then the
Company shall pay to Executive, in addition to any damages incurred by
Executive, the costs and expenses incurred by Executive in connection with any
such breach (including, without limitation, all court costs and reasonable
attorneys’ fees and costs).

 

(m)  Counterparts. This
Agreement may be signed in counterparts, each of which shall be an original,
with the same effect as if the signatures thereto and hereto were upon the same
instrument.

 

(n)  Headings. The
headings of the sections contained in this Agreement are for convenience only
and shall not be deemed to control or affect the meaning or construction of any
provision of this Agreement. Any reference to Executive in the masculine gender
herein is for convenience and is not intended to express any preference by the
Company for executives of any gender.

 

IN
WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the
Effective Date.

 

 

[EXECUTIVE]

 

"Executive"

 

[The
Executive acknowledges that this Agreement contains an arbitration provision
which may be enforced by either party hereto]

BRAND
SERVICES, INC.

By:

Title:
President and CEO

the
"Company"

 

-14-

 

EMPLOYMENT
AGREEMENT

 

THIS
EMPLOYMENT AGREEMENT (the "Agreement") is
entered into effective as of October 16, 2004 (the "Effective
Date"), by
and between BRAND SERVICES, INC., a Delaware corporation (the "Company") and
Guy S. Huelat ("Executive").

 

WHEREAS,
Executive has been employed by the Company pursuant to an employment agreement;
and

 

WHEREAS,
the Company desires to continue to employ Executive, and Executive desires to
continue employment with the Company, subject to and in accordance with the
terms, conditions and covenants set forth in this Agreement.

 

NOW,
THEREFORE, in consideration of the premises and mutual covenants contained
herein and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

 

    
1.  Agreement
Term.
Executive’s continued employment by the Company pursuant to the terms of this
Agreement shall commence on the Effective Date, and shall, unless extended as
set forth below, terminate on October 16, 2007 (the "Expiration
Date").
Executive’s employment shall be automatically extended on a year to year basis
following the Expiration Date, unless a written notice to terminate is given by
the Company to Executive not less than thirty (30), nor more than sixty (60),
days prior to the scheduled Expiration Date. The period commencing on the
Effective Date and ending on the Expiration Date, as the same may be extended
from time to time hereunder, is hereinafter referred to as the "Employment
Term".
Notwithstanding the foregoing, the Employment Term shall terminate in any and
all events upon the termination of Executive’s employment hereunder as
hereinafter provided.

 

2.  Position. During
the Employment Term, Executive shall serve as Regional Operations Vice President
(ROVP). Executive shall have such duties and authority commensurate with such
position as shall be determined by the company from time to time. Executive
shall devote substantially all of his business time and best efforts to the
performance of his duties hereunder and shall not engage in any other business,
profession or occupation for compensation or otherwise. 

 

3.  Base
Salary. During
the Employment Term, the Company shall pay Executive a base salary (the
"Base
Salary") at the
annual rate of not less than $171,863 payable bi-weekly in arrears, in
accordance with the usual payment practices of the Company. Executive’s Base
Salary shall be subject to periodic review by the Compensation Committee of the
Board of Directors of the Company (the "Compensation
Committee"), not
less frequently than annually, beginning January 1, 2005.

 

4.  Bonus.

 

(a)  With
respect to each fiscal year in the Employment Term, Executive shall be eligible
for a bonus of up to 120% of his Base Salary (the "Annual
Bonus") to be
determined annually in accordance with the Company’s annual bonus plan, as
earned through the achievement of certain profitability and performance
objectives which are annually developed by the CEO and as reviewed and approved
by the Compensation Committee (the "Bonus
Plan"). The
Bonus Plan shall have terms (including the terms of calculating bonuses)
consistent with the terms of the Company’s 2004 bonus plan, a copy of which is
annexed hereto as Annex
I.

 

(b)  Any bonus
payable hereunder shall be paid at or about the same time bonuses are paid to
the Company’s other senior executives and, in the case of the Annual Bonus, in
accordance with the terms of the Bonus Plan.

 

 

-15-

 

5.  Employee
Benefits.

 

(a)  During
the Employment Term, Executive shall be entitled to participate on a basis no
less favorable than other similarly-situated senior executives of the Company in
all retirement, welfare benefit, incentive compensation, perquisite and other
plans and arrangements of the Company applicable to senior executives of the
Company, as in effect from time to time.

 

(b)  The
Company has established a nonqualified deferred compensation plan ("Deferred
Compensation Plan"), dated
October 16, 2002 which has a term of five (5) years and, for each year of the
Employment Term or thereafter during which the Executive is employed by the
Company, for the duration of the Deferred Compensation Plan, the Company shall
provide Executive with an annual contribution to such plan in an amount equal to
15 percent of Executive’s Base Salary for such year (pro rated to reflect any
period of less than 12 months). Executive’s rights with respect to his benefits
under the Deferred Compensation Plan shall be exclusively as described in the
Deferred Compensation Plan. Amounts contributed by the Company to the Deferred
Compensation Plan shall not be taken into account for any purpose under any
other plan, program, policy or arrangement of the Company or its
affiliates.

 

6.  Business
Expenses. During
the Employment Term, the Company shall reimburse such of Executive’s travel,
entertainment and other business expenses as are reasonably and necessarily
incurred by Executive during the Employment Term in the performance of his
duties hereunder, in accordance with the Company’s policies as in effect from
time to time.

 

7.  Termination. The
Employment Term shall expire on the Expiration Date (after giving effect to any
extensions set forth in Section
1 hereof).
In the event the Employment Term expires, Executive shall only be entitled to
receive the amounts described in Section 7(a) below. The Employment Term may be
terminated prior to its scheduled expiration for any of the reasons set forth in
this Section
7. Upon a
termination of the Employment Term prior to its scheduled expiration, Executive
shall be entitled to the payments, if any, described in this Section
7.

 

(a)  Termination
by the Company or Executive for any Reason or for No Reason. The
Employment Term may be terminated prior to its scheduled expiration by the
Company or by Executive for any reason or for no reason. If, prior to the
Expiration Date, the Employment Term is terminated by the Company or by
Executive for any reason or for no reason, then, except as set forth in
Section
7(c)(i) below,
Executive shall be entitled to receive his Base Salary through the date of
termination, any Bonus that has been earned in accordance with Section
4 for a
prior fiscal year but not yet paid and any unreimbursed business expenses,
payable promptly following the later of the date of such termination and the
date on which the appropriate documentation is provided. All other benefits
following termination of the Employment Term pursuant to this Section
7(a) shall be
determined in accordance with the plans, policies and practices of the
Company.

 

(b)  Death
or Disability. The
Employment Term shall terminate prior to its scheduled expiration upon
Executive’s death or, at the Company’s election, if Executive incurs a
Disability (as defined below). Except as set forth in Section
7(c)(ii) below,
if the Employment Term is terminated prior to the Expiration Date by reason of
Executive’s death or, at the Company’s election, if Executive incurs a
Disability, Executive’s estate or, in the case of Executive’s Disability,
Executive (or such other person duly appointed by a court of competent
jurisdiction to manage Executive’s affairs) shall receive the amounts described
under Section
7(a). All
other benefits following termination of the Employment Term pursuant to this
Section
7(b) shall be
determined in accordance with the plans, policies and practices of the
Company.

 

-16-

(c)  Change
of Control.

 

(i) Notwithstanding
the provisions of Section
7(a) to the
contrary, if, within 24 months following a Change in Control (as defined below),
Executive’s position described in Section
2 of this
Agreement is eliminated, Executive’s title, job responsibilities and/or work
location are changed from those described in Section
2 of this
Agreement, Executive’s Base Salary is reduced, Executive’s opportunity to earn
an annual bonus up to 120% of Base Salary as set forth in Section
4 of this
Agreement is eliminated, or Executive’s employment is terminated by the Company
without Cause (as defined below), Executive shall have the option for a period
equal to the earlier of (A) 24 months after the date of the Change in
Control, and (B) the scheduled expiration of Employment Term, to terminate
his employment with the Company (if such employment has not otherwise been
terminated as contemplated above) and, subject to Executive’s continued
compliance with the covenants set forth in Section
8, to
receive (X) the amounts described under Section
7(a); (Y)
continued payment of Base Salary through the last day of the 24th month
following the date of termination; and (Z) continued coverage under the
Company’s welfare benefit arrangements as in effect from time to time through
the earlier of (1) the end of the Severance Period, and (2) such time as
Executive is eligible to receive comparable welfare benefits from a subsequent
employer. All other benefits following termination of the Employment Term
pursuant to this Section
7(c)(ii) shall be
determined in accordance with the plans, policies and practices of the
Company.

 

(ii) Notwithstanding
the provisions of Section
7(b) to the
contrary, if, within 24 months following a Change in Control (as defined below),
Executive dies or if Executive incurs a Disability, Executive shall have the
option for a period equal to the earlier of (A) 24 months after the date of
the Change in Control, and (B) the scheduled expiration of Employment Term,
to terminate his employment with the Company (if such employment has not
otherwise been terminated as contemplated above) and, subject to Executive’s
continued compliance with the covenants set forth in Section
8, to
receive (X) the amounts described under Section
7(a); (Y)
continued payment of Base Salary through the first anniversary of the date of
death or the date of Executive’s termination of employment due to Disability;
and (Z) continued coverage under the Company’s welfare benefit arrangements as
in effect from time to time through the earlier of (1) the end of the Severance
Period, and (2) such time as Executive is eligible to receive comparable welfare
benefits from a subsequent employer. All other benefits following termination of
the Employment Term pursuant to this Section
7(c)(ii) shall be
determined in accordance with the plans, policies and practices of the
Company.

 

(d)  Definitions. For
purposes of this Section
7, the
following terms shall have the following meanings:

 

(i)  "Cause" shall
mean:

 

(A)  Executive’s
willful and continued failure substantially to perform his duties under this
Agreement (other than as a result of total or partial incapacity due to physical
or mental illness);

 

(B)  An act or
acts on Executive’s part constituting a felony under the laws of the United
States or any other state thereof or any other jurisdiction in which the Company
conducts business;

 

(C)  Executive’s
being under the influence of illegal drugs or alcohol while performing his
duties hereunder;

 

(D)  Any other
act or omission which is materially injurious to the financial condition or
business reputation of the Company or any of its affiliates; or

 

(E)  Executive’s
breach of the provisions of Section
8.

 

For
purposes of this definition, no act or failure to act shall be deemed "willful"
unless effected by Executive not in good faith and without a reasonable belief
that such action or failure to act was in or not opposed to the Company’s best
interests.

 

-17-

(ii)  
"Change
in Control" shall
mean a change of control of more than fifty percent (50%) of the common stock or
equity units of the Company or Brand Holdings, LLC (other than through a sale
into the public markets) occurring at any time after the Effective
Date.

 

(iii)  "Disability" shall
mean Executive’s inability, as a result of physical or mental illness, to
perform the duties of the position(s) specified in Section
2 for a
period of 90 consecutive days or for an aggregate of 90 days in any twelve
consecutive month period. Any question as to the existence of the Disability of
Executive as to which Executive and the Company cannot agree shall be determined
in writing by a qualified independent physician selected by the Company and
reasonably acceptable to Executive. The determination of Disability made in
writing to the Company and Executive shall be final and conclusive for all
purposes of the Agreement.

 

(iv)  "Severance
Period" shall
mean the applicable period of time under Section
7(c) of this
Agreement that it is contemplated that Executive is to receive his Base Salary
after termination of the Employment Term.

 

(e)  Notice
of Termination. Any
purported termination of the Employment Term prior to the Expiration Date by the
Company or by Executive shall be communicated by written notice of termination
to the other party hereto.

 

(f)  Release. Any
payments by the Company to Executive under this Section
7 or in
connection with any dispute arising under or in connection with this Agreement
or relating to Executive’s employment with the Company (including payments
pursuant to arbitration as provided for in Section
10(k) hereof)
will be contingent upon the execution by Executive of a release of any claims
Executive may have against the Company, its affiliates or any successor to the
Company, such release to be in a form satisfactory to the Company in its sole
discretion. 

 

8.  Non-Competition/Confidential
Information.

 

(a)  Executive
acknowledges and recognizes the highly competitive nature of the businesses of
the Company and its affiliates and accordingly agrees that during the Employment
Term and through the later of the Severance Period or twenty-four (24) months
following the date of termination of employment:

 

(i)  Executive
will not directly or indirectly engage in any business which is in competition
with any line of business conducted by the Company or its affiliates (including
without limitation by performing or soliciting the performance of services for
any person who is a customer or client of the Company or any of its affiliates)
whether such engagement is as an officer, director, proprietor, employee,
partner, investor (other than as holder of less than 1% of the outstanding
capital stock of a publicly traded corporation), consultant, advisor, agent,
sales representative or other participant, in any geographic area in which the
Company or any of its affiliates conducted any such competing line of
business.

 

(ii)  Executive
will not directly or indirectly assist others in engaging in any of the
activities in which Executive is prohibited from engaging in by clause (i)
above.

 

-18-

(b)  Executive
will not directly or indirectly induce any employee of the Company or any of its
affiliates to engage in any activity in which Executive is prohibited to engage
by paragraph (a) above or to terminate his employment with the Company or any of
its affiliates, and will not directly or indirectly employ or offer employment
to any person who was employed by the Company or any of its affiliates unless
such person shall have ceased to be employed by the Company or any of its
affiliates for a period of at least 12 months.

 

(c)  Executive
will not at any time (whether during or after his employment with the Company)
disclose or use for his own benefit or purposes or the benefit or purposes of
any other person, firm, partnership, joint venture, association, corporation or
other business organization, entity or enterprise other than the Company and any
of its subsidiaries or affiliates, any trade secrets, information, data, or
other confidential information relating to customers, development programs,
costs, marketing, trading, investment, sales activities, promotion, credit and
financial data, manufacturing processes, financing methods, plans, or the
business and affairs of the Company generally or of any subsidiary or affiliate
of the Company, provided that the
foregoing shall not apply to information which is not unique to the Company or
which is generally known to the industry or the public other than as a result of
Executive’s breach of this covenant. Executive agrees that upon termination of
his employment with the Company for any reason, he will return to the Company
immediately all memoranda, books, papers, plans, information, letters and other
data, and all copies thereof or therefrom, in any way relating to the business
of the Company and its affiliates, except that he may retain personal notes,
notebooks and diaries. Executive further agrees that he will not retain or use
for his account at any time any trade names, trademark or other proprietary
business designation used or owned in connection with the business of the
Company or its affiliates.

 

9.  Specific
Performance and Other Remedies.
Executive acknowledges and agrees that the Company has no adequate remedy at law
for a breach or threatened breach of any of the provisions of Section
8 and, in
recognition of this fact, Executive agrees that, in the event of such a breach
or threatened breach, in addition to any remedies at law, the Company, without
posting any bond and without notice to Executive, shall be entitled to obtain
equitable relief in the form of specific performance, temporary restraining
order, temporary or permanent injunction or any other equitable remedy which may
then be available. Nothing in this Agreement shall be construed as prohibiting
the Company from pursuing any other remedies at law or in equity that it may
have or any other rights that it may have under any other
agreement.

 

10.  Miscellaneous.

 

(a)  Governing
Law. This
Agreement shall be governed by and construed in accordance with the laws of the
State of Missouri without reference to principles of conflict of
laws.

 

(b)  Entire
Agreement/Amendments. This
Agreement contains the entire understanding of the parties with respect to the
subject matter hereof and supersedes any prior agreements between the Company
and Executive relating to the subject matter hereof, including without
limitation, any and all employment agreements (including any and all amendments,
restatements or continuations thereto or thereof). There are no restrictions,
agreements, promises, warranties, covenants or undertakings between the parties
with respect to the subject matter herein other than those expressly set forth
herein. No provision in this Agreement may be amended unless such amendment is
agreed to in writing.

 

(c)  No
Waiver. The
failure of a party to insist upon strict adherence to any term of this Agreement
on any occasion shall not be considered a waiver of such party’s rights or
deprive such party of the right thereafter to insist upon strict adherence to
that term or any other term of this Agreement. No waiver by either party of any
breach by the other party of any condition or provision contained in this
Agreement to be performed by such other party shall be deemed a waiver of a
similar or dissimilar condition or provision at the same or any prior or
subsequent time. Any waiver must be in writing and signed by Executive or the
Company, as the case may be.

 

-19-

(d)  Severability. It is
expressly understood and agreed that although Executive and the Company consider
the restrictions contained in Section
8 to be
reasonable, if a final judicial determination is made by a court of competent
jurisdiction that the time or territory restriction in Section
8 or any
other restriction contained in Section
8 is an
unenforceable restriction against Executive, such provision shall not be
rendered void but shall be deemed amended to apply to such maximum time and
territory, if applicable, or otherwise to such maximum extent as such court may
judicially determine or indicate to be enforceable. Alternatively, if any court
of competent jurisdiction finds that any restriction contained in Section
8 is
unenforceable, and such restriction cannot be amended so as to make it
enforceable, such finding shall not affect the enforceability of any of the
other restrictions contained herein. In the event that any one or more of the
other provisions of this Agreement shall be or become invalid, illegal or
unenforceable in any respect, the validity, legality and enforceability of the
remaining provisions of this Agreement shall not be affected
thereby.

 

(e)  Assignment. This
Agreement shall not be assignable by either party without the consent of the
other party.

 

(f)  Successors. This
Agreement shall inure to the benefit of and be binding upon the personal or
legal representatives, executors, administrators, successors, heirs,
distributees, devisees and legatees of the parties hereto. Executive shall be
entitled to select (and change, to the extent permitted under any applicable
law) a beneficiary or beneficiaries to receive any compensation or benefit
payable hereunder following Executive’s death by giving the Company written
notice thereof. In the event of Executive’s death or a judicial determination of
his incompetence, reference in this Agreement to Executive shall be deemed,
where appropriate, to refer to his beneficiary, estate or other legal
representative.

 

(g)  Communications. For the
purpose of this Agreement, notices and all other communications provided for in
this Agreement shall be in writing and shall be deemed to have been duly given
when faxed or delivered or two business days after being mailed by United States
registered or certified mail, return receipt requested, postage prepaid,
addressed (i) to Executive at his address then appearing in the personnel
records of the Company and; (ii) to the Company at the Company’s then current
headquarters; or (iii) to such other address as either party may have furnished
to the other in writing in accordance herewith, with such notice of change of
address being effective only upon receipt.

 

(h)  Withholding
Taxes. The
Company may withhold from any and all amounts payable under this Agreement such
federal, state, local and any other applicable taxes as may be required to be
withheld pursuant to any applicable law or regulation.

 

(i)  Survivorship. The
respective rights and obligations of the parties hereunder shall survive any
termination of Executive’s employment to the extent necessary to assure the
agreed preservation of such rights and obligations.

 

(j)  Representations. Each
party represents and warrants to the other that he or it is fully authorized and
empowered to enter into this Agreement and that the performance of his or its
obligations under this Agreement will not violate any agreement between him or
it and any other person or entity.

 

(k)  Arbitration. The
parties agree that all disputes arising under or in connection with this
Agreement, and any and all claims by Executive relating to his employment with
the Company, including any claims of discrimination arising under Title VII of
the Civil Rights Act of 1964, as amended, the Age Discrimination in Employment
Act, the Americans with Disabilities Act or any similar federal, state or local
law will be submitted to arbitration in the County of St. Louis of the State of
Missouri to the American Arbitration Association ("AAA") under
its rules then prevailing for the type of claim in issue.

 

In any
action or proceeding relating to this Agreement, the parties agree that no
damages other than compensatory damages shall be sought or claimed by either
party and each party waives any claim, right or entitlement to punitive,
exemplary, statutory or consequential damages, or any other damages, and each
relevant arbitration panel is specifically divested of any power to award any
damages in the nature of punitive, exemplary, statutory or consequential
damages, or any other damages of any kind or nature in excess of compensatory
damages.

 

-20-

(l)  Fees
and Expenses. In the
event of a dispute by the Company or Executive as to the validity or
enforceability of, or liability under, any provision of this Agreement and with
respect to any claims arising in connection with Executive’s employment with the
Company, each party shall pay its own legal fees and expenses incurred in
connection with such dispute or claim; provided, however, and notwithstanding
the foregoing, in the event of a breach of this Agreement by the Company at any
time after a Change of Control, whether or not litigation is commenced, then the
Company shall pay to Executive, in addition to any damages incurred by
Executive, the costs and expenses incurred by Executive in connection with any
such breach (including, without limitation, all court costs and reasonable
attorneys’ fees and costs).

 

(m)  Counterparts. This
Agreement may be signed in counterparts, each of which shall be an original,
with the same effect as if the signatures thereto and hereto were upon the same
instrument.

 

(n)  Headings. The
headings of the sections contained in this Agreement are for convenience only
and shall not be deemed to control or affect the meaning or construction of any
provision of this Agreement. Any reference to Executive in the masculine gender
herein is for convenience and is not intended to express any preference by the
Company for executives of any gender.

 

IN
WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the
Effective Date.

 

 

[EXECUTIVE]

 

"Executive"

 

[The
Executive acknowledges that this Agreement contains an arbitration provision
which may be enforced by either party hereto]

BRAND
SERVICES, INC.

By:

Title:
President and CEO

the
"Company"

 

-21-

 

EMPLOYMENT
AGREEMENT

 

THIS
EMPLOYMENT AGREEMENT (the "Agreement") is
entered into effective as of October 16, 2004 (the "Effective
Date"), by
and between BRAND SERVICES, INC., a Delaware corporation (the "Company") and
Steven R. Loftus ("Executive").

 

WHEREAS,
Executive has been employed by the Company pursuant to an employment agreement;
and

 

WHEREAS,
the Company desires to continue to employ Executive, and Executive desires to
continue employment with the Company, subject to and in accordance with the
terms, conditions and covenants set forth in this Agreement.

 

NOW,
THEREFORE, in consideration of the premises and mutual covenants contained
herein and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

 

1.  Agreement
Term.
Executive’s continued employment by the Company pursuant to the terms of this
Agreement shall commence on the Effective Date, and shall, unless extended as
set forth below, terminate on October 16, 2007 (the "Expiration
Date").
Executive’s employment shall be automatically extended on a year to year basis
following the Expiration Date, unless a written notice to terminate is given by
the Company to Executive not less than thirty (30), nor more than sixty (60),
days prior to the scheduled Expiration Date. The period commencing on the
Effective Date and ending on the Expiration Date, as the same may be extended
from time to time hereunder, is hereinafter referred to as the "Employment
Term".
Notwithstanding the foregoing, the Employment Term shall terminate in any and
all events upon the termination of Executive’s employment hereunder as
hereinafter provided.

 

2.  Position. During
the Employment Term, Executive shall serve as Region Operations Vice President
(ROVP). Executive shall have such duties and authority commensurate with such
position as shall be determined from time to time. Executive shall devote
substantially all of his business time and best efforts to the performance of
his duties hereunder and shall not engage in any other business, profession or
occupation for compensation or otherwise. 

 

3.  Base
Salary. During
the Employment Term, the Company shall pay Executive a base salary (the
"Base
Salary") at the
annual rate of not less than $175,000 payable bi-weekly in arrears, in
accordance with the usual payment practices of the Company. Executive’s Base
Salary shall be subject to periodic review by the Compensation Committee of the
Board of Directors of the Company (the "Compensation
Committee"), not
less frequently than annually, beginning January 1, 2005.

 

4.  Bonus.

 

(a)  With
respect to each fiscal year in the Employment Term, Executive shall be eligible
for a bonus of up to 120% of his Base Salary (the "Annual
Bonus") to be
determined annually in accordance with the Company’s annual bonus plan, as
earned through the achievement of certain profitability and performance
objectives which are annually developed by the CEO and as reviewed and approved
by the Compensation Committee (the "Bonus
Plan"). The
Bonus Plan shall have terms (including the terms of calculating bonuses)
consistent with the terms of the Company’s 2004 bonus plan, a copy of which is
annexed hereto as Annex
I.

 

(b)  Any bonus
payable hereunder shall be paid at or about the same time bonuses are paid to
the Company’s other senior executives and, in the case of the Annual Bonus, in
accordance with the terms of the Bonus Plan.

 

-22-

 

5.  Benefits
and Business Expenses.

 

(a)  During
the Employment Term, Executive shall be entitled to participate in retirement,
welfare benefit, incentive compensation, perquisite and other plans and
arrangements as shall be offered by the Company and in effect from time to
time.

 

(b)  During
the Employment Term, the Company shall reimburse such of Executive’s travel,
entertainment and other business expenses as are reasonably and necessarily
incurred by Executive during the Employment Term in the performance of his
duties hereunder, in accordance with the Company’s policies as in effect from
time to time.

 

6.  Termination. The
Employment Term shall expire on the Expiration Date (after giving effect to any
extensions set forth in Section
1 hereof).
In the event the Employment Term expires, Executive shall only be entitled to
receive the amounts described in Section 7(a) below. The Employment Term may be
terminated prior to its scheduled expiration for any of the reasons set forth in
this Section
7. Upon a
termination of the Employment Term prior to its scheduled expiration, Executive
shall be entitled to the payments, if any, described in this Section
7.

 

(a)  Termination
by the Company or Executive for any Reason or for No Reason. The
Employment Term may be terminated prior to its scheduled expiration by the
Company or by Executive for any reason or for no reason. If, prior to the
Expiration Date, the Employment Term is terminated by the Company or by
Executive for any reason or for no reason, then, except as set forth in
Section
7(c)(i) below,
Executive shall be entitled to receive his Base Salary through the date of
termination, any Bonus that has been earned in accordance with Section
4 for a
prior fiscal year but not yet paid and any unreimbursed business expenses,
payable promptly following the later of the date of such termination and the
date on which the appropriate documentation is provided. All other benefits
following termination of the Employment Term pursuant to this Section
7(a) shall be
determined in accordance with the plans, policies and practices of the
Company.

 

(b)  Death
or Disability. The
Employment Term shall terminate prior to its scheduled expiration upon
Executive’s death or, at the Company’s election, if Executive incurs a
Disability (as defined below). Except as set forth in Section
7(c)(ii) below,
if the Employment Term is terminated prior to the Expiration Date by reason of
Executive’s death or, at the Company’s election, if Executive incurs a
Disability, Executive’s estate or, in the case of Executive’s Disability,
Executive (or such other person duly appointed by a court of competent
jurisdiction to manage Executive’s affairs) shall receive the amounts described
under Section
7(a). All
other benefits following termination of the Employment Term pursuant to this
Section
7(b) shall be
determined in accordance with the plans, policies and practices of the
Company.

 

-23-

(c)  Change
of Control.

 

(i) Notwithstanding
the provisions of Section
7(a) to the
contrary, if, within 24 months following a Change in Control (as defined below),
Executive’s position described in Section
2 of this
Agreement is eliminated, Executive’s title, job responsibilities and/or work
location are changed from those described in Section
2 of this
Agreement, Executive’s Base Salary is reduced, Executive’s opportunity to earn
an annual bonus up to 120% of Base Salary as set forth in Section
4 of this
Agreement is eliminated, or Executive’s employment is terminated by the Company
without Cause (as defined below), Executive shall have the option for a period
equal to the earlier of (A) 24 months after the date of the Change in
Control, and (B) the scheduled expiration of Employment Term, to terminate
his employment with the Company (if such employment has not otherwise been
terminated as contemplated above) and, subject to Executive’s continued
compliance with the covenants set forth in Section
8, to
receive (X) the amounts described under Section
7(a); (Y)
continued payment of Base Salary through the last day of the 24th month
following the date of termination; and (Z) continued coverage under the
Company’s welfare benefit arrangements as in effect from time to time through
the earlier of (1) the end of the Severance Period, and (2) such time as
Executive is eligible to receive comparable welfare benefits from a subsequent
employer. All other benefits following termination of the Employment Term
pursuant to this Section
7(c)(ii) shall be
determined in accordance with the plans, policies and practices of the
Company.

 

(ii) Notwithstanding
the provisions of Section
7(b) to the
contrary, if, within 24 months following a Change in Control (as defined below),
Executive dies or if Executive incurs a Disability, Executive shall have the
option for a period equal to the earlier of (A) 24 months after the date of
the Change in Control, and (B) the scheduled expiration of Employment Term,
to terminate his employment with the Company (if such employment has not
otherwise been terminated as contemplated above) and, subject to Executive’s
continued compliance with the covenants set forth in Section
8, to
receive (X) the amounts described under Section
7(a); (Y)
continued payment of Base Salary through the first anniversary of the date of
death or the date of Executive’s termination of employment due to Disability;
and (Z) continued coverage under the Company’s welfare benefit arrangements as
in effect from time to time through the earlier of (1) the end of the Severance
Period, and (2) such time as Executive is eligible to receive comparable welfare
benefits from a subsequent employer. All other benefits following termination of
the Employment Term pursuant to this Section
7(c)(ii) shall be
determined in accordance with the plans, policies and practices of the
Company.

 

(d)  Definitions. For
purposes of this Section
7, the
following terms shall have the following meanings:

 

(i)  "Cause" shall
mean:

 

(A)  Executive’s
willful and continued failure substantially to perform his duties under this
Agreement (other than as a result of total or partial incapacity due to physical
or mental illness);

 

(B)  An act or
acts on Executive’s part constituting a felony under the laws of the United
States or any other state thereof or any other jurisdiction in which the Company
conducts business;

 

(C)  Executive’s
being under the influence of illegal drugs or alcohol while performing his
duties hereunder;

 

(D)  Any other
act or omission which is materially injurious to the financial condition or
business reputation of the Company or any of its affiliates; or

 

(E)  Executive’s
breach of the provisions of Section
8.

 

For
purposes of this definition, no act or failure to act shall be deemed "willful"
unless effected by Executive not in good faith and without a reasonable belief
that such action or failure to act was in or not opposed to the Company’s best
interests.

 

-24-

(ii)  
"Change
in Control" shall
mean a change of control of more than fifty percent (50%) of the common stock or
equity units of the Company or Brand Holdings, LLC (other than through a sale
into the public markets) occurring at any time after the Effective
Date.

 

(iii)  "Disability" shall
mean Executive’s inability, as a result of physical or mental illness, to
perform the duties of the position(s) specified in Section
2 for a
period of 90 consecutive days or for an aggregate of 90 days in any twelve
consecutive month period. Any question as to the existence of the Disability of
Executive as to which Executive and the Company cannot agree shall be determined
in writing by a qualified independent physician selected by the Company and
reasonably acceptable to Executive. The determination of Disability made in
writing to the Company and Executive shall be final and conclusive for all
purposes of the Agreement.

 

(iv)  "Severance
Period" shall
mean the applicable period of time under Section
7(c) of this
Agreement that it is contemplated that Executive is to receive his Base Salary
after termination of the Employment Term.

 

(e)  Notice
of Termination. Any
purported termination of the Employment Term prior to the Expiration Date by the
Company or by Executive shall be communicated by written notice of termination
to the other party hereto.

 

(f)  Release. Any
payments by the Company to Executive under this Section
7 or in
connection with any dispute arising under or in connection with this Agreement
or relating to Executive’s employment with the Company (including payments
pursuant to arbitration as provided for in Section
10(k) hereof)
will be contingent upon the execution by Executive of a release of any claims
Executive may have against the Company, its affiliates or any successor to the
Company, such release to be in a form satisfactory to the Company in its sole
discretion. 

 

7.  Non-Competition/Confidential
Information.

 

(a)  Executive
acknowledges and recognizes the highly competitive nature of the businesses of
the Company and its affiliates and accordingly agrees that during the Employment
Term and through the later of the Severance Period or twenty-four (24) months
following the date of termination of employment:

 

(i)  Executive
will not directly or indirectly engage in any business which is in competition
with any line of business conducted by the Company or its affiliates (including
without limitation by performing or soliciting the performance of services for
any person who is a customer or client of the Company or any of its affiliates)
whether such engagement is as an officer, director, proprietor, employee,
partner, investor (other than as holder of less than 1% of the outstanding
capital stock of a publicly traded corporation), consultant, advisor, agent,
sales representative or other participant, in any geographic area in which the
Company or any of its affiliates conducted any such competing line of
business.

 

(ii)  Executive
will not directly or indirectly assist others in engaging in any of the
activities in which Executive is prohibited from engaging in by clause (i)
above.

 

-25-

(b)  Executive
will not directly or indirectly induce any employee of the Company or any of its
affiliates to engage in any activity in which Executive is prohibited to engage
by paragraph (a) above or to terminate his employment with the Company or any of
its affiliates, and will not directly or indirectly employ or offer employment
to any person who was employed by the Company or any of its affiliates unless
such person shall have ceased to be employed by the Company or any of its
affiliates for a period of at least 12 months.

 

(c)  Executive
will not at any time (whether during or after his employment with the Company)
disclose or use for his own benefit or purposes or the benefit or purposes of
any other person, firm, partnership, joint venture, association, corporation or
other business organization, entity or enterprise other than the Company and any
of its subsidiaries or affiliates, any trade secrets, information, data, or
other confidential information relating to customers, development programs,
costs, marketing, trading, investment, sales activities, promotion, credit and
financial data, manufacturing processes, financing methods, plans, or the
business and affairs of the Company generally or of any subsidiary or affiliate
of the Company, provided that the
foregoing shall not apply to information which is not unique to the Company or
which is generally known to the industry or the public other than as a result of
Executive’s breach of this covenant. Executive agrees that upon termination of
his employment with the Company for any reason, he will return to the Company
immediately all memoranda, books, papers, plans, information, letters and other
data, and all copies thereof or therefrom, in any way relating to the business
of the Company and its affiliates, except that he may retain personal notes,
notebooks and diaries. Executive further agrees that he will not retain or use
for his account at any time any trade names, trademark or other proprietary
business designation used or owned in connection with the business of the
Company or its affiliates.

 

8.  Specific
Performance and Other Remedies.
Executive acknowledges and agrees that the Company has no adequate remedy at law
for a breach or threatened breach of any of the provisions of Section
8 and, in
recognition of this fact, Executive agrees that, in the event of such a breach
or threatened breach, in addition to any remedies at law, the Company, without
posting any bond and without notice to Executive, shall be entitled to obtain
equitable relief in the form of specific performance, temporary restraining
order, temporary or permanent injunction or any other equitable remedy which may
then be available. Nothing in this Agreement shall be construed as prohibiting
the Company from pursuing any other remedies at law or in equity that it may
have or any other rights that it may have under any other
agreement.

 

9.  Miscellaneous.

 

(a)  Governing
Law. This
Agreement shall be governed by and construed in accordance with the laws of the
State of Missouri without reference to principles of conflict of
laws.

 

(b)  Entire
Agreement/Amendments. This
Agreement contains the entire understanding of the parties with respect to the
subject matter hereof and supersedes any prior agreements between the Company
and Executive relating to the subject matter hereof, including without
limitation, any and all employment agreements (including any and all amendments,
restatements or continuations thereto or thereof). There are no restrictions,
agreements, promises, warranties, covenants or undertakings between the parties
with respect to the subject matter herein other than those expressly set forth
herein. No provision in this Agreement may be amended unless such amendment is
agreed to in writing.

 

(c)  No
Waiver. The
failure of a party to insist upon strict adherence to any term of this Agreement
on any occasion shall not be considered a waiver of such party’s rights or
deprive such party of the right thereafter to insist upon strict adherence to
that term or any other term of this Agreement. No waiver by either party of any
breach by the other party of any condition or provision contained in this
Agreement to be performed by such other party shall be deemed a waiver of a
similar or dissimilar condition or provision at the same or any prior or
subsequent time. Any waiver must be in writing and signed by Executive or the
Company, as the case may be.

 

-26-

(d)  Severability. It is
expressly understood and agreed that although Executive and the Company consider
the restrictions contained in Section
8 to be
reasonable, if a final judicial determination is made by a court of competent
jurisdiction that the time or territory restriction in Section
8 or any
other restriction contained in Section
8 is an
unenforceable restriction against Executive, such provision shall not be
rendered void but shall be deemed amended to apply to such maximum time and
territory, if applicable, or otherwise to such maximum extent as such court may
judicially determine or indicate to be enforceable. Alternatively, if any court
of competent jurisdiction finds that any restriction contained in Section
8 is
unenforceable, and such restriction cannot be amended so as to make it
enforceable, such finding shall not affect the enforceability of any of the
other restrictions contained herein. In the event that any one or more of the
other provisions of this Agreement shall be or become invalid, illegal or
unenforceable in any respect, the validity, legality and enforceability of the
remaining provisions of this Agreement shall not be affected
thereby.

 

(e)  Assignment. This
Agreement shall not be assignable by either party without the consent of the
other party.

 

(f)  Successors. This
Agreement shall inure to the benefit of and be binding upon the personal or
legal representatives, executors, administrators, successors, heirs,
distributees, devisees and legatees of the parties hereto. Executive shall be
entitled to select (and change, to the extent permitted under any applicable
law) a beneficiary or beneficiaries to receive any compensation or benefit
payable hereunder following Executive’s death by giving the Company written
notice thereof. In the event of Executive’s death or a judicial determination of
his incompetence, reference in this Agreement to Executive shall be deemed,
where appropriate, to refer to his beneficiary, estate or other legal
representative.

 

(g)  Communications. For the
purpose of this Agreement, notices and all other communications provided for in
this Agreement shall be in writing and shall be deemed to have been duly given
when faxed or delivered or two business days after being mailed by United States
registered or certified mail, return receipt requested, postage prepaid,
addressed (i) to Executive at his address then appearing in the personnel
records of the Company and; (ii) to the Company at the Company’s then current
headquarters; or (iii) to such other address as either party may have furnished
to the other in writing in accordance herewith, with such notice of change of
address being effective only upon receipt.

 

(h)  Withholding
Taxes. The
Company may withhold from any and all amounts payable under this Agreement such
federal, state, local and any other applicable taxes as may be required to be
withheld pursuant to any applicable law or regulation.

 

(i)  Survivorship. The
respective rights and obligations of the parties hereunder shall survive any
termination of Executive’s employment to the extent necessary to assure the
agreed preservation of such rights and obligations.

 

(j)  Representations. Each
party represents and warrants to the other that he or it is fully authorized and
empowered to enter into this Agreement and that the performance of his or its
obligations under this Agreement will not violate any agreement between him or
it and any other person or entity.

 

(k)  Arbitration. The
parties agree that all disputes arising under or in connection with this
Agreement, and any and all claims by Executive relating to his employment with
the Company, including any claims of discrimination arising under Title VII of
the Civil Rights Act of 1964, as amended, the Age Discrimination in Employment
Act, the Americans with Disabilities Act or any similar federal, state or local
law will be submitted to arbitration in the County of St. Louis of the State of
Missouri to the American Arbitration Association ("AAA") under
its rules then prevailing for the type of claim in issue.

 

In any
action or proceeding relating to this Agreement, the parties agree that no
damages other than compensatory damages shall be sought or claimed by either
party and each party waives any claim, right or entitlement to punitive,
exemplary, statutory or consequential damages, or any other damages, and each
relevant arbitration panel is specifically divested of any power to award any
damages in the nature of punitive, exemplary, statutory or consequential
damages, or any other damages of any kind or nature in excess of compensatory
damages.

 

-27-

(l)  Fees
and Expenses. In the
event of a dispute by the Company or Executive as to the validity or
enforceability of, or liability under, any provision of this Agreement and with
respect to any claims arising in connection with Executive’s employment with the
Company, each party shall pay its own legal fees and expenses incurred in
connection with such dispute or claim; provided, however, and notwithstanding
the foregoing, in the event of a breach of this Agreement by the Company at any
time after a Change of Control, whether or not litigation is commenced, then the
Company shall pay to Executive, in addition to any damages incurred by
Executive, the costs and expenses incurred by Executive in connection with any
such breach (including, without limitation, all court costs and reasonable
attorneys’ fees and costs).

 

(m)  Counterparts. This
Agreement may be signed in counterparts, each of which shall be an original,
with the same effect as if the signatures thereto and hereto were upon the same
instrument.

 

(n)  Headings. The
headings of the sections contained in this Agreement are for convenience only
and shall not be deemed to control or affect the meaning or construction of any
provision of this Agreement. Any reference to Executive in the masculine gender
herein is for convenience and is not intended to express any preference by the
Company for executives of any gender.

 

    IN WITNESS
WHEREOF, the parties hereto have duly executed this Agreement as of the
Effective Date.

 

 

[EXECUTIVE]

 

"Executive"

 

[The
Executive acknowledges that this Agreement contains an arbitration provision
which may be enforced by either party hereto]

BRAND
SERVICES, INC.

By:

Title:
President and CEO

the
"Company"

 

 

-28-

EMPLOYMENT
AGREEMENT

 

THIS
EMPLOYMENT AGREEMENT (the "Agreement") is
entered into effective as of October 16, 2004 (the "Effective
Date"), by
and between BRAND SERVICES, INC., a Delaware corporation (the "Company") and
James M. McGee ("Executive").

 

WHEREAS,
Executive has been employed by the Company pursuant to an employment agreement;
and

 

WHEREAS,
the Company desires to continue to employ Executive, and Executive desires to
continue employment with the Company, subject to and in accordance with the
terms, conditions and covenants set forth in this Agreement.

 

NOW,
THEREFORE, in consideration of the premises and mutual covenants contained
herein and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

 

1.  Agreement
Term.
Executive’s continued employment by the Company pursuant to the terms of this
Agreement shall commence on the Effective Date, and shall, unless extended as
set forth below, terminate on October 16, 2007 (the "Expiration
Date").
Executive’s employment shall be automatically extended on a year to year basis
following the Expiration Date, unless a written notice to terminate is given by
the Company to Executive not less than thirty (30), nor more than sixty (60),
days prior to the scheduled Expiration Date. The period commencing on the
Effective Date and ending on the Expiration Date, as the same may be extended
from time to time hereunder, is hereinafter referred to as the "Employment
Term".
Notwithstanding the foregoing, the Employment Term shall terminate in any and
all events upon the termination of Executive’s employment hereunder as
hereinafter provided.

 

2.  Position. During
the Employment Term, Executive shall serve as Region Operations Vice President
(ROVP). Executive shall have such duties and authority commensurate with such
position as shall be determined by the company from time to time. Executive
shall devote substantially all of his business time and best efforts to the
performance of his duties hereunder and shall not engage in any other business,
profession or occupation for compensation or otherwise. 

 

3.  Base
Salary. During
the Employment Term, the Company shall pay Executive a base salary (the
"Base
Salary") at the
annual rate of not less than $171,949 payable bi-weekly in arrears, in
accordance with the usual payment practices of the Company. Executive’s Base
Salary shall be subject to periodic review by the Compensation Committee of the
Board of Directors of the Company (the "Compensation
Committee"), not
less frequently than annually, beginning January 1, 2005.

 

4.  Bonus.

 

(a)  With
respect to each fiscal year in the Employment Term, Executive shall be eligible
for a bonus of up to 120% of his Base Salary (the "Annual
Bonus") to be
determined annually in accordance with the Company’s annual bonus plan, as
earned through the achievement of certain profitability and performance
objectives which are annually developed by the CEO and as reviewed and approved
by the Compensation Committee (the "Bonus
Plan"). The
Bonus Plan shall have terms (including the terms of calculating bonuses)
consistent with the terms of the Company’s 2004 bonus plan, a copy of which is
annexed hereto as Annex
I.

 

(b)  Any bonus
payable hereunder shall be paid at or about the same time bonuses are paid to
the Company’s other senior executives and, in the case of the Annual Bonus, in
accordance with the terms of the Bonus Plan.

 

-29-

5.  Employee
Benefits.

 

(a)  During
the Employment Term, Executive shall be entitled to participate on a basis no
less favorable than other similarly-situated senior executives of the Company in
all retirement, welfare benefit, incentive compensation, perquisite and other
plans and arrangements of the Company applicable to senior executives of the
Company, as in effect from time to time.

 

(b)  The
Company has established a nonqualified deferred compensation plan ("Deferred
Compensation Plan"), dated
October 16, 2002 which has a term of five (5) years and, for each year of the
Employment Term or thereafter during which the Executive is employed by the
Company, for the duration of the Deferred Compensation Plan, the Company shall
provide Executive with an annual contribution to such plan in an amount equal to
15 percent of Executive’s Base Salary for such year (pro rated to reflect any
period of less than 12 months). Executive’s rights with respect to his benefits
under the Deferred Compensation Plan shall be exclusively as described in the
Deferred Compensation Plan. Amounts contributed by the Company to the Deferred
Compensation Plan shall not be taken into account for any purpose under any
other plan, program, policy or arrangement of the Company or its
affiliates.

 

6.  Business
Expenses. During
the Employment Term, the Company shall reimburse such of Executive’s travel,
entertainment and other business expenses as are reasonably and necessarily
incurred by Executive during the Employment Term in the performance of his
duties hereunder, in accordance with the Company’s policies as in effect from
time to time.

 

7.  Termination. The
Employment Term shall expire on the Expiration Date (after giving effect to any
extensions set forth in Section
1 hereof).
In the event the Employment Term expires, Executive shall only be entitled to
receive the amounts described in Section 7(a) below. The Employment Term may be
terminated prior to its scheduled expiration for any of the reasons set forth in
this Section
7. Upon a
termination of the Employment Term prior to its scheduled expiration, Executive
shall be entitled to the payments, if any, described in this Section
7.

 

(a)  Termination
by the Company or Executive for any Reason or for No Reason. The
Employment Term may be terminated prior to its scheduled expiration by the
Company or by Executive for any reason or for no reason. If, prior to the
Expiration Date, the Employment Term is terminated by the Company or by
Executive for any reason or for no reason, then, except as set forth in
Section
7(c)(i) below,
Executive shall be entitled to receive his Base Salary through the date of
termination, any Bonus that has been earned in accordance with Section
4 for a
prior fiscal year but not yet paid and any unreimbursed business expenses,
payable promptly following the later of the date of such termination and the
date on which the appropriate documentation is provided. All other benefits
following termination of the Employment Term pursuant to this Section
7(a) shall be
determined in accordance with the plans, policies and practices of the
Company.

 

(b)  Death
or Disability. The
Employment Term shall terminate prior to its scheduled expiration upon
Executive’s death or, at the Company’s election, if Executive incurs a
Disability (as defined below). Except as set forth in Section
7(c)(ii) below,
if the Employment Term is terminated prior to the Expiration Date by reason of
Executive’s death or, at the Company’s election, if Executive incurs a
Disability, Executive’s estate or, in the case of Executive’s Disability,
Executive (or such other person duly appointed by a court of competent
jurisdiction to manage Executive’s affairs) shall receive the amounts described
under Section
7(a). All
other benefits following termination of the Employment Term pursuant to this
Section
7(b) shall be
determined in accordance with the plans, policies and practices of the
Company.

 

-30-

(c)  Change
of Control.

 

(i) Notwithstanding
the provisions of Section
7(a) to the
contrary, if, within 24 months following a Change in Control (as defined below),
Executive’s position described in Section
2 of this
Agreement is eliminated, Executive’s title, job responsibilities and/or work
location are changed from those described in Section
2 of this
Agreement, Executive’s Base Salary is reduced, Executive’s opportunity to earn
an annual bonus up to 120% of Base Salary as set forth in Section
4 of this
Agreement is eliminated, or Executive’s employment is terminated by the Company
without Cause (as defined below), Executive shall have the option for a period
equal to the earlier of (A) 24 months after the date of the Change in
Control, and (B) the scheduled expiration of Employment Term, to terminate
his employment with the Company (if such employment has not otherwise been
terminated as contemplated above) and, subject to Executive’s continued
compliance with the covenants set forth in Section
8, to
receive (X) the amounts described under Section
7(a); (Y)
continued payment of Base Salary through the last day of the 24th month
following the date of termination; and (Z) continued coverage under the
Company’s welfare benefit arrangements as in effect from time to time through
the earlier of (1) the end of the Severance Period, and (2) such time as
Executive is eligible to receive comparable welfare benefits from a subsequent
employer. All other benefits following termination of the Employment Term
pursuant to this Section
7(c)(ii) shall be
determined in accordance with the plans, policies and practices of the
Company.

 

(ii) Notwithstanding
the provisions of Section
7(b) to the
contrary, if, within 24 months following a Change in Control (as defined below),
Executive dies or if Executive incurs a Disability, Executive shall have the
option for a period equal to the earlier of (A) 24 months after the date of
the Change in Control, and (B) the scheduled expiration of Employment Term,
to terminate his employment with the Company (if such employment has not
otherwise been terminated as contemplated above) and, subject to Executive’s
continued compliance with the covenants set forth in Section
8, to
receive (X) the amounts described under Section
7(a); (Y)
continued payment of Base Salary through the first anniversary of the date of
death or the date of Executive’s termination of employment due to Disability;
and (Z) continued coverage under the Company’s welfare benefit arrangements as
in effect from time to time through the earlier of (1) the end of the Severance
Period, and (2) such time as Executive is eligible to receive comparable welfare
benefits from a subsequent employer. All other benefits following termination of
the Employment Term pursuant to this Section
7(c)(ii) shall be
determined in accordance with the plans, policies and practices of the
Company.

 

(d)  Definitions. For
purposes of this Section
7, the
following terms shall have the following meanings:

 

(i)  "Cause" shall
mean:

 

(A)  Executive’s
willful and continued failure substantially to perform his duties under this
Agreement (other than as a result of total or partial incapacity due to physical
or mental illness);

 

(B)  An act or
acts on Executive’s part constituting a felony under the laws of the United
States or any other state thereof or any other jurisdiction in which the Company
conducts business;

 

(C)  Executive’s
being under the influence of illegal drugs or alcohol while performing his
duties hereunder;

 

(D)  Any other
act or omission which is materially injurious to the financial condition or
business reputation of the Company or any of its affiliates; or

 

(E)  Executive’s
breach of the provisions of Section
8.

 

For
purposes of this definition, no act or failure to act shall be deemed "willful"
unless effected by Executive not in good faith and without a reasonable belief
that such action or failure to act was in or not opposed to the Company’s best
interests.

 

(ii)  
"Change
in Control" shall
mean a change of control of more than fifty percent (50%) of the common stock or
equity units of the Company or Brand Holdings, LLC (other than through a sale
into the public markets) occurring at any time after the Effective
Date.

 

(iii)  "Disability" shall
mean Executive’s inability, as a result of physical or mental illness, to
perform the duties of the position(s) specified in Section
2 for a
period of 90 consecutive days or for an aggregate of 90 days in any twelve
consecutive month period. Any question as to the existence of the Disability of
Executive as to which Executive and the Company cannot agree shall be determined
in writing by a qualified independent physician selected by the Company and
reasonably acceptable to Executive. The determination of Disability made in
writing to the Company and Executive shall be final and conclusive for all
purposes of the Agreement.

 

-31-

(iv)  "Severance
Period" shall
mean the applicable period of time under Section
7(c) of this
Agreement that it is contemplated that Executive is to receive his Base Salary
after termination of the Employment Term.

 

(e)  Notice
of Termination. Any
purported termination of the Employment Term prior to the Expiration Date by the
Company or by Executive shall be communicated by written notice of termination
to the other party hereto.

 

(f)  Release. Any
payments by the Company to Executive under this Section
7 or in
connection with any dispute arising under or in connection with this Agreement
or relating to Executive’s employment with the Company (including payments
pursuant to arbitration as provided for in Section
10(k) hereof)
will be contingent upon the execution by Executive of a release of any claims
Executive may have against the Company, its affiliates or any successor to the
Company, such release to be in a form satisfactory to the Company in its sole
discretion. 

 

8.  Non-Competition/Confidential
Information.

 

(a)  Executive
acknowledges and recognizes the highly competitive nature of the businesses of
the Company and its affiliates and accordingly agrees that during the Employment
Term and through the later of the Severance Period or twenty-four (24) months
following the date of termination of employment:

 

(i)  Executive
will not directly or indirectly engage in any business which is in competition
with any line of business conducted by the Company or its affiliates (including
without limitation by performing or soliciting the performance of services for
any person who is a customer or client of the Company or any of its affiliates)
whether such engagement is as an officer, director, proprietor, employee,
partner, investor (other than as holder of less than 1% of the outstanding
capital stock of a publicly traded corporation), consultant, advisor, agent,
sales representative or other participant, in any geographic area in which the
Company or any of its affiliates conducted any such competing line of
business.

 

(ii)  Executive
will not directly or indirectly assist others in engaging in any of the
activities in which Executive is prohibited from engaging in by clause (i)
above.

 

(b)  Executive
will not directly or indirectly induce any employee of the Company or any of its
affiliates to engage in any activity in which Executive is prohibited to engage
by paragraph (a) above or to terminate his employment with the Company or any of
its affiliates, and will not directly or indirectly employ or offer employment
to any person who was employed by the Company or any of its affiliates unless
such person shall have ceased to be employed by the Company or any of its
affiliates for a period of at least 12 months.

 

-32-

(c)  Executive
will not at any time (whether during or after his employment with the Company)
disclose or use for his own benefit or purposes or the benefit or purposes of
any other person, firm, partnership, joint venture, association, corporation or
other business organization, entity or enterprise other than the Company and any
of its subsidiaries or affiliates, any trade secrets, information, data, or
other confidential information relating to customers, development programs,
costs, marketing, trading, investment, sales activities, promotion, credit and
financial data, manufacturing processes, financing methods, plans, or the
business and affairs of the Company generally or of any subsidiary or affiliate
of the Company, provided that the
foregoing shall not apply to information which is not unique to the Company or
which is generally known to the industry or the public other than as a result of
Executive’s breach of this covenant. Executive agrees that upon termination of
his employment with the Company for any reason, he will return to the Company
immediately all memoranda, books, papers, plans, information, letters and other
data, and all copies thereof or therefrom, in any way relating to the business
of the Company and its affiliates, except that he may retain personal notes,
notebooks and diaries. Executive further agrees that he will not retain or use
for his account at any time any trade names, trademark or other proprietary
business designation used or owned in connection with the business of the
Company or its affiliates.

 

9.  Specific
Performance and Other Remedies.
Executive acknowledges and agrees that the Company has no adequate remedy at law
for a breach or threatened breach of any of the provisions of Section
8 and, in
recognition of this fact, Executive agrees that, in the event of such a breach
or threatened breach, in addition to any remedies at law, the Company, without
posting any bond and without notice to Executive, shall be entitled to obtain
equitable relief in the form of specific performance, temporary restraining
order, temporary or permanent injunction or any other equitable remedy which may
then be available. Nothing in this Agreement shall be construed as prohibiting
the Company from pursuing any other remedies at law or in equity that it may
have or any other rights that it may have under any other
agreement.

 

10.  Miscellaneous.

 

(a)  Governing
Law. This
Agreement shall be governed by and construed in accordance with the laws of the
State of Missouri without reference to principles of conflict of
laws.

 

(b)  Entire
Agreement/Amendments. This
Agreement contains the entire understanding of the parties with respect to the
subject matter hereof and supersedes any prior agreements between the Company
and Executive relating to the subject matter hereof, including without
limitation, any and all employment agreements (including any and all amendments,
restatements or continuations thereto or thereof). There are no restrictions,
agreements, promises, warranties, covenants or undertakings between the parties
with respect to the subject matter herein other than those expressly set forth
herein. No provision in this Agreement may be amended unless such amendment is
agreed to in writing.

 

(c)  No
Waiver. The
failure of a party to insist upon strict adherence to any term of this Agreement
on any occasion shall not be considered a waiver of such party’s rights or
deprive such party of the right thereafter to insist upon strict adherence to
that term or any other term of this Agreement. No waiver by either party of any
breach by the other party of any condition or provision contained in this
Agreement to be performed by such other party shall be deemed a waiver of a
similar or dissimilar condition or provision at the same or any prior or
subsequent time. Any waiver must be in writing and signed by Executive or the
Company, as the case may be.

 

-33-

(d)  Severability. It is
expressly understood and agreed that although Executive and the Company consider
the restrictions contained in Section
8 to be
reasonable, if a final judicial determination is made by a court of competent
jurisdiction that the time or territory restriction in Section
8 or any
other restriction contained in Section
8 is an
unenforceable restriction against Executive, such provision shall not be
rendered void but shall be deemed amended to apply to such maximum time and
territory, if applicable, or otherwise to such maximum extent as such court may
judicially determine or indicate to be enforceable. Alternatively, if any court
of competent jurisdiction finds that any restriction contained in Section
8 is
unenforceable, and such restriction cannot be amended so as to make it
enforceable, such finding shall not affect the enforceability of any of the
other restrictions contained herein. In the event that any one or more of the
other provisions of this Agreement shall be or become invalid, illegal or
unenforceable in any respect, the validity, legality and enforceability of the
remaining provisions of this Agreement shall not be affected
thereby.

 

(e)  Assignment. This
Agreement shall not be assignable by either party without the consent of the
other party.

 

(f)  Successors. This
Agreement shall inure to the benefit of and be binding upon the personal or
legal representatives, executors, administrators, successors, heirs,
distributees, devisees and legatees of the parties hereto. Executive shall be
entitled to select (and change, to the extent permitted under any applicable
law) a beneficiary or beneficiaries to receive any compensation or benefit
payable hereunder following Executive’s death by giving the Company written
notice thereof. In the event of Executive’s death or a judicial determination of
his incompetence, reference in this Agreement to Executive shall be deemed,
where appropriate, to refer to his beneficiary, estate or other legal
representative.

 

(g)  Communications. For the
purpose of this Agreement, notices and all other communications provided for in
this Agreement shall be in writing and shall be deemed to have been duly given
when faxed or delivered or two business days after being mailed by United States
registered or certified mail, return receipt requested, postage prepaid,
addressed (i) to Executive at his address then appearing in the personnel
records of the Company and; (ii) to the Company at the Company’s then current
headquarters; or (iii) to such other address as either party may have furnished
to the other in writing in accordance herewith, with such notice of change of
address being effective only upon receipt.

 

(h)  Withholding
Taxes. The
Company may withhold from any and all amounts payable under this Agreement such
federal, state, local and any other applicable taxes as may be required to be
withheld pursuant to any applicable law or regulation.

 

(i)  Survivorship. The
respective rights and obligations of the parties hereunder shall survive any
termination of Executive’s employment to the extent necessary to assure the
agreed preservation of such rights and obligations.

 

(j)  Representations. Each
party represents and warrants to the other that he or it is fully authorized and
empowered to enter into this Agreement and that the performance of his or its
obligations under this Agreement will not violate any agreement between him or
it and any other person or entity.

 

(k)  Arbitration. The
parties agree that all disputes arising under or in connection with this
Agreement, and any and all claims by Executive relating to his employment with
the Company, including any claims of discrimination arising under Title VII of
the Civil Rights Act of 1964, as amended, the Age Discrimination in Employment
Act, the Americans with Disabilities Act or any similar federal, state or local
law will be submitted to arbitration in the County of St. Louis of the State of
Missouri to the American Arbitration Association ("AAA") under
its rules then prevailing for the type of claim in issue.

 

In any
action or proceeding relating to this Agreement, the parties agree that no
damages other than compensatory damages shall be sought or claimed by either
party and each party waives any claim, right or entitlement to punitive,
exemplary, statutory or consequential damages, or any other damages, and each
relevant arbitration panel is specifically divested of any power to award any
damages in the nature of punitive, exemplary, statutory or consequential
damages, or any other damages of any kind or nature in excess of compensatory
damages.

 

-34-

(l)  Fees
and Expenses. In the
event of a dispute by the Company or Executive as to the validity or
enforceability of, or liability under, any provision of this Agreement and with
respect to any claims arising in connection with Executive’s employment with the
Company, each party shall pay its own legal fees and expenses incurred in
connection with such dispute or claim; provided, however, and notwithstanding
the foregoing, in the event of a breach of this Agreement by the Company at any
time after a Change of Control, whether or not litigation is commenced, then the
Company shall pay to Executive, in addition to any damages incurred by
Executive, the costs and expenses incurred by Executive in connection with any
such breach (including, without limitation, all court costs and reasonable
attorneys’ fees and costs).

 

(m)  Counterparts. This
Agreement may be signed in counterparts, each of which shall be an original,
with the same effect as if the signatures thereto and hereto were upon the same
instrument.

 

(n)  Headings. The
headings of the sections contained in this Agreement are for convenience only
and shall not be deemed to control or affect the meaning or construction of any
provision of this Agreement. Any reference to Executive in the masculine gender
herein is for convenience and is not intended to express any preference by the
Company for executives of any gender.

 

IN
WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the
Effective Date.

 

 

[EXECUTIVE]

 

"Executive"

 

[The
Executive acknowledges that this Agreement contains an arbitration provision
which may be enforced by either party hereto]

BRAND
SERVICES, INC.

By:

Title:
President and CEO

the
"Company"

 

-35-

 

EMPLOYMENT
AGREEMENT

 

THIS
EMPLOYMENT AGREEMENT (the "Agreement") is
entered into effective as of October 16, 2004 (the "Effective
Date"), by
and between BRAND SERVICES, INC., a Delaware corporation (the "Company") and
Jeffrey W. Peterson ("Executive").

 

WHEREAS,
Executive has been employed by the Company pursuant to an employment agreement;
and

 

WHEREAS,
the Company desires to continue to employ Executive, and Executive desires to
continue employment with the Company, subject to and in accordance with the
terms, conditions and covenants set forth in this Agreement.

 

NOW,
THEREFORE, in consideration of the premises and mutual covenants contained
herein and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

 

1.  Agreement
Term.
Executive’s continued employment by the Company pursuant to the terms of this
Agreement shall commence on the Effective Date, and shall, unless extended as
set forth below, terminate on October 16, 2007 (the "Expiration
Date").
Executive’s employment shall be automatically extended on a year to year basis
following the Expiration Date, unless a written notice to terminate is given by
the Company to Executive not less than thirty (30), nor more than sixty (60),
days prior to the scheduled Expiration Date. The period commencing on the
Effective Date and ending on the Expiration Date, as the same may be extended
from time to time hereunder, is hereinafter referred to as the "Employment
Term".
Notwithstanding the foregoing, the Employment Term shall terminate in any and
all events upon the termination of Executive’s employment hereunder as
hereinafter provided.

 

2.  Position. During
the Employment Term, Executive shall serve as Vice President, Finance and CFO.
Executive shall have such duties and authority commensurate with such position
as shall be determined by the company from time to time. Executive shall devote
substantially all of his business time and best efforts to the performance of
his duties hereunder and shall not engage in any other business, profession or
occupation for compensation or otherwise. 

 

3.  Base
Salary. During
the Employment Term, the Company shall pay Executive a base salary (the
"Base
Salary") at the
annual rate of not less than $170,578 payable bi-weekly in arrears, in
accordance with the usual payment practices of the Company. Executive’s Base
Salary shall be subject to periodic review by the Compensation Committee of the
Board of Directors of the Company (the "Compensation
Committee"), not
less frequently than annually, beginning January 1, 2005.

 

4.  Bonus.

 

(a)  With
respect to each fiscal year in the Employment Term, Executive shall be eligible
for a bonus of up to 120% of his Base Salary (the "Annual
Bonus") to be
determined annually in accordance with the Company’s annual bonus plan, as
earned through the achievement of certain profitability and performance
objectives which are annually developed by the CEO and as reviewed and approved
by the Compensation Committee (the "Bonus
Plan"). The
Bonus Plan shall have terms (including the terms of calculating bonuses)
consistent with the terms of the Company’s 2004 bonus plan, a copy of which is
annexed hereto as Annex
I.

 

(b)  Any bonus
payable hereunder shall be paid at or about the same time bonuses are paid to
the Company’s other senior executives and, in the case of the Annual Bonus, in
accordance with the terms of the Bonus Plan.

 

-36-

5.  Employee
Benefits.

 

(a)  During
the Employment Term, Executive shall be entitled to participate on a basis no
less favorable than other similarly-situated senior executives of the Company in
all retirement, welfare benefit, incentive compensation, perquisite and other
plans and arrangements of the Company applicable to senior executives of the
Company, as in effect from time to time.

 

(b)  The
Company has established a nonqualified deferred compensation plan ("Deferred
Compensation Plan"), dated
October 16, 2002 which has a term of five (5) years and, for each year of the
Employment Term or thereafter during which the Executive is employed by the
Company, for the duration of the Deferred Compensation Plan, the Company shall
provide Executive with an annual contribution to such plan in an amount equal to
15 percent of Executive’s Base Salary for such year (pro rated to reflect any
period of less than 12 months). Executive’s rights with respect to his benefits
under the Deferred Compensation Plan shall be exclusively as described in the
Deferred Compensation Plan. Amounts contributed by the Company to the Deferred
Compensation Plan shall not be taken into account for any purpose under any
other plan, program, policy or arrangement of the Company or its
affiliates.

 

6.  Business
Expenses. During
the Employment Term, the Company shall reimburse such of Executive’s travel,
entertainment and other business expenses as are reasonably and necessarily
incurred by Executive during the Employment Term in the performance of his
duties hereunder, in accordance with the Company’s policies as in effect from
time to time.

 

7.  Termination. The
Employment Term shall expire on the Expiration Date (after giving effect to any
extensions set forth in Section
1 hereof).
In the event the Employment Term expires, Executive shall only be entitled to
receive the amounts described in Section 7(a) below. The Employment Term may be
terminated prior to its scheduled expiration for any of the reasons set forth in
this Section
7. Upon a
termination of the Employment Term prior to its scheduled expiration, Executive
shall be entitled to the payments, if any, described in this Section
7.

 

(a)  Termination
by the Company or Executive for any Reason or for No Reason. The
Employment Term may be terminated prior to its scheduled expiration by the
Company or by Executive for any reason or for no reason. If, prior to the
Expiration Date, the Employment Term is terminated by the Company or by
Executive for any reason or for no reason, then, except as set forth in
Section
7(c)(i) below,
Executive shall be entitled to receive his Base Salary through the date of
termination, any Bonus that has been earned in accordance with Section
4 for a
prior fiscal year but not yet paid and any unreimbursed business expenses,
payable promptly following the later of the date of such termination and the
date on which the appropriate documentation is provided. All other benefits
following termination of the Employment Term pursuant to this Section
7(a) shall be
determined in accordance with the plans, policies and practices of the
Company.

 

(b)  Death
or Disability. The
Employment Term shall terminate prior to its scheduled expiration upon
Executive’s death or, at the Company’s election, if Executive incurs a
Disability (as defined below). Except as set forth in Section
7(c)(ii) below,
if the Employment Term is terminated prior to the Expiration Date by reason of
Executive’s death or, at the Company’s election, if Executive incurs a
Disability, Executive’s estate or, in the case of Executive’s Disability,
Executive (or such other person duly appointed by a court of competent
jurisdiction to manage Executive’s affairs) shall receive the amounts described
under Section
7(a). All
other benefits following termination of the Employment Term pursuant to this
Section
7(b) shall be
determined in accordance with the plans, policies and practices of the
Company.

 

-37-

(c)  Change
of Control.

 

(i) Notwithstanding
the provisions of Section
7(a) to the
contrary, if, within 24 months following a Change in Control (as defined below),
Executive’s position described in Section
2 of this
Agreement is eliminated, Executive’s title, job responsibilities and/or work
location are changed from those described in Section
2 of this
Agreement, Executive’s Base Salary is reduced, Executive’s opportunity to earn
an annual bonus up to 120% of Base Salary as set forth in Section
4 of this
Agreement is eliminated, or Executive’s employment is terminated by the Company
without Cause (as defined below), Executive shall have the option for a period
equal to the earlier of (A) 24 months after the date of the Change in
Control, and (B) the scheduled expiration of Employment Term, to terminate
his employment with the Company (if such employment has not otherwise been
terminated as contemplated above) and, subject to Executive’s continued
compliance with the covenants set forth in Section
8, to
receive (X) the amounts described under Section
7(a); (Y)
continued payment of Base Salary through the last day of the 24th month
following the date of termination; and (Z) continued coverage under the
Company’s welfare benefit arrangements as in effect from time to time through
the earlier of (1) the end of the Severance Period, and (2) such time as
Executive is eligible to receive comparable welfare benefits from a subsequent
employer. All other benefits following termination of the Employment Term
pursuant to this Section
7(c)(ii) shall be
determined in accordance with the plans, policies and practices of the
Company.

 

(ii) Notwithstanding
the provisions of Section
7(b) to the
contrary, if, within 24 months following a Change in Control (as defined below),
Executive dies or if Executive incurs a Disability, Executive shall have the
option for a period equal to the earlier of (A) 24 months after the date of
the Change in Control, and (B) the scheduled expiration of Employment Term,
to terminate his employment with the Company (if such employment has not
otherwise been terminated as contemplated above) and, subject to Executive’s
continued compliance with the covenants set forth in Section
8, to
receive (X) the amounts described under Section
7(a); (Y)
continued payment of Base Salary through the first anniversary of the date of
death or the date of Executive’s termination of employment due to Disability;
and (Z) continued coverage under the Company’s welfare benefit arrangements as
in effect from time to time through the earlier of (1) the end of the Severance
Period, and (2) such time as Executive is eligible to receive comparable welfare
benefits from a subsequent employer. All other benefits following termination of
the Employment Term pursuant to this Section
7(c)(ii) shall be
determined in accordance with the plans, policies and practices of the
Company.

 

(d)  Definitions. For
purposes of this Section
7, the
following terms shall have the following meanings:

 

(i)  "Cause" shall
mean:

 

(A)  Executive’s
willful and continued failure substantially to perform his duties under this
Agreement (other than as a result of total or partial incapacity due to physical
or mental illness);

 

(B)  An act or
acts on Executive’s part constituting a felony under the laws of the United
States or any other state thereof or any other jurisdiction in which the Company
conducts business;

 

(C)  Executive’s
being under the influence of illegal drugs or alcohol while performing his
duties hereunder;

 

(D)  Any other
act or omission which is materially injurious to the financial condition or
business reputation of the Company or any of its affiliates; or

 

(E)  Executive’s
breach of the provisions of Section
8.

 

For
purposes of this definition, no act or failure to act shall be deemed "willful"
unless effected by Executive not in good faith and without a reasonable belief
that such action or failure to act was in or not opposed to the Company’s best
interests.

 

-38-

(ii)  
"Change
in Control" shall
mean a change of control of more than fifty percent (50%) of the common stock or
equity units of the Company or Brand Holdings, LLC (other than through a sale
into the public markets) occurring at any time after the Effective
Date.

 

(iii)  "Disability" shall
mean Executive’s inability, as a result of physical or mental illness, to
perform the duties of the position(s) specified in Section
2 for a
period of 90 consecutive days or for an aggregate of 90 days in any twelve
consecutive month period. Any question as to the existence of the Disability of
Executive as to which Executive and the Company cannot agree shall be determined
in writing by a qualified independent physician selected by the Company and
reasonably acceptable to Executive. The determination of Disability made in
writing to the Company and Executive shall be final and conclusive for all
purposes of the Agreement.

 

(iv)  "Severance
Period" shall
mean the applicable period of time under Section
7(c) of this
Agreement that it is contemplated that Executive is to receive his Base Salary
after termination of the Employment Term.

 

(e)  Notice
of Termination. Any
purported termination of the Employment Term prior to the Expiration Date by the
Company or by Executive shall be communicated by written notice of termination
to the other party hereto.

 

(f)  Release. Any
payments by the Company to Executive under this Section
7 or in
connection with any dispute arising under or in connection with this Agreement
or relating to Executive’s employment with the Company (including payments
pursuant to arbitration as provided for in Section
10(k) hereof)
will be contingent upon the execution by Executive of a release of any claims
Executive may have against the Company, its affiliates or any successor to the
Company, such release to be in a form satisfactory to the Company in its sole
discretion. 

 

8.  Non-Competition/Confidential
Information.

 

(a)  Executive
acknowledges and recognizes the highly competitive nature of the businesses of
the Company and its affiliates and accordingly agrees that during the Employment
Term and through the later of the Severance Period or twenty-four (24) months
following the date of termination of employment:

 

(i)  Executive
will not directly or indirectly engage in any business which is in competition
with any line of business conducted by the Company or its affiliates (including
without limitation by performing or soliciting the performance of services for
any person who is a customer or client of the Company or any of its affiliates)
whether such engagement is as an officer, director, proprietor, employee,
partner, investor (other than as holder of less than 1% of the outstanding
capital stock of a publicly traded corporation), consultant, advisor, agent,
sales representative or other participant, in any geographic area in which the
Company or any of its affiliates conducted any such competing line of
business.

 

(ii)  Executive
will not directly or indirectly assist others in engaging in any of the
activities in which Executive is prohibited from engaging in by clause (i)
above.

 

-39-

(b)  Executive
will not directly or indirectly induce any employee of the Company or any of its
affiliates to engage in any activity in which Executive is prohibited to engage
by paragraph (a) above or to terminate his employment with the Company or any of
its affiliates, and will not directly or indirectly employ or offer employment
to any person who was employed by the Company or any of its affiliates unless
such person shall have ceased to be employed by the Company or any of its
affiliates for a period of at least 12 months.

 

(c)  Executive
will not at any time (whether during or after his employment with the Company)
disclose or use for his own benefit or purposes or the benefit or purposes of
any other person, firm, partnership, joint venture, association, corporation or
other business organization, entity or enterprise other than the Company and any
of its subsidiaries or affiliates, any trade secrets, information, data, or
other confidential information relating to customers, development programs,
costs, marketing, trading, investment, sales activities, promotion, credit and
financial data, manufacturing processes, financing methods, plans, or the
business and affairs of the Company generally or of any subsidiary or affiliate
of the Company, provided that the
foregoing shall not apply to information which is not unique to the Company or
which is generally known to the industry or the public other than as a result of
Executive’s breach of this covenant. Executive agrees that upon termination of
his employment with the Company for any reason, he will return to the Company
immediately all memoranda, books, papers, plans, information, letters and other
data, and all copies thereof or therefrom, in any way relating to the business
of the Company and its affiliates, except that he may retain personal notes,
notebooks and diaries. Executive further agrees that he will not retain or use
for his account at any time any trade names, trademark or other proprietary
business designation used or owned in connection with the business of the
Company or its affiliates.

 

9.  Specific
Performance and Other Remedies.
Executive acknowledges and agrees that the Company has no adequate remedy at law
for a breach or threatened breach of any of the provisions of Section
8 and, in
recognition of this fact, Executive agrees that, in the event of such a breach
or threatened breach, in addition to any remedies at law, the Company, without
posting any bond and without notice to Executive, shall be entitled to obtain
equitable relief in the form of specific performance, temporary restraining
order, temporary or permanent injunction or any other equitable remedy which may
then be available. Nothing in this Agreement shall be construed as prohibiting
the Company from pursuing any other remedies at law or in equity that it may
have or any other rights that it may have under any other
agreement.

 

10.  Miscellaneous.

 

(a)  Governing
Law. This
Agreement shall be governed by and construed in accordance with the laws of the
State of Missouri without reference to principles of conflict of
laws.

 

(b)  Entire
Agreement/Amendments. This
Agreement contains the entire understanding of the parties with respect to the
subject matter hereof and supersedes any prior agreements between the Company
and Executive relating to the subject matter hereof, including without
limitation, any and all employment agreements (including any and all amendments,
restatements or continuations thereto or thereof). There are no restrictions,
agreements, promises, warranties, covenants or undertakings between the parties
with respect to the subject matter herein other than those expressly set forth
herein. No provision in this Agreement may be amended unless such amendment is
agreed to in writing.

 

(c)  No
Waiver. The
failure of a party to insist upon strict adherence to any term of this Agreement
on any occasion shall not be considered a waiver of such party’s rights or
deprive such party of the right thereafter to insist upon strict adherence to
that term or any other term of this Agreement. No waiver by either party of any
breach by the other party of any condition or provision contained in this
Agreement to be performed by such other party shall be deemed a waiver of a
similar or dissimilar condition or provision at the same or any prior or
subsequent time. Any waiver must be in writing and signed by Executive or the
Company, as the case may be.

 

-40-

(d)  Severability. It is
expressly understood and agreed that although Executive and the Company consider
the restrictions contained in Section
8 to be
reasonable, if a final judicial determination is made by a court of competent
jurisdiction that the time or territory restriction in Section
8 or any
other restriction contained in Section
8 is an
unenforceable restriction against Executive, such provision shall not be
rendered void but shall be deemed amended to apply to such maximum time and
territory, if applicable, or otherwise to such maximum extent as such court may
judicially determine or indicate to be enforceable. Alternatively, if any court
of competent jurisdiction finds that any restriction contained in Section
8 is
unenforceable, and such restriction cannot be amended so as to make it
enforceable, such finding shall not affect the enforceability of any of the
other restrictions contained herein. In the event that any one or more of the
other provisions of this Agreement shall be or become invalid, illegal or
unenforceable in any respect, the validity, legality and enforceability of the
remaining provisions of this Agreement shall not be affected
thereby.

 

(e)  Assignment. This
Agreement shall not be assignable by either party without the consent of the
other party.

 

(f)  Successors. This
Agreement shall inure to the benefit of and be binding upon the personal or
legal representatives, executors, administrators, successors, heirs,
distributees, devisees and legatees of the parties hereto. Executive shall be
entitled to select (and change, to the extent permitted under any applicable
law) a beneficiary or beneficiaries to receive any compensation or benefit
payable hereunder following Executive’s death by giving the Company written
notice thereof. In the event of Executive’s death or a judicial determination of
his incompetence, reference in this Agreement to Executive shall be deemed,
where appropriate, to refer to his beneficiary, estate or other legal
representative.

 

(g)  Communications. For the
purpose of this Agreement, notices and all other communications provided for in
this Agreement shall be in writing and shall be deemed to have been duly given
when faxed or delivered or two business days after being mailed by United States
registered or certified mail, return receipt requested, postage prepaid,
addressed (i) to Executive at his address then appearing in the personnel
records of the Company and; (ii) to the Company at the Company’s then current
headquarters; or (iii) to such other address as either party may have furnished
to the other in writing in accordance herewith, with such notice of change of
address being effective only upon receipt.

 

(h)  Withholding
Taxes. The
Company may withhold from any and all amounts payable under this Agreement such
federal, state, local and any other applicable taxes as may be required to be
withheld pursuant to any applicable law or regulation.

 

(i)  Survivorship. The
respective rights and obligations of the parties hereunder shall survive any
termination of Executive’s employment to the extent necessary to assure the
agreed preservation of such rights and obligations.

 

(j)  Representations. Each
party represents and warrants to the other that he or it is fully authorized and
empowered to enter into this Agreement and that the performance of his or its
obligations under this Agreement will not violate any agreement between him or
it and any other person or entity.

 

(k)  Arbitration. The
parties agree that all disputes arising under or in connection with this
Agreement, and any and all claims by Executive relating to his employment with
the Company, including any claims of discrimination arising under Title VII of
the Civil Rights Act of 1964, as amended, the Age Discrimination in Employment
Act, the Americans with Disabilities Act or any similar federal, state or local
law will be submitted to arbitration in the County of St. Louis of the State of
Missouri to the American Arbitration Association ("AAA") under
its rules then prevailing for the type of claim in issue.

 

In any
action or proceeding relating to this Agreement, the parties agree that no
damages other than compensatory damages shall be sought or claimed by either
party and each party waives any claim, right or entitlement to punitive,
exemplary, statutory or consequential damages, or any other damages, and each
relevant arbitration panel is specifically divested of any power to award any
damages in the nature of punitive, exemplary, statutory or consequential
damages, or any other damages of any kind or nature in excess of compensatory
damages.

 

-41-

(l)  Fees
and Expenses. In the
event of a dispute by the Company or Executive as to the validity or
enforceability of, or liability under, any provision of this Agreement and with
respect to any claims arising in connection with Executive’s employment with the
Company, each party shall pay its own legal fees and expenses incurred in
connection with such dispute or claim; provided, however, and notwithstanding
the foregoing, in the event of a breach of this Agreement by the Company at any
time after a Change of Control, whether or not litigation is commenced, then the
Company shall pay to Executive, in addition to any damages incurred by
Executive, the costs and expenses incurred by Executive in connection with any
such breach (including, without limitation, all court costs and reasonable
attorneys’ fees and costs).

 

(m)  Counterparts. This
Agreement may be signed in counterparts, each of which shall be an original,
with the same effect as if the signatures thereto and hereto were upon the same
instrument.

 

(n)  Headings. The
headings of the sections contained in this Agreement are for convenience only
and shall not be deemed to control or affect the meaning or construction of any
provision of this Agreement. Any reference to Executive in the masculine gender
herein is for convenience and is not intended to express any preference by the
Company for executives of any gender.

 

IN
WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the
Effective Date.

 

 

[EXECUTIVE]

 

"Executive"

 

[The
Executive acknowledges that this Agreement contains an arbitration provision
which may be enforced by either party hereto]

BRAND
SERVICES, INC.

By:

Title:
President and CEO

the
"Company"

 

 

-42-

EMPLOYMENT
AGREEMENT

 

THIS
EMPLOYMENT AGREEMENT (the "Agreement") is
entered into effective as of October 16, 2004 (the "Effective
Date"), by
and between BRAND SERVICES, INC., a Delaware corporation (the "Company") and
Scott M. Robinson ("Executive").

 

WHEREAS,
Executive has been employed by the Company pursuant to an employment agreement;
and

 

WHEREAS,
the Company desires to continue to employ Executive, and Executive desires to
continue employment with the Company, subject to and in accordance with the
terms, conditions and covenants set forth in this Agreement.

 

NOW,
THEREFORE, in consideration of the premises and mutual covenants contained
herein and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

 

1.  Agreement
Term.
Executive’s continued employment by the Company pursuant to the terms of this
Agreement shall commence on the Effective Date, and shall, unless extended as
set forth below, terminate on October 16, 2007 (the "Expiration
Date").
Executive’s employment shall be automatically extended on a year to year basis
following the Expiration Date, unless a written notice to terminate is given by
the Company to Executive not less than thirty (30), nor more than sixty (60),
days prior to the scheduled Expiration Date. The period commencing on the
Effective Date and ending on the Expiration Date, as the same may be extended
from time to time hereunder, is hereinafter referred to as the "Employment
Term".
Notwithstanding the foregoing, the Employment Term shall terminate in any and
all events upon the termination of Executive’s employment hereunder as
hereinafter provided.

 

2.  Position. During
the Employment Term, Executive shall serve as Vice President, Business
Development. Executive shall have such duties and authority commensurate with
such position as shall be determined by the company from time to time. Executive
shall devote substantially all of his business time and best efforts to the
performance of his duties hereunder and shall not engage in any other business,
profession or occupation for compensation or otherwise. 

 

3.  Base
Salary. During
the Employment Term, the Company shall pay Executive a base salary (the
"Base
Salary") at the
annual rate of not less than $177,174 payable bi-weekly in arrears, in
accordance with the usual payment practices of the Company. Executive’s Base
Salary shall be subject to periodic review by the Compensation Committee of the
Board of Directors of the Company (the "Compensation
Committee"), not
less frequently than annually, beginning January 1, 2005.

 

4.  Bonus.

 

(a)  With
respect to each fiscal year in the Employment Term, Executive shall be eligible
for a bonus of up to 120% of his Base Salary (the "Annual
Bonus") to be
determined annually in accordance with the Company’s annual bonus plan, as
earned through the achievement of certain profitability and performance
objectives which are annually developed by the CEO and as reviewed and approved
by the Compensation Committee (the "Bonus
Plan"). The
Bonus Plan shall have terms (including the terms of calculating bonuses)
consistent with the terms of the Company’s 2004 bonus plan, a copy of which is
annexed hereto as Annex
I.

 

(b)  Any bonus
payable hereunder shall be paid at or about the same time bonuses are paid to
the Company’s other senior executives and, in the case of the Annual Bonus, in
accordance with the terms of the Bonus Plan.

 

-43-

 

5.  Employee
Benefits.

 

(a)  During
the Employment Term, Executive shall be entitled to participate on a basis no
less favorable than other similarly-situated senior executives of the Company in
all retirement, welfare benefit, incentive compensation, perquisite and other
plans and arrangements of the Company applicable to senior executives of the
Company, as in effect from time to time.

 

(b)  The
Company has established a nonqualified deferred compensation plan ("Deferred
Compensation Plan"), dated
October 16, 2002 which has a term of five (5) years and, for each year of the
Employment Term or thereafter during which the Executive is employed by the
Company, for the duration of the Deferred Compensation Plan, the Company shall
provide Executive with an annual contribution to such plan in an amount equal to
15 percent of Executive’s Base Salary for such year (pro rated to reflect any
period of less than 12 months). Executive’s rights with respect to his benefits
under the Deferred Compensation Plan shall be exclusively as described in the
Deferred Compensation Plan. Amounts contributed by the Company to the Deferred
Compensation Plan shall not be taken into account for any purpose under any
other plan, program, policy or arrangement of the Company or its
affiliates.

 

6.  Business
Expenses. During
the Employment Term, the Company shall reimburse such of Executive’s travel,
entertainment and other business expenses as are reasonably and necessarily
incurred by Executive during the Employment Term in the performance of his
duties hereunder, in accordance with the Company’s policies as in effect from
time to time.

 

7.  Termination. The
Employment Term shall expire on the Expiration Date (after giving effect to any
extensions set forth in Section
1 hereof).
In the event the Employment Term expires, Executive shall only be entitled to
receive the amounts described in Section 7(a) below. The Employment Term may be
terminated prior to its scheduled expiration for any of the reasons set forth in
this Section
7. Upon a
termination of the Employment Term prior to its scheduled expiration, Executive
shall be entitled to the payments, if any, described in this Section
7.

 

(a)  Termination
by the Company or Executive for any Reason or for No Reason. The
Employment Term may be terminated prior to its scheduled expiration by the
Company or by Executive for any reason or for no reason. If, prior to the
Expiration Date, the Employment Term is terminated by the Company or by
Executive for any reason or for no reason, then, except as set forth in
Section
7(c)(i) below,
Executive shall be entitled to receive his Base Salary through the date of
termination, any Bonus that has been earned in accordance with Section
4 for a
prior fiscal year but not yet paid and any unreimbursed business expenses,
payable promptly following the later of the date of such termination and the
date on which the appropriate documentation is provided. All other benefits
following termination of the Employment Term pursuant to this Section
7(a) shall be
determined in accordance with the plans, policies and practices of the
Company.

 

(b)  Death
or Disability. The
Employment Term shall terminate prior to its scheduled expiration upon
Executive’s death or, at the Company’s election, if Executive incurs a
Disability (as defined below). Except as set forth in Section
7(c)(ii) below,
if the Employment Term is terminated prior to the Expiration Date by reason of
Executive’s death or, at the Company’s election, if Executive incurs a
Disability, Executive’s estate or, in the case of Executive’s Disability,
Executive (or such other person duly appointed by a court of competent
jurisdiction to manage Executive’s affairs) shall receive the amounts described
under Section
7(a). All
other benefits following termination of the Employment Term pursuant to this
Section
7(b) shall be
determined in accordance with the plans, policies and practices of the
Company.

 

-44-

(c)  Change
of Control.

 

(i) Notwithstanding
the provisions of Section
7(a) to the
contrary, if, within 24 months following a Change in Control (as defined below),
Executive’s position described in Section
2 of this
Agreement is eliminated, Executive’s title, job responsibilities and/or work
location are changed from those described in Section
2 of this
Agreement, Executive’s Base Salary is reduced, Executive’s opportunity to earn
an annual bonus up to 120% of Base Salary as set forth in Section
4 of this
Agreement is eliminated, or Executive’s employment is terminated by the Company
without Cause (as defined below), Executive shall have the option for a period
equal to the earlier of (A) 24 months after the date of the Change in
Control, and (B) the scheduled expiration of Employment Term, to terminate
his employment with the Company (if such employment has not otherwise been
terminated as contemplated above) and, subject to Executive’s continued
compliance with the covenants set forth in Section
8, to
receive (X) the amounts described under Section
7(a); (Y)
continued payment of Base Salary through the last day of the 24th month
following the date of termination; and (Z) continued coverage under the
Company’s welfare benefit arrangements as in effect from time to time through
the earlier of (1) the end of the Severance Period, and (2) such time as
Executive is eligible to receive comparable welfare benefits from a subsequent
employer. All other benefits following termination of the Employment Term
pursuant to this Section
7(c)(ii) shall be
determined in accordance with the plans, policies and practices of the
Company.

 

(ii) Notwithstanding
the provisions of Section
7(b) to the
contrary, if, within 24 months following a Change in Control (as defined below),
Executive dies or if Executive incurs a Disability, Executive shall have the
option for a period equal to the earlier of (A) 24 months after the date of
the Change in Control, and (B) the scheduled expiration of Employment Term,
to terminate his employment with the Company (if such employment has not
otherwise been terminated as contemplated above) and, subject to Executive’s
continued compliance with the covenants set forth in Section
8, to
receive (X) the amounts described under Section
7(a); (Y)
continued payment of Base Salary through the first anniversary of the date of
death or the date of Executive’s termination of employment due to Disability;
and (Z) continued coverage under the Company’s welfare benefit arrangements as
in effect from time to time through the earlier of (1) the end of the Severance
Period, and (2) such time as Executive is eligible to receive comparable welfare
benefits from a subsequent employer. All other benefits following termination of
the Employment Term pursuant to this Section
7(c)(ii) shall be
determined in accordance with the plans, policies and practices of the
Company.

 

(d)  Definitions. For
purposes of this Section
7, the
following terms shall have the following meanings:

 

(i)  "Cause" shall
mean:

 

(A)  Executive’s
willful and continued failure substantially to perform his duties under this
Agreement (other than as a result of total or partial incapacity due to physical
or mental illness);

 

(B)  An act or
acts on Executive’s part constituting a felony under the laws of the United
States or any other state thereof or any other jurisdiction in which the Company
conducts business;

 

(C)  Executive’s
being under the influence of illegal drugs or alcohol while performing his
duties hereunder;

 

(D)  Any other
act or omission which is materially injurious to the financial condition or
business reputation of the Company or any of its affiliates; or

 

(E)  Executive’s
breach of the provisions of Section
8.

 

For
purposes of this definition, no act or failure to act shall be deemed "willful"
unless effected by Executive not in good faith and without a reasonable belief
that such action or failure to act was in or not opposed to the Company’s best
interests.

 

(ii)  
"Change
in Control" shall
mean a change of control of more than fifty percent (50%) of the common stock or
equity units of the Company or Brand Holdings, LLC (other than through a sale
into the public markets) occurring at any time after the Effective
Date.

-45-

 

(iii)  "Disability" shall
mean Executive’s inability, as a result of physical or mental illness, to
perform the duties of the position(s) specified in Section
2 for a
period of 90 consecutive days or for an aggregate of 90 days in any twelve
consecutive month period. Any question as to the existence of the Disability of
Executive as to which Executive and the Company cannot agree shall be determined
in writing by a qualified independent physician selected by the Company and
reasonably acceptable to Executive. The determination of Disability made in
writing to the Company and Executive shall be final and conclusive for all
purposes of the Agreement.

 

(iv)  "Severance
Period" shall
mean the applicable period of time under Section
7(c) of this
Agreement that it is contemplated that Executive is to receive his Base Salary
after termination of the Employment Term.

 

(e)  Notice
of Termination. Any
purported termination of the Employment Term prior to the Expiration Date by the
Company or by Executive shall be communicated by written notice of termination
to the other party hereto.

 

(f)  Release. Any
payments by the Company to Executive under this Section
7 or in
connection with any dispute arising under or in connection with this Agreement
or relating to Executive’s employment with the Company (including payments
pursuant to arbitration as provided for in Section
10(k) hereof)
will be contingent upon the execution by Executive of a release of any claims
Executive may have against the Company, its affiliates or any successor to the
Company, such release to be in a form satisfactory to the Company in its sole
discretion. 

 

8.  Non-Competition/Confidential
Information.

 

(a)  Executive
acknowledges and recognizes the highly competitive nature of the businesses of
the Company and its affiliates and accordingly agrees that during the Employment
Term and through the later of the Severance Period or twenty-four (24) months
following the date of termination of employment:

 

(i)  Executive
will not directly or indirectly engage in any business which is in competition
with any line of business conducted by the Company or its affiliates (including
without limitation by performing or soliciting the performance of services for
any person who is a customer or client of the Company or any of its affiliates)
whether such engagement is as an officer, director, proprietor, employee,
partner, investor (other than as holder of less than 1% of the outstanding
capital stock of a publicly traded corporation), consultant, advisor, agent,
sales representative or other participant, in any geographic area in which the
Company or any of its affiliates conducted any such competing line of
business.

 

(ii)  Executive
will not directly or indirectly assist others in engaging in any of the
activities in which Executive is prohibited from engaging in by clause (i)
above.

 

-46-

(b)  Executive
will not directly or indirectly induce any employee of the Company or any of its
affiliates to engage in any activity in which Executive is prohibited to engage
by paragraph (a) above or to terminate his employment with the Company or any of
its affiliates, and will not directly or indirectly employ or offer employment
to any person who was employed by the Company or any of its affiliates unless
such person shall have ceased to be employed by the Company or any of its
affiliates for a period of at least 12 months.

 

(c)  Executive
will not at any time (whether during or after his employment with the Company)
disclose or use for his own benefit or purposes or the benefit or purposes of
any other person, firm, partnership, joint venture, association, corporation or
other business organization, entity or enterprise other than the Company and any
of its subsidiaries or affiliates, any trade secrets, information, data, or
other confidential information relating to customers, development programs,
costs, marketing, trading, investment, sales activities, promotion, credit and
financial data, manufacturing processes, financing methods, plans, or the
business and affairs of the Company generally or of any subsidiary or affiliate
of the Company, provided that the
foregoing shall not apply to information which is not unique to the Company or
which is generally known to the industry or the public other than as a result of
Executive’s breach of this covenant. Executive agrees that upon termination of
his employment with the Company for any reason, he will return to the Company
immediately all memoranda, books, papers, plans, information, letters and other
data, and all copies thereof or therefrom, in any way relating to the business
of the Company and its affiliates, except that he may retain personal notes,
notebooks and diaries. Executive further agrees that he will not retain or use
for his account at any time any trade names, trademark or other proprietary
business designation used or owned in connection with the business of the
Company or its affiliates.

 

9.  Specific
Performance and Other Remedies.
Executive acknowledges and agrees that the Company has no adequate remedy at law
for a breach or threatened breach of any of the provisions of Section
8 and, in
recognition of this fact, Executive agrees that, in the event of such a breach
or threatened breach, in addition to any remedies at law, the Company, without
posting any bond and without notice to Executive, shall be entitled to obtain
equitable relief in the form of specific performance, temporary restraining
order, temporary or permanent injunction or any other equitable remedy which may
then be available. Nothing in this Agreement shall be construed as prohibiting
the Company from pursuing any other remedies at law or in equity that it may
have or any other rights that it may have under any other
agreement.

 

10.  Miscellaneous.

 

(a)  Governing
Law. This
Agreement shall be governed by and construed in accordance with the laws of the
State of Missouri without reference to principles of conflict of
laws.

 

(b)  Entire
Agreement/Amendments. This
Agreement contains the entire understanding of the parties with respect to the
subject matter hereof and supersedes any prior agreements between the Company
and Executive relating to the subject matter hereof, including without
limitation, any and all employment agreements (including any and all amendments,
restatements or continuations thereto or thereof). There are no restrictions,
agreements, promises, warranties, covenants or undertakings between the parties
with respect to the subject matter herein other than those expressly set forth
herein. No provision in this Agreement may be amended unless such amendment is
agreed to in writing.

 

(c)  No
Waiver. The
failure of a party to insist upon strict adherence to any term of this Agreement
on any occasion shall not be considered a waiver of such party’s rights or
deprive such party of the right thereafter to insist upon strict adherence to
that term or any other term of this Agreement. No waiver by either party of any
breach by the other party of any condition or provision contained in this
Agreement to be performed by such other party shall be deemed a waiver of a
similar or dissimilar condition or provision at the same or any prior or
subsequent time. Any waiver must be in writing and signed by Executive or the
Company, as the case may be.

 

-47-

(d)  Severability. It is
expressly understood and agreed that although Executive and the Company consider
the restrictions contained in Section
8 to be
reasonable, if a final judicial determination is made by a court of competent
jurisdiction that the time or territory restriction in Section
8 or any
other restriction contained in Section
8 is an
unenforceable restriction against Executive, such provision shall not be
rendered void but shall be deemed amended to apply to such maximum time and
territory, if applicable, or otherwise to such maximum extent as such court may
judicially determine or indicate to be enforceable. Alternatively, if any court
of competent jurisdiction finds that any restriction contained in Section
8 is
unenforceable, and such restriction cannot be amended so as to make it
enforceable, such finding shall not affect the enforceability of any of the
other restrictions contained herein. In the event that any one or more of the
other provisions of this Agreement shall be or become invalid, illegal or
unenforceable in any respect, the validity, legality and enforceability of the
remaining provisions of this Agreement shall not be affected
thereby.

 

(e)  Assignment. This
Agreement shall not be assignable by either party without the consent of the
other party.

 

(f)  Successors. This
Agreement shall inure to the benefit of and be binding upon the personal or
legal representatives, executors, administrators, successors, heirs,
distributees, devisees and legatees of the parties hereto. Executive shall be
entitled to select (and change, to the extent permitted under any applicable
law) a beneficiary or beneficiaries to receive any compensation or benefit
payable hereunder following Executive’s death by giving the Company written
notice thereof. In the event of Executive’s death or a judicial determination of
his incompetence, reference in this Agreement to Executive shall be deemed,
where appropriate, to refer to his beneficiary, estate or other legal
representative.

 

(g)  Communications. For the
purpose of this Agreement, notices and all other communications provided for in
this Agreement shall be in writing and shall be deemed to have been duly given
when faxed or delivered or two business days after being mailed by United States
registered or certified mail, return receipt requested, postage prepaid,
addressed (i) to Executive at his address then appearing in the personnel
records of the Company and; (ii) to the Company at the Company’s then current
headquarters; or (iii) to such other address as either party may have furnished
to the other in writing in accordance herewith, with such notice of change of
address being effective only upon receipt.

 

(h)  Withholding
Taxes. The
Company may withhold from any and all amounts payable under this Agreement such
federal, state, local and any other applicable taxes as may be required to be
withheld pursuant to any applicable law or regulation.

 

(i)  Survivorship. The
respective rights and obligations of the parties hereunder shall survive any
termination of Executive’s employment to the extent necessary to assure the
agreed preservation of such rights and obligations.

 

(j)  Representations. Each
party represents and warrants to the other that he or it is fully authorized and
empowered to enter into this Agreement and that the performance of his or its
obligations under this Agreement will not violate any agreement between him or
it and any other person or entity.

 

(k)  Arbitration. The
parties agree that all disputes arising under or in connection with this
Agreement, and any and all claims by Executive relating to his employment with
the Company, including any claims of discrimination arising under Title VII of
the Civil Rights Act of 1964, as amended, the Age Discrimination in Employment
Act, the Americans with Disabilities Act or any similar federal, state or local
law will be submitted to arbitration in the County of St. Louis of the State of
Missouri to the American Arbitration Association ("AAA") under
its rules then prevailing for the type of claim in issue.

 

In any
action or proceeding relating to this Agreement, the parties agree that no
damages other than compensatory damages shall be sought or claimed by either
party and each party waives any claim, right or entitlement to punitive,
exemplary, statutory or consequential damages, or any other damages, and each
relevant arbitration panel is specifically divested of any power to award any
damages in the nature of punitive, exemplary, statutory or consequential
damages, or any other damages of any kind or nature in excess of compensatory
damages.

 

-48-

(l)  Fees
and Expenses. In the
event of a dispute by the Company or Executive as to the validity or
enforceability of, or liability under, any provision of this Agreement and with
respect to any claims arising in connection with Executive’s employment with the
Company, each party shall pay its own legal fees and expenses incurred in
connection with such dispute or claim; provided, however, and notwithstanding
the foregoing, in the event of a breach of this Agreement by the Company at any
time after a Change of Control, whether or not litigation is commenced, then the
Company shall pay to Executive, in addition to any damages incurred by
Executive, the costs and expenses incurred by Executive in connection with any
such breach (including, without limitation, all court costs and reasonable
attorneys’ fees and costs).

 

(m)  Counterparts. This
Agreement may be signed in counterparts, each of which shall be an original,
with the same effect as if the signatures thereto and hereto were upon the same
instrument.

 

(n)  Headings. The
headings of the sections contained in this Agreement are for convenience only
and shall not be deemed to control or affect the meaning or construction of any
provision of this Agreement. Any reference to Executive in the masculine gender
herein is for convenience and is not intended to express any preference by the
Company for executives of any gender.

 

IN
WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the
Effective Date.

 

 

[EXECUTIVE]

 

"Executive"

 

[The
Executive acknowledges that this Agreement contains an arbitration provision
which may be enforced by either party hereto]

BRAND
SERVICES, INC.

By:

Title:
President and CEO

the
"Company"

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