Document:

Amendment to Loan and Security Agreement

 Exhibit 10.1 
  
 AMENDMENT TO LOAN AND SECURITY AGREEMENT 
  
 THIS AMENDMENT TO LOAN AND SECURITY AGREEMENT (this “Amendment”) is made and entered into on
September 30, 2005, to be effective as of the respective date hereinafter specified, by and among BANK OF AMERICA, N.A., a national banking association, (“BA”), in its capacity as collateral and administrative agent
under the Loan Agreement (as hereinafter defined) (BA, in such capacity, the “Agent”), and BA as Lender under the Loan Agreement (BA, in such capacity, the “Lender”), and INTEGRATED ELECTRICAL SERVICES, INC.,
a Delaware corporation (“Parent”), and each of the Subsidiaries of Parent listed on Annex I attached hereto (Parent and such Subsidiaries of Parent being herein referred to collectively as the “Borrowers”), and the
Subsidiaries of Parent listed on Annex II attached hereto (such Subsidiaries being referred to herein as the “Guarantors”, and Borrowers and Guarantors being referred to herein as the “Credit Parties”). 

 
 RECITALS 
  
 A. Agent, Lender and Credit Parties have entered into that certain Loan and
Security Agreement, dated as of August 1, 2005 (the Loan and Security Agreement being referred to herein as the “Loan Agreement”). 
  
 B. Credit Parties, Agent and Lender desire to amend the Loan Agreement as hereinafter set forth, subject to the terms and conditions hereinafter set
forth. 
  
 NOW, THEREFORE, in consideration of the premises
herein contained and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties, intending to be legally bound, agree as follows: 
  
 AGREEMENT 
  
 ARTICLE I  
 Definitions

  
 1.01 Capitalized terms used in this Amendment are
defined in the Loan Agreement, as amended hereby, unless otherwise stated. 
  
 ARTICLE II  
 Amendments 
  
 Effective as of the respective date hereinafter specified, the Loan Agreement
is hereby amended as follows: 
  
 2.01 Amendment and
Restatement of Section 2.2.5 of the Loan Agreement. Effective as of the date hereof, Section 2.2.5 of the Loan Agreement is amended and restated to read in its entirety as follows: 
  
 “2.2.5. Annual Administrative Fee. In
consideration of Bank’s syndication of the Commitments and service as Agent hereunder, Borrowers shall be jointly and severally 
  
 AMENDMENT TO 
 LOAN AND SECURITY AGREEMENT 

 obligated to pay in advance to Agent for Agent’s own account an annual administrative fee of
$125,000, per year, which annual fee shall be payable as follows: (i) $75,000 of the first $125,000 fee shall be payable on the Closing Date, with the remaining $50,000 of such first $125,000 fee to be payable on the date of execution of that
certain Amendment to Loan and Security Agreement, dated September 30, 2005, executed by Lenders, Agent and Credit Parties, and (ii) each subsequent $125,000 annual fee shall be payable on each anniversary of the date of this Agreement (or
on the date of payment in full of the Obligations upon termination of the Commitments, if on a date other than an anniversary date.)” 
  
 2.02 Amendment to Section 9.1.2 of the Loan Agreement. Effective as of the date hereof, Section 9.1.2 of the Loan Agreement
is amended by deleting the present last sentence of Section 9.1.2 and substituting therefor the following new sentence: 
  
 “In addition, Borrowers shall give Agent at least 30 calendar days (or such lesser period of time as shall be acceptable in any specific instance to
Agent) prior written notice of any Credit Party’s opening of any new office or place of business.” 
  
 2.03 Amendment and Restatement of Section 9.1.14 of the Loan Agreement. Effective as of the date hereof, Section 9.1.14 of
the Loan Agreement is amended and restated to read in its entirety as follows: 
  
 “9.1.14 Dominion Accounts. By the 90th day after the Closing Date, deliver to Agent such duly executed agreements establishing each Dominion Account as shall be required by Agent, in each case with a financial institution reasonably
acceptable to Agent, for the collection or servicing of the Accounts, in each case in form and substance reasonably satisfactory to Agent.” 
  
 2.04 Amendment to Section 9.1.16 of the Loan Agreement. Effective as of the date hereof, Section 9.1.16 of the Loan
Agreement is amended And restated to read in its entirety as follows: 
  
 “9.1.16. Enertech Pledge. By the 120th day after the Closing Date, deliver to Agent a consent to the pledge by Borrower of its ownership in Enertech to Agent, and execute a Pledge Agreement or an amendment
to an existing Pledge Agreement (as applicable) to pledge such ownership interest.” 
  
 2.05 Amendment to Section 9.2.1 of the Loan Agreement. Effective as of the date hereof, Section 9.2.1 of the Loan Agreement is amended and restated to read in its entirety as follows:

  
 “9.2.1. Fundamental Changes.
Merge, reorganize, consolidate or amalgamate with any Person, or liquidate, wind up its affairs or dissolve itself, except for mergers or consolidations of any Subsidiary with another Subsidiary or Parent; change its name or conduct business under
any new fictitious name unless Agent is notified not less than thirty calendar days (or such lesser period of time as shall be acceptable in any specific instance to Agent) in advance of such name change; or change its FEIN.” 
  
 AMENDMENT TO 
 LOAN AND SECURITY AGREEMENT 
  

 2 

 2.06 Amendment to Calculation of EBITDA For Purposes of Loan Agreement. Effective
August 1, 2005, for the purpose of calculating the Fixed Charge Coverage Ratio in order to determine compliance with the minimum Fixed Charge Coverage Ratio financial covenant set forth in Section 9.3.1 of the Loan Agreement and for
the purpose of calculating the Fixed Charge Coverage Ratio in order to determine the relevant “Applicable Margin”, the parties hereto agree to revise the determination of EBITDA to encompass certain adjustments as agreed between Agent and
Borrowers, which adjustments shall revise the determination of EBITDA for any period which includes August and/or September, 2005 in the following manner: there shall be added to the Adjusted Net Earnings from Operations for such periods, to the
extent deducted in the determination of Adjusted Net Earnings from Operations for such periods (i) losses arising at one of the Subsidiaries during such period, (ii) non cash write-offs of certain of Borrower’s investments,
(iii) write-offs of certain obsolete inventory and (iv) costs associated with certain litigation matters not to exceed $650,000. 
  
 2.07 Amendment to Appendix A of the Loan Agreement; Amendment to Definition of “Applicable Margin”. Effective as of the date
hereof, the definition of “Applicable Margin” contained in Appendix A of the Loan Agreement is amended by deleting therefrom the present first sentence of such definition and substituting therefor a new sentence to read in its
entirety as follows: 
  
 “Applicable
Margin - a percentage equal to 1.00% with respect to Revolver Loans that are Base Rate Loans, 3.00% with respect to Revolver Loans that are LIBOR Loans, and 3.00% with respect to fees payable to Lenders pursuant to Section 2.2.3(i),
provided that, commencing on the earlier of (i) December 31, 2005 or (ii) a Participant or other Lender (other than Bank) becomes a party to this Agreement, the Applicable Margin shall be increased or (if no Default or Event of
Default exists) decreased, based upon the Fixed Charge Coverage Ratio, as follows: 
  

										
	 Fixed Charge Coverage Ratio

	  	Revolver Loans

	 	 	Standby LCs

	 
	  	Base Rate

	 	 	LIBOR

	 	 	Fee Percentage

	 
	 < 0.60
	  	1.50	%	 	3.50	%	 	3.50	%
	 > 0.60 and < 0.75
	  	1.25	%	 	3.25	%	 	3.25	%
	 > 0.75 and < 1.0
	  	1.00	%	 	3.00	%	 	3.00	%
	 > 1.0 and < 1.15
	  	0.75	%	 	2.75	%	 	2.75	%
	 > 1.15
	  	0.50	%	 	2.50	%	 	2.50	%”

  
 AMENDMENT
TO 
 LOAN AND SECURITY AGREEMENT  
  

 3 

 2.08 Amendment Fee. Credit Parties agree to pay to Agent an amendment fee of $50,000, which
amendment fee shall be deemed fully earned and non-refundable as of the date of execution of this Amendment, which amendment fee shall be due and payable in full upon the date of execution of this Amendment. 
  
 2.09 Additional Cash Collateral. Credit Parties agree to make
ratable monthly payments to Agent so that the amount of cash collateral held by Agent as security for the Obligations will be $17,500,000 by January 31, 2006. 
  
 ARTICLE III  
 No Waiver 
  
 3.01 No Waiver. Nothing in this Amendment shall directly or indirectly whatsoever either: (i) be construed as a waiver of any covenant or provision of the Loan Agreement, any other Loan Document or any other contract or
instrument or (ii) impair, prejudice or otherwise adversely affect any right of Agent or Lender at any time to exercise any right, privilege or remedy in connection with the Loan Agreement, any other Loan Document or any other contract or
instrument, or (iii) constitute any course of dealing or other basis for altering any obligation of Credit Parties or any right, privilege or remedy of Agent or Lender under the Loan Agreement, any other Loan Document or any other contract or
instrument or constitute any consent by Agent or Lender to any prior, existing or future violations of the Loan Agreement or any other Loan Document. Credit Parties hereby agree and acknowledge that hereafter Credit Parties are expected to strictly
comply with their duties, obligations and agreements under the Loan Agreement and the other Loan Documents. 
  
 ARTICLE IV  
 Conditions Precedent 
  
 4.01 Conditions to Effectiveness. The effectiveness of this
Amendment (including the agreements and waiver contained herein) is subject to the satisfaction of the following conditions precedent in a manner satisfactory to Agent, unless specifically waived in writing by Agent: 
  
 (a) Agent shall have received each of the following, each in
form and substance satisfactory to Agent, in its sole discretion, and, where applicable, each duly executed by each party thereto, other than Agent or Lender: 
  

(i) This Amendment, duly executed by Credit Parties; and 
  
 (ii) All other documents Agent may request with respect to any matter relevant to this Amendment or the
transactions contemplated hereby. 
  
 (b) The
representations and warranties contained herein and in the Loan Agreement and the other Loan Documents, as each is amended hereby, shall be true and correct in all material respects as of the date hereof, as if made on the date hereof, except for
those representations and warranties specifically made as of an earlier date, which shall be true and correct in all material respects as of such earlier date. 
  

AMENDMENT TO 
 LOAN AND SECURITY AGREEMENT  
  

 4 

 (c) No Default or Event of Default shall have occurred and be continuing, unless such
Default or Event of Default has been otherwise specifically waived in writing by Agent. 
  
 (d) All organizational proceedings taken in connection with the transactions contemplated by this Amendment and all documents, instruments
and other legal matters incident thereto shall be reasonably satisfactory to Agent and its legal counsel. 
  
 (e) Agent shall have received, in immediately available funds, payment of the amendment fee required to be paid by Credit Parties to Agent
pursuant to the provisions of Section 2.08 hereof. 
  
 (f) Agent shall have received, in immediately available funds, payment of the $50,000 amount described in Section 2.01 hereof. 
  
 ARTICLE V  
 Ratifications, Representations and Warranties 
  
 5.01 Ratifications. The terms and provisions set forth in this Amendment shall modify and supersede all inconsistent terms and provisions set forth in the Loan Agreement and the other Loan Documents, and, except as expressly
modified and superseded by this Amendment, the terms and provisions of the Loan Agreement and the other Loan Documents are ratified and confirmed and shall continue in full force and effect. Each Credit Party and Lender and Agent agree that the Loan
Agreement and the other Loan Documents, as amended hereby, shall continue to be legal, valid, binding and enforceable in accordance with their respective terms. 
  

5.02 Representations and Warranties. Each Credit Party hereby represents and warrants to Lender and Agent that (a) the execution,
delivery and performance of this Amendment and any and all other Loan Documents executed and/or delivered in connection herewith have been authorized by all requisite organizational action on the part of such Credit Party and will not violate the
organizational or governing documents of such Credit Party; (b) the representations and warranties contained in the Loan Agreement, as amended hereby, and any other Loan Document are true and correct in all material respects on and as of the
date hereof and on and as of the date of execution hereof as though made on and as of each such date, except for those representations and warranties specifically made as of an earlier date, which shall be true and correct in all material respects
as of such earlier date; (c) no Default or Event of Default under the Loan Agreement, as amended hereby, has occurred and is continuing, unless such Default or Event of Default has been specifically waived in writing by Agent; (d) each
Credit Party is in material compliance with all covenants and agreements contained in the Loan Agreement and the other Loan Documents, as amended hereby; and (e) no Credit Party has amended its organizational or governing documents since the
date execution of the Loan Agreement. 
  
 AMENDMENT
TO 
 LOAN AND SECURITY AGREEMENT  
  

 5 

 ARTICLE VI  
 Miscellaneous Provisions 
  
 6.01 Survival of Representations and Warranties. All representations and warranties made in the Loan Agreement or any other Loan Document, including, without limitation, any document furnished in connection with this
Amendment, shall survive the execution and delivery of this Amendment and the other Loan Documents, and no investigation by Lender or Agent or any closing shall affect the representations and warranties or the right of Lender or Agent to rely upon
them. 
  
 6.02 Reference to Loan Agreement. Each of
the Loan Agreement and the other Loan Documents, and any and all other Loan Documents, documents or instruments now or hereafter executed and delivered pursuant to the terms hereof or pursuant to the terms of the Loan Agreement, as amended hereby,
are hereby amended so that any reference in the Loan Agreement and such other Loan Documents to the Loan Agreement shall mean a reference to the Loan Agreement, as amended hereby, and any reference in the Loan Agreement and such other Loan Documents
to any other Loan Document amended by the provisions of this Amendment shall mean a reference to such other Loan Documents, as amended hereby. 
  
 6.03 Expenses of Lender. As provided in the Loan Agreement, each Credit Party agrees to pay on demand all costs and out-of-pocket expenses
incurred by Lender and Agent in connection with the preparation, negotiation, and execution of this Amendment and the other Loan Documents executed pursuant hereto and any and all amendments, modifications, and supplements thereto, including,
without limitation, the costs and fees of Lender’s and Agent’s legal counsel, and all costs and out-of-pocket expenses incurred by Lender and Agent in connection with the enforcement or preservation of any rights under the Loan Agreement,
as amended hereby, or any other Loan Documents, including, without, limitation, the costs and fees of Lender’s and Agent’s legal counsel. 
  
 6.04 Severability. Any provision of this Amendment held by a court of competent jurisdiction to be invalid or unenforceable shall not impair
or invalidate the remainder of this Amendment and the effect thereof shall be confined to the provision so held to be invalid or unenforceable. 
  
 6.05 Successors and Assigns. This Amendment is binding upon and shall inure to the benefit of Lender and Agent and each Credit Party and
their respective successors and assigns, except that no Credit Party may assign or transfer any of its rights or obligations hereunder without the prior written consent of Lender and Agent. 
  
 6.06 Counterparts. This Amendment may be executed in one or
more counterparts, each of which when so executed shall be deemed to be an original, but all of which when taken together shall constitute one and the same instrument. 
  
 6.07 Effect of Waiver. No consent or waiver, express or implied, by Lender or Agent to or for any breach of or
deviation from any covenant or condition by any Credit Party shall be deemed a consent to or waiver of any other breach of the same or any other covenant, condition or duty. 
  
 AMENDMENT TO 
 LOAN AND SECURITY AGREEMENT  
  

 6 

 6.08 Headings. The headings, captions, and arrangements used in this Amendment are for
convenience only and shall not affect the interpretation of this Amendment. 
  
 6.09 Applicable Law. THIS AMENDMENT AND ALL OTHER LOAN DOCUMENTS EXECUTED PURSUANT HERETO SHALL BE DEEMED TO HAVE BEEN MADE AND TO BE PERFORMABLE IN AND SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF TEXAS. 
  
 6.10 Final
Agreement. THE LOAN AGREEMENT AND THE OTHER LOAN DOCUMENTS, EACH AS AMENDED HEREBY, REPRESENT THE ENTIRE EXPRESSION OF THE PARTIES WITH RESPECT TO THE SUBJECT MATTER HEREOF ON THE DATE THIS AMENDMENT IS EXECUTED. THE LOAN AGREEMENT AND THE
OTHER LOAN DOCUMENTS, AS AMENDED HEREBY, MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES. NO MODIFICATION, RESCISSION, WAIVER,
RELEASE OR AMENDMENT OF ANY PROVISION OF THIS AMENDMENT SHALL BE MADE, EXCEPT BY A WRITTEN AGREEMENT SIGNED BY EACH CREDIT PARTY AND LENDER AND AGENT. 
  
 6.11 Release. EACH CREDIT PARTY HEREBY ACKNOWLEDGES THAT IT HAS NO DEFENSE, COUNTERCLAIM, OFFSET, CROSS-COMPLAINT, CLAIM OR DEMAND OF ANY
KIND OR NATURE WHATSOEVER THAT CAN BE ASSERTED TO REDUCE OR ELIMINATE ALL OR ANY PART OF ITS LIABILITY TO REPAY THE “OBLIGATIONS” OR TO SEEK AFFIRMATIVE RELIEF OR DAMAGES OF ANY KIND OR NATURE FROM LENDER OR AGENT. EACH CREDIT PARTY HEREBY
VOLUNTARILY AND KNOWINGLY RELEASES AND FOREVER DISCHARGES LENDER AND AGENT AND ITS RESPECTIVE PREDECESSORS, AGENTS, EMPLOYEES, SUCCESSORS AND ASSIGNS, FROM ALL POSSIBLE CLAIMS, DEMANDS, ACTIONS, CAUSES OF ACTION, DAMAGES, COSTS, EXPENSES, AND
LIABILITIES WHATSOEVER, KNOWN OR UNKNOWN, ANTICIPATED OR UNANTICIPATED, SUSPECTED OR UNSUSPECTED, FIXED, CONTINGENT, OR CONDITIONAL, AT LAW OR IN EQUITY, ORIGINATING IN WHOLE OR IN PART ON OR BEFORE THE DATE THIS AMENDMENT IS EXECUTED, WHICH ANY
CREDIT PARTY MAY NOW OR HEREAFTER HAVE AGAINST LENDER OR AGENT OR ITS RESPECTIVE PREDECESSORS, AGENTS, EMPLOYEES, SUCCESSORS AND ASSIGNS, IF ANY, AND IRRESPECTIVE OF WHETHER ANY SUCH CLAIMS ARISE OUT OF CONTRACT, TORT, VIOLATION OF LAW OR
REGULATIONS, OR OTHERWISE, AND ARISING FROM ANY “LOANS,” INCLUDING, WITHOUT LIMITATION, ANY CONTRACTING FOR, CHARGING, TAKING, RESERVING, COLLECTING OR RECEIVING INTEREST IN EXCESS OF THE HIGHEST LAWFUL RATE APPLICABLE, THE EXERCISE OF ANY
RIGHTS AND REMEDIES UNDER THE LOAN AGREEMENT OR OTHER LOAN DOCUMENTS, AND NEGOTIATION FOR AND EXECUTION OF THIS AMENDMENT. 
  
 AMENDMENT TO 
 LOAN AND SECURITY AGREEMENT  
  

 7 

 IN WITNESS WHEREOF, this Amendment has been executed on September 30, 2005, to be effective
as the respective date set forth above. 
  

			
	LENDER:
	
	Bank of America, N.A., as Sole Lender
		
	By:	 	  

		
	Name:	 	  

		
	Title:	 	  

	
	AGENT:
	
	Bank of America, N.A., as Agent
		
	By:	 	  

		
	Name:	 	  

		
	Title:	 	  

  
 AMENDMENT
TO 
 LOAN AND SECURITY AGREEMENT 

			
	 CREDIT PARTIES:

	
	INTEGRATED ELECTRICAL SERVICES, INC.
		
	By:	 	 /s/ Curt Warnock

	 	 	Curt Warnock
	 	 	Senior Vice President

  
 AMENDMENT
TO 
 LOAN AND SECURITY AGREEMENT

	
	ALADDIN WARD ELECTRIC & AIR, INC.
	AMBER ELECTRIC, INC.
	ARC ELECTRIC, INCORPORATED
	BACHOFNER ELECTRIC, INC.
	BEAR ACQUISITION CORPORATION
	IES RAPID CITY, INC.
	BRYANT ELECTRIC COMPANY, INC.
	BW/BEC, INC.
	BW CONSOLIDATED, INC.
	CHARLES P. BAGBY CO., INC.
	COLLIER ELECTRIC COMPANY, INC.
	COMMERCIAL ELECTRICAL CONTRACTORS, INC.
	CROSS STATE ELECTRIC, INC.
	CYPRESS ELECTRICAL CONTRACTORS, INC.
	DANIEL ELECTRICAL CONTRACTORS, INC.
	DANIEL ELECTRICAL OF TREASURE COAST, INC.
	DANIEL INTEGRATED TECHNOLOGIES, INC.
	DAVIS ELECTRICAL CONSTRUCTORS, INC.
	ELECTRO-TECH, INC.
	EMC ACQUISITION CORPORATION
	FEDERAL COMMUNICATIONS GROUP, INC.
	GENERAL PARTNER, INC.
	H. R. ALLEN, INC.
	HATFIELD REYNOLDS ELECTRIC COMPANY
	HOLLAND ELECTRICAL SYSTEMS, INC.
	HOUSTON-STAFFORD ELECTRIC HOLDINGS
    III, INC.
	HOUSTON-STAFFORD MANAGEMENT LLC
	ICS HOLDINGS LLC
	IES ALBUQUERQUE, INC.
	IES AUSTIN, INC.
	IES AUSTIN MANAGEMENT LLC
	IES CHARLOTTE, INC.
	IES COLLEGE STATION, INC.
	IES COLLEGE STATION MANAGEMENT LLC
	IES COMMUNICATIONS, INC.
	IES CONTRACTORS MANAGEMENT LLC
	IES DECATUR, INC.
	IES EAST MCKEESPORT, INC.
	IES ENC, INC.
	IES ENC MANAGEMENT, INC.
	IES MERIDIAN, INC.
	IES NEW IBERIA, INC.
	IES OKLAHOMA CITY, INC.

  
 AMENDMENT
TO 
 LOAN AND SECURITY AGREEMENT

	
	IES OPERATIONS GROUP, INC.
	IES PROPERTIES, INC.
	IES PROPERTIES MANAGEMENT, INC.
	IES RALEIGH, INC.
	IES RESIDENTIAL GROUP, INC.
	IES SPECIALTY LIGHTING, INC.
	IES VALDOSTA, INC.
	IES VENTURES INC.
	IES WILSON, INC.
	INTEGRATED ELECTRICAL FINANCE, INC.
	INTELLIGENT BUILDING SOLUTIONS, INC.
	J.W. GRAY ELECTRIC CO., INC.
	J.W. GRAY MANAGEMENT LLC
	KAYTON ELECTRIC, INC.
	KEY ELECTRICAL SUPPLY, INC.
	LINEMEN, INC.
	MARK HENDERSON, INCORPORATED
	MENNINGA ELECTRIC, INC.
	MID-STATES ELECTRIC COMPANY, INC.
	MILLS ELECTRICAL CONTRACTORS, INC.
	MILLS MANAGEMENT LLC
	MITCHELL ELECTRIC COMPANY, INC.
	M-S SYSTEMS, INC.
	MURRAY ELECTRICAL CONTRACTORS, INC.
	NBH HOLDING CO., INC.
	NEAL ELECTRIC MANAGEMENT LLC
	NEW TECHNOLOGY ELECTRICAL
	    CONTRACTORS, INC.
	NEWCOMB ELECTRIC COMPANY, INC.
	PAN AMERICAN ELECTRIC COMPANY, INC.
	PAN AMERICAN ELECTRIC, INC.
	PAULIN ELECTRIC COMPANY, INC.
	POLLOCK ELECTRIC, INC.
	PRIMENET, INC.
	PRIMO ELECTRIC COMPANY
	RAINES ELECTRIC CO., INC.
	RAINES MANAGEMENT LLC
	RIVIERA ELECTRIC, LLC
	RKT ELECTRIC, INC.
	ROCKWELL ELECTRIC, INC.
	RODGERS ELECTRIC COMPANY, INC.
	RON’S ELECTRIC, INC.
	SEI ELECTRICAL CONTRACTOR, INC.
	SPECTROL, INC.
	SUMMIT ELECTRIC OF TEXAS, INC.

  
 AMENDMENT
TO 
 LOAN AND SECURITY AGREEMENT

			
	TESLA POWER GP, INC.
	THOMAS POPP & COMPANY
	VALENTINE ELECTRICAL, INC.
	WRIGHT ELECTRICAL CONTRACTING, INC.
		
	By:	 	 /s/ Curt Warnock

	 	 	Curt Warnock
	 	 	Vice President
	
	IES CONTRACTORS, INC.
		
	Name:	 	 /s/ Curt Warnock

	 	 	Curt Warnock
	 	 	Secretary
	
	IES REINSURANCE, LTD.
		
	Name:	 	 /s/ Curt Warnock

	 	 	Curt Warnock
	 	 	President
	
	BEXAR ELECTRIC COMPANY, LTD.
	By:	 	BW/BEC, Inc., its general partner
		
	Name:	 	 /s/ Curt Warnock

	 	 	Curt Warnock
	 	 	Vice President
	
	HAYMAKER ELECTRIC, LTD
	By:	 	General Partner, Inc., its general partner
		
	Name:	 	 /s/ Curt Warnock

	 	 	Curt Warnock
	 	 	Vice President
	
	HOUSTON-STAFFORD ELECTRICAL CONTRACTORS LP
	By:	 	Houston-Stafford Management LLC, its general partner
		
	Name:	 	 /s/ Curt Warnock

	 	 	Curt Warnock
	 	 	Vice President

  
 AMENDMENT
TO 
 LOAN AND SECURITY AGREEMENT

			
	IES AUSTIN HOLDING LP
	By:	 	IES Austin Management LLC, its general partner
		
	Name:	 	 /s/ Curt Warnock

	 	 	Curt Warnock
	 	 	Vice President
	
	IES COLLEGE STATION HOLDING LP
	By:	 	IES College Station Management LLC, its general partner
		
	Name:	 	 /s/ Curt Warnock

	 	 	Curt Warnock
	 	 	Vice President
	
	IES FEDERAL CONTRACT GROUP, L.P.
	By:	 	IES Contractors Management LLC
		
	Name:	 	 /s/ Curt Warnock

	 	 	Curt Warnock
	 	 	Vice President
	
	IES MANAGEMENT ROO, LP
	By:	 	Neal Electric Management LLC, its general partner
		
	Name:	 	 /s/ Curt Warnock

	 	 	Curt Warnock
	 	 	Vice President
	
	IES MANAGEMENT LP
	By:	 	IES Residential Group, Inc., its general partner
		
	Name:	 	 /s/ Curt Warnock

	 	 	Curt Warnock
	 	 	Vice President
	
	IES PROPERTIES, LP
	By:	 	IES Properties Management, Inc., its general partner
		
	Name:	 	 /s/ Curt Warnock

	 	 	Curt Warnock
	 	 	Vice President

  
 AMENDMENT
TO 
 LOAN AND SECURITY AGREEMENT

			
	J.W. GRAY ELECTRICAL CONTRACTORS LP
	By:	 	J.W. Gray Management LLC, its general partner
		
	Name:	 	 /s/ Curt Warnock

	 	 	Curt Warnock
	 	 	Vice President
	
	MILLS ELECTRIC LP
	By:	 	Mills Management LLC
		
	Name:	 	 /s/ Curt Warnock

	 	 	Curt Warnock
	 	 	Vice President
	
	NEAL ELECTRIC LP
	By:	 	BW/BEC, Inc., its general partner
		
	Name:	 	 /s/ Curt Warnock

	 	 	Curt Warnock
	 	 	Vice President
	
	POLLOCK SUMMIT ELECTRIC LP
	By:	 	Pollock Electric, Inc. and Summit Electric of Texas, Inc., its general partners
		
	Name:	 	 /s/ Curt Warnock

	 	 	Curt Warnock
	 	 	Vice President
	
	RAINES ELECTRIC LP
	By:	 	Raines Management LLC, its general partner
		
	Name:	 	 /s/ Curt Warnock

	 	 	Curt Warnock
	 	 	Vice President
	
	TESLA POWER AND AUTOMATION, L.P.
	By:	 	Telsa Power GP, Inc., its general partner
		
	Name:	 	 /s/ Curt Warnock

	 	 	Curt Warnock
	 	 	Vice President

  
 AMENDMENT
TO 
 LOAN AND SECURITY AGREEMENT

			
	TESLA POWER PROPERTIES, L.P.
	By:	 	Telsa Power GP, Inc., its general partner
		
	Name:	 	 /s/ Curt Warnock

	 	 	Curt Warnock
	 	 	Vice President

  
 AMENDMENT
TO 
 LOAN AND SECURITY AGREEMENT

			
	BEXAR ELECTRIC II LLC
	BW/BEC II LLC
	HOUSTON-STAFFORD HOLDINGS II LLC
	IES AUSTIN HOLDINGS II LLC
	IES COLLEGE STATION HOLDINGS II LLC
	IES CONTRACTORS HOLDINGS LLC
	IES HOLDINGS II LLC
	IES PROPERTIES HOLDINGS II LLC
	J.W. GRAY HOLDINGS II LLC
	MILLS ELECTRIC HOLDINGS II LLC
	POLLOCK SUMMIT HOLDINGS II LLC
	RAINES HOLDINGS II LLC
	TESLA POWER (NEVADA) II LLC
		
	By:	 	 /s/ John Seli

	 	 	John Seli, Manager

  
 AMENDMENT
TO 
 LOAN AND SECURITY AGREEMENT

			
	BW/BEC, L.L.C.
	HOUSTON-STAFFORD HOLDINGS LLC
	IES AUSTIN HOLDINGS LLC
	IES COLLEGE STATION HOLDINGS LLC
	IES HOLDINGS LLC
	J.W. GRAY HOLDINGS LLC
	MILLS ELECTRICAL HOLDINGS LLC
	POLLOCK SUMMIT HOLDINGS INC.
	RAINES HOLDINGS LLC
	TESLA POWER (NEVADA), INC.
		
	By:	 	 /s/ Victor Duva

	 	 	Victor Duva, President

  
 AMENDMENT
TO 
 LOAN AND SECURITY AGREEMENT

			
	IES PROPERTIES HOLDINGS, INC.
		
	By:	 	 /s/ Victoria Garrett

	 	 	Victoria Garrett, President

  
 AMENDMENT
TO 
 LOAN AND SECURITY AGREEMENT 

 Annex I 
  
 Borrowers 
  

			
	Aladdin-Ward Electric & Air, Inc.	    	Florida
	Amber Electric, Inc.	    	Florida
	ARC Electric, Incorporated	    	Delaware
	Bachofner Electric, Inc.	    	Delaware
	Bexar Electric Company, Ltd.	    	Texas
	IES Rapid City, Inc.	    	South Dakota
	Bryant Electric Company, Inc.	    	North Carolina
	Charles P. Bagby Co., Inc	    	Alabama
	Collier Electric Company, Inc.	    	Florida
	Commercial Electrical Contractors, Inc.	    	Delaware
	Cross State Electric, Inc.	    	California
	Cypress Electrical Contractors, Inc.	    	Delaware
	Daniel Electrical Contractors, Inc.	    	Florida
	Daniel Electrical of Treasure Coast, Inc.	    	Florida
	Daniel Integrated Technologies, Inc.	    	Florida
	Davis Electrical Constructors, Inc.	    	South Carolina
	Electro-Tech, Inc.	    	Nevada
	Federal Communications Group, Inc.	    	Delaware
	H.R. Allen, Inc.	    	South Carolina
	Hatfield Reynolds Electric Company	    	Arizona
	Haymaker Electric, Ltd.	    	Alabama
	Holland Electrical Systems, Inc	    	Delaware
	Houston-Stafford Electrical Contractors LP	    	Texas
	IES Contractors, Inc	    	Delaware
	IES Federal Contract Group, LP	    	Texas
	IES Management LP	    	Texas
	IES Management ROO, LP	    	Texas
	IES Properties LP	    	Texas
	IES Reinsurance, Ltd.	    	Bermuda
	IES Ventures, Inc.	    	Delaware
	Integrated Electrical Finance, Inc.	    	Delaware
	Integrated Electrical Services, Inc.	    	Delaware
	J.W. Gray Electric Co., Inc.	    	Delaware
	J.W. Gray Electrical Contractors LP	    	Texas
	Kayton Electric, Inc.	    	Nebraska
	Key Electrical Supply, Inc.	    	Texas
	Linemen, Inc.	    	Delaware
	Mark Henderson, Incorporated	    	Delaware
	Menninga Electric, Inc.	    	Delaware
	Mid-States Electric Company, Inc.	    	Delaware

			
	Mills Electric LP	    	Texas
	Mitchell Electric Company, Inc.	    	Arizona
	M-S Systems, Inc.	    	Tennessee
	Murray Electrical Contractors, Inc.	    	Delaware
	Neal Electric LP	    	Texas
	New Technology Electrical Contractors, Inc.	    	Delaware
	Newcomb Electric Company, Inc.	    	Delaware
	 Pan American Electric, Inc.
 Pan American Electric
Company, Inc.
	    	 Tennessee
 New Mexico

	Paulin Electric Company, Inc.	    	Delaware
	Pollock Summit Electric LP	    	Texas
	PrimeNet, Inc.	    	Delaware
	Primo Electric Company	    	Delaware
	Raines Electric LP	    	Texas
	Riviera Electric, LLC	    	Delaware
	RKT Electric, Inc.	    	Delaware
	Rockwell Electric, Inc.	    	Delaware
	Rodgers Electric, Inc.	    	Washington
	Ron’s Electric, Inc.	    	Delaware
	SEI Electrical Contractor, Inc	    	Florida
	Spectrol, Inc.	    	Delaware
	 Tesla Power & Automation, L.P.
 Tesla Power
Properties, L.P.
	    	 Texas
 Texas

	Thomas Popp & Company	    	Ohio
	Valentine Electrical, Inc.	    	Delaware
	Wright Electrical Contracting, Inc.	    	Delaware

 Annex II 
 Guarantors 
  

			
	Bear Acquisition Corporation	    	Delaware
	Bexar Electric II LLC	    	Arizona
	BW Consolidated, Inc.	    	Nevada
	BW/BEC II LLC	    	Arizona
	BW/BEC, Inc.	    	Delaware
	BW/BEC, LLC	    	Nevada
	General Partners, Inc.	    	Alabama
	Houston-Stafford Electric Holding III, Inc.	    	Nevada
	Houston-Stafford Holdings II LLC	    	Delaware
	Houston-Stafford Holdings LLC	    	Arizona
	Houston-Stafford Management LLC	    	Arizona
	ICS Holdings LLC	    	Arizona
	IES Communications, Inc.	    	Delaware
	IES Contractors Holdings LLC	    	Arizona
	IES Contractors Management LLC	    	Arizona
	IES ENC Management, Inc.	    	Delaware
	IES ENC, Inc.	    	Delaware
	IES Holdings II LLC	    	Delaware
	IES Holdings LLC	    	Arizona
	IES Operations Group, Inc.	    	Delaware
	IES Properties Holding, Inc.	    	Delaware
	IES Properties Holdings II LLC	    	Arizona
	IES Properties Management, Inc.	    	Delaware
	IES Properties, Inc	    	Delaware
	IES Residential Group, Inc.	    	Delaware
	IES Specialty Lighting, Inc.	    	Delaware
	Intelligent Buildings Solutions, Inc.	    	Delaware
	J.W. Gray Holdings II LLC	    	Delaware
	J.W. Gray Holdings LLC	    	Arizona
	J.W. Gray Management LLC	    	Arizona
	Mills Electric Contractors, Inc.	    	Delaware
	Mills Electric Holdings II LLC	    	Delaware
	Mills Electrical Holdings LLC	    	Arizona
	Mills Management LLC	    	Arizona
	Neal Electric Management LLC	    	Arizona
	Pollock Electric, Inc.	    	Delaware
	Pollock Summit Holdings I LLC	    	Delaware
	Pollock Summit Holdings, Inc.	    	Arizona
	Raines Electric Co., Inc.	    	Delaware
	Raines Holdings II LLC	    	Delaware
	Raines Holdings LLC	    	Arizona

			
	Raines Management LLC	    	Arizona
	Summit Electric of Texas, Inc.	    	Delaware
	Tesla Power (Nevada) , Inc.	    	Nevada
	Tesla Power (Nevada) II LLC	    	Delaware
	Tesla Power GP, Inc.	    	Delaware
	EMC Acquisition Corporation	    	Delaware
	Ernest P. Breaux Electrical, Inc.	    	Delaware
	IES Albuquerque, Inc.	    	New Mexico
	IES Austin Holding LP	    	Texas
	IES Austin Holdings II LLC	    	Delaware
	IES Austin Holdings LLC	    	Arizona
	IES Austin Management LLC	    	Arizona
	IES Austin, Inc.	    	Delaware
	IES Charlotte, Inc.	    	Delaware
	IES College Station Holdings II, LLC	    	Delaware
	IES College Station Holdings LLC	    	Arizona
	IES College Station Holdings LP	    	Texas
	IES College Station Management LLC	    	Arizona
	IES College Station, Inc.	    	Delaware
	IES Decatur, Inc.	    	Delaware
	IES East McKeesport, Inc.	    	Delaware
	IES Meridian, Inc.	    	Delaware
	IES Oklahoma City, Inc.	    	Delaware
	IES Raleigh, Inc.	    	Delaware
	IES Valdosta Inc	    	Georgia
	IES Wilson, Inc.	    	Delaware
	NBH Holding Co., Inc,	    	DelawareAmended and Restated Employment Agreement

 Exhibit 10.1 
  
 EXECUTION COPY 
  
 AMENDED AND RESTATED 
 EMPLOYMENT AGREEMENT

  
 THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT is entered into
as of the 1st day of October, 2005 (the “Effective Date”), by and between Spectrum Brands, Inc. (f/k/a Rayovac Corporation), a Wisconsin corporation (the “Company”), and David A. Jones (the
“Executive”). 
  
 WHEREAS, the Executive and the
Company were parties to an Employment Agreement dated September 12, 1996, with respect to the employment of the Executive by the Company; and 
  
 WHEREAS, the Executive and the Company modified the terms of the Executive’s employment with the Company by entering into an Amended and Restated
Employment Agreement dated April 27, 1998, and again on October 1, 2000 and again on October 1, 2002 and again on October 1, 2004 (the “2004 Agreement”), and the parties wish to amend and restate the provisions
of the 2004 Agreement as set forth herein; and 
  
 WHEREAS, the
Company desires the benefit of the experience, supervision and services of the Executive and desires to employ the Executive upon the terms and conditions set forth herein; and 
  
 WHEREAS, the Executive is willing and able to accept such employment on such terms and conditions. 
  
 NOW, THEREFORE, in consideration of the premises and mutual agreements
contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and the Executive hereby agree as follows: 
  

	1.	Employment Duties and Acceptance. The Company hereby employs the Executive, and the Executive agrees to serve and accept employment, as the Chairman of the Board of Directors
and Chief Executive Officer of the Company, reporting directly to the Board of Directors of the Company (the “Board”). In connection therewith, as Chairman of the Board and Chief Executive Officer, the Executive shall oversee and
direct the operations of the Company and perform such other duties consistent with the responsibilities of Chairman of the Board and Chief Executive Officer, all subject to the direction and control of the Board. During the Term (as defined below),
the Executive shall devote substantial time to such employment which will be his primary business activity. 

	2.	Term of Employment. Subject to Section 4 hereof, the Executive’s employment and appointment hereunder shall be for a term commencing on the date hereof and expiring
on September 30, 2009 (the “Term”). 

  

	3.	Compensation. In consideration of the performance by the Executive of his duties hereunder, the Company shall pay or provide to the Executive the following compensation which
the Executive agrees to accept in full satisfaction for his services, it being understood that necessary withholding taxes, FICA contributions and the like shall be deducted from such compensation: 

  

	 	(a)	Base Salary. Although the Compensation Committee of the Company’s Board of Directors has approved an increase in the Executive’s annual base salary to One Million
Dollars ($1,000,000), the Executive has elected to forego such an increase and shall continue to receive a base salary equal to Nine Hundred Thousand Dollars ($900,000) per annum effective October 1, 2005 for the duration of the Term except as
set forth in Section 3(m) below (“Base Salary”), which Base Salary shall be paid in equal monthly installments each year, to be paid monthly in arrears. The Board will review annually the Base Salary payable to the Executive
hereunder and may, in its discretion, increase the Executive’s Base Salary. Any such increased Base Salary shall be and become the “Base Salary” for purposes of this Agreement. 

  

	 	(b)	Bonus. The Executive shall receive a bonus for each fiscal year ending during the Term, payable annually in arrears, which shall be based on One Hundred and Twenty-Five
Percent (125%) of the Base Salary except as set forth in Section 3(m) below, provided the Company achieves certain annual performance goals established by the Board from time to time (the “Bonus”). The Board may, in its
discretion, increase the annual Bonus. Any such increased annual Bonus shall be and become the “Bonus” for such fiscal year for purposes of this Agreement. 

  

	 	(c)	Additional Salary. In addition to the compensation described above, the Executive shall also receive an additional Eighteen Thousand Five Hundred Dollars ($18,500) per annum
during the Term, payable at the time the first monthly installment of Base Salary is payable hereunder and on each anniversary thereafter (all such payments are referred to herein as “Additional Salary”). 

  

	 	(d)	Insurance Coverages and Pension Plans. The Executive shall be entitled to such insurance, pension and all other benefits as are generally made available by the Company to its
executive officers from time to time. 

  

 Page 2 

	 	(e)	Existing Stock Options and Restricted Stock Awards. All stock options and restricted stock awards previously granted to the Executive shall remain in full force and effect in
accordance with their terms; provided, however, that the Rayovac Restricted Stock Award Agreement governing the October 1, 2004 grant of 171,953 shares of Company restricted stock to Executive (“2004 Restricted Stock Agreement”) shall
be amended such that the following sentence shall be deleted from paragraph 3(c) of such 2004 Restricted Stock Agreement: “Notwithstanding anything contained herein to the contrary, the Five-Year Restricted Stock shall be forfeited to the
Company if the Employee relinquishes his position as Chief Executive Officer effective October 1, 2008.” All other terms and conditions of the 2004 Restricted Stock Agreement shall remain in full force and effect. If the Company implements
a new stock option, restricted stock or other stock program in the future, the Executive may participate to the extent authorized by the Board. 

  

	 	(f)	New Restricted Stock Awards. The Company also grants the Executive additional restricted shares of the Company’s common stock as follows: 

  

	 	(i)	On October 1, 2005, the Executive shall be awarded that number of shares (rounded up to the nearest whole share) of the Company’s common stock with a Fair Market Value (as
defined in the 2004 Rayovac Incentive Plan (the “2004 Plan”)) as of such date equal to Two Million Four Hundred Thousand Dollars ($2,400,000). Such award of stock shall include a restriction prohibiting the sale, transfer, pledge,
assignment or other encumbrance of (i) One Hundred Percent (100%) of such stock prior to the earlier of September 30, 2008 or a change in control (“Change in Control”), of the Company as defined in the 2004 Plan, and
(ii) Twenty Percent (20%) of such stock prior to the earlier of September 30, 2009 or a Change in Control. 

  

	 	(ii)	On each October 1 during the Term commencing October 1, 2005, the Executive shall be awarded that number of shares (rounded up to the nearest whole share) of the
Company’s common stock with a Fair Market Value equal to (except as provided in Section 3(m) below) the greater of Two Million, Two Hundred and Twenty-Five Thousand Dollars or Two Hundred and Twenty Five Percent (225%) of the Base
Salary then in effect. Each such award will provide for vesting in three (3) equal tranches on each of the first three anniversaries of the date of grant, with (except as otherwise provided herein or in the 2004 Plan) the vesting of Fifty
Percent (50%) of each such vesting tranche to be subject to the Executive’s continued employment with the Company as 

  

 Page 3 

 of each applicable anniversary date and the remaining Fifty Percent (50%) of each such vesting
tranche to be subject to the achievement of performance goals to be established by the Board at the time of grant, provided that One Hundred Percent (100%) of each outstanding vesting tranche shall vest upon a Change in Control. 
  

	 	(iii)	Notwithstanding the foregoing, the restricted stock subject to each such award shall be forfeited to the Company in the event the Executive’s employment with the Company
terminates prior to such restrictions lapsing with respect thereto for any reason other than (i) termination by the Company without Cause (as defined below), or (ii) termination due to death or disability. In addition, if the Executive
remains as Chairman of the Board or as an employee as set forth in Section 3(m) through September 30, 2009 but does not continue to serve as Chief Executive Officer pursuant to Section 3(m), (i) One Hundred Percent (100%) of
the shares subject to awards based on time will vest on September 30, 2009, and (ii) the shares subject to awards the vesting of which are based on performance and which have not yet vested on September 30, 2009 will vest if and when
the performance goals are met. Except as set forth herein, the terms and conditions of the restricted stock awards described in this Section 3(f) shall be substantially similar to the terms and conditions of the restricted stock awards granted
to other executives of the Company from time to time. In the event the Executive’s employment with the Company terminates prior to restrictions lapsing with respect the restricted stock granted hereunder due to (i) termination by the
Company without Cause, or (ii) termination due to death or disability, each then outstanding unvested award of such restricted stock shall vest as of the time of such termination. 

  

	 	(g)	Vacation. The Executive shall be entitled to four (4) weeks vacation each year. 

  

	 	(h)	Expenses. The Executive shall be entitled to reimbursement of all reasonable and documented expenses actually incurred or paid by the Executive in the performance of the
Executive’s duties under this Agreement, upon presentation of expense statements, vouchers or other supporting information in accordance with Company policy. In addition, the Company will reimburse the Executive for expenses associated with
reasonable travel to and from his residences in Atlanta, Georgia and Naples, Florida. The Executive shall be eligible to use the Company’s aircraft for personal travel when such aircraft is not being used for business purposes, subject to the
Company’s policy in effect from time to time with respect to personal use of Company aircraft. 

  

 Page 4 

	 	(i)	Automobile. The Company shall provide the Executive with the use of a leased automobile suitable for a chief executive officer of a company similar to the Company.

  

	 	(j)	D&O Insurance. The Executive shall be entitled to indemnification from the Company to the maximum extent provided by law, but not for any action, suit, arbitration or
other proceeding (or portion thereof) initiated by the Executive, unless authorized or ratified by the Board. The Company will cause such indemnification to be covered by the terms of the Company’s policy of insurance for directors and officers
in effect from time to time (the “D&O Insurance”). Copies of the Company’s charter, by-laws and D&O Insurance will be made available to the Executive from time to time upon request. 

  

	 	(k)	Legal Fees. The Company shall pay the Executive’s actual and reasonable legal fees incurred in connection with the preparation of this Agreement.

  

	 	(l)	Retention Bonus. Pursuant to the terms of paragraph 3(l) of the 2004 Agreement, the Company shall pay the Executive a Two Million Two Hundred Thousand Dollars ($2,200,000)
retention bonus on the Effective Date related to Executive’s services prior to the Effective Date. 

  

	 	(m)	Option to Relinquish Chief Executive Officer Position. Notwithstanding anything in this Agreement to the contrary, the Executive may at his discretion relinquish his role as
Chief Executive Officer effective October 1, 2008 and remain as an employee of the Company and, as may be permitted under law and the Company’s bylaws, as Chairman of the Board of Directors of the Company through September 30, 2009.
Should the Executive exercise such option, his annual Base Salary during this final year of this Agreement shall be Five Hundred Thousand Dollars ($500,000), his Bonus shall be the greater of (i) a Bonus based on Seventy Five Percent
(75%) of this Base Salary or (ii) the annual bonus paid to the Company’s President and Chief Operating Officer relating to Company performance for the same fiscal year, his annual restricted stock award shall be for that number of
shares of common stock with a Fair Market Value equal to One Hundred Eighty Seven and One-Half Percent (187.5%) of his Base Salary then in effect, and all other terms and conditions of this Agreement shall continue to apply.

  

	 	(n)	Separation of Chief Executive Officer and Chairman of the Board Positions. If, during the Term, the Board determines that it is 

  

 Page 5 

 necessary or advisable that the positions of Chief Executive Officer and Chairman of the Board not be
held by one individual and, at the time of such determination, the Executive has not exercised the option described in Section 3(m), the Board shall be entitled, following consultation with the Executive, to require the Executive to relinquish
one such position, as determined by the Board. In the event that the Board imposes such a requirement, the relinquishment of the position shall not be treated as an election by the Executive made under Section 3(m), nor shall it be treated as
an event of Constructive Termination or other event of termination described under Section 4 and the Executive shall continue to receive all compensation due to him pursuant to this Agreement as if no such relinquishment had taken place.

  

	 	(o)	Post-Retirement Benefits. The Company has agreed that the Executive will be provided with post-retirement benefits, which benefits are expected to include life insurance,
healthcare and office space. The Company and the Executive shall negotiate regarding the provision to the Executive of such post-retirement benefits, with a view toward having the kind and amount of such post-retirement benefits agreed to and
finalized by the Company and the Executive by October 1, 2006 it being understood that no particular kind or level of benefits have yet been agreed to. 

  

	 	(p)	Certain Additional Payments by the Company. Notwithstanding anything in this Agreement to the contrary, if any payment or distribution by the Company to or for the benefit of
the Executive (whether pursuant to this Agreement or otherwise, but determined without regard to any additional payments required under this Section 3(p)) (the “Payments”) would be subject to the excise tax imposed by
Section 4999 of the Internal Revenue Code of 1986, as amended, or any interest or penalties with respect thereto (such excise tax, together with any such interest and penalties, are collectively referred to herein as the “Excise
Tax”), then the Executive shall be entitled to receive an additional payment (the “Gross-Up Payment”) in an amount such that after payment by the Executive of all taxes, including without limitation, any income taxes (and
any interest and penalties imposed with respect thereto) and the Excise Tax imposed upon the Gross-Up Payment, the Executive retains an amount of the Gross-Up Payment equal to the Excise Tax imposed upon the Payments. 

  

	4.	Termination. 

  

	 	(a)	Termination by the Company with Cause. The Company shall have the right at any time to terminate the Executive’s employment hereunder without prior notice upon the
occurrence of any of the 

  

 Page 6 

 following (any such termination being referred to as a termination for “Cause”):

  

	 	(i)	the commission by the Executive of any deliberate and premeditated act taken by the Executive in bad faith against the interests of the Company; 

  

	 	(ii)	the Executive has been convicted of, or pleads nolo contendere with respect to, any felony, or of any lesser crime or offense having as its predicate element fraud,
dishonesty or misappropriation of the property of the Company; 

  

	 	(iii)	the habitual drug addiction or intoxication of the Executive which negatively impacts his job performance or the Executive’s failure of a Company-required drug test;

  

	 	(iv)	the willful failure or refusal of the Executive to perform his duties as set forth herein or the willful failure or refusal to follow the direction of the Board, provided such
failure or refusal continues after thirty (30) days of the receipt of notice in writing from the Board of such failure or refusal, which notice refers to this Section 4(a) and indicates the Company’s intention to terminate the
Executive’s employment hereunder if such failure or refusal is not remedied within such thirty (30) day period; or 

  

	 	(v)	the Executive materially breaches any of the terms of this Agreement or any other agreement between the Executive and the Company which breach is not cured within thirty
(30) days subsequent to notice from the Company to the Executive of such breach, which notice refers to this Section 4(a) and indicates the Company’s intention to terminate the Executive’s employment hereunder if such breach is
not cured within such thirty (30) day period. 

  
 If the definition of termination for “Cause” set forth above conflicts with such definition in the Executive’s time-based or performance-based stock option or restricted stock agreements (collectively the “Stock
Agreements”), or any agreements referred to therein, the definition set forth herein shall control. 
  

	 	(b)	Termination by Company for Death or Disability. The Company shall have the right at any time to terminate the Executive’s employment hereunder without prior notice upon
the Executive’s inability to perform his duties hereunder by reason of any mental, physical or other disability for a period of at least six (6) consecutive months (for purposes hereof, “disability” has the same meaning as
in the Company’s disability policy). The Company’s obligations hereunder shall, subject to the provisions of Section 5(b), also terminate upon the death of the Executive. 

  

 Page 7 

	 	(c)	Termination by Company without Cause. The Company shall have the right at any time to terminate the Executive’s employment for any other reason without Cause upon sixty
(60) days’ prior written notice to the Executive. 

  

	 	(d)	Voluntary Termination by the Executive. The Executive shall be entitled to terminate his employment and appointment hereunder upon sixty (60) days’ prior written
notice to the Company, or upon thirty (30) days’ prior written notice after a Change in Control. Any such termination shall be treated as a termination by the Company for “Cause” under Section 5, unless notice of such
termination was given within thirty (30) days after a Change in Control, in which case such termination shall be treated in accordance with Section 5(d) hereof. 

  

	 	(e)	Constructive Termination by the Executive. The Executive shall be entitled to terminate his employment and appointment hereunder, without prior notice, upon the occurrence of
a Constructive Termination. Any such termination shall be treated as a termination by the Company without Cause. For this purpose, a “Constructive Termination” shall mean: 

  

	 	(i)	a reduction in Base Salary (other than as permitted hereby) or Additional Salary; 

  

	 	(ii)	a reduction in annual Bonus opportunity (other than as permitted hereby); 

  

	 	(iii)	a change in location of office of more than seventy-five (75) miles from Atlanta, Georgia; 

  

	 	(iv)	unless with the express written consent of the Executive, (a) the assignment to the Executive of any duties inconsistent in any substantial respect with the Executive’s
position, authority or responsibilities as contemplated by Section 1 or (b) any other substantial change in such position, including titles, authority or responsibilities from those contemplated by Section 1; or

  

	 	(v)	any material breach by the Company of this Agreement, which breach is not cured within thirty (30) days subsequent to notice from the Executive to the Company of such breach,
which notice refers to this Section 4(e) and indicates the Executive’s intention to terminate his employment hereunder, if such breach is not cured within such thirty (30) day period. 

  

 Page 8 

 For purposes of the Stock Agreements, Constructive Termination shall be treated as a termination of
employment by the Company without “Cause.” 
  

	 	(f)	Notice of Termination. Any termination by the Company for Cause or by the Executive for Constructive Termination shall be communicated by Notice of Termination to the other
party hereto given in accordance with Section 8. For purposes of this Agreement, a “Notice of Termination” means a written notice given prior to the termination which (i) indicates the specific termination provision in
this Agreement relied upon, (ii) sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Executive’s employment under the provision so indicated and (iii) if the termination date
is other than the date of receipt of such notice, specifies the termination date of this Agreement (which date shall be not more than fifteen (15) days after the giving of such notice). The failure by any party to set forth in the Notice of
Termination any fact or circumstance which contributes to a showing of Cause or Constructive Termination shall not waive any right of such party hereunder or preclude such party from asserting such fact or circumstance in enforcing its rights
hereunder. 

  

	5.	Effect of Termination of Employment. 

  

	 	(a)	With Cause. If the Executive’s employment is terminated with Cause, the Executive’s salary and other benefits specified in Section 3 shall cease at the time of
such termination, and the Executive shall not be entitled to any compensation specified in Section 3 which was not required to be paid prior to such termination; provided, however, that the Executive shall be entitled to continue to participate
in the Company’s medical benefit plans to the extent required by law. 

  

	 	(b)	Death or Disability. If the Executive’s employment is terminated by the death or disability of the Executive (pursuant to Section 4(b)), the Executive’s
compensation provided in Section 3 shall be paid to the Executive or, in the event of the death of the Executive, the Executive’s estate, as follows: 

  

	 	(i)	the Executive’s Base Salary specified in Section 3(a) shall continue to be paid in monthly installments until the first to occur of (i) twenty-four (24) months
following such termination or (ii) such time as the Executive or the Executive’s estate has breached the provisions of Section 6 or 7 of this Agreement and failed to remedy such breach within thirty (30) days following receipt of
written notice thereof, which notice refers to Section 6 or 7 as appropriate and indicates the Company’s intention to cease making payments to the Executive as provided in this Agreement if such breach is not cured within such thirty
(30) day period (a “Breach Notice”); 

  

 Page 9 

	 	(ii)	double the pro rata portion (based on days worked and percentage of achievement of annual performance goals) of the annual Bonus payable to the Executive, if any,
specified in Section 3(b) shall be paid, unless the Board determines to pay a greater amount in its sole discretion; 

  

	 	(iii)	the Executive’s Additional Salary (or, for any partial year, the pro-rata portion thereof) specified in Section 3(c) shall continue to be paid until the first to occur of
(i) the remaining period of the Term or (ii) such time as the Executive or the Executive’s estate has materially breached the provisions of Section 6 or 7 of this Agreement and failed to remedy such breach within thirty
(30) days following receipt of a Breach Notice; 

  

	 	(iv)	If the Executive’s employment is terminated as a result of disability, the Executive’s additional benefits specified in Section 3(d) shall continue to be available to
the Executive until the first to occur of (i) the remaining period of the Term (or twenty-four (24) months following such termination, if greater) or (ii) such time as the Executive has breached the provisions of Section 6 or 7
of this Agreement and failed to remedy such breach within thirty (30) days following receipt of a Breach Notice; and 

  

	 	(v)	the Executive’s accrued vacation (determined in accordance with Company policy) at the time of termination shall be paid as soon as reasonably practicable.

  

	 	(c)	Without Cause. If the Executive’s employment is terminated by the Company without Cause (pursuant to Section 4(c) or 4(e)), the Executive’s compensation
provided in Section 3 shall be paid as follows: 

  

	 	(i)	the Executive’s Base Salary specified in Section 3(a) shall continue to be paid in monthly installments until the first to occur of (i) the remaining period of the
Term (or twenty-four (24) months following such termination, if greater) or (ii) such time as the Executive has breached the provisions of Section 6 or 7 of this Agreement and failed to remedy such breach within thirty (30) days
following receipt of a Breach Notice; 

  

	 	(ii)	the Executive’s annual Bonus shall continue to be paid in accordance with this Section 5(c) at the times set forth in Section 3(b) until the first to occur of
(i) the remaining period 

  

 Page 10 

 of the Term (or twenty-four (24) months following such termination, if greater) or (ii) such
time as the Executive has breached the provisions of Section 6 or 7 of this Agreement and failed to remedy such breach within thirty (30) days following receipt of a Breach Notice. The annual Bonus payable pursuant to this
Section 5(c) shall equal the amount of the annual Bonus (if any) previously paid or required to be paid pursuant to this Agreement for the full fiscal year immediately prior to the Executive’s termination of employment; 
  

	 	(iii)	the Executive’s Additional Salary (or, for any partial year, the pro-rata portion thereof) specified in Section 3(c) shall continue to be paid until the first to occur of
(i) the remaining period of the Term (or twenty-four (24) months following such termination, if longer) or (ii) such time as the Executive has materially breached the provisions of Section 6 or 7 of this Agreement and failed to
remedy such breach within thirty (30) days following receipt of a Breach Notice; 

  

	 	(iv)	the Executive’s additional benefits specified in Section 3(d) shall continue to be available to the Executive until the first to occur of (i) twenty-four
(24) months following such termination or (ii) such time as the Executive has breached the provisions of Section 6 or 7 of this Agreement and failed to remedy such breach within thirty (30) days following receipt of a Breach
Notice; and 

  

	 	(v)	any post-retirement benefits agreed to as contemplated in Section 3(o) shall continue to be paid or available to the Executive in accordance with their terms, but shall
terminate if the Executive has breached the provisions of Section 6 or 7 of this Agreement and failed to remedy such breach within thirty (30) days following receipt of a Breach Notice. 

  

	 	(d)	Following Change in Control. If the Executive elects to terminate his employment within thirty (30) days following a Change in Control in accordance with
Section 4(d), such termination by the Executive shall be treated as a termination by the Company without Cause, and the Executive shall be entitled to the compensation provided in Section 5(c). Notwithstanding the foregoing, the Company
may require that the Executive continue to remain in the employ of the Company for up to a maximum of thirty (30) days following the Change in Control (the “Post-Term Period”). The Company shall place the maximum cash payments
payable pursuant to Section 5(c) in escrow with a commercial bank or trust company mutually acceptable to the Company and the Executive as soon as practicable following the Change in Control. For the Post-Term 

  

 Page 11 

 Period, the Company shall make the cash payments that would otherwise be required pursuant to
Section 3 (all such cash payments to be deducted from the amount placed in escrow). At the expiration of the Post-Term Period, the Executive shall receive all cash amounts due the Executive from the remaining amount held in escrow ratably
monthly over the Restricted Period (as defined below), with the balance (if any) returned to the Company. If the Company does not require that the Executive remain in the employ of the Company, the Company shall pay the Executive all cash amounts
payable pursuant to Section 5(c) ratably monthly over the Restricted Period (all such cash payments to be deducted from the amount placed in escrow) with the balance (if any) returned to the Company. 
  

	 	(e)	No Mitigation/Section 409A. The Executive shall not be required to mitigate the amount of any payment provided for in this Agreement by seeking other employment or otherwise,
and if the Executive does obtain other employment, all amounts payable by the Company under this Agreement shall remain fully due and payable. Notwithstanding the foregoing, if payment in accordance with this Section 5 would subject the
Executive to tax under section 409A of the Internal Revenue Code of 1986, as amended, then payment will be suspended until the first date as of which payment can be made without subjecting the Executive to such tax, and the aggregate amount not paid
to the Executive during the period of suspension will be paid to the Executive in a single lump sum on such date. 

  

	6.	Agreement Not to Compete. 

  

	 	(a)	The Executive agrees that during the Restricted Period (as defined below), he will not, other than in connection with employment for the Company, directly or indirectly engage in,
manage or consult with, any business which is involved in the design, manufacturing, marketing or sale of consumer batteries, consumer battery operated lighting devices or any other consumer products of the kind marketed and sold by the Company
during the Restricted Period (provided that with respect to such other consumer products the foregoing restriction shall not apply to the extent that the Company has ceased to market and sell such kind of consumer products) in any geographic area in
which the Company then does business; provided, however, that the Executive may personally own not more than 5% of the outstanding securities of any class of stock of a corporation whose shares are listed on an exchange or the Nasdaq Stock Market).
The “Restricted Period” is (a) the longer of the Executive’s employment hereunder or time period during which he serves as a director of the Company plus (b) a period of one (1) year thereafter.

  

 Page 12 

	 	(b)	The Executive further agrees that during the Restricted Period, he will not, other than in connection with employment for the Company, directly or indirectly solicit any of the
Company’s actual or prospective customers with whom the Executive had contact on behalf of the Company if such solicitation is for the purpose of selling consumer batteries, consumer battery operated lighting devices or any other consumer
products of the kind marketed and sold by the Company with which the Executive was involved during the portion of the Restricted Period in which the Executive was employed by, or served as a director of, the Company. 

  

	 	(c)	The Executive agrees that during the Restricted Period, he shall not, other than in connection with employment for the Company, solicit the employment or services of any employee of
the Company who is or was an employee of the Company at any time during the Restricted Period. During the Restricted Period, the Executive shall not hire any employee of the Company for any other business. 

  

	 	(d)	If a court determines that the foregoing restrictions are too broad or otherwise unreasonable under applicable law, including with respect to time or space, the court is hereby
requested and authorized by the parties hereto to revise the foregoing restrictions to include the maximum restrictions allowed under the applicable law. If such court refuses or declines to revise the restrictions as contemplated by the preceding
sentence, the parties hereto will negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in an acceptable manner. 

  

	 	(e)	For purposes of this Section 6 and Section 7, the “Company” refers to the Company and any incorporated or unincorporated affiliates of the Company which
it controls. 

  

	7.	Confidential Information and Inventions. 

  

	 	(a)	The Executive agrees to hold in strict confidence and, except as the Company may authorize or direct, not disclose to any person or use (except in the performance of his services
hereunder) any confidential information or materials received by the Executive from the Company and any confidential information or materials of other parties received by the Executive in connection with the performance of his duties hereunder
during the Term and for three (3) years thereafter, except that with respect to “Trade Secrets,” the restrictions set forth in this Section 7(a) shall continue for so long as the information and materials remain Trade Secrets.
For purposes of this Agreement, “Trade Secrets” means any information, including, but not limited to, technical or non-technical data, a formula, a pattern, a compilation, a program, a device, a method, a technique, a

  

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 set of guidelines, a procedure, a drawing, a process, financial data, financial plans, product plans, or
a list of actual or potential customers or suppliers of the Company, whether currently existing or hereafter developed or acquired by the Company, that derives economic value, actual or potential, from not being generally known to and not being
readily ascertainable by proper means by other persons who can obtain economic value from its disclosure or use and is the subject of efforts that are reasonable under the circumstances to maintain its secrecy or otherwise constitutes a trade secret
under applicable law. For purposes of this Section 7(a), confidential information or materials shall include Trade Secrets, existing and potential customer information, existing and potential supplier information, product information, design
and construction information, pricing and profitability information, financial information, sales and marketing strategies and techniques and business ideas or practices. In addition, the restriction on the Executive’s use or disclosure of the
confidential information or materials shall expire when such information or materials are of general knowledge in the industry through no fault of the Executive or any agent of the Executive. The Executive also agrees to return to the Company
promptly upon its request any Company information or materials in the Executive’s possession or under the Executive’s control. 
  

	 	(b)	The Executive will promptly disclose to the Company and to no other person, firm or entity all inventions, discoveries, improvements, Trade Secrets, formulas, techniques, processes,
know-how and similar matters, whether or not patentable and whether or not reduced to practice, which are conceived or learned by the Executive during the period of the Executive’s employment with the Company, either alone or with others, which
relate to or result from the actual or anticipated business or research of the Company or which result, to any extent, from the Executive’s use of the Company’s premises or property (collectively the “Inventions”). The
Executive acknowledges and agrees that all the Inventions shall be the sole property of the Company, and the Executive hereby assigns to the Company all of the Executive’s rights and interests in and to all of the Inventions, it being
acknowledged and agreed by the Executive that all the Inventions are works made for hire. The Company shall be the sole owner of all domestic and foreign rights and interests in the Inventions. The Executive agrees to assist the Company at the
Company’s expense to obtain and from time to time enforce patents and copyrights on the Inventions. 

  

	 	(c)	Upon the request of, and, in any event, upon termination of the Executive’s employment with the Company, the Executive shall promptly deliver to the Company all documents,
data, records, notes, drawings, manuals and all other tangible information in whatever form which pertains to the Company, and the Executive will not retain any such information or any reproduction or excerpt thereof. 

  

 Page 14 

	8.	Notices. All notices or other communications hereunder shall be in writing and shall be deemed to have been duly given (a) when delivered personally, (b) upon
confirmation of receipt when such notice or other communication is sent by facsimile or telex, (c) one day after delivery to an overnight delivery courier, or (d) on the fifth day following the date of deposit in the United States mail if
sent first class, postage prepaid, by registered or certified mail. The addresses for such notices shall be as follows: 

  

	 	(a)	For notices and communications to the Company: 

  
 Spectrum Brands, Inc. 
 Six Concourse
Parkway 
 Suite 3300 
 Atlanta,
GA 30328 
 Attention: President 
 Facsimile: (770) 829-6298 
  
 with a copy to:

  
 Spectrum Brands, Inc. 
 Six Concourse Parkway 
 Suite 3300

 Atlanta, GA 30328 
 Attention: General Counsel 
 Facsimile: (770) 829-6298 
  

	 	(b)	For notices and communications to the Executive: 

  
 David A. Jones 
 1250 Waggle Way 

Naples, Florida 34108 
 Facsimile:
(        )              
  
 with a copy to: 
  
 Sutherland, Asbill & Brennan LLP 
 999 Peachtree Street, N.E. 
 Atlanta, GA 30309 
 Attention: Mark D. Kaufman 
 Facsimile: (404) 853-8806 
  
 Any party hereto may, by notice to the other, change its address for receipt
of notices hereunder. 
  

 Page 15 

	9.	General. 

  

	 	(a)	Governing Law. This Agreement shall be construed under and governed by the laws of the State of Wisconsin, without reference to its conflicts of law principles.

  

	 	(b)	Amendment; Waiver. This Agreement may be amended, modified, superseded, canceled, renewed or extended, and the terms hereof may be waived, only by a written instrument
executed by all of the parties hereto or, in the case of a waiver, by the party waiving compliance. The failure of any party at any time or times to require performance of any provision hereof shall in no manner affect the right at a later time to
enforce the same. No waiver by any party of the breach of any term or covenant contained in this Agreement, whether by conduct or otherwise, in any one or more instances, shall be deemed to be, or construed as, a further or continuing waiver of any
such breach, or a waiver of the breach of any other term or covenant contained in this Agreement. 

  

	 	(c)	Successors and Assigns. This Agreement shall be binding upon the Executive, without regard to the duration of his employment by the Company or reasons for the cessation of
such employment, and inure to the benefit of his administrators, executors, heirs and assigns, although the obligations of the Executive are personal and may be performed only by him. This Agreement shall also be binding upon and inure to the
benefit of the Company and its subsidiaries, successors and assigns, including any corporation with which or into which the Company or its successors may be merged or which may succeed to their assets or business. 

  

	 	(d)	Counterparts. This Agreement may be executed in two counterparts, each of which shall be deemed an original but which together shall constitute one and the same instrument.

  

	 	(e)	Attorneys’ Fees. In the event that any action is brought to enforce any of the provisions of this Agreement, or to obtain money damages for the breach thereof, and such
action results in the award of a judgment for money damages or in the granting of any injunction in favor of one of the parties to this Agreement, all expenses, including reasonable attorneys’ fees, shall be paid by the non-prevailing party.

  

	 	(f)	Non-exclusivity of Rights. Nothing in this Agreement shall prevent or limit the Executive’s continuing or future participation during his employment hereunder in any
benefit, bonus, incentive or other plan or program provided by the Company or any of its affiliates and for which the Executive may qualify. Amounts which are vested benefits or which the Executive is otherwise entitled to receive under any plan or
program of the Company or any affiliated company at or 

  

 Page 16 

 subsequent to the date of the Executive’s termination of employment with the Company shall, subject
to the terms hereof or any other agreement entered into by the Company and the Executive on or subsequent to the date hereof, be payable in accordance with such plan or program. 
  

	 	(g)	Mitigation. In no event shall the Executive be obligated to seek other employment by way of mitigation of the amounts payable to the Executive under any of the provisions of
this Agreement. In the event that the Executive shall give a Notice of Termination for Constructive Termination and it shall thereafter be determined that Constructive Termination did not take place, the employment of the Executive shall, unless the
Corporation and the Executive shall otherwise mutually agree, be deemed to have terminated, at the date of giving such purported Notice of Termination, and the Executive shall be entitled to receive only those payments and benefits which he would
have been entitled to receive at such date had he terminated his employment voluntarily at such date under Section 4(d) of this Agreement. 

  

	 	(h)	Equitable Relief. The Executive expressly agrees that breach of any provision of Sections 6 or 7 of this Agreement would result in irreparable injuries to the Company, that
the remedy at law for any such breach will be inadequate and that upon breach of such provisions, the Company, in addition to all other available remedies, shall be entitled as a matter of right to injunctive relief in any court of competent
jurisdiction without the necessity of proving the actual damage to the Company. 

  

	 	(i)	Severability. If any term or provision of this Agreement is invalid, illegal or incapable of being enforced by any rule of law or public policy, all other terms and
provisions of this Agreement will nevertheless remain in full force and effect. Upon any such determination that any term or provision is invalid, illegal or incapable of being enforced, the parties hereto will negotiate in good faith to modify this
Agreement so as to effect the original intent of the parties as closely as possible in an acceptable manner. 

  

	 	(j)	Entire Agreement. This Agreement constitutes the entire understanding of the parties hereto with respect to the subject matter hereof and supersedes all prior negotiations,
discussions, writings and agreements between them. 

  

 Page 17 

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

  

			
	SPECTRUM BRANDS, INC.
		
	By	 	 /s/ Kent J. Hussey

	 	 	Kent J. Hussey
	 	 	President and Chief Operating Officer
		
	 	 	 /s/ David A. Jones

	 	 	 David A. Jones

  

 Page 18

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