Document:

Exhibit 10.1

 

SECOND AMENDMENT TO LEASE AGREEMENT

 

THIS SECOND AMENDMENT TO LEASE AGREEMENT (“Second Amendment”) is made effective January 15, 2018 (the “Amendment Date”), between Mount Hope Mines, Inc., a Colorado corporation, whose address is 2088 Ridge Point Drive, Los Angeles, California 90491 (hereinafter “Owner” or the “Company”) and Eureka Moly, LLC, a Delaware limited liability company, assignee of General Moly, Inc., a Delaware corporation (successor-by-merger to Idaho General Mines, Inc., an Idaho corporation), whose address is 1726 Cole Boulevard, Suite 115, Lakewood, Colorado 80401 (hereinafter referred to as “EMLLC”).

 

RECITALS

 

A.            The Company and Idaho General Mines, Inc. entered into a Lease Agreement dated effective October 19, 2005 (the “Lease”).

 

B.            General Moly, Inc. (“GMI”), is successor by merger to Idaho General Mines, Inc.

 

C.            GMI and the Company entered into an Amendment to Lease Agreement with an effective date of November 20, 2007.

 

D.            The Lease (or Original Lease) and the Amendment (or First Amendment), sometimes collectively referred to herein as the “Lease Agreement,” were assigned, with the Company’s consent, to EMLLC, with an effective date of January 1, 2008.

 

E.            As provided in Section 3 of the First Amendment, the parties agreed to negotiate, in good faith, a Net Returns Production Royalty on other Minerals which GMI (now EMLLC) desired to extract and sell from the Property.  This Second Amendment provides for a Net Returns Production Royalty on said Minerals (the “Non-Moly Minerals”) as set forth herein.

 

F.             The Company and EMLLC desire to amend the Lease Agreement as set forth in this Second Amendment.

 

AGREEMENT

 

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

 

1.           The parties agree to modify the first full paragraph of Section 1.1(d) of the Lease Agreement to remove all of its provisions pertaining to a Federal Royalty, and agree that it shall read as follows:

 

(d)           Production Royalty.  Subject to EMLLC’s right of termination contained in Article 5, following the commencement of Commercial Production, EMLLC shall pay to Owner and to Exxon a production royalty on Molybdenum produced from the Property and sold (or deemed sold) by EMLLC, and shall pay to Owner a production royalty on Non-Moly Minerals (collectively, the “Production Royalty”).  The Production Royalty payable to Exxon shall be paid

 

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as required under and in accordance with the terms of the Exxon Agreement.  The Production Royalty payable to Owner on Molybdenum shall be the greater of (i) Twenty-Five Cents ($0.25) per pound of molybdenum metal sold (or the equivalent thereof if some other Product is sold) from the Property (although the parties agree that in no event may any Production Royalty payment for any Products exceed the amount of Net Returns received by EMLLC for those Products), or (ii) three and one-half percent (3.5%) of the Net Returns (the “Base Percentage”), as defined below in Section 1.1(d)(i), and shall be paid according to the payment terms of Section 1.1(d)(iii).  In addition, whenever the average Gross Value (as defined below) of any Products sold (or deemed sold) during any calendar quarter is equal to or greater than $12.00 per pound of molybdenum metal (or the equivalent thereof if some other Product is sold) but less than $15.00 per pound during that calendar quarter, Owner’s Production Royalty shall be increased by a full percentage point over and above the Base Percentage; and whenever the average Gross Value of any Products sold (or deemed sold) during any calendar quarter is equal to or greater than $15.00 per pound of molybdenum metal (or the equivalent thereof if some other Product is sold), Owner’s Production Royalty shall be increased by one and one-half full percentage points over and above the Base Percentage.  For purposes of calculating the average Gross Value of Products sold (or deemed sold) during any calendar quarter, the total proceeds received (or deemed received) by EMLLC pursuant to the provisions of Section 1.1(d)(ii) for Products sold (or deemed sold) during that calendar quarter shall be divided by the total number of pounds of molybdenum metal (or the equivalent thereof if some other Product is sold) sold (or deemed sold) during that calendar quarter.  For Minerals other than Molybdenum (collectively, “Non-Moly Minerals”), EMLLC shall pay to Owner a Production Royalty on such Non-Moly Minerals in accordance with the provisions of Section 1.1(d)(ix).  Without modifying the provisions of Section 4.5(c), the term “Minerals” for purposes of this Agreement shall include, without limitation, stone, sand, gravel and clay.

 

2.           The parties agree to add a new Section 1.1(d)(ix) to the Lease Agreement which reads as follows:

 

The Production Royalty payable to Owner for Non-Moly Minerals (the “NMR”) shall be calculated as follows:

 

(a)           Zinc:

 

(1)                                 4% of the Net Returns for zinc when the average Gross Value for the calendar quarter is equal to or less than $2.00 per pound;

 

(2)                                 4.5% of the Net Returns for zinc when the average Gross Value for the calendar quarter is $2.01 but not greater than $2.49 per pound; and,

 

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(3)                                 5% of the Net Returns for zinc when the average Gross Value for the calendar quarter is $2.50 per pound or greater.

 

(b)           For all other Non-Moly Minerals, 4% of the Net Returns.

 

(c)                                  An NMR shall not be payable for stone, sand, gravel and clay when such materials are used by EMLLC as provided in Section 4.5(c).

 

3.           The parties agree to add a new Section 1.1(c)(ix) to the Lease Agreement which reads as follows:

 

If Commercial Production of Non-Moly Minerals commences prior to Commercial Production of Molybdenum, the obligation to pay the annual Advance Royalty shall remain in effect until such time, if any, based on a running three-year period which runs from any anniversary of the Effective Date to the anniversary of the Effective Date three years thereafter (the “Look Back Period”), that the NMR received by the Company during the Look Back Period totals Three Million Dollars ($3,000,000) or more (the “Look Back Threshold”).  Once the Look Back Threshold has been satisfied, then for each year thereafter running from the applicable anniversary of the Effective Date upon which the Look Back Threshold was reached to the next anniversary of the Effective Date (each an “Annual Period”), the Advance Royalty payment due on the applicable anniversary of the Effective Date may be deferred, and:

 

(A)              If during the applicable Annual Period the NMR paid to the Company  is greater than One Million Dollars ($1,000,000), then no portion of that deferred Advance Royalty payment shall be due and payable by EMLLC;

 

(B)              if during the applicable Annual Period the NMR paid to the Company is greater than Five Hundred Thousand Dollars ($500,000) but less than One Million Dollars ($1,000,000), then an amount equal to the difference between One Million Dollars ($1,000,000) and the NMR actually paid shall be paid by EMLLC as deferred Advance Royalty; or

 

(C)              if during the applicable Annual Period the NMR paid to the Company is less than Five Hundred Thousand Dollars ($500,000), then the entire amount of the required deferred Advance Royalty shall be paid to the Company.

 

(D)              All payments of deferred amounts of Advance Royalty which may be due under clauses (A), (B) or (C) above shall be paid not later than 10 days following the end of the applicable Annual Period.

 

(E)               Upon commencement of Commercial Production of Molybdenum, the obligation, if any, to pay the annual Advance Royalty shall be

 

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determined by Section 1.1(c)(viii).  Notwithstanding any of the provisions of this Lease to the contrary, if at any time the Commercial Production of both Molybdenum and Non-Moly Minerals are occurring simultaneously, in no event shall the Advance Royalty be less than $500,000, subject to the provisions of Section 1.5.

 

4.           The parties agree to revise Section 1.5 of the Lease Agreement to read as follows:

 

Credit for Periodic and Advance Royalty Payments.  Each of (a) the payment of three percent (3%) of the Estimate made pursuant to Section 1.1(c)(iv), (b) all payments made under Section 1.1(c)(vii), (c) the Advance Royalty payments made to Owner pursuant to Section 1.1(c)(viii), and (d) any reconciliation payment made pursuant to Section 1.4, shall be offset from the Production Royalty payable to Owner. EMLLC may recover the aggregate amount of the payments referred to in this Section 1.5 (the “Royalty Credit”) by retaining fifty percent (50%) of each Production Royalty payment due to the Owner until such retained amount equals the Royalty Credit.  EMLLC shall be entitled to the Royalty Credit beginning on the commencement of Commercial Production of Molybdenum from the Property.  If, however, prior to the commencement of Commercial Production of Molybdenum, EMLLC is engaged in Commercial Production of Non-Moly Minerals, EMLLC shall not be entitled to any Royalty Credit until it has paid NMR to the Company totaling at least Ten Million Dollars ($10,000,000).   After cumulative NMR payments of greater than Ten Million Dollars ($10,000,000) have been paid to the Company, if in any subsequent Annual Period the amount of NMR paid to the Company is greater than Two Million Dollars ($2,000,000), then EMLLC may use fifty percent of that NMR payment as a Royalty Credit against subsequent Production Royalties.  In addition, if the amount of NMR paid to the Company during any Annual Period is greater than One Million Dollars ($1,000,000) but less than Two Million Dollars ($2,000,000), then EMLLC may use the amount of that NMR payment in excess of One Million Dollars ($1,000,000) as a Royalty Credit against subsequent Production Royalties.

 

5.             The parties agree that as of the Amendment Date, EMLLC has paid all Periodic and Advance Royalty payments required by Section 1.1(c) of the Lease Agreement including payment of 3% of the Estimate.  EMLLC’s ongoing obligation to make Advance Royalty payments under Section 1.1(c)(viii) of the Lease Agreement, however, remains in full force and effect except to the extent modified by the terms of this Second Amendment.  The Estimate payment remains subject to the reconciliation provisions of Section 1.4 and the provisions of Section 1.8 of the Lease Agreement. The parties also agree the provisions of Section 1.2 (the Estimate) shall not apply to the costs for putting the Property into Commercial Production of Non-Moly Minerals.  Further, the commencement of Commercial Production of Non-Moly Minerals shall not trigger the reconciliation provisions set forth in Section 1.4 of the Lease Agreement.

 

6.           Upon the execution and delivery of this Second Amendment, EMLLC agrees to reimburse the Company for the outside legal fees incurred by the Company in connection with the negotiation and drafting of this Second Amendment, up to a maximum of $7,500.

 

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7.           The parties agree that all cross-references to other Sections in any Section of the Lease Agreement are hereby revised as necessary to reflect the provisions of this Second Amendment.

 

8.           As amended by this Second Amendment, the parties hereby confirm and agree that the Lease Agreement is in full force and effect.  Capitalized terms used but not defined in this Second Amendment shall have the meaning ascribed to them in the Lease Agreement.  This Second Amendment may be executed in two or more counterparts which together shall constitute a single, original instrument.

 

9.           Simultaneous with the execution and delivery of this Second Amendment, the parties shall execute and deliver a Short Form of this Second Amendment substantially in the form of Exhibit A attached hereto and incorporated herein by reference (the “Short Form”), and EMLLC shall promptly record that Short Form in the official records of Eureka County, Nevada and provide a recorded copy of that Short Form to the Company.

 

[Signatures follow on next page]

 

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IN WITNESS WHEREOF, the parties have executed this Second Amendment to Lease Agreement effective as of the Amendment Date.

 

	
 
    	
Eureka   Moly, LLC, a Delaware limited liability company
    
	
 
    	
 
    
	
 
    	
By   its manager, Nevada Moly, LLC, a Delaware limited liability company
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Bruce D. Hansen
    
	
 
    	
Name:
    	
Bruce   Hansen 
    
	
 
    	
Title:
    	
CEO
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Mount   Hope Mines, Inc., a Colorado corporation
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Stephen Drimmer
    
	
 
    	
Name:
    	
Stephen   Drimmer 
    
	
 
    	
Title:   
    	
President
    

 

6EX-10.23

 Exhibit 10.23 

FORM OF 
 AGREEMENT FOR
THE PAYMENT OF BENEFITS 
 FOLLOWING TERMINATION OF EMPLOYMENT 

AGREEMENT dated [DATE] (the “Effective Date”) between Fortune Brands Home & Security, Inc., a Delaware corporation (the
“Company”), and [EXECUTIVE] (the “Executive”), 
 W I T N E S S E T H: 

WHEREAS, the Executive is employed by the Company; 

WHEREAS, the Company and the Executive previously entered into this Agreement and herby wish to amend and restate the Agreement in its
entirety; and 
 WHEREAS, the Company and the Executive desire to enter into this Agreement to set forth the benefits to be provided to the
Executive in the event that his or her employment terminates under the circumstances described herein. 
 NOW, THEREFORE, in consideration
of the foregoing, the parties agree as follows: 
 1.    Definitions. For purposes of this Agreement, the
following terms shall have the meanings set forth below: 
 (a)    Cause. “Cause” shall mean: 

(i)    the Executive’s willful and continuous failure to substantially perform his or her material
duties (other than a failure due to a Disability); 
 (ii)    the commission of any activities
constituting a violation or breach under any federal, state or local law or regulation applicable to the activities of the Company, as determined in the reasonable judgment of the Company; 

(iii)    fraud, breach of fiduciary duty, dishonesty, misappropriation or other actions that cause
significant damage to the property or business of the Company; 
 (iv)    repeated absences from work
such that the Executive is unable to perform his or her employment or other duties in all material respects, other than due to Disability; 

(v)    admission or conviction of, or plea of nolo contendere to, any felony that, in the reasonable
judgment of the Company, adversely affects the Company’s reputation or the Executive’s ability to carry out the obligations of his or her employment or services; 

(vi)    loss of any license or registration that is necessary for the Executive to perform his or her
duties for the Company; 

 (vii)    failure to cooperate with the Company in any
internal investigation or administrative, regulatory or judicial proceeding, as determined in the reasonable judgment of the Company; 

(viii)    any act or omission in violation or disregard of the Company’s policies, including but not
limited to the Company’s harassment and discrimination policies and Standards of Conduct then in effect, in such a manner as to cause significant loss, damage or injury to the Company’s property, reputation or employees; 

provided, however, that no act or failure to act on the Executive’s part shall be considered “willful” unless it is done, or omitted to be
done, by him or her in bad faith or without reasonable belief that his or her action or omission was in the best interests of the Company. Any act or failure to act (A) based upon authority given pursuant to a resolution duly adopted by the
Board of Directors of the Company, (B) implementing in good faith the advice of counsel for the Company or (C) that meets the applicable standard of conduct prescribed for indemnification or reimbursement or payment of expenses under the By-laws of the Company or the laws of the state of its incorporation or the directors’ and officers’ liability insurance of the Company, in each case as in effect at the time Cause would otherwise arise,
shall be conclusively presumed to be done, or omitted to be done, in good faith and in the best interests of the Company. 

(b)    Change in Control. A “Change in Control”
shall be deemed to have occurred if, prior to the Executive’s Termination of Employment: 

(i)     any person (as that term is used in Sections 13(d) and 14(d) of the Securities Exchange
Act of 1934, as amended (the “Exchange Act”) as in effect on the date of this Agreement) (1) is or becomes the beneficial owner (as that term is used in Section 13(d) of the Exchange Act, and the rules and regulations promulgated
thereunder, as in effect on the date of this Agreement) of 50% or more of the total fair market value or total voting power of the Company (“Voting Securities”) or (2) acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person) ownership of the stock of the Company possessing 30% or more of the Voting Securities, excluding, in each case, however, the
following: (A) any acquisition directly from the Company, other than an acquisition by virtue of the exercise of a conversion privilege unless the security being so converted was itself acquired directly from the Company; (B) any
acquisition by the Company; (C) any acquisition by an employee benefit plan (or related trust) sponsored or maintained by the Company or any entity controlled by the Company; (D) the acquisition of additional stock or voting power by a
person considered to own more than 50% of the total fair market value or Voting Securities in the case of clause (1) of this clause (i) or by a person considered to own more than 30% of the Voting Securities in the case of clause
(2) of this clause (i) or (E) any acquisition pursuant to a transaction that complies with clauses (A), (B) and (C) of clause (iii) below; 

(ii)     more than 50% of the members of the Board of Directors of the Company (the “Board”)
shall, during a 12-month period, cease to be Continuing 

  
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Directors (which term, as used herein, means the directors of the Company: (A) who were members of the Board on the date hereof; or (B) who subsequently became directors of the Company
and who were elected or designated to be candidates for election as nominees of the Board, or whose election or nomination for election by the Company’s stockholders was otherwise approved, by a vote of a majority of the Continuing Directors
then on the Board but shall not include, in any event, any individual whose initial assumption of office occurs as a result of either an actual or threatened election contest (as such terms are used in Rule
14(a)-11 of Regulation 14A promulgated under the Exchange Act) or other actual or threatened solicitation of proxies or consents by or on behalf of a person other than the Board); or 

(iii)     the Company shall be merged or consolidated with, or, in any transaction or series of
transactions, substantially all of the business or assets of the Company shall be sold or otherwise acquired by, another corporation or entity unless, as a result thereof: (A) the stockholders of the Company immediately prior thereto shall
beneficially own, directly or indirectly, at least 60% of the combined Voting Securities of the surviving, resulting or transferee corporation or entity (including, without limitation, a corporation that as a result of such transaction owns the
Company or all or substantially all of the assets of the Company, either directly or through one or more subsidiaries) (“Newco”) immediately thereafter in substantially the same proportions as their ownership immediately prior to such
corporate transaction; (B) no person beneficially owns (as such terms are used in Sections 13(d) and 14(d) of the Exchange Act, and the rules and regulations promulgated thereunder (as in effect on the date hereof)), directly or indirectly, 30%
or more of the combined Voting Securities of Newco immediately after such corporate transaction except to the extent that such ownership of the Company existed prior to such corporate transaction, and (C) more than 50% of the members of the
Board of Directors of Newco shall be Continuing Directors. 
 (c)    Change in Control Benefit. “Change in
Control Benefit” shall refer to any special or enhanced benefits described in Section 3 below to which the Executive may become entitled if his or her employment terminates for one of the reasons listed in Section 2(a) within the 24-month period following a Change in Control. 
 (d)    Code. “Code”
shall mean the Internal Revenue Code of 1986, as amended. 
 (e)    Disability. “Disability” shall mean
a physical or mental illness that results in the Executive’s absence from the full-time performance of his or her duties for 180 consecutive calendar days and within 30 days after the Notice of Termination is given to the Executive by the
Company, the Executive shall not have returned to full-time performance of his or her duties. 
 (f)    Good
Reason. Termination of employment by the Executive for Good Reason shall be deemed to have occurred only if the Executive terminates his or her 

  
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employment and provides a Notice of Termination to the Company prior to such date for any of the following reasons: 

(i)    a material change in the Executive’s duties, responsibilities and status, or, in the event of
a Change in Control, a material change in Executive’s reporting responsibilities, titles or offices as in effect at the time of a Change in Control; 

(ii)    a material reduction in the Executive’s then current base salary; 

(iii)    material reduction in the value of the benefits provided to the Executive (other than those plans
or improvements that have expired in accordance with their original terms); provided that Good Reason shall not exist to the extent such benefits are similarly reduced or eliminated with respect to similarly situated senior executives of the
Company; 
 (iv)    after a Change in Control, the target bonus awarded by the Company’s
Compensation Committee to Executive under the Annual Executive Incentive Compensation Plan of the Company (“Incentive Plan”) subsequent to a Change in Control is materially less than such amount last awarded to Executive prior to a Change
in Control;  
 (v)    after a Change in Control,
the sum of the Executive’s base salary and amount paid to him or her as incentive compensation under the Incentive Plan for the calendar year in which the Change in Control occurs or any subsequent year is materially less than the sum of the
Executive’s base salary and the amount awarded (whether or not fully paid) to him or her as incentive compensation under the Incentive Plan for the calendar year prior to the Change in Control or any subsequent calendar year in which the sum of
such amounts was materially greater; 
 (vi)    the relocation of the offices at which Executive is
employed to a location more than 35 miles away or the Company requiring Executive to be based anywhere other than at a Company office within 35 miles of the offices at which the Executive is employed, except for required travel on Company
business to an extent substantially consistent with Executive’s position; 
 (vii)    any failure of
the Company to comply with and satisfy Section 8; 
 (viii)    any purported termination of the
Executive’s employment by the Company which does not comply with Section 1(g) below. For the avoidance of doubt, such purported termination shall not be effective, but shall constitute Good Reason entitling the Executive to terminate his
or her employment in accordance with this Section 1(f); 
 provided, further, that the Executive must provide written notice to the Company of the
existence of Good Reason no later than 90 days after its initial existence, the Company shall have a period of 30 days following its receipt of such written notice during which it may remedy in all material respects the Good Reason condition
identified in such written notice, and the Executive must 

  
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terminate employment no later than two (2) years following the initial existence of the Good Reason condition identified in such written notice. 

(g)    Notice of Termination. “Notice of Termination” shall mean a written notice sent by the Executive
or the Company to the other party, describing the reasons for the termination of the Executive’s employment and including specific reference to the provision(s) of this Agreement at issue. Such Notice of Termination must be provided by the
party seeking to terminate the Executive’s employment within 90 days of the existence of either Cause or Good Reason, as applicable, and the party receiving the Notice of Termination shall be given 30 days to remedy such situation (to the
extent applicable). 
 (h)    Termination Date. “Termination Date” shall mean: 

(i)    in the case of Disability, 30 days after Notice of Termination is given, provided that the Executive
shall not have returned to the performance of his or her duties on a full-time basis during such 30-day period; 

(ii)    in the case of Cause, the date on which Notice of Termination is given; 

(iii)    in the case of Good Reason, the date on which the Executive ceases to perform his or her duties
for the Company, provided that the Executive has complied with the procedural requirements set forth in Section 1(f) and 1(g) of this Agreement and provided the Executive terminates employment no later than two (2) years following the
initial existence of the Good Reason condition identified in the required written notice; and 

(iv)    in the event that employment is terminated for any other reason, the date on which the Executive
ceases to perform his or her duties for the Company; 
 provided, however, that, if within 30 days after any Notice of Termination is given, the receiving
party notifies the other party that a dispute exists concerning the reasons for such termination of employment, the Termination Date shall be the date finally determined, either by written agreement of the parties or by a final judgment, order or
decree of court of competent jurisdiction (the time for appeal having expired and no appeal having been perfected), to be the date that the Executive’s employment terminated; provided further, however, that if such dispute is resolved in favor
of the Company, the Termination Date shall be the date determined under clauses (i) through (iv) of this Section 1(h). 

2.    Entitlement to Benefits. The Executive shall be entitled to the benefits described in Section 3 below
if: 
 (a)    the Executive’s employment is terminated either by the Company for reasons other than
Disability or Cause or by the Executive for Good Reason; provided, however, that, in order for the Executive to be eligible for any Change in Control Benefits, such termination of employment must occur within 24 months after a Change in Control of
the Company; 

  
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 (b)    the Executive’s Termination Date occurs while this Agreement is
in effect; and 
 (c)    a Notice of Termination is provided in a timely manner (as described in Section 1(g))
prior to the Executive’s Termination Date by the Company (in the case of termination other than for Disability or Cause) or the Executive (in the case of termination for Good Reason). 

The Executive’s employment shall be deemed to have terminated for Cause if, after the Executive’s Termination Date, facts and circumstances are
discovered that would have justified a termination for Cause. In such event, the Company shall immediately cease any and all payments and benefits being paid or provided to the Executive under Section 3, and the Executive shall repay to the
Company within thirty (30) days all amounts previously paid to him or her pursuant to Section 3. 
 Nothing in this Agreement is intended to
create or imply a promise or contract of employment for a specified term and either Executive or the Company may terminate the employment relationship at any time, with or without Cause or Good Reason, and with or without notice; provided, however,
that the Executive shall not be entitled to any benefits under this Agreement in the event his or her employment is terminated by the Company for Disability or Cause, by the Executive other than for Good Reason or following the Executive’s
death or the expiration of this Agreement. This Agreement shall have no effect on any obligations that the Company may have to the Executive if his or her employment terminates under circumstances not described herein. 

3.    Benefits Upon Termination of Employment. Notwithstanding the provisions of Section 2 above, in order to
receive the benefits described in paragraphs (b), (c), (d) and (e) below, the Executive must timely deliver and not revoke an executed release of legal claims against the Company and its affiliates within the timelines set forth therein. 

(a)    Accrued Pay. The Company shall pay the Executive any base salary or vacation accrued but unpaid through his
or her Termination Date. 
 (b)    Severance Pay. The Company shall pay severance benefits to the Executive equal
to the product of [one and one-half (1.5)] [Chief Executive Officer – two (2)] times the sum of the following amounts, subject to any applicable limitations in Sections 3(f) and 3(g) below: 

(i)    his or her annual base salary as in effect on the Termination Date, or, if applicable, the date of a
Change in Control, plus 
 (ii)    his or her target annual bonus under the Incentive Plan in effect in
the calendar year in which the Termination Date occurs, plus 
 (iii)     the amount that would have been
required to be allocated to the Executive’s account (assuming that he elected the maximum employee contribution) for the year immediately preceding the year in which the Termination Date occurs under the Company’s 401(k) retirement plan,
including 

  
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the Company 401(k) matching contribution and profit-sharing provisions of the Company’s supplemental non-qualified defined contribution plan (the
“Supplemental Plan”). 
 Such severance amounts described above shall be paid to the Executive in regular installments for
[eighteen (18)] [Chief Executive Officer – twenty-four (24)] months through the Company’s normal payroll process and on the Company’s normal payroll dates commencing within 30 days following his or her Termination Date; provided,
however, that if such 30-day period begins in a first taxable year and ends in a second taxable year, such severance amounts shall commence no earlier than the first payroll date of the second taxable year.

 Notwithstanding anything to the contrary in this Section 3(b), for purposes of calculating a Change in Control Benefit, the
multiplier in Section 3(b) above shall be changed to [two (2)] [Chief Executive Officer – three (3)] and the severance benefit shall be paid to the Executive in a single lump sum payment within 30 days following the Executive’s
Termination Date; provided, however, that if such 30-day period begins in a first taxable year and ends in a second taxable year, such lump sum payment shall be paid to the Executive in the second taxable
year; provided, however, if the Change in Control is not a “change in control” event within the meaning of Section 409A of the Code, then the Change in Control Benefit shall be paid in regular installments for [eighteen (18)] [Chief
Executive Officer – twenty-four (24)] months as provided in the prior paragraph to the extent required under Section 409A of the Code 

(c)    Continued Benefits Coverage. The Company shall maintain for the Executive’s benefit all employee life
insurance, health, accident, and medical plan coverage(s) that Executive was receiving immediately prior to his or her Termination Date, provided that his or her continued participation is allowed under the terms of such plans. The Company shall
maintain such coverage(s) following the Executive’s Termination Date for [18 months] [Chief Executive Officer – 24 months], or, if the Executive is entitled to a Change in Control Benefit, [two (2)] [Chief Executive Officer –
three (3)] years. With respect to any continued health coverage (medical, dental and vision), the Executive shall be required to pay the applicable active employee rate of coverage for similar coverage, and such coverage shall run concurrent with
coverage required to be provided under the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”). If the Company continues to provide the continued health coverage described in this Section 3(c) after the applicable period
of COBRA coverage would have otherwise expired, the Executive may be taxed on the value of such coverage. No other welfare or fringe benefits shall be provided except as specifically provided in this Section 3(c). 

(d)    Incentive Compensation. The following amounts shall become payable to the Executive following his or her
Termination Date, as of the date that annual incentive awards are normally paid by the Company: 

(i)    any unpaid amounts awarded to the Executive as incentive compensation under the Incentive Plan for
the calendar year immediately preceding the year in which the Termination Date occurs; and 
 (ii)    an
amount equal to the award the Executive would have received under the Incentive Plan based upon actual Company performance for the calendar year 

  
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in which the Termination Date occurs, prorated for the portion of the calendar year during which the Executive was employed. 

(e)    Unvested Retirement Savings Benefits. If the Executive is entitled to a Change in Control Benefit, the
Company shall pay to the Executive as additional severance pay in a lump sum an amount, if any, equal to the nonvested portion of his or her account balances under the 401(k) retirement plan in which the Executive is participating on his Termination
Date and the defined contribution plan of any affiliate of the Company in which there is maintained for him or her an account balance which is not fully vested. Such payment shall be paid to the Executive in a lump sum payment within 30 days
following the Executive’s Termination Date; provided, however, that if such 30-day period begins in a first taxable year and ends in a second taxable year, such lump sum payment shall be paid to the
Executive in the second taxable year. 
 (f)    Tax Withholding. The Company may withhold from any benefits
payable under this Agreement any applicable federal, state, city or other taxes as required by law. 
 (g)    Time of
Payment for Specified Employees. Notwithstanding any provision of this Section 3 to the contrary, if the Executive is a “specified employee” of the Company (as defined in Section 409A of the Code), amounts that would
otherwise have been paid to or on behalf of the Executive under the foregoing provisions of this Section 3 (but excluding amounts described in paragraph 3(c) above) during the six-month period immediately
following the Termination Date shall be paid on the first regular payroll date immediately following the six-month anniversary of the Termination Date. 

(h)    No Duty to Mitigate. The Executive shall not be required to mitigate the amount of any payment provided for
in this Section 3 by seeking other employment or otherwise, nor shall the amount of any payment provided for in this Section 3 be reduced by any compensation earned by the Executive as the result of employment by another employer after the
Termination Date or by any other compensation. 
 (i)    No Other Severance Benefits. This Agreement sets forth
the entire agreement of the parties hereto in respect of the subject matter contained herein and supersedes all prior agreements, promises, covenants, arrangements, communications, representations or warranties, whether oral or written, by any
officer, employee or representative of the Company, its affiliates or any of their predecessors, including but not limited to any severance pay program or other documents covering salaried or executive employees generally maintained by the Company,
any of its affiliates or subsidiaries. To the extent severance payments or benefits are required under any applicable local law or otherwise, benefits payable under this Agreement shall be reduced to the extent of any such severance payments or
benefits (including, but not limited to, any laws requiring payment in lieu of notice upon the Executive’s termination of employment). 

4.    Certain Reductions Due to Section 280G. Notwithstanding any provision of this Agreement to
the contrary, in the event it shall be (or is subsequently) determined that any payment, distribution or acceleration of vesting by the Company to or for the benefit of the Executive (whether pursuant to the terms of this Agreement or otherwise (any
such payment, 

  
 8 

 
distribution or acceleration of vesting being referred to as a “Payment”) would be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then
the Change in Control Benefit payable to the Executive under this Agreement shall be reduced (or appropriately adjusted) to an amount that is one dollar less than the smallest amount that would give rise to the Excise Tax (the “Reduced
Amount”) if such Reduced Amount would be greater than the net after-tax proceeds (taking into account both the Excise Tax and any interest or penalties payable with respect to the Excise Tax) of the
unreduced Change in Control Benefit payable to the Executive. If the Change in Control Benefit is required to be reduced pursuant to this Section 4, there shall be no discretion in the ordering of the Payments payable under this Agreement so
reduced, and such reductions shall be applied in the order which results in the best economic benefit to Executive; and to the extent such ordering of reductions is economically equivalent, such Payments shall be reduced on a pro rata basis. 

5.    Section 409A. This Agreement is intended to comply with the requirements of Section 409A of the Code and
shall be interpreted and construed consistently with such intent. The payments to the Executive pursuant to this Agreement are also intended to be exempt from Section 409A of the Code to the maximum extent possible, under either the separation
pay exemption pursuant to Treasury regulation §1.409A-1(b)(9)(iii) or as short-term deferrals pursuant to Treasury regulation §1.409A-1(b)(4), and for this
purpose each payment shall constitute a “separately identified” amount within the meaning of Treasury Regulation §1.409A-2(b)(2). Notwithstanding anything in this Agreement to the contrary, in
the event that any amounts payable (or benefits provided) under this Agreement are subject to the provisions of Section 409A of the Code, to the extent determined necessary, the parties agree to amend this Agreement in the least restrictive
manner necessary to avoid imposition of any additional tax or income recognition on the Executive under Section 409A of the Code, the final Treasury Regulations and other Internal Revenue Service guidance thereunder (“409A
Penalties”); provided, that in no event shall the Company be responsible for any 409A Penalties that arise in connection with any amounts payable under this Agreement. In addition, to the extent necessary to comply with Section 409A of the
Code, references to termination of employment (and similar phrases) in this Agreement shall be interpreted in a manner that is consistent with the term “separation from service” under Section 409A(a) (2)(A)(i) of the Code and final
Treasury Regulations and other Internal Revenue Service guidance thereunder. 
 To the extent that any right to reimbursement of expenses or
payment of any benefit in-kind under this Agreement constitutes “nonqualified deferred compensation” (within the meaning of Section 409A of the Code), (i) any such expense reimbursement shall be
made by the Company no later than the last day of the taxable year following the taxable year in which such expense was incurred by Executive, (ii) the right to reimbursement or in-kind benefits shall not
be subject to liquidation or exchange for another benefit, and (iii) the amount of expenses eligible for reimbursement or in-kind benefits provided during any taxable year shall not affect the expenses
eligible for reimbursement or in-kind benefits to be provided in any other taxable year.    Notwithstanding any other provision of this Agreement to the contrary, if any payment or benefit
provided pursuant to the terms of this Agreement is a direct payment or a substitute or replacement for a right to payment that constitutes “nonqualified deferred compensation” within the meaning of Section 409A of the Code,
including, to the extent applicable, amounts payable under another plan or agreement between the Executive and the Company or any of its affiliates or predecessors (the “Protected Amount”), then the applicable payment or benefit to be paid
or 

  
 9 

 
provided under this Agreement shall be paid or provided at the same time and in the same form as the corresponding Protected Amount. 

6.    Restrictive Covenants. 

(a)    Confidential Information. The Executive acknowledges that he or she will have access to highly confidential
information of the Company and its affiliates, including, but not limited to: financial information, supply and service information, marketing information, personnel data, customer lists, business and financial plans and strategies, and product
costs, sources and pricing. The Company and the Executive consider it imperative that all such information (“Confidential Trade Secrets”) be held in complete confidence and trust. Accordingly, the Executive agrees that, notwithstanding any
other provision of this Agreement to the contrary, during and following the Executive’s Termination Date with the Company, regardless of the reasons that such employment might end, the Executive will: 

(i)    hold all Confidential Trade Secrets in confidence and not discuss, communicate, disclose or transmit
to others, or make any unauthorized copy of or use the Confidential Trade Secrets in any capacity, position or business unrelated to the Company; 

(ii)    use the Confidential Trade Secrets only in furtherance of proper Company employment related
business reasons; and 
 (iii)    take all reasonable action that the Company deems necessary and
appropriate to prevent unauthorized use or disclosure of or to protect the Confidential Trade Secrets. 
 Notwithstanding the foregoing, it is understood
and agreed that the Executive’s obligations under this Section 6(a) do not extend to any knowledge or information which is or may become available to the public or to competitors other than by disclosure by the Executive in breach of this
Agreement nor to any information the Executive may learn or develop independent of the Confidential Trade Secrets, nor to disclosure compelled by judicial or administrative proceeding after the Executive diligently tries to avoid each disclosure and
affords the Company the opportunity to obtain assurance that compelled disclosures will receive confidential treatment. 

(b)    Loyalty; Non-Solicitation. The Executive further acknowledges that
the loyalty and dedicated service of the Company’s and its affiliates’ employees is critical to the Company’s business. Accordingly, the Executive agrees that during and for a period of twelve (12) months after the
Executive’s Termination Date, regardless of the reasons for the termination of employment, he or she will not, without the prior written consent of the Company, induce or attempt to induce any employee or agency representative of the Company or
any of its affiliates to leave the employment or representation of the Company or of any affiliate. The Executive also agrees that during and after his or her employment, he will not take any action, or make any statements, that discredit or
disparage the Company or its affiliates, or its or their officers, directors, employees or products. The Company agrees that it will not take any action or make any statements during and after Executive’s employment that

  
 10 

 
discredit or disparage the Executive. The two preceding sentences shall not apply to statements made in papers filed in good faith with a court of law in connection with a lawsuit between the
Executive and the Company or any of its affiliates. 

(c)    Non-Competition. The Executive acknowledges that the Company and its
affiliates have invested time and money in establishing or planning to establish one or more aspects of its business throughout the United States, Australia, Canada, Asia, Mexico and Europe. Therefore, the Executive agrees that during his or her
employment by the Company and for a period of 12 months after the Executive’s Termination Date, the Executive will not: 

(i)    directly or indirectly, individually engage in nor be competitively employed or retained by, or
render any competing services for, or be financially interested in, any firm or corporation engaged in any business in the United States, Australia, Canada, Asia, Mexico or Europe which competes with any business in which the Company or any of its
affiliates was engaged during the two-year period preceding the Executive’s Termination Date, including, but not limited to any business in which, during such
two-year period, the Executive was involved in the Company’s or any affiliate’s planning to enter such business. Notwithstanding the foregoing, this restriction shall not apply to: 

(A)    the purchase by the Executive of stock not to exceed 5% of the outstanding shares of capital stock
or any corporation whose securities are listed on any national securities exchange; or 
 (B)    the
employment of the Executive by a non-competitive subsidiary or non-competitive affiliated entity of a competitor of the Company upon the Company’s written consent,
which consent shall not be unreasonably withheld. 
 (ii)    solicit business from nor directly or
indirectly cause others to solicit business that competes with the Company’s line of products from any entities which have been customers of the Company during the Executive’s employment or which were targeted as potential customers during
the twelve (12) months preceding the Executive’s Termination Date; 
 provided, however, that the provisions of this Section 6(c) shall not
apply if the Executive’s Termination Date occurs after a Change in Control. 
 (d)    Remedies. The
Executive recognizes and agrees: 
 (i)    that the covenants and restrictions in paragraphs (a), (b) and
(c) of this Section 6 are reasonable and valid and all defenses to the strict enforcement of such sections by the Company are waived by the Executive to the full extent permitted by law. In the event, however, that a court of competent
jurisdiction should determine in any case that the enforcement of any provision contained in such paragraphs would not be reasonable, it is intended that enforcement of a provision which is determined by such court to be reasonable shall be given
effect; and 

  
 11 

 (ii)    that a breach of the covenants and restrictions in
paragraphs (a), (b) or (c) of this Section 6 would result in irreparable harm to the Company which could not be compensated by money damages alone. Accordingly, the Executive agrees that should there be a breach of any or all of these
provisions or a threatened breach, the Company shall be entitled to cease paying amounts under Section 3 and to offset any amounts it owes to Executive against any damage that it has suffered as a result of the breach of any of the covenants
and restrictions in paragraphs (a), (b) or (c) of this Section 6 and, in addition to its other remedies, to an order enjoining any such breach or threatened breach without bond. In addition, the Executive agrees that, in the event he or
she breaches any of the covenants or restrictions of paragraphs (a), (b) or (c) of this Section 6, he will promptly repay to the Company upon demand any amounts paid to him or her pursuant to Section 3. The Executive further agrees
that if the Company prevails in any action to enforce these provisions, he or she will reimburse the Company for its attorney fees and costs incurred in pursuing such action. 

The Company agrees that it will seek enforcement of paragraphs (a), (b) and (c) of this Section 6 only in a good faith, reasonable manner and will
not seek to enforce such sections solely for malicious and punitive reasons. 
 7.    Application of Agreement.
The Executive understands that nothing contained in this Agreement limits the Executive’s ability to report possible violations of law or regulation to, or file a charge or complaint with, the Securities and Exchange Commission, the Equal
Employment Opportunity Commission, the National Labor Relations Board, the Occupational Safety and Health Administration, the Department of Justice, the Congress, any Inspector General, or any other federal, state or local governmental agency or
commission (“Government Agencies”). The Executive further understands that this Agreement does not limit the Executive’s ability to communicate with any Government Agencies or otherwise participate in any investigation or
proceeding that may be conducted by any Government Agency, including providing documents or other information, without notice to the Company. Nothing in this Agreement shall limit Executive’s ability under applicable United States federal
law to (i) disclose in confidence trade secrets to federal, state, and local government officials, or to an attorney, for the sole purpose of reporting or investigating a suspected violation of law or (ii) disclose trade secrets in a
document filed in a lawsuit or other proceeding, but only if the filing is made under seal and protected from public disclosure. 

8.    Disputes. In the event that the Executive prevails in any action to obtain or enforce any rights under this
Agreement, the Company shall pay the cost of legal fees and expenses incurred by Executive in such action, which payment shall be made directly to the provider of services within the time period required by Section 409A of the Code; provided,
however that the Executive shall be required to deliver and not revoke an executed release of claims in the form attached hereto as Exhibit A (as such release may be updated from time to time to reflect legal requirements). If a dispute arises
concerning the Executive’s entitlement to benefits under this Agreement following a Change in Control, the Company shall continue to pay Executive’s full base salary through the date finally determined to be his or her Termination Date.

  
 12 

 9.    Successors; Binding Agreement. 

(a)    Upon a Change in Control, the Company shall require any successor to its business or assets (whether direct or
indirect, by purchase, merger, consolidation or otherwise), that employs the Executive and any parent company thereof, to expressly assume and agree to perform the Company’s obligations under this Agreement. 

(b)    This Agreement shall not be assignable by the Executive except by will or the laws of descent and distribution.
This Agreement shall inure to the benefit of and be enforceable by the Executive and his or her personal or legal representatives and successors in interest. 

10.    Term. Unless otherwise earlier terminated in writing by both parties, this Agreement shall be effective for
the three (3) year period commencing on the Effective Date. At the close of such three (3) year period and on each subsequent third anniversary of the Effective Date, the Agreement shall automatically renew for an additional three
(3) year period unless either party hereto shall notify the other party in writing of its intent not to renew the Agreement no less than thirty (30) days prior to the expiration of the pending term; provided, however, that if within six
(6) months following the non-renewal of the Agreement by the Company, the Company executes a definitive agreement which would lead to a Change in Control, then notwithstanding any other term or provision
of this Agreement, this Agreement shall be deemed not to have been terminated and will be effective in accordance with its terms through and including the date of such Change in Control (or the date on which such definitive agreement is terminated,
if earlier); and provided further, that if a Change in Control occurs during the term of this Agreement, the Agreement shall remain in effect for no less than 24 months following such Change in Control. Notwithstanding the termination or expiration
of this Agreement, the Restrictive Covenants provisions of Section 6 hereof shall remain in full force and effect as provided above. 

11.    Notice. Any notice, demand or other communication required or permitted under this Agreement shall be
effective only if it is in writing and delivered personally or sent by registered or certified mail, return receipt requested, postage prepaid, addressed as follows: 

If to the Company: 
 Fortune
Brands Home & Security, Inc. 
 520 Lake Cook Road 

Deerfield, Illinois 60015 

Attention: SVP of Human Resources 

If to the Executive: 
 At the
address most recently on file with the Company 
 or to such other address as either party may designate by written notice to the other and shall be deemed
to have been given as of the date so personally delivered or mailed. 

  
 13 

 12.    Miscellaneous. 

(a)    This Agreement cannot be modified or any term or condition waived in whole or in part except by a writing signed by
the party against whom enforcement of the modification or waiver is sought. 
 (b)    This Agreement shall be governed
by and construed in accordance with the laws of the State of Delaware. 
 (c)    No waiver by either party at any time
of any breach of this Agreement by the other party shall be deemed a waiver of such provisions or conditions at any prior or subsequent time. 

(d)    The headings in this Agreement are included for convenience and shall not affect the meaning or interpretation of
this Agreement. 
 (e)    The invalidity or unenforceability of one or more provisions of this Agreement shall not
affect the enforceability any other provision of this Agreement. 
 (f)    This Agreement may be executed in any number
of counterparts, each of which shall be deemed an original, and such counterparts will together constitute one Agreement. 

  
 14 

 IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by a duly authorized
officer and attested to and the Executive has set his or her hand as of the date shown above. 
  

							
		 		 	 FORTUNE BRANDS HOME & SECURITY, INC.

				
		 		 	By: 	 	  

		 		 		 	 [SIGNATORY]

		 		 		 	 [TITLE]

	 ATTEST:
	 		 		 	
				
	  

Assistant Secretary
	 		 		 	
				
		 		 		 	  

[SIGNATORY]

		 		 		 	 [TITLE]

  
 15

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