Document:

EXHIBIT 10dd

 

Exhibit 10dd

EMPLOYMENT AGREEMENT

     EMPLOYMENT AGREEMENT, dated as of April 1, 2000 (the
“Commencement Date”), by and between Progress Lighting
Inc., a Delaware corporation, with its principal office at 101
Corporate Drive, Suite L, Spartanburg, SC 29303-5007 (the
“Company”), an entity managed within the Lighting Corporation of
America Business Unit (“LCA”) of U.S. Industries, Inc. (“USI”)
and Scott H. Muse, residing at 5 Red Gold Court, Greer, SC 29650
(“Executive”).

W  I  T  N  E  S  S  E  T  H:

     WHEREAS, the Company desires to continue to employ Executive as
President of the Company, and Lighting Corporation of America desires to
retain Executive
in the position of President and Chief Executive Officer of the United
States-based operations of LCA (“President — LCA US”); and

     WHEREAS, Executive desires to enter into this agreement (the
“Agreement”)
as to the terms of his employment by the Company and his position with LCA.

     NOW, THEREFORE, in consideration of the promises and
mutual covenants contained herein and for other good and
valuable consideration, the parties agree as follows:

     1. Term of Employment. Except for earlier
termination as provided in
Section 7 hereof, Executive’s employment under this Agreement shall be for
a one-year term (the “Initial Term”) commencing on the Commencement Date.
Subject to Section 7

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hereof, the Initial Term shall be automatically extended for additional
terms of successive one (1) year periods (the “Additional Term”) unless the
Company, LCA or Executive gives written notice to all parties at least ninety
(90) days prior to the expiration of the initial Term or the then current
Additional Term of the termination of Executive’s employment hereunder at the
end of such current term. (The Initial Term and any Additional Term(s) shall
hereinafter be referred to as the “Employment Term”.)

     2. Positions. (a) Executive shall continue to serve as the
President of the
Company as well as a senior executive of LCA, initially in the position of
President. If requested by the Board of Directors of the Company (the “Board”)
or the Chairman of LCA (the “Chairman”), the Executive shall also serve as an
executive officer or director of subsidiaries and a director of associated
companies of the Company without additional compensation and subject to any
policy of the Compensation Committee of USI’s Board of Directors (the
“Compensation Committee”) with regard to retention or turnover of the
director’s fees.

     (b) Executive shall report to the Chairman and shall have such duties and
authority consistent with his then position as shall be assigned to him from
time to time by the Board or the Chairman.

     (c) During the Employment Term, Executive shall devote substantially all
of his business time and efforts to the performance of his duties hereunder and
use his best efforts in such endeavors; provided, however, that Executive shall
be allowed, to the extent that such activities do not materially interfere with
the performance of his duties and

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responsibilities hereunder, to manage his
passive personal investments and to serve on
corporate, civic, or charitable boards or committees. Notwithstanding the
foregoing, the
Executive shall not serve on any corporate board of directors if such service
would be
inconsistent with his fiduciary responsibilities to the Company, LCA or
USI and in no event
shall Executive serve on any such board unless approved in writing by the Chief
Executive
Officer.

     3. Base Salary. During the Employment Term, the Company
shall pay
Executive a base salary at the annual rate of not less than $265,000. Base
salary shall be payable in accordance with the usual payroll practices of the
Company. Executive’s Base Salary shall be subject to
annual review by the Board or its designee (commencing with 2001) and may
be increased, but not decreased, from time to time. The base salary as
determined as aforesaid from time to time shall constitute “Base Salary” for
purposes of this Agreement.

     4. Incentive Compensation. (a) Bonus. For each fiscal year or portion
thereof during the Employment Term, Executive shall be eligible to participate
in an annual bonus plan of the Company or a subsidiary (or subsidiaries)
thereof, in accordance with, and subject to the terms of, such plan, that
provides an annualized cash bonus opportunity with a target bonus potential
equal to at least sixty-five percent (65%) of Base Salary (the “Target Bonus”).

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     (b) Long Term Compensation/SERP Benefits. Executive shall continue to be
eligible to participate in any long-term incentive compensation plans or
supplemental executive retirement plans made available to executive officers of
the Company and LCA.

     (c) Other Compensation. The Company or LCA may award to Executive
such other bonuses and compensation as it deems appropriate and reasonable.

     5. Employee Benefits and Vacation. (a) During the Employment Term,
Executive shall be entitled to participate in all pension, retirement, savings,
long-term incentive compensation, welfare and other employee benefit plans and
arrangements and fringe benefits and perquisites generally maintained by the
Company from time to time for the benefit of executives of the Company, in
accordance with their respective terms as in effect from time to time (other
than any special arrangement entered into with an
executive).

     (b) During the Employment Term, Executive shall be entitled to vacation
each year in accordance with the Company’s policies in effect from time to
time, but in no event less than four (4) weeks paid vacation per calendar year.
The Executive shall also be entitled to such periods of sick leave as is
customarily provided by the Company for its senior executive employees.

     6. Business Expenses. The Company or LCA shall reimburse Executive for the
travel, entertainment and other business expenses incurred by Executive in the

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performance of his duties hereunder, in accordance with the Company’s policies
as in
effect from time to time.

     7 . Termination. (a) The employment of Executive under this Agreement
shall terminate upon the occurrence of any of the following events:

     (i) the death of the Executive;

     (ii) the termination of the Executive’s employment by the
Company due to the Executive’s Disability pursuant to Section 7(b)
hereof;

     (iii) the termination of the Executive’s employment by the
Company without Cause or by the Company in accordance with Section 1
hereof;

     (iv) the termination of employment by the Executive upon
ninety (90) days’ prior written notice at any time after the end of
the Initial Term or by the Executive in accordance with Section 1
hereof;

     (v) the termination of the Executive’s employment by the
Company for Cause pursuant to Section 7(d);

     (vi) The retirement of the Executive by the Company at or after
his sixty-fifth (65th) birthday to the extent such termination is
specifically permitted as a stated exception from applicable federal
and state
age discrimination laws based on position and retirement benefits.

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     (b) Disability. If, by reason of the same or related physical or
mental
reasons, Executive is unable to carry out his material duties pursuant to this
Agreement for
more than six (6) months in any twelve (12) consecutive month period, the
Company may
terminate Executive’s employment for Disability upon thirty (30)days prior
written notice, by a Notice of Disability Termination, at any time thereafter
during such twelve (12) month period in which Executive is unable to carry out
his duties as a result of the same or related physical or mental illness. Such
termination shall not be effective if Executive returns to the full time
performance of his material duties within such thirty (30) day notice period.
If Executive is eligible for disability payments prior to said termination
under any disability plan sponsored by the Company, his Base Salary shall be
reduced by the amount of such disability payments.

     (c) Cause. Subject to the notification provisions of Section 7(d) below,
Executive’s employment hereunder may be terminated by the Company for Cause.
For purposes of this Agreement, the term “Cause” shall be limited to (i)
willful misconduct by Executive with regard to the business, assets or
employees of the Company; (ii) the refusal or willful failure of Executive to
attempt to follow the proper written direction of the Board or the Chairman,
provided that the foregoing refusal or willful failure shall not be “Cause” if
Executive in good faith believes that such direction is illegal or, if
applicable, a violation of the USI Code of Business Conduct, and promptly so
notifies the Board or the Chairman; (iii) continuing refusal or willful failure
by the Executive to attempt to perform the duties required of him hereunder
(other than any such failure resulting from incapacity due to physical or
mental illness) after a written demand for substantial performance is delivered

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to the Executive by the Board or the Chairman or the Chief Executive Officer of
the
Company which specifically identifies the manner in which it is believed that
the Executive
has substantially and continually refused to perform his duties hereunder; (iv)
the Executive
pleading nolo contendere to, or being convicted of, a felony (other than a
traffic infraction); (v) the breach by Executive of any fiduciary duty owed by
Executive to the Company; or (vi) Executive’s dishonesty, misappropriation or
fraud with regard to the Company (other than good faith expense account
disputes).

     (d) Notice of Termination for Cause. A Notice of Termination for Cause
shall mean a notice that shall indicate the specific termination provision in
Section 7(c) relied upon and shall set forth in reasonable detail the facts and
circumstances which provide for a basis for Termination for Cause. The date of
termination for a Termination for Cause shall be the date indicated in the
Notice of Termination. Any purported
Termination for Cause which is held by a court not to have been based on the
grounds set forth in this Agreement or not to have followed the procedures set
forth in this Agreement shall be deemed a Termination by the Company without
Cause.

     8. Consequences of Termination of Employment. (a) Death.
If
Executive’s employment is terminated during the Employment Term by reason
of Executive’s death, the employment period under this Agreement shall
terminate without further obligations to the Executive’s legal representatives
under this Agreement or otherwise except for: (i) any compensation earned but
not yet paid, including without limitation, any declared but unpaid bonus for
the prior fiscal year, any amount of Base Salary earned but unpaid, any accrued
vacation pay payable pursuant to the Company’s

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policies and any unreimbursed business expenses payable pursuant to Section 6,
which
amounts shall be promptly paid in a lump sum to Executive’s estate; and (ii)
any other
amounts or benefits owing to Executive under the then applicable employee
benefit plans,
long term incentive plans and programs or equity plans of the Company, which
shall be
paid in accordance with such plans and programs.

     (b) Disability.
If Executive’s employment, pursuant to this Agreement, is
terminated by reason of Executive’s Disability, Executive shall be entitled to
receive the
payments and benefits to which his representatives would be entitled in
the event of a termination of employment by reason of his death (other than
life insurance benefits). Executive shall thereafter be eligible for disability
benefits and entitlements, if any, pursuant to the Company’s human resource
policies and employee benefit programs.

     (c) Termination by the Company without Cause or by the Company by
Nonextension of Employment Term. If Executive’s employment with the Company is
terminated by the Company without Cause or by the Company pursuant to Section 1
hereof (except as provided in Section 7(a)(vi) hereof), the Company shall have
no further obligations to the Executive under this Agreement or otherwise,
except that, subject to Sections 8(e), 9 and 10 hereof, Executive shall be
entitled to receive (A) equal monthly payments, of an amount equal to
(i)one-twelfth of Executive’s then Base Salary plus (ii) one-twelfth of
Executive’s Target Bonus, but off the employee payroll, for a period of twelve
(12) months following the date of his termination, (B) within five (5) days
after such termination (i) any unreimbursed business expenses payable pursuant
to Section 6; and (ii) any Base Salary through the date of termination, and
accrued vacation pay payable

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pursuant to the Company’s policies; (C) any other amounts or benefits
previously accrued
on behalf of the Executive under the then applicable employee benefit plans,
long term
incentive plans or programs of the Company and LCA and paid in accordance with
such
plans and programs; any vested benefit pursuant to the Company, LCA or
USI equity plans and paid in accordance with such plans and programs; and
(D) payment by the Company of the premiums for the Executive and his dependents
health coverage for one year under the Company’s health plans which cover the
senior executives of the Company or
materially similar benefits. Payments under (D) above may at the
discretion of the Company be made by continuing participation of Executive in
the plan as a terminee, by paying the applicable COBRA premium for Executive
and his dependents, or by covering Executive and his dependents under
substitute arrangements. Notwithstanding the foregoing, “Termination by the
Company without Cause” shall include a required reassignment to a location more
than 50 miles from Executive’s office or residence following the sale or
transfer of substantially all of the Company’s assets, or 51% or more of the
Company’s outstanding shares of common stock, to an entity not affiliated with
U.S. Industries, Inc.

     (d) Termination with Cause or Voluntary Resignation or Notice of
Nonextension of the Employment Term by Executive or Retirement. If
Executive’s employment hereunder is terminated (i) by the Company for Cause,
(ii) by the Executive by giving notice of nonextension of the Employment Term
pursuant to Section 1 hereof, (iii) voluntarily by the Executive or (iv) by the
Company pursuant to Section 7(a)(vi) hereof, the Executive shall be entitled to
receive only his Base Salary through the date of termination

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and any unreimbursed business expenses payable pursuant to Section 6. Any
Executive’s rights under any benefit plan of the Company or any equity plan of
the Company, LCA or USI following such termination of employment shall be
determined in accordance with the provisions of the applicable benefit or
equity plan.

     (e) Release. Executive agrees that, as a condition to receiving the
payments and benefits provided under Section 8(c) (other than payments provided
under Section 8(c)(B)), he will execute and deliver to the Company a release,
promptly following his final day of employment with the Company, of all claims
of any kind against the Company and its affiliates (including, without
limitation, any civil rights claim) and their officers, directors and
employees, in such form as reasonably requested by the Company.

     9. No
Mitigation; Set-Off. In the event of any termination of employment
under Section 8, Executive shall be under no obligation to seek other
employment and, subject to Section 10 below, there shall be no offset against
any amounts due Executive under this Agreement on account of any remuneration
attributable to any subsequent employment that Executive may obtain. Any
amounts due under Section 8 are in the nature of severance payments, or
liquidated damages, or both, and are not in the nature of a penalty. Such
amounts are inclusive, and in lieu of any amounts payable under any other
salary continuation or cash severance arrangement of the Company and to the
extent paid or provided under any other such arrangement shall be offset from
the amount due hereunder. The Company shall have no obligations to Executive
upon a termination of employment except as provided in Section 8. If the
Executive dies while receiving payments under Section 8(c), any remaining
payments shall be paid to Executive’s estate.

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     10. Confidential
Information, Non-Competition and Non-Solicitation of
the Company. (a) (i) Executive acknowledges that as a result of his employment
by the
Company, the Executive will obtain secret and confidential information as to
the Company
and its affiliates, create relationships with customers, suppliers and
other persons dealing with the Company and its affiliates, and the Company and
its affiliates will suffer substantial damage, which would be difficult to
ascertain, if Executive should use such confidential information or take
advantage of such relationships and that because of the nature of the
information that will be known to Executive and the relationships created it is
necessary for the Company, LCA and its affiliates to be protected by the
prohibition against Competition as set forth herein, as well as the
Confidentiality restrictions set forth herein.

          (ii) Executive acknowledges that the retention of nonclerical
employees employed by the Company or LCA and its affiliates in which the
Company and its affiliates have invested training and depends on for the
operation of their businesses is important to the businesses of the Company and
its affiliates, that Executive will obtain unique information as to such
employees as an executive of the Company and will develop a unique relationship
with such persons as a result of being an executive of the Company and,
therefore, it is necessary for the Company and its affiliates to be protected
from the Executive’s Solicitation of such employees as set forth below.

          (iii) Executive acknowledges that the provisions of this Agreement are
reasonable and necessary for the protection of the businesses of the Company
and its affiliates and that part of the compensation paid under this Agreement
and the agreement

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to pay severance in certain instances is in consideration for the agreements in
this Section
10.

     (b) Competition shall mean: (i) participating, directly or indirectly, as
an individual proprietor, partners, stockholder, officer, employee, director,
joint venturer, investor, lender, consultant or in any capacity whatsoever,
within the United States of America, in a business in competition with any
business conducted by the Company or LCA, provided, however, that such
participation shall not include (i) the mere ownership of not more than one
percent (1%) of the total outstanding stock of a publicly held company; or (ii)
any activity engaged in with the prior written approval of the Board.

     (c) Solicitation shall mean: recruiting, soliciting or inducing, of any
nonclerical employee or employees of the Company or its affiliates to terminate
their employment with, or otherwise cease their relationship with, the Company
or its affiliates or hiring or assisting another person or entity to hire any
nonclerical employee of the Company or its affiliates or any person who within
six (6) months before had been a nonclerical employee of the Company or its
affiliates and were recruited or solicited for such employment or other
retention while an employee of the Company or affiliate. Solicitation shall not
include the recruiting of clerical or non-managerial employees of the Company
or its affiliates, not known to Executive, who respond to public advertised
solicitations for prospective employees or independent contractors.

     (d) If any restriction set forth with regard to Competition or
Solicitation is
found by any court of competent jurisdiction, or an arbitrator, to be
unenforceable because

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it extends for too long a period of time or over too great a range of
activities or in too broad a geographic area, it shall be interpreted to extend
over the maximum period of time, range of activities or geographic area as to
which it may be enforceable. If any provision of this Section 10 shall be
declared to be invalid or unenforceable, in whole or in part, as a result of
the foregoing, as a result of public policy or for any other reason, such
invalidity shall not affect the remaining provisions of this Section which
shall remain in full force and effect.

     (e) During and after the Employment Term, Executive shall hold in a
fiduciary capacity for the benefit of the Company and its affiliates all secret
or confidential information, knowledge or data relating to the Company and its
affiliates, and their respective businesses, including any confidential
information as to customers of the Company and its affiliates, (i) obtained by
Executive during his employment by the Company and its affiliates and
(ii) not
otherwise public knowledge or known within the applicable industry (other than
by acts by Executive in violation of this Agreement). The Executive shall not,
without prior
written consent of the Company, unless compelled pursuant to the order of
a court or other governmental or legal body having jurisdiction over such
matter, communicate or divulge any such information, knowledge or data to
anyone other than the Company and those designated by it. In the event
Executive is compelled by order of a court or other governmental or legal body
to communicate or divulge any such information, knowledge or data to anyone
other than the Company and those designated by it, he shall promptly notify the
Company of any such order and he shall cooperate fully with the Company in
protecting such information to the extent

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possible under applicable law and the Company shall reimburse Executive for
reasonable
out-of-pocket expenses in connection with such assistance to, and cooperation
with, the
Company.

     (f) Upon termination of his employment with the Company and its
affiliates, or at any time as the Company may request, the Executive will
promptly deliver to the Company all documents (whether prepared by the Company,
an affiliate, the Executive or a third party) relating to the Company, an
affiliate or any of their businesses or property which he may possess or have
under his direction or control. Notwithstanding the foregoing, Executive may
retain copies of Executive’s personal (i) employee benefit statements, (ii)
expense reimbursement reports, (iii) tax and earnings reports, and (iv)
executed employment-related agreements.

     (g) During the Employment Term and for one (1) year following a
termination of Executive’s employment for any reason whatsoever, whether by the
Company or by Executive and whether or not for Cause or non-extension of the
Employment Term, Executive will not enter into Competition with the Company or
its affiliates. Furthermore, in the event of any termination of Executive’s
employment for any
reason whatsoever, whether by the Company or by the Executive and whether
or not for Cause or non-extension of the Employment Term, the Executive for one
(1) year thereafter will not violate paragraph (c) above.

     (h) In the event of a breach or potential breach or threatened breach
of
this Section 10, the Executive acknowledges that the Company, LCA and its
affiliates will

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be caused irreparable injury and that money damages may not be an adequate
remedy and
agree that the Company and its affiliates shall be entitled to injunctive
relief (in addition to
its other remedies at law) to have the provisions of this
Section 10 enforced.
It is hereby
acknowledged that the provisions of this Section 10 are for the benefit of the
Company,
LCA and all of the affiliates of the Company and each such entity may
enforce the provisions of this Section 10 and only the applicable entity can
waive the rights hereunder with respect to its confidential information and
employees.

     (i) Furthermore, in the event of breach of this Section 10 by the
Executive, the Company shall suffer substantial damages that may be
difficult to measure. Accordingly, the parties agree that as liquidated
damages, and not a penalty, in the event of breach of the Section 10 by
Executive while he is receiving amounts under Section 8(c)
hereof, Executive shall not be entitled to receive any future amounts
pursuant to Section 8(c) hereof.

     11. Executive’s Representation. The Executive represents and warrants to
the Company and LCA that there is no legal impediment to his performing his
obligations under this Agreement and neither entering into this Agreement nor
performing his contemplated service hereunder will violate any agreement to
which he is a party or any other legal restriction.

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     12. Miscellaneous.

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

     (b) Entire Agreement/Amendments. This Agreement and the instruments
contemplated herein, contain the entire understanding of the parties with
respect to the employment of Executive by the
Company and supersedes any policy of the Company with regard to severance
payments and any prior agreements between the Company and Executive with regard
to employment or severance. There are no restrictions, agreements, promises,
warranties, covenants or undertakings between the parties with respect to the
subject matter herein other than those expressly set forth herein and therein.
This
Agreement may not be altered, modified, or amended except by written instrument
signed
by the parties hereto.

     (c) No Waiver. The failure of a party to insist upon strict adherence to
any term of this Agreement on any occasion shall not be considered a waiver of
such party’s rights or deprive such party of the right thereafter to insist
upon strict adherence to that term or any other term of this Agreement. Any
such waiver must be in writing and signed by Executive or an authorized officer
of the Company, as the case may be.

     (d) Assignment. This Agreement shall not be assignable by Executive. This
Agreement shall be assignable by the Company only to either an entity which is
owned, directly or indirectly, in whole or in part by the Company or by any
successor to

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the Company or an acquiror of all or substantially all of the assets of the
Company or LCA,
provided such entity or acquiror promptly assumes all of the obligations
hereunder of the
Company in a writing delivered to the Executive and otherwise complies with the
provisions hereof with regard to such assumption. Upon such assignment and
assumption, all references to the Company herein shall be to the assignee
entity or acquiror, as the case may be.

     (e) Successors; Binding Agreement. This Agreement shall inure to the
benefit of and be binding upon the personal or legal representatives,
executors, administrators, successors, heirs, distributees, and devisees
legatees and permitted assignees of the parties hereto.

     (f) Communications. For the purpose of this Agreement, notices and all
other communications provided for in this Agreement shall be in writing and
shall be deemed to have been duly given (i) when faxed or delivered by hand,
provided there is documentation of delivery, or (ii) two business days after
being mailed by United States registered or certified mail, return receipt
requested, postage prepaid, addressed to the respective addresses set forth on
the initial page of this Agreement, provided that all notices to the Company
shall be directed to the attention of the Secretary of the Company with a copy
to the General Counsel of LCA and USI, or to such other address as any party
may have furnished to the other in writing in accordance herewith. Notice of
change of address shall be effective only upon receipt.

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

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

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

     (j) Headings. The headings of the sections contained in this Agreement are
for convenience only and shall not be deemed to control or affect the meaning
or construction of any provision of this Agreement.

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

	 	 	 
	 	 	
For: Progress Lighting Inc. (the “Company”)
	 	 	 
	 	 	
-s- Craig C. Sergeant   6/20/00
	 	 	

	 	 	
Craig C. Sergeant 

Director
	 	 	 
	 	 	
-s- Scott H. Muse   6/15/00
	 	 	

	 	 	
Scott H. Muse (the “Executive”) Date
	 	 	 
	Agreed: On behalf of

Lighting Corporation of America (“LCA”)	 	 
	 	 	 
	-s- Craig C. Sergeant   6/20/00

Craig C. Sergeant

Chairman & Chief Executive Officer	 	 
	 	 	 
	Agreed: On behalf of 

U.S. Industries, Inc. (“USI”)	 	 
	 	 	 
	-s- Dorothy E. Sander

Dorothy E. Sander

Sr. Vice President	 	 

19exv4w3

 

Exhibit 4.3

REGISTRATION RIGHTS AGREEMENT

     THIS REGISTRATION RIGHTS AGREEMENT, dated as of March 3, 2004
(“Agreement”), is made by and between DTE ENERGY COMPANY, a Michigan
corporation, having an office at 2000 2nd Avenue, Detroit, Michigan 48226-1279
(the “Company”), and U.S. TRUST COMPANY, NATIONAL ASSOCIATION, solely in its
capacity as duly appointed and acting investment manager (the “Manager”) of a
segregated account in the DTE ENERGY COMPANY AFFILIATES EMPLOYEE BENEFIT PLANS
MASTER TRUST (the “Trust”) created in conjunction with the DTE ENERGY COMPANY
RETIREMENT PLAN (the “Plan”).

RECITALS

     A. WHEREAS, the Company has agreed to contribute an aggregate of 4,344,492
shares of its common stock, no par value (the “Registrable Shares”), to the
Trust (the “Contribution”);

     B. WHEREAS, the Registrable Securities immediately following the
Contribution will be held in a single segregated account in the Trust (the
“Segregated Account”);

     C. WHEREAS, pursuant to the Investment Management Agreement dated as of
March 3, 2004 (the “Investment Management Agreement”) by and among the Manager,
The Detroit Edison Investment Committee, acting solely in its capacity as named
fiduciary of the Trust (in such capacity, the “Committee”) and The Detroit
Edison Company, the Manager has been appointed as a “fiduciary” of the Trust,
as defined in Section 3(21) of the Employee Retirement Income Security Act of
1974, as amended (“ERISA”), with the authority to act on behalf of the Trust as
a special purpose investment manager with full discretion to manage the assets
held in the Segregated Account;

     D. WHEREAS, the Company has agreed to grant certain registration rights
with respect to the Registrable Shares held in the Segregated Account, on the
terms and subject to the conditions herein set forth;

     E. WHEREAS, pursuant to the Investment Management Agreement, the Manager
has full power and authority to execute and deliver this Agreement for the
account and on behalf of the Trust, to bind the Trust and to take any actions
required or permitted to be taken by, or on behalf of, the Trust in connection
with this Agreement;

     NOW, THEREFORE, in consideration of the premises and mutual promises set
forth herein, the parties hereto hereby agree as follows:

     1. REGISTRATION; COMPLIANCE WITH THE SECURITIES ACT.

1.1 Registration Procedures and Expenses. The Company hereby:

 

     (a) agrees that it shall use its reasonable commercial efforts to
prepare and file with the Securities and Exchange Commission (the “SEC”),
as soon as reasonably practicable after the date of the Contribution, a
registration statement on Form S-3 covering the Registrable Shares (the
“Registration Statement”), to enable the Manager to sell the Registrable
Shares from time to time in the manner contemplated by the plan of
distribution set forth in the Registration Statement;

     (b) agrees that it shall use its reasonable commercial efforts to
cause the Registration Statement to be declared effective as promptly as
possible after filing and to remain continuously effective until the
earlier of (i) the date on which all Registrable Shares are sold, and
(ii) the second anniversary of the date of the Contribution (the
“Registration Period”);

     (c) agrees that it shall prepare and file with the SEC such
amendments (including post-effective amendments) and supplements to the
Registration Statement and the prospectus filed with the SEC pursuant to
Rule 424(b) under the Securities Act of 1933, as amended (“Securities
Act”), or if no such filing is required, as included in the Registration
Statement (the “Prospectus”), as may be necessary to keep the
Registration Statement effective at all times during the Registration
Period;

     (d) agrees that it shall furnish the Manager with such reasonable
number of copies of the Prospectus in conformity with the requirements of
the Securities Act and such other documents as the Manager may reasonably
request, in order to facilitate the public sale or other disposition of
all or any of the Registrable Shares by the Manager;

     (e) agrees that it shall use its reasonable commercial efforts to
file documents required of the Company for normal blue sky clearance in
states specified in writing by the Manager; provided, however, that the
Company shall not be required to qualify to do business or consent to
service of process in any jurisdiction in which it is not now so
qualified or has not so consented;

     (f) agrees that it shall use its reasonable commercial efforts to
cause the Registrable Shares to be listed on the New York Stock Exchange
(the “NYSE”); and

     (g) agrees that it shall bear all expenses in connection with the
actions referred to in paragraphs (a) through (f) of this Section 1.1 and
the registration of the Registrable Shares pursuant to the Registration
Statement, including fees and expenses of legal counsel to the Manager
incurred in connection with the registration and sale of the Registrable
Shares, in an aggregate amount not to exceed $15,000, but excluding
underwriting discounts, brokerage fees and commissions incurred by the
Manager, the Trust or the Plan, if any.

   It shall be a condition precedent to the obligations of the Company to
take any action pursuant to this Section 1.1 that the Manager shall provide
such reasonable assistance to the Company and furnish, or cause to be
furnished, to the Company in writing such information regarding the Manager,
the Registrable Shares to be sold, and the intended method or methods of

2

 

disposition of the Registrable Shares, as shall be required to effect the
registration of the Registrable Shares.

1.2 Transfer of Registrable Shares After Registration; Suspension.

     (a) The Manager agrees that it will not offer to sell or make any
sale, assignment, pledge, hypothecation or other transfer with respect to
the Registrable Shares that would constitute a sale within the meaning of
the Securities Act except pursuant to either (i) the Registration
Statement referred to in Section 1.1, following its effectiveness, or
(ii) Rule 144, and that it will promptly notify the Company of any
changes in the information set forth in the Registration Statement
regarding the Manager or the intended plan of distribution of the
Registrable Shares to the extent required by applicable securities laws.

     (b) In addition to any suspension rights under paragraph (c) below,
the Company may, upon the happening of any event that, in the judgment of
Company’s legal counsel, renders advisable the suspension of the
disposition of Registrable Shares covered by the Registration Statement
or use of the Prospectus due to pending corporate developments, public
filings with the SEC or similar events, suspend the disposition of
Registrable Shares covered by the Registration Statement or use of the
Prospectus for a period of not more than one hundred twenty (120) days on
written notice to the Manager (which notice will not disclose the content
of any material non-public information and will indicate the date of the
beginning and end of the intended suspension, if known), in which case
the Manager shall discontinue disposition of Registrable Shares covered
by the Registration Statement or use of the Prospectus until copies of a
supplemented or amended Prospectus are distributed to the Manager or
until the Manager is advised in writing by the Company that the
disposition of Registrable Shares covered by the Registration Statement
or use of the applicable Prospectus may be resumed, provided that such
right to suspend the disposition of Registrable Shares covered by the
Registration Statement or use of the Prospectus shall not be exercised by
Company for more than one hundred fifty (150) days in any twelve-month
period. The suspension and notice thereof described in this Section
1.2(b) shall be held in strictest confidence and not disclosed by the
Company or the Manager, except as required by law.

     (c) Subject to paragraph (d) below, in the event of: (i) any
request by the SEC or any other federal or state governmental authority
during the period of effectiveness of the Registration Statement for
amendments or supplements to the Registration Statement or related
Prospectus or for additional information, (ii) the issuance by the SEC or
any other federal or state governmental authority of any stop order
suspending the effectiveness of a registration statement or the
initiation of any proceedings for that purpose, (iii) the receipt by the
Company of any notification with respect to the suspension of the
qualification or exemption from qualification of any of the Registrable
Shares for sale in any jurisdiction or the initiation of any proceeding
for such purpose, (iv) any event or circumstance that necessitates the
making of any changes in the Registration Statement or Prospectus, or any
document incorporated or deemed to be incorporated therein by reference,
so that, in the case of the Registration Statement, it will not contain
any untrue statement of a material fact or omit to state a material fact

3

 

required to be stated therein or necessary to make the statements
therein not misleading, and that in the case of the Prospectus, it will
not contain any untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary to make the
statements therein, in the light of the circumstances under which they
were made, not misleading, then the Company shall deliver a certificate
in writing to the Manager (the “Suspension Notice”) to the effect of the
foregoing (which notice will not disclose the content of any material
non-public information and will indicate the date of the beginning and
end of the intended suspension, if known), and, upon receipt of such
Suspension Notice, the Manager will refrain from selling any Registrable
Shares pursuant to the Registration Statement (a “Suspension”) until the
Manager’s receipt of copies of a supplemented or amended Prospectus
prepared and filed by the Company, or until it is advised in writing by
the Company that the current Prospectus may be used, and has received
copies of any additional or supplemental filings that are incorporated or
deemed incorporated by reference in any such Prospectus. In the event of
any Suspension, the Company will use its reasonable commercial efforts to
cause the use of the Prospectus so suspended to be resumed as soon as
possible after delivery of a Suspension Notice to the Manager. The
Suspension and Suspension Notice described in this Section 1.2(c) shall
be held in strictest confidence and not disclosed by the Company or the
Manager, except as required by law.

     (d) The Manager may sell Registrable Shares under the Registration
Statement provided that neither a Suspension nor a suspended disposition
under Section 1.2(c) hereof is then in effect, the Manager sells in
accordance with the plan of distribution in the Prospectus, and the
Manager arranges for delivery of a current Prospectus to any transferee
receiving such Registrable Shares in compliance with the prospectus
delivery requirements of the Securities Act.

              1.3 Indemnification. For the purpose of this Section 1.3, the term
“Registration Statement” shall include any preliminary or final prospectus,
exhibit, supplement or amendment included in or relating to the Registration
Statement referred to in Section 1.1.

     (a) Indemnification by the Company. To the extent permitted by
applicable law, the Company agrees to indemnify and hold harmless the
Manager (including, for purposes of this Section 1.3, the officers,
directors, employees and agents of the Manager), and each person, if any,
who controls the Manager within the meaning of the Securities Act,
against any losses, claims, damages, liabilities or expenses, joint or
several, to which the Manager or such controlling person may become
subject, under the Securities Act, the Securities Exchange Act of 1934,
as amended (the “Exchange Act”), or any other federal or state statutory
law or regulation, or at common law or otherwise (including in settlement
of any litigation, if such settlement is effected with the written
consent of the Company, which consent shall not be unreasonably withheld
or delayed), only to the extent such losses, claims, damages, liabilities
or expenses (or actions in respect thereof as contemplated below) arise
out of or are based upon any untrue statement or alleged untrue statement
of any material fact contained in the Registration Statement, as amended
as of the time the Registration Statement was declared effective by the
SEC, the Prospectus, or any amendment or supplement thereto, or arise out
of or are based upon the omission or alleged omission to state in any of
them a material fact

4

 

required to be stated therein or necessary to make the statements in
any of them, in light of the circumstances under which they were made,
not misleading, and will reimburse the Manager and each such controlling
person for any reasonable legal and other expenses as such expenses are
reasonably incurred by the Manager or such controlling person in
connection with investigating, defending, settling, compromising or
paying any such loss, claim, damage, liability, expense or action;
provided, however, that the Company will not be liable in any such case
to the extent that any such loss, claim, damage, liability or expense
arises out of or is based upon (i) an untrue statement or alleged untrue
statement or omission or alleged omission made in the Registration
Statement, the Prospectus or any amendment or supplement of the
Registration Statement or Prospectus in reliance upon and in conformity
with information furnished in writing to the Company by or on behalf of
the Manager, (ii) the failure of the Manager to comply with the covenants
and agreements contained in this Agreement respecting the sale of the
Registrable Shares, or (iii) any untrue statement or omission of a
material fact required to make such statement not misleading in any
Prospectus that is corrected in any subsequent Prospectus that was
delivered (excluding, however, the delivery of any document then
incorporated or deemed incorporated therein by reference) to the Manager
before the pertinent sale or sales by the Manager but was not given to
the purchaser prior to the sale to the purchaser.

        (b) Indemnification by the Manager. To the extent permitted by
applicable law, the Manager will indemnify and hold harmless the Company,
the Committee, each of the Company’s directors, each of the Company’s
officers who signed the Registration Statement and each person, if any,
who controls the Company within the meaning of the Securities Act,
against any losses, claims, damages, liabilities or expenses to which the
Company, each of its directors, each of its officers who signed the
Registration Statement or each controlling person may become subject,
under the Securities Act, the Exchange Act, or any other federal or state
statutory law or regulation, or at common law or otherwise (including in
settlement of any litigation, if such settlement is effected with the
written consent of the Manager, which consent shall not be unreasonably
withheld or delayed) only to the extent such losses, claims, damages,
liabilities or expenses (or actions in respect thereof as contemplated
below) arise out of or are based upon (i) any failure on the part of the
Manager to comply with the covenants and agreements contained in this
Agreement respecting the sale of the Registrable Shares, or (ii) any
untrue or alleged untrue statement of any material fact contained in the
Registration Statement, as amended as of the time the Registration
Statement was declared effective by the SEC, the Prospectus, or any
amendment or supplement to the Registration Statement or Prospectus, or
arise out of or are based upon the omission or alleged omission to state
therein a material fact required to be stated therein or necessary to
make the statements therein not misleading, in each case to the extent,
but only to the extent, that such untrue statement or alleged untrue
statement or omission or alleged omission was made in the Registration
Statement, the Prospectus, or any amendment or supplement thereto, in
reliance upon and in conformity with information furnished in writing to
the Company by or on behalf of the Manager, and the Manager will
reimburse the Company, each of its directors, each of its officers who
signed the Registration Statement or each controlling person for any
reasonable legal and other expenses as such expenses are reasonably
incurred by the Company, each of its directors, each of its officers who
signed the Registration Statement or each controlling person in
connection

5

 

with investigating, defending, settling, compromising or paying any
such loss, claim, damage, liability, expense or action. In no event
shall the liability of the Manager under this Section 1.3 be greater than
the aggregate fees received by the Manager pursuant to the Investment
Management Agreement.

        (c) Indemnification Procedure.

        (i) Promptly after receipt by an indemnified party under this
Section 1.3 of written notice of the threat or commencement of any
action, such indemnified party will, if a claim in respect thereof
is to be made against an indemnifying party under this Section 1.3,
promptly notify the indemnifying party in writing of the claim; but
the omission so to notify the indemnifying party will not relieve
it from any liability which it may have to any indemnified party
otherwise than under this Section 1.3.

        (ii) In case any such action is brought against any
indemnified party and such indemnified party seeks or intends to
seek indemnity from an indemnifying party, the indemnifying party
will be entitled to participate in, and, to the extent that it may
wish, to assume the defense thereof with counsel reasonably
satisfactory to such indemnified party and, after notice from the
indemnifying party to such indemnified party of its election so to
assume the defense thereof and the appointment of counsel
reasonably satisfactory to the indemnified party, the indemnifying
party shall not be liable to such indemnified party for any legal
expenses of other counsel or any other expenses, in each case
subsequently incurred by such indemnified party, in connection with
the defense thereof; provided, however, if the defendants in any
such action include both the indemnified party and the indemnifying
party and counsel to the indemnified party shall have delivered a
reasoned opinion in writing to the effect that representation of
both parties by the same counsel would be inappropriate due to
actual or likely conflicts of interest between them or legal
defenses available to the indemnified party that are different from
or additional to those available to the indemnifying party, then,
in that case, the indemnified party shall have the right to select
separate counsel to assume such legal defense and to otherwise
participate in the defense of such action on behalf of such
indemnified party and the reasonable fees and expenses of such
counsel for such indemnified party shall be reimbursed by the
indemnifying party. It is understood that the indemnifying party
shall not be liable for the fees and expenses of more than one
separate counsel (other than local counsel), approved by such
indemnifying party, for all indemnified parties.

        (d) Contribution. If the indemnification provided for in this
Section 1.3 is held by a court of competent jurisdiction to be
unavailable to an indemnified party with respect to any loss, liability,
claim, damage or expense referred to herein, then the indemnifying party,
in lieu of indemnifying such indemnified party hereunder, shall
contribute to the amount paid or payable by such indemnified party as a
result of such loss, liability, claim, damage or expense in such
proportion as is appropriate to reflect the relative fault of the
indemnifying party on the one hand and of the indemnified party on

6

 

the other in connection with the statements or omissions that
resulted in such loss, liability, claim, damage or expense, as well as
any other relevant equitable considerations. The relative fault of the
indemnifying party and of the indemnified party shall be determined by
reference to, among other things, whether the untrue or alleged untrue
statement of a material fact or the omission to state a material fact
relates to information supplied by the indemnifying party or by the
indemnified party and the parties’ relative intent, knowledge, access to
information, and opportunity to correct or prevent such statement or
omission. The amount paid or payable by a party as a result of the
losses, claims, damages, liabilities and expenses referred to above shall
be deemed to include, subject to the limitations set forth in Section
1.3(c) hereof, any legal or other fees or expenses reasonably incurred by
such party in connection with any investigation or proceeding.

        The parties hereto agree that it would not be just and equitable if
contribution pursuant to this Section 1.3(d) were determined by pro rata
allocation or by any other method of allocation which does not take into
account the equitable considerations referred to in the immediately
preceding paragraph. Notwithstanding the provisions of this Section
1.3(d), in no event shall the Manager be required to contribute any
amount in excess of the aggregate fees received by the Manager pursuant
to the Investment Management Agreement. No person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities
Act) shall be entitled to contribution from any person or entity who was
not guilty of such fraudulent misrepresentation.

        (e) Surviving Obligations. The obligations of the Company and the
Manager under this Section 1.3 shall survive the completion of the
disposition of the Registrable Shares under this Section 1.

              1.4 Rule 144 Information. For such period as the Trust or the Plan holds
any Registrable Shares received pursuant to the Contribution, the Company shall
use its best efforts to file all reports required to be filed by it under the
Securities Act, the Exchange Act, and the rules and regulations thereunder, and
shall use its best efforts to take such further action to the extent required
to enable the Manager to sell the Registrable Shares pursuant to Rule 144 under
the Securities Act (as such rule may be amended from time to time).

     2. MISCELLANEOUS.

              2.1 Governing Law. This Agreement shall be governed by and construed and
interpreted in accordance with the laws of the State of New York, irrespective
of the choice of laws principles of the State of New York, as to all matters,
including matters of validity, construction, effect, enforceability,
performance and remedies.

              2.2 Force Majeure. Neither party will have any liability for damages or
delay due to fire, explosion, lightning, pest damage, power failure or surges,
strikes or labor disputes, water or flood, acts of God, the elements, war,
civil disturbances, acts of civil or military authorities or the public enemy,
acts or omissions of communications or other carriers, or any other cause
beyond a party’s reasonable control (other than that which arises from the
gross

7

 

negligence or willful misconduct of such party), whether or not similar to
the foregoing, that prevent such party from materially performing its
obligations hereunder.

       2.3 Entire Agreement; Modification; Waivers. This Agreement constitutes
the entire agreement between the parties with respect to the subject matter
hereof and shall supersede all previous negotiation, commitments and writings
with respect to the matters discussed herein. This Agreement may not be
altered, modified or amended except by a written instrument signed by all
affected parties. The failure of any party to require the performance or
satisfaction of any term or obligation of this Agreement, or the waiver by any
party of any breach of this Agreement, shall not prevent subsequent enforcement
of such term or obligation or be deemed a waiver of any subsequent breach.

       2.4 Severability. The provisions of this Agreement are severable, and in
the event that any one or more provisions are deemed illegal or unenforceable
the remaining provisions shall remain in full force and effect unless the
deletion of such provision shall cause this Agreement to become materially
adverse to either party, in which event the parties shall use reasonable
commercial efforts to arrive at an accommodation that best preserves for the
parties the benefits and obligations of the offending provision.

       2.5 Notices. Except as otherwise expressly provided, any notice, request,
demand or other communication permitted or required to be given under this
Agreement shall be in writing, shall be sent by one of the following means to
the Company or the Manager at the addresses set forth below (or to such other
address as shall be designated hereunder by notice to the other parties and
persons receiving copies, effective upon actual receipt), and shall be deemed
conclusively to have been given: (a) on the first business day following the
day timely deposited with Federal Express (or other equivalent national
overnight courier) or United States Express Mail, with the cost of delivery
prepaid or for the account of the sender; (b) on the fifth business day
following the day duly sent by certified or registered United States mail,
postage prepaid and return receipt requested; or (c) when otherwise actually
received by the addressee on a business day (or on the next business day if
received after the close of normal business hours or on any non-business day).

If to the Company:

DTE Energy Company

2000 2nd Avenue

Detroit, Michigan 48226-1279

Fax: (313) 235-9470

Attn: Treasurer

With a copy to:

DTE Energy Company

2000 2nd Avenue

Detroit, Michigan 48226-1279

Fax: (313) 235-8500

Attn: General Counsel

8

 

If to Manager:

U.S. Trust Company, National Association

600 Fourteenth Street, N.W.

Suite 400

Washington, DC 20005-3314

Fax: (202) 783-7054

Attn: Norman P. Goldberg

With a copy to:

James F. Carey, Esq.

Jones Day

2727 North Harwood Street

Dallas, Texas 75201

Fax: (214) 969-5100

     2.6 For purposes of Sections 1.1, 1.2 and 1.4 of this Agreement, the Trust
shall be considered a third party beneficiary hereof.

     2.7 Title and Headings. Titles and headings to sections herein are
inserted for convenience of reference only and are not intended to be part of
or to affect the meaning or interpretation of this Agreement.

     2.8 Execution in Counterparts. This Agreement may be executed in any
number of counterparts, each of which shall be deemed an original, but all of
which together shall constitute one and the same instrument.

     IN WITNESS WHEREOF, each of the Manager and the Company has caused this
Agreement to be duly executed on its behalf by its duly authorized officer as
of the date first written above.

	 	 	 	 	 	 	 
	 	 	DTE ENERGY COMPANY
	 
	 	 	 	 	 	 
	

	 	By:
	 	 	 	 
	

	 	 	 	
 	 	 
	

	 	Name:
	 	 	 	 
	

	 	 	 	
 	 	 
	

	 	Title:
	 	 	 	 
	

	 	 	 	
 	 	 
	 
	 	 	 	 	 	 
	 	 	U.S. TRUST COMPANY, NATIONAL ASSOCIATION,
	 	 	solely in its capacity as duly appointed
	 	 	and acting investment manager of a
	 	 	segregated account held in the DTE Energy
	 	 	Company Affiliates Employee Benefits Plan

Master Trust
	 
	 	 	 	 	 	 
	

	 	By:
	 	 	 	 
	

	 	 	 	
 	 	 
	

	 	Name:
	 	Charles E. Wert	 	 
	

	 	Title:
	 	Executive Vice President	 	 

9

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