Document:

Exhibit 10.6

 

NOTICE OF GRANT OF
NON-QUALIFIED STOCK OPTION AWARD

 

WPCS INTERNATIONAL
INCORPORATED

2014 EQUITY INCENTIVE PLAN

 

FOR GOOD AND VALUABLE
CONSIDERATION, WPCS International Incorporated (the “Corporation”) hereby grants, pursuant to the provisions
of the WPCS International Incorporated 2014 Equity Incentive Plan (the “Plan”), to the Participant designated
in this Notice of Grant of Non-Qualified Stock Option Award (“Notice of Grant”), a stock option (the “Option”)
to purchase the number of shares of Common Stock set forth in this Notice of Grant (the “Shares”), subject to
certain provisions as outlined below in this Notice of Grant and the additional provisions set forth in the attached Terms and
Conditions of Stock Option Award (“Terms and Conditions,” and together with this Notice of Grant, “Option
Agreement”).

 

	

    Participant:  ________________________	 

                                                                                                                                                                    Type
                                         of Option:  Non-Qualified Stock Option

                                                                                 

	

                                                                                 

                                                                                Exercise
                                         Price per Share:  $____________

                                                                                 
	 

                                                                                                                           

                                                                                Grant
                                         Date:  ______________________________

	 

                                                                                                                                                         Total
                                         Number of
 Shares
                                         Granted:  ____________________

                                                                                 
	 

                                                                                                                           

                                                                                Expiration
                                         Date:  ____________________________

	 

        Vesting
        Schedule:

         

	 

        Exercise
        after Separation from Service:

         

        Separation
        from Service for any reason other than death, Disability, or Cause: any non-vested portion of the Option expires immediately
        and any vested portion of the Option remains exercisable for three (3) months following such Separation from Service;

         

        Separation
        from Service due to death or Disability: any non-vested portion of the Option expires immediately and any vested portion
        of the Option remains exercisable for twelve (12) months following such Separation from Service; and

         

        Separation
        from Service for Cause: the entire Option, including any vested and non-vested portion, expires immediately upon such
        Separation from Service.

         

        “Separation
        from Service” means termination of the Participant’s service with the Company and each Subsidiary.

         

        “Disability”
        means the Participant is unable to engage in any substantial gainful activity by reason of any medically determinable
        physical or mental impairment that can be expected to result in death or that has lasted or can be expected to last for
        a continuous period of not less than twelve (12) months.

         

        In
        no event may THE Option be exercised after the Expiration Date as provided above. 

         

 

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By signing below, the Participant agrees
that the Option is granted under and governed by the provisions of the Plan and this Option Agreement.

 

	Participant	 	WPCS INTERNATIONAL INCORPORATED
	 	 	 	 
	Sign Name: 	                                     	 	Sign Name:  	                                     
	 	 	 	 	 
	Print Name:	 	 	Print Name:	 
	 	 	 	 	 
	Date:	 	 	Title:	 
	 	 	 	 	 
	 	 	 	Date:	 

 

    2 

     

    

 

TERMS
AND CONDITIONS OF STOCK OPTION AWARD

 

1.Grant of Option.
The Option granted to the Participant and described in the Notice of Grant is subject to the provisions of the Plan, which is incorporated
by reference in its entirety into these Terms and Conditions and into this Option Agreement more generally.

 

The Board has authorized
and approved the Plan, which has been approved by the stockholders of the Corporation. The Administrator has approved the award
to the Participant of the Option, conditioned on the Participant’s acceptance of the provisions set forth in this Option
Agreement within sixty (60) days after this Option Agreement is presented to the Participant for review. For purposes of this Option
Agreement, any reference to the Corporation shall include a reference to any Subsidiary.

 

The Corporation intends
that the Option not be considered to provide for the deferral of compensation under Code Section 409A and that this Option Agreement
shall be so administered and construed. The Corporation may modify the Plan and this Option Agreement to the extent necessary to
fulfill this intent.

 

2.Exercise of
Option.

 

(a)Right to Exercise.
The Option shall be exercisable, in whole or in part, during its term in accordance with the Vesting Schedule set forth in the
Notice of Grant and with the applicable provisions of the Plan and this Option Agreement. No Shares shall be issued pursuant to
the exercise of the Option unless the issuance and exercise comply with applicable laws. Assuming such compliance, for income tax
purposes the Shares shall be considered transferred to the Participant on the date on which the Option is exercised with respect
to such Shares. Until such time as the Option has been duly exercised and Shares have been delivered, the Participant shall not
be entitled to exercise any voting rights with respect to such Shares and shall not be entitled to receive dividends or other distributions
with respect thereto. The Administrator may, in its discretion and pursuant to, and in accordance with, its administrative authority
under the Plan, (i) accelerate vesting of the Option or (ii) extend the applicable exercise period of the Option.

 

(b)Method of Exercise.
The Participant may exercise the Option by delivering an exercise notice in a form approved by the Corporation (the “Exercise
Notice”), which shall state the election to exercise the Option, the number of Shares with respect to which the Option
is being exercised, and such other representations and agreements as may be required by the Corporation. The Exercise Notice shall
be accompanied by payment of the aggregate exercise price as to all Shares exercised. The Option shall be deemed to be exercised
upon receipt by the Corporation of such fully executed Exercise Notice accompanied by the aggregate exercise price.

 

(c)Acceleration
of Vesting Under Certain Circumstances. The vesting and exercisability of the Option shall not be accelerated under any circumstances,
except as otherwise provided in the Plan.

 

3.Method of
Payment. If the Participant elects to exercise the Option by submitting an Exercise Notice in accordance with Section 2(b)
of this Option Agreement, the aggregate exercise price (as well as any applicable withholding or other taxes) may be paid by means
of any lawful consideration as determined by the Administrator and subject to compliance with applicable laws, in accordance with
Section 5.5 of the Plan, including one or a combination of the following methods:

 

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(a)cash, check payable
to the order of the Corporation, or electronic funds transfer;

 

(b)notice and third
party payment in such manner as may be authorized by the Administrator;

 

(c)the delivery of
previously owned shares of Common Stock that are fully vested and unencumbered;

 

(d)by a reduction
in the number of Shares otherwise deliverable pursuant to the Option; or

 

(e)subject to such
procedures as the Administrator may adopt, pursuant to a “cashless exercise” with a third party who provides financing
for the purposes of (or who otherwise facilitates) the purchase or exercise of awards under the Plan.

 

4.Restrictions
on Exercise. The Option may not be exercised until such time as the Plan has been approved by the stockholders of the Corporation,
or if the issuance of the Shares upon exercise or the method of payment of consideration for those shares would constitute a violation
of any applicable law, regulation, or Corporation policy.

 

5.Non-Transferability
of Option. Except as specifically permitted under Section 5.7.3 of the Plan: (a) the Option is not transferable and shall
not be subject in any manner to sale, transfer, anticipation, alienation, assignment, pledge, encumbrance, or charge; (b) the Option
shall be exercised only by the Participant; and (c) amounts payable or Shares issuable pursuant to the Option shall be delivered
only to (or for the account of) the Participant. No permitted transfer or assignment shall be effective until the Corporation has
acknowledged such transfer or assignment in writing. The terms of the Plan and this Option Agreement shall be binding upon the
executors, administrators, heirs, successors, and assigns of the Participant.

 

6.Term of Option.
The Option may be exercised only within the term set out in the Notice of Grant, and may be exercised during such term only in
accordance with the Plan and the terms of this Option Agreement.

 

7.Withholding.

 

(a)The Administrator
shall determine the amount of any withholding or other tax required by law to be withheld or paid by the Corporation with respect
to any income recognized by the Participant with respect to the Option Award.

 

(b)The Participant
shall be required to meet any applicable tax withholding obligation in accordance with the provisions of Section 8.5 of the Plan.

 

(c)Subject to any
rules prescribed by the Administrator, the Participant shall have the right to elect to meet any withholding requirement (i) by
having withheld at the appropriate time that number of whole shares of Common Stock whose Fair Market Value is equal to the amount
of any taxes required to be withheld with respect to the Option, (ii) by direct payment to the Corporation in cash of the amount
of any taxes required to be withheld with respect to the Option or (iii) by a combination of shares and cash.

 

8.Defined Terms.
Capitalized terms used but not defined in this Option Agreement shall have the meanings set forth in the Plan.

 

9.Participant
Representations. The Participant hereby represents to the Corporation that the Participant has read and fully understands the
provisions of the Notice of Grant, these Terms and Conditions, and the Plan and the Participant’s decision to participate
in the Plan is completely voluntary. Further, the Participant acknowledges that the Participant is relying solely on his or her
own advisors with respect to the tax consequences of the Option.

 

    4 

     

    

 

10.Regulatory
Limitations on Exercises. Notwithstanding the other provisions of this Option Agreement, the Administrator shall have the sole
discretion to impose such conditions, restrictions, and limitations (including suspending the exercise of the Option and the tolling
of any applicable exercise period during such suspension) on the issuance of Common Stock with respect to the Option unless and
until the Administrator determines that such issuance complies with (a) any applicable registration requirements under the Securities
Act or the Administrator has determined that an exemption therefrom is available, (b) any applicable listing requirement of any
stock exchange on which the Common Stock is listed, (c) any applicable Corporation policy or administrative rules, and (d) any
other applicable provision of state, federal, or foreign law, including foreign securities laws where applicable.

 

11.Miscellaneous.

 

(a)Notices.
Any notice that either party hereto may be required or permitted to give to the other shall be in writing and may be delivered
personally, by intraoffice mail, by fax, by electronic mail, or other electronic means, or via a postal service, postage prepaid,
to such electronic mail or postal address and directed to such person as the Corporation may notify the Participant from time to
time; and to the Participant at the Participant’s electronic mail or postal address as shown on the records of the Corporation
from time to time, or at such other electronic mail or postal address as the Participant, by notice to the Corporation, may designate
in writing from time to time.

 

(b)Waiver.
The waiver by any party hereto of a breach of any provision of this Option Agreement shall not operate or be construed as a waiver
of any other or subsequent breach.

 

(c)Entire
Agreement. This Option Agreement (including these Terms and Conditions and the Notice of Grant) and the Plan constitute the
entire agreement between the parties hereto with respect to the subject matter hereof. Any prior agreements, commitments, or negotiations
concerning the Option are superseded.

 

(d)Binding
Effect; Successors. This Option Agreement shall inure to the benefit of and be binding upon the parties hereto and to the extent
not prohibited herein, their respective heirs, successors, assigns, and representatives. Nothing in this Option Agreement, express
or implied, is intended to confer on any person other than the parties hereto and as provided above, their respective heirs, successors,
assigns, and representatives, any rights, remedies, obligations, or liabilities.

 

(e)Governing
Law. This Option Agreement shall be governed by and construed in accordance with the laws of the State of Delaware without
giving effect to the principles of conflicts of law, and applicable Federal law.

 

(f)Headings.
The headings contained herein are for the sole purpose of convenience of reference, and shall not in any way limit or affect the
meaning or interpretation of any of the provisions of this Option Agreement.

 

(g)Conflicts;
Amendment. The provisions of the Plan are incorporated in this Option Agreement in their entirety. In the event of any conflict
between the provisions of this Option Agreement and the Plan, the provisions of the Plan shall control. This Option Agreement may
be amended at any time by the Administrator pursuant to, and subject to, the provisions of the Plan.

 

(h)No Right
to Continued Employment. Nothing in this Option Agreement shall confer upon the Participant any right to continue in the employ
or service of the Corporation or any Subsidiary or affect the right of the Corporation or any Subsidiary to terminate the Participant’s
employment or service at any time.

 

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(i)Further
Assurances. The Participant agrees, upon demand of the Corporation or the Administrator, to do all acts and execute, deliver,
and perform all additional documents, instruments, and agreements that may be reasonably required by the Corporation or the Administrator,
as the case may be, to implement the provisions and purposes of this Option Agreement and the Plan.

 

(j)Confidentiality.
The Participant agrees that the provisions of this Option Agreement are strictly confidential and, with the exception of Participant’s
counsel, tax advisor, immediate family, or as required by applicable law, have not and shall not be disclosed, discussed, or revealed
to any other persons, entities, or organizations, whether within or outside the Corporation, without prior written approval of
the Corporation. The Participant further agrees to take all reasonable steps necessary to ensure that confidentiality is maintained
by any of the individuals or entities referenced above to whom disclosure is authorized.

 

    6EX-10.1

July 21, 2016

James M. Loree

Stanley Black & Decker, Inc.

1000 Stanley Drive

New Britain, Connecticut 06053

Dear Jim:

The Board of Directors of Stanley Black & Decker, Inc. (the “Company”) has determined
that it is in the best interests of the Company and its shareholders for you to be appointed as the
Company’s Chief Executive Officer (“CEO”). We are pleased to summarize the terms of your
new position in this letter:

1. You will become CEO, and a member of the Board of Directors of the Company
(“Board”), on August 1, 2016. You will also continue to serve as President of the Company
(“President”).

2. Your initial compensation as CEO will consist of the following:

—       Your annual salary rate will be increased to $1,200,000.

—       The 2016 annual cash bonus award granted to you in March 2016 pursuant to
the Management Incentive Compensation Plan (“MICP”) will continue to remain
in effect and your target bonus opportunity under such award will continue to be
100% of your base salary on January 1, 2016. Your target bonus opportunity for
fiscal year 2017 will be 150% of your annual base salary in effect on January 1,
2017. Your annual cash bonus opportunities for subsequent fiscal years will be
determined by the Board.

—       In connection with your promotion, you will receive a special grant of
stock options with an aggregate grant date value (as determined for financial
reporting purposes) equal to $3 million, vesting ratably based on your continued
employment with the Company (but not based on the attainment of performance
conditions) over a four-year period on each anniversary of the grant date, and
having other terms determined by the Board. Such stock options (along with your
annual equity compensation awards described below) will be granted pursuant to the
Company’s 2013 Long-Term Incentive Plan or a successor thereto.

—       Following your promotion, you will be eligible to receive annual equity
compensation awards as determined by the Board. Such annual equity compensation
awards will be granted to you at the same time that annual equity grants are made to
senior executives of the Company. In December 2016, you will receive awards of
stock options and restricted stock units with an aggregate grant date value (as
determined for financial reporting purposes) ranging from approximately $3.7 million
to approximately $4.0 million. With respect to fiscal year 2017, it is expected
that you will receive equity awards with a target aggregate grant date value (as
determined for financial reporting purposes) of approximately $8 million. At least
50% of the grant date value of annual equity awards granted each year will consist
of performance share units, while the balance will consist of a mix of stock options
and restricted stock units or other instruments determined by the Board in its sole
discretion from time to time.

—       You will be eligible to participate in the employee benefit plans and
perquisite programs (including paid time off) provided to other senior executives in
accordance with the Company’s plans and policies. In addition, you will continue to
participate in the Company’s Supplemental Executive Retirement Plan.

—       The benefits, policies and compensation programs referenced in this Section
2 may be terminated or amended from time to time.

3. Your employment as CEO of the Company is “at will” and may be terminated by the Company or
you at any time for any reason. Upon your termination of employment, the Company will pay you any
earned but unpaid base salary, as well as any earned annual bonus with respect to a prior fiscal
year that has not been paid.

If the Company terminates your employment for any reason other than for Cause (each
capitalized term used but not defined in this letter has the meaning given in Exhibit A),
death or Disability, or you terminate your employment for Good Reason, then (A) on the sixtieth
(60th) day following your termination date, the Company will pay to you a lump sum in
cash equal to two times the sum of (i)  your then-current annual salary plus (ii) your annual bonus
target amount for the year in which your termination occurs and (B) the Company will provide or
arrange to provide you and your eligible dependents, at no greater cost to you than if you were an
active employee of the Company, medical, dental, life, vision and prescription drug insurance
benefits no less favorable than those provided to senior executives of the Company and their
eligible dependents, in each case for twenty-four (24) months following your termination, or, if
sooner, until you become eligible for such benefits from a new employer (of which you will promptly
notify the Company).

The severance benefits described above are subject to your (i) executing and delivering a
customary mutual waiver and release of claims specified by the Company, and such waiver and release
becoming irrevocable, not later than 60 days after your date of termination and (ii) compliance
with the noncompetition and other restrictive covenants set forth in Exhibit B.

Notwithstanding anything herein to the contrary, unless your employment is earlier terminated
by you or the Company, (A) you will be deemed to have given notice to the Board, on the date that
you attain age 65, that you intend to retire from all positions with the Company and its
subsidiaries on the 30th day following the date of such deemed notice (the “Retirement
Date”) and (B) your employment as CEO and President, along with all other positions that you
hold with the Company and its subsidiaries and affiliates (including, unless otherwise mutually
agreed by you and the Board, as a member of the Board), will automatically terminate, effective as
of the Retirement Date, without any further action on your part.

Upon termination of your employment with the Company for any reason, you will be deemed to
have resigned, effective as of your date of termination, from all positions with the Company and
its subsidiaries (including, unless otherwise mutually agreed by you and the Board, as a member of
the Board), and you will execute any additional documentation that is requested by the Company.

4. You agree to comply with the confidentiality, nonsolicitation and other restrictive
covenants in Exhibit B. The Section 409A compliance principles in Exhibit C will
also apply to this letter.

5. The Company will provide you with the indemnification protections described in Exhibit
D.

6. You agree that (A) you will be subject to the Company’s Stock Ownership Guidelines for
Executive Officers, as amended from time to time (the “Stock Ownership Guidelines”) and
(B) the initial target ownership requirement applicable to you under the Stock Ownership Guidelines
will be six (6) times your annual base salary (as in effect from time to time). The target
ownership requirement applicable to you under the Stock Ownership Guidelines may be adjusted from
time to time by the Board in its sole discretion.

7. This letter will be governed by, and construed in accordance with, the laws of the State of
Connecticut, without reference to principles of conflict of laws. Except for the Company’s right
to seek injunctive relief, all disputes arising in connection with this letter will be settled by
expedited arbitration conducted before a panel of three (3) arbitrators sitting in Hartford,
Connecticut, in accordance with the rules of the American Arbitration Association then in effect.
The decision of the arbitrators in that proceeding will be binding on you and the Company.
Judgment may be entered on the award of the arbitrators in any court having jurisdiction.

8. The Company and you acknowledge that this letter (together with the Exhibits hereto)
constitutes the entire understanding between the Company and you with respect to the subject matter
hereof and supersedes any other prior agreement or other understanding, whether oral or written,
express or implied, concerning the same. This letter supersedes in its entirety the Employment
Agreement, dated November 2, 2009, between the Company and you. This letter is personal to you and
is not assignable by you, and will be binding upon the Company and its successors.

1

	 	 	 	 	 	 	 	 	 	 	 	 	 
	  
	 	Sincerely,
	 	 	 	 	 	
 
	 	 
	 	

	  
	 	 	 	 	 	 	 	
 
	 	 
	 	

	         	 	 	 	 	 	STANLEY BLACK & DECKER, INC.
	 	 
	         	 	 	 	 	 	    	 	 	 	 
	    
	 	 	 	 	 	 	 	By: 

	 	 	 	   
	         	 	 	 	 	 	Name: Bruce H. Beatt   
	 	   
	 	 	 	 	 	 	 	 	Title: Senior Vice President,
	 	 
	        	 	 	 	 	 	General Counsel & Secretary   
	 	   
	    
	 	 	 	 	 	 	 	  

	 	  
	 	   
	     	 	JAMES M. LOREE	 	  	 	 	 	 	 	 
	 
	 	 
	 	 	 	  
	 	

	 	

	 	

	 	 	By:
	 	

	 	

	 	

	 	

	 	

	 
	 	 
	 	 
	 	  
	 	

	 	

	 	

	 
	 	 
	 	 
	 	  
	 	

	 	

	 	

[Signature Page To Employment Letter]

EXHIBIT A

DEFINITIONS

“Cause” means (A) your willful and continued failure to substantially perform your
duties with the Company (other than any such failure resulting from your incapacity due to physical
or mental illness) that has not been cured within thirty (30) calendar days after a written demand
for substantial performance is delivered to you by the Board, which demand specifically identifies
the manner in which the Board believes that you have not substantially performed your duties,
(B) the willful engaging by you in conduct which is demonstrably and materially injurious to the
Company or its affiliates, (C) your conviction of (or plea of nolo contendere to) any felony or any
other crime involving dishonesty, fraud or moral turpitude, (D) any violation of the Company’s
policies relating to compliance with applicable laws that has a material adverse effect on the
Company or its affiliates or (E) your material breach of any restrictive covenant set forth in this
letter.

“Change in Control Severance Agreement” means the Second Amended and Restated Change
in Control Severance Agreement, dated as of the date hereof, between the Company and you, as
further amended.

“Disability” means you are disabled within the meaning of the Company’s long-term
disability policy for salaried employees (or any successor thereto) or, if there is no such policy
in effect, if (A) you are unable to substantially perform your duties hereunder for 120 business
days within a period of 180 consecutive business days as a result of physical or mental illness or
injury, and (B) a physician selected by the Company and you (or your estate) has determined that
you are totally and permanently disabled.

“Good Reason” means the occurrence, without your consent, of any of the following
circumstances: (A) the assignment to you of any duties materially inconsistent with your status as
the Company’s Chief Executive Officer or a material adverse alteration in the nature or status of
your responsibilities, unless the Company has cured such events within thirty (30) calendar days
after the receipt of written notice thereof, (B) failure of the Company to nominate you to, or your
removal by the Company from, the Board (in each case, prior to the date you attain age 65), (C) a
material breach by the Company of this letter, (D) a reduction in your annual salary or annual
bonus target amount, except for across-the-board salary reductions similarly affecting all senior
executives of the Company or (E) the Company’s election not to renew the Change in Control
Severance Agreement; provided that, for the avoidance of doubt, the Company’s
amendment of the Change in Control Severance Agreement in a manner that does not materially and
adversely affect your rights thereunder shall not constitute Good Reason.

A termination of employment by you for Good Reason will be effectuated by giving the Company
written notice of the termination, setting forth in reasonable detail the specific conduct of the
Company that constitutes Good Reason, except that no termination by you will be treated as a
termination for Good Reason unless the notice is given within forty-five (45) calendar days
following the date you first have knowledge of the event or circumstance alleged to constitute Good
Reason. A termination of employment by you for Good Reason will be effective thirty (30) calendar
days following the date when the notice is given, unless the event or circumstance constituting
Good Reason is remedied by the Company in accordance with the foregoing.

“Section 409A” means Section 409A of the Internal Revenue Code of 1986, as amended,
and the Treasury Regulation and other Internal Revenue Service guidance promulgated thereunder.

EXHIBIT B

RESTRICTIVE COVENANTS

(a) During your employment with the Company and its subsidiaries and at all times thereafter,
you will hold in a fiduciary capacity for the benefit of the Company any and all information of the
Company and its subsidiaries that is not generally known by others with whom they compete or do
business, or with whom they plan to compete or do business and any and all information not readily
available to the public, which, if disclosed by the Company or its subsidiaries could reasonably be
of benefit to such person or business in competing with or doing business with the Company
(“Confidential Information”). Confidential Information includes, without limitation, such
information relating to the (i) development, research, testing, manufacturing, operational
processes, marketing and financial activities, including costs, profits and sales, of the Company
and its subsidiaries, (ii) techniques, know how, processes, strategies, systems, databases,
applications, programs, software, products and all formulas therefor, (iii) costs, sources of
supply, financial performance and strategic plans of the Company and its subsidiaries,
(iv) identity and special needs of actual and potential customers and suppliers of the Company and
its subsidiaries, (v) people and organizations with whom the Company and its subsidiaries have
business relationships and those relationships and (vi) employee identity and lists, and employee
compensation and benefits. “Confidential Information” also includes comparable information that
the Company or any of its subsidiaries have received belonging to others or which was received by
the Company or any of its subsidiaries pursuant to an agreement by the Company that it would not be
disclosed.

You hereby acknowledge and agree that (A) Confidential Information is a valuable, special and
unique asset of the Company and its subsidiaries and (B) you will not, directly or indirectly,
during or at any time after your employment with the Company and its subsidiaries, use or disclose
Confidential Information or any part of such Confidential Information in a manner that is
inconsistent with your fiduciary responsibilities with respect to the Company and its subsidiaires.
You also agree that you will not, at any time during or after your employment with the Company and
its subsidiaries, render any services to any person, business, or entity to which Confidential
Information will inevitably be disclosed as a result of your rendering of such services.

Notwithstanding the foregoing, this letter is not intended to and shall be interpreted in a
manner that does not limit or restrict you from exercising any legally protected whistleblower
rights (including pursuant to Rule 21F under the U.S. Securities Exchange Act of 1934, as amended).

(b) During your employment with the Company and its subsidiaries and for a period of two (2)
years after the date you terminate such employment for any reason (the “Restriction
Period”), you will not, without the written consent of the Board, directly or indirectly, as
employee, agent, consultant, stockholder, director, manager, co-partner or in any other individual
or representative capacity, own, operate, manage, control, engage in, invest in or participate in
any manner in, act as consultant or advisor to, render services for (alone or in association with
any person, firm, corporation or entity), or otherwise assist any person or entity (other than the
Company) that engages in or owns, invests in, operates, manages or controls any venture or
enterprise that directly or indirectly engages or proposes to engage in any Competitive Business.
“Competitive Business” means any line of business that is (i) for purposes of the portion
of the Restriction Period that occurs during your employment with the Company and its subsidiaries,
substantially the same as any line of any operating business that the Company and its subsidiaries
are then engaged in and (ii) with respect to the portion of the Restriction Period that commences
on your termination of employment with the Company and its subsidiaries, substantially the same as
any line of any operating business that the Company and its subsidiaries are engaged in on the date
of termination, in the case of clause (ii), that during the Company’s four preceding fiscal
quarters constituted at least 10% of the “net sales” of the Company and its subsidiaries.

(c) During the Restriction Period, you will not, without the written consent of the Board,
directly or indirectly, (i) solicit, encourage or induce or attempt to solicit, encourage or
induce, any person who provides services to the Company and its subsidiaries, whether as an
employee, consultant, independent contractor or agent, or any entity which provides services to the
Company and its subsidiaries under an agency relationship, to terminate his, her or its employment,
services or other relationship with the Company and its subsidiaries or affiliates or (ii) hire or
offer employment or retain the services of any person who was employed by, or provided services to,
the Company or any of its subsidiaries within the six (6) month period preceding the date of such
hiring or offer of employment or offer to retain services; or (iii) solicit, entice, persuade or
induce (in each case, other than pursuant to non-targeted, general advertisements) any person or
entity doing business with the Company and its subsidiaries or affiliates, to terminate such
relationship or to refrain from extending or renewing the same.

(d) During the Restriction Period, you will not, directly or indirectly, solicit or do
business with or attempt to solicit or do business with any customer or prospective customer of the
Company and its subsidiaries, whether or not you knew of or had personal contact with such customer
or prospective customer while employed by the Company, with respect to activities which compete in
whole or in part with the activities of the Company and its subsidiaries. For purposes of this
clause (d), (i) “customer” means any person, business, or entity with whom the Company and its
subsidiaries transacts business during your employment with the Company or, for purposes of the
portion of the Restriction Period occurring after your termination of employment with the Company
and its subsidiaries, who transacted business with the Company and its subsidiaries within the
twelve (12) month period immediately preceding your date of termination and (ii) “prospective
customer” means any person, business, or entity with whom the Company and its subsidiaries makes
contact during your employment with the Company and it s subsidiaries or, for purposes of the
portion of the Restriction Period occurring after your termination of employment with the Company
and its subsidiaries, who made contact within the twelve (12) month period immediately preceding
your termination of employment for the purpose of soliciting the sale of goods and/or services of
the Company and its subsidiaries.

(e) You will be required to promptly return to the Company upon your date of termination or at
any other time the Company may so request, all notes, records, documents, files and memoranda
(including in electronic format and all copies of such materials) constituting Confidential
Information you may then possess or have under your control; provided, however,
that you may retain your personal correspondence, diaries and other items of a personal nature.
You may not retain any copies of any Confidential Information or other Company property. You agree
not to remove any Company Property or tangible Confidential Information from the premises of the
Company and its subsidiaries, except as required in the performance of your work for the Company
and its subsidiaries. For purposes of this Agreement, “Company Property” means any property (i)
owned by the Company, (ii) situated on the Company’s premises, or (iii) provided to you by the
Company and its subsidiaries.

(f) You agree that, in addition to any other remedies available to the Company, the Company
will be entitled to injunctive relief in the event of any actual or threatened breach of the
restrictive covenants in this Exhibit B without the necessity of posting any bond, it being
acknowledged and agreed that any breach or threatened breach such covenants will cause irreparable
injury to the Company and that money damages alone will not provide an adequate remedy to the
Company. You also agree that the Company will be entitled to recover from you all attorney’s fees,
expenses and costs incurred by the Company in connection with your breach or threatened breach of
the restrictive covenants in this Exhibit B. If a court of competent jurisdiction
determines that any provision or restriction in this Exhibit B unreasonable or
unenforceable, the Company and you agree that such court will modify such restriction or provision
so that it becomes a reasonable and enforceable restriction on your activities. If any provision
or restriction of this Exhibit B determined to be unenforceable, the remaining provisions
and restrictions shall not be affected by such determination.

EXHIBIT C

SECTION 409A COMPLIANCE

(a) A termination of employment will not be deemed to have occurred for purposes of any
provision of this letter providing for the payment of any amounts or benefits subject to
Section 409A upon or following a termination of employment unless such termination is also a
“separation from service” (within the meaning of Section 409A).

(b) Notwithstanding anything to the contrary, if you are a “specified employee”
(within the meaning of Section 409A and determined pursuant to procedures adopted by the Company)
at the time of your separation from service and if any portion of the payments or benefits to be
received by you upon separation from service would be considered deferred compensation under
Section 409A, any such portion that would otherwise be payable pursuant to this letter during the
six-month period immediately following your separation from service (the “Delayed
Payments”) or provided pursuant to this letter (the “Delayed Benefits”) during the
six-month period immediately following your separation from service (such period, the “Delay
Period”) will instead be paid or made available on the earlier of (i) the first business day of
the seventh month following the date of your separation from service or (ii) your death (the
applicable date, the “Permissible Payment Date”). The Company will reimburse you for the
after-tax cost incurred by you in independently obtaining any Delayed Benefits (the “Additional
Delayed Payments”); provided, that with respect to reimbursement relating to such
Additional Delayed Payments, such reimbursement will be made on the Permissible Payment Date and
will be subject to this Exhibit C. Any Delayed Payments will bear interest at the United States
5-year Treasury Rate plus 2%, which accumulated interest will be paid to you on the Permissible
Payment Date.

(c) With respect to any amount of expenses eligible for reimbursement under this letter, such
expenses will be reimbursed by the Company within thirty (30) calendar days following the date on
which the Company receives the applicable invoice from you but in no event later than December 31
of the year following the year in which you incurs the related expenses.

(d) Any amount of expenses eligible for reimbursement shall be made (A) in accordance with the
reimbursement payment date set forth in this letter or (B) where the applicable provision does not
provide for a reimbursement date, thirty (30) calendar days following the date on which the
expenses are incurred, but, in each case, no later than December 31 of the year following the year
in which you incur the related expenses; provided, that in no event will the reimbursements
or in-kind benefits to be provided by the Company in one taxable year affect the amount of
reimbursements or in-kind benefits to be provided in any other taxable year, nor will your right to
reimbursement or in-kind benefits be subject to liquidation or exchange for another benefit.

(e) Each amount payable hereunder shall be considered a “separate payment” and not a series of
payments for purposes of Section 409A. The parties intend that each such amount that qualifies for
the exception from the definition of “deferred compensation” under Section 1.409A-1(b)(4)
(concerning short-term deferrals) and 1.409A-1(b)(9) (concerning separation pay plans) shall be
treated as exempt for purposes of paragraph (b) hereof.

EXHIBIT D

INDEMNIFICATION

To the fullest extent permitted by the Company’s certificate of incorporation and by-laws, or,
if greater, by the laws of the State of Connecticut, the Company will promptly indemnify and hold
you harmless for all amounts (including, without limitation, judgments, fines, settlement payments,
losses, damages, costs, expenses (including reasonable attorneys’ fees), ERISA excise taxes, or
other liabilities or penalties and amounts paid or to be paid in settlement) incurred or paid by
you in connection with any action, proceeding, suit or investigation (the “Proceeding”) to
which you are made a party, or are threatened to be made a party, by reason of the fact that you
are or were a director, officer or employee of the Company or you are or were serving at the
request of the Company as a director, officer, member, employee or agent of another corporation,
partnership, joint venture, trust or other enterprise, including service with respect to employee
benefit plans, programs or arrangements, whether or not the basis of such Proceeding is your
alleged action in an official capacity. Such indemnification will continue even if you have ceased
to be a director, employee or agent of the Company or other affiliated entity and will inure to the
benefit your heirs, executors and administrators. The Company will advance to you all reasonable
costs and expenses incurred by you in connection with a Proceeding within fifteen (15) calendar
days after receipt by the Company of a written request from you for such advance. Such request
shall include an undertaking by you to timely repay the amount of such advance if it shall
ultimately be determined that you are not entitled to be indemnified against such costs and
expenses. The Company also agrees to maintain a director’s and officers’ liability insurance
policy covering you to the extent the Company provides such coverage for its other senior executive
officers. Following your employment with the Company, the Company shall continue to maintain a
directors’ and officers’ liability insurance policy for your benefit which is no less favorable
than the policy covering other senior officers of the Company.

2

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