Document:

Registration Rights Agreement,dated as of March 4,2005

 RURAL/METRO OPERATING COMPANY, LLC 
 AND 
 RURAL/METRO (DELAWARE) INC. 
  
 $125,000,000 
 9 7/8% SENIOR SUBORDINATED NOTES DUE 2015 

 
 REGISTRATION RIGHTS AGREEMENT 
  
 March 4, 2005 
  
 Citigroup Global Markets Inc. 
 J.P. Morgan
Securities Inc. 
 c/o Citigroup Global Markets Inc. 
 388
Greenwich Street 
 New York, New York 10013 
  
 Ladies and Gentlemen: 
  
 Rural/Metro Operating Company, LLC (“RMOC”) and Rural/Metro (Delaware) Inc. “RMDI”), entities organized under the laws of Delaware,
propose to issue and sell to you (the “Initial Purchasers”) $125,000,000 principal amount of their 9 7/8% Senior Subordinated Notes Due 2015 (the “Notes”), which Notes are unconditionally guaranteed (the “Guarantees” and, together with the Notes, the “Securities”) on a senior subordinated basis by
Rural/Metro Corporation (“Parent”) and the subsidiaries of RMOC and RMDI listed on the signature pages hereto (together with Parent, the “Guarantors” and, together with Parent, RMOC and RMDI, the “Issuers”) upon the
terms set forth in the Purchase Agreement dated February 28, 2005 (the “Purchase Agreement”) among the Issuers and the Initial Purchasers. To induce the Initial Purchasers to enter into the Purchase Agreement and to satisfy a condition to
your obligations thereunder, the Issuers agree with you for your benefit and the benefit of the holders from time to time of the Securities (including the Initial Purchasers) (each a “Holder” and, collectively, the “Holders”), as
follows: 
  
 1. Definitions. Capitalized terms used
herein without definition shall have their respective meanings set forth in the Purchase Agreement. As used in this Agreement, the following capitalized defined terms shall have the following meanings: 
  
 “Act” shall mean the Securities Act of 1933, as amended, and,
unless the context otherwise indicates, the rules and regulations of the Commission promulgated thereunder, or any successor rules and regulations thereto that may be adopted by the Commission. 
  
 “Affiliate” shall have the meaning specified in Rule 405 under the
Act and the terms “controlling” and “controlled” shall have meanings correlative thereto. 
  

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 “Broker-Dealer” shall mean any broker or dealer registered as such under the Exchange Act.

  
 “Business Day” shall mean any day other than a
Saturday, a Sunday or a legal holiday or a day on which banking institutions or trust companies are authorized or obligated by law to close in New York City. 
  
 “Closing Date” shall mean the date of the first issuance of the Securities. 
  
 “Commission” shall mean the Securities and Exchange Commission. 
  
 “Deferral Period” shall have the meaning indicated in Section
4(k)(ii) hereof. 
  
 “Exchange Act” shall mean the
Securities Exchange Act of 1934, as amended, and the rules and regulations of the Commission promulgated thereunder, or any successor rules and regulations thereto that may be adopted by the Commission. 
  
 “Exchange Offer Registration Period” shall mean the one-year period
following the consummation of the Registered Exchange Offer, exclusive of any period during which any stop order shall be in effect suspending the effectiveness of the Exchange Offer Registration Statement. 
  
 “Exchange Offer Registration Statement” shall mean a registration
statement of the Issuers on an appropriate form under the Act with respect to the Registered Exchange Offer, all amendments and supplements to such registration statement, including post-effective amendments thereto, in each case including the
Prospectus contained therein, all exhibits thereto and all material incorporated by reference therein. 
  
 “Exchanging Dealer” shall mean any Holder (which may include any Initial Purchaser) that is a Broker-Dealer and elects to exchange for New
Securities any Securities that it acquired for its own account as a result of market-making activities or other trading activities (but not directly from any Issuer or any Affiliate of any Issuer) for New Securities. 
  
 “Final Memorandum” shall mean the offering memorandum, dated
February 28, 2005 relating to the Securities, including any and all exhibits thereto. 
  
 “Guarantees” shall have the meaning set forth in the preamble hereto. 
  
 “Guarantors” shall have the meaning set forth in the preamble hereto. 
  
 “Holder” shall have the meaning set forth in the preamble hereto. 
  
 “Indenture” shall mean the indenture relating to the Notes, dated
as of March 4, 2005 among the Issuers and Wells Fargo Bank, N.A., as trustee, as the same may be amended from time to time in accordance with the terms thereof. “Initial Placement” shall have the meaning set forth in the preamble hereto.

  
 “Initial Purchaser” shall have the meaning set forth
in the preamble hereto. 
  

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 “Issuers” shall have the meaning set forth in the preamble hereto. 
  
 “Losses” shall have the meaning set forth in Section 6(d) hereof.

  
 “Majority Holders” shall mean, on any date, Holders
of a majority of the aggregate principal amount of Securities and New Securities registered under a Registration Statement. 
  
 “Managing Underwriters” shall mean the investment banker or investment bankers and manager or managers that administer an underwritten offering,
if any, under a Registration Statement. 
  
 “NASD Rules”
shall mean the Conduct Rules and the By-Laws of the National Association of Securities Dealers, Inc. 
  
 “New Securities” shall mean debt securities of the Issuers identical in all material respects to the Securities (except that the transfer
restrictions shall be modified or eliminated, as appropriate) to be issued under the Indenture. 
  
 “Notes” shall have the meaning set forth in the preamble hereto. 
  
 “Prospectus” shall mean the prospectus included in any Registration Statement (including, without limitation, a
prospectus that discloses information previously omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 430A under the Act), as amended or supplemented by any prospectus supplement, with respect to the
terms of the offering of any portion of the Securities or the New Securities covered by such Registration Statement, and all amendments and supplements thereto, including any and all exhibits thereto and any information incorporated by reference
therein. 
  
 “Purchase Agreement” shall have the meaning
set forth in the preamble hereto. 
  
 “Registered Exchange
Offer” shall mean the proposed offer of the Issuers to issue and deliver to the Holders that are not prohibited by any law or policy of the Commission from participating in such offer, in exchange for the Securities, a like aggregate principal
amount of the New Securities. 
  
 “Registrable
Securities” shall mean (i) Securities other than those that have been (A) registered under a Registration Statement and disposed of in accordance therewith or (B) distributed to the public pursuant to Rule 144 under the Act and (ii) any New
Securities resale of which by the Holder thereof requires compliance with the prospectus delivery requirements of the Act. 
  
 “Registration Default Damages” shall have the meaning set forth in Section 8 hereof. 
  
 “Registration Statement” shall mean any Exchange Offer Registration
Statement or Shelf Registration Statement that covers any of the Securities or the New Securities pursuant to the provisions of this Agreement, any amendments and supplements to such registration statement, including post-effective amendments (in
each case including the Prospectus contained therein), all exhibits thereto and all material incorporated by reference therein. 
  

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 “Securities” shall have the meaning set forth in the preamble hereto. 
  
 “Shelf Registration” shall mean a registration effected pursuant to
Section 3 hereof. 
  
 “Shelf Registration Period” shall
have the meaning set forth in Section 3(b) hereof. 
  
 “Shelf
Registration Statement” shall mean a “shelf” registration statement of the Issuers pursuant to the provisions of Section 3 hereof which covers some of or all the Securities or New Securities, as applicable, on an appropriate form
under Rule 415 under the Act, amendments and supplements to such registration statement, including post-effective amendments, in each case including the Prospectus contained therein, all exhibits thereto and all material incorporated by reference
therein. 
  
 “Trustee” shall mean the trustee with
respect to the Securities under the Indenture. 
  
 “Trust
Indenture Act” shall mean the Trust Indenture Act of 1939, as amended, and the rules and regulations of the Commission promulgated thereunder. 
  
 “underwriter” shall mean any underwriter of Securities in connection with an offering thereof under a Shelf Registration Statement. 

 
 2. Registered Exchange Offer. (a) The Issuers shall prepare and,
not later than 240 days following the date of the original issuance of the Securities (or if such 240th day is not a Business Day, the next succeeding Business Day), shall file with the Commission the Exchange Offer Registration Statement with
respect to the Registered Exchange Offer. The Issuers shall use their reasonable best efforts to cause the Exchange Offer Registration Statement to become effective under the Act within 300 days of the date of the original issuance of the Securities
(or if such 300th day is not a Business Day, the next succeeding Business Day). 
  
 (b) Upon the effectiveness of the Exchange Offer Registration Statement, the Issuers shall promptly commence the Registered Exchange Offer, it being the objective of such Registered Exchange Offer to enable each
Holder electing to exchange Securities for New Securities (assuming that such Holder is not an Affiliate of the Issuers, acquires the New Securities in the ordinary course of such Holder’s business, has no arrangements with any person to
participate in the distribution of the New Securities and is not prohibited by any law or policy of the Commission from participating in the Registered Exchange Offer) to trade such New Securities from and after their receipt without any limitations
or restrictions under the Act and without material restrictions under the securities laws of a substantial proportion of the several states of the United States. 
  
 (c) In connection with the Registered Exchange Offer, the Issuers shall: 
  
 (i) mail or electronically transmit to each Holder a copy of
the Prospectus forming part of the Exchange Offer Registration Statement, together with an appropriate letter of transmittal and related documents; 
  

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 (ii) keep the Registered Exchange Offer open for not less than 20 Business Days and not
more than 30 Business Days after the date notice thereof is mailed to the Holders (or, in each case, longer if required by applicable law); 
  
 (iii) use their reasonable best efforts to keep the Exchange Offer Registration Statement continuously effective under the Act,
supplemented and amended as required under the Act to ensure that it is available for sales of New Securities by Exchanging Dealers during the Exchange Offer Registration Period; 
  
 (iv) utilize the services of a depositary for the Registered Exchange Offer with an address in the Borough
of Manhattan in New York City, which may be the Trustee or an Affiliate of the Trustee; 
  
 (v) permit Holders to withdraw tendered Securities at any time prior to the close of business, New York time, on the last Business Day on
which the Registered Exchange Offer is open; 
  
 (vi) prior to effectiveness of the Exchange Offer Registration Statement, provide a supplemental letter to the Commission (A) stating that the Issuers are conducting the Registered Exchange Offer in reliance on the position of the
Commission in Exxon Capital Holdings Corporation (pub. avail. May 13, 1988), Morgan Stanley and Co., Inc. (pub. avail. June 5, 1991); and (B) including a representation that the Issuers have not entered into any arrangement or
understanding with any person to distribute the New Securities to be received in the Registered Exchange Offer and that, to the best of the Issuers’ information and belief, each Holder participating in the Registered Exchange Offer is acquiring
the New Securities in the ordinary course of business and has no arrangement or understanding with any person to participate in the distribution of the New Securities; and 
  
 (vii) comply in all respects with all applicable laws. 
  
 (d) As soon as practicable after the close of the Registered Exchange Offer,
the Issuers shall: 
  
 (i) accept for exchange
all Securities validly tendered and not validly withdrawn pursuant to the Registered Exchange Offer; 
  
 (ii) deliver to the Trustee for cancellation in accordance with Section 4(s) all Securities so accepted for exchange; and 
  
 (iii) cause the Trustee promptly to authenticate and deliver
to each Holder a principal amount of New Securities equal to the principal amount of the Securities of such Holder so accepted for exchange. 
  

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 (e) Each Holder hereby acknowledges and agrees that any Broker-Dealer and any such Holder using the
Registered Exchange Offer to participate in a distribution of the New Securities (x) could not under Commission policy as in effect on the date of this Agreement rely on the position of the Commission in Exxon Capital Holdings Corporation
(pub. avail. May 13, 1988) and Morgan Stanley and Co., Inc. (pub. avail. June 5, 1991), as interpreted in the Commission’s letter to Shearman & Sterling dated July 2, 1993 and similar no-action letters; and (y) must comply with the
registration and prospectus delivery requirements of the Act in connection with any secondary resale transaction, which must be covered by an effective registration statement containing the selling security holder information required by Item 507 or
508, as applicable, of Regulation S-K under the Act if the resales are of New Securities obtained by such Holder in exchange for Securities acquired by such Holder directly from the Issuers or one of their Affiliates. Accordingly, each Holder
participating in the Registered Exchange Offer shall be required to represent to the Issuers that, at the time of the consummation of the Registered Exchange Offer: 
  
 (i) any New Securities received by such Holder will be acquired in the ordinary course of business;

  
 (ii) such Holder will have no arrangement or
understanding with any person to participate in the distribution of the Securities or the New Securities within the meaning of the Act; 
  
 (iii) such Holder is not an Affiliate of any Issuer; and 
  
 (iv) if such Holder is a Broker-Dealer, that it will receive New Securities for its own account in exchange
for Securities that were acquired as a result of market making activities or other trading activities and that it will deliver a prospectus in connection with any resale of such New Securities. 
  
 (f) If any Initial Purchaser determines that it is not eligible to
participate in the Registered Exchange Offer with respect to the exchange of Securities constituting any portion of an unsold allotment, at the request of such Initial Purchaser, the Issuers shall issue and deliver to such Initial Purchaser or the
person purchasing New Securities registered under a Shelf Registration Statement as contemplated by Section 3 hereof from such Initial Purchaser, in exchange for such Securities, a like principal amount of New Securities. The Issuers shall use their
reasonable best efforts to cause the CUSIP Service Bureau to issue the same CUSIP number for such New Securities as for New Securities issued pursuant to the Registered Exchange Offer. 
  
 3. Shelf Registration. (a) If (i) due to any change in law or applicable interpretations thereof by the
Commission’s staff, the Issuers determine upon advice of their outside counsel that they are not permitted to effect the Registered Exchange Offer as contemplated by Section 2 hereof; or (ii) for any other reason the Registered Exchange Offer
is not consummated within 330 days of the date hereof; (iii) any Initial Purchaser so requests with respect to Securities that are not eligible to be exchanged for New Securities in the Registered Exchange Offer and that are held by it following
consummation of the Registered Exchange Offer; (iv) any Holder (other than an Initial Purchaser) is not eligible to participate in the Registered Exchange Offer; or (v) in the case of any Initial Purchaser that participates in the Registered
Exchange Offer 

  

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or acquires New Securities pursuant to Section 2(f) hereof, such Initial Purchaser does not receive freely tradeable New Securities in exchange for
Securities constituting any portion of an unsold allotment (it being understood that the requirement that (x) an Initial Purchaser deliver a Prospectus containing the information required by Item 507 or 508 of Regulation S-K under the Act in
connection with sales of New Securities acquired in exchange for such Securities shall result in such New Securities being not “freely tradeable”; and (y) an Exchanging Dealer deliver a Prospectus in connection with sales of New Securities
acquired in the Registered Exchange Offer in exchange for Securities acquired as a result of market-making activities or other trading activities shall not result in such New Securities being not “freely tradeable”), the Issuers shall
effect a Shelf Registration Statement in accordance with subsection (b) below. 
  
 (b) (i) The Issuers shall as promptly as practicable (but in no event more than 240 days after so required or requested pursuant to this Section 3), file with the Commission and shall use their reasonable best efforts
to cause to be declared effective under the Act within 300 days after so required or requested, a Shelf Registration Statement relating to the offer and sale of the Securities or the New Securities, as applicable, by the Holders thereof from time to
time in accordance with the methods of distribution elected by such Holders and set forth in such Shelf Registration Statement; provided, however, that no Holder (other than an Initial Purchaser) shall be entitled to have the
Securities held by it covered by such Shelf Registration Statement unless such Holder agrees in writing to be bound by all the provisions of this Agreement applicable to such Holder; and provided further, that with respect to New
Securities received by an Initial Purchaser in exchange for Securities constituting any portion of an unsold allotment, the Issuers may, if permitted by current interpretations by the Commission’s staff, file a post-effective amendment to the
Exchange Offer Registration Statement containing the information required by Item 507 or 508 of Regulation S-K, as applicable, in satisfaction of their obligations under this subsection with respect thereto, and any such Exchange Offer Registration
Statement, as so amended, shall be referred to herein as, and governed by the provisions herein applicable to, a Shelf Registration Statement. 
  
 (ii) The Issuers shall use their reasonable best efforts to keep the Shelf Registration Statement continuously effective, supplemented and amended as
required by the Act, in order to permit the Prospectus forming part thereof to be usable by Holders for a period the “Shelf Registration Period”) from the date the Shelf Registration Statement is declared effective by the Commission until
(A) the second anniversary thereof or (B) the date upon which all the Securities or New Securities, as applicable, covered by the Shelf Registration Statement have been sold pursuant to the Shelf Registration Statement. The Issuers shall be deemed
not to have used their reasonable best efforts to keep the Shelf Registration Statement effective during the Shelf Registration Period if they voluntarily take any action that would result in Holders of Securities covered thereby not being able to
offer and sell such Securities at any time during the Shelf Registration Period, unless such action is (x) required by applicable law or otherwise undertaken by the Issuers in good faith and for valid business reasons (not including avoidance of the
Issuers’ obligations hereunder), including the acquisition or divestiture of assets, mergers and combinations and similar events, and (y) permitted pursuant to Section 4(k)(ii) hereof. 
  
 (iii) The Issuers shall cause the Shelf Registration Statement and the
related Prospectus and any amendment or supplement thereto, as of the effective date of the Shelf Registration Statement or such amendment or supplement, (A) to comply in all material respects with 

  

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the applicable requirements of the Act; and (B) not to contain any untrue statement of a material fact or omit to state a material fact required to be stated
therein or necessary in order to make the statements therein (in the case of the Prospectus, in the light of the circumstances under which they were made) not misleading. 
  
 4. Additional Registration Procedures. In connection with any Shelf Registration Statement and, to the extent
applicable, any Exchange Offer Registration Statement, the following provisions shall apply. 
  
 (a) The Issuers shall: 
  
 (i) furnish to the Initial Purchasers and to counsel for the Holders, not less than five (5) Business Days prior to the filing thereof with the Commission, a copy of any Exchange Offer Registration Statement and any Shelf Registration
Statement, and each amendment thereof and each amendment or supplement, if any, to the Prospectus included therein (including all documents incorporated by reference therein after the initial filing) and shall use their best efforts to reflect in
each such document, when so filed with the Commission, such comments as the Initial Purchasers reasonably propose; 
  
 (ii) include the information set forth in Annex A hereto on the facing page of the Exchange Offer Registration Statement, in Annex B
hereto in the forepart of the Exchange Offer Registration Statement in a section setting forth details of the Exchange Offer, in Annex C hereto in the underwriting or plan of distribution section of the Prospectus contained in the Exchange Offer
Registration Statement, and in Annex D hereto in the letter of transmittal delivered pursuant to the Registered Exchange Offer; 
  
 (iii) if requested by an Initial Purchaser, include the information required by Item 507 or 508 of Regulation S-K, as applicable, in the
Prospectus contained in the Exchange Offer Registration Statement; and 
  
 (iv) in the case of a Shelf Registration Statement, include the names of the Holders that propose to sell Securities pursuant to the Shelf Registration Statement as selling security holders. 
  
 (b) The Issuers shall ensure that: 
  
 (i) any Registration Statement and any amendment thereto and
any Prospectus forming part thereof and any amendment or supplement thereto complies in all material respects with the Act; and 
  
 (ii) any Registration Statement and any amendment thereto does not, when it becomes effective, contain an 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 not misleading. 
  

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 (c) The Issuers shall advise the Initial Purchasers, the Holders of Securities covered by
any Shelf Registration Statement and any Exchanging Dealer under any Exchange Offer Registration Statement that has provided in writing to the Issuers a telephone or facsimile number and address for notices, and, if requested by either Initial
Purchaser or any such Holder or Exchanging Dealer, shall confirm such advice in writing (which notice pursuant to clauses (ii)-(v) hereof shall be accompanied by an instruction to suspend the use of the Prospectus until the Issuers shall have
remedied the basis for such suspension): 
  
 (i)
when a Registration Statement and any amendment thereto has been filed with the Commission and when the Registration Statement or any post-effective amendment thereto has become effective; 
  
 (ii) of any request by the Commission for any amendment or
supplement to the Registration Statement or the Prospectus or for additional information; 
  
 (iii) of the issuance by the Commission of any stop order suspending the effectiveness of the Registration Statement or the institution or
threatening of any proceeding for that purpose; 
  
 (iv) of the receipt by the Issuers of any notification with respect to the suspension of the qualification of the securities included therein for sale in any jurisdiction or the institution or threatening of any proceeding for such purpose;
and 
  
 (v) of the happening of any event that
requires any change in the Registration Statement or the Prospectus so that, as of such date, they (A) do not contain any untrue statement of a material fact and (B) do not omit to state a material fact required to be stated therein or necessary to
make the statements therein (in the case of the Prospectus, in the light of the circumstances under which they were made) not misleading. 
  
 (d) The Issuers shall use their reasonable best efforts to prevent the issuance of any order suspending the effectiveness of any
Registration Statement or the qualification of the securities therein for sale in any jurisdiction and, if issued, to obtain as soon as possible the withdrawal thereof. 
  
 (e) The Issuers shall furnish to each Holder of Securities covered by any Shelf Registration Statement,
without charge, at least one copy of such Shelf Registration Statement and any post-effective amendment thereto, including all material incorporated therein by reference, and, if the Holder so requests in writing, all exhibits thereto (including
exhibits incorporated by reference therein). 
  
 (f) The Issuers shall, during the Shelf Registration Period, deliver to each Holder of Securities covered by any Shelf Registration Statement, without charge, as many copies of the Prospectus (including the Preliminary Prospectus) included
in such Shelf Registration Statement and any amendment or supplement thereto as such Holder may reasonably request. The Issuers consent to the use of the Prospectus or any amendment 

  

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or supplement thereto by each of the selling Holders of Securities in connection with the offering and sale of the Securities covered by the Prospectus, or
any amendment or supplement thereto, included in the Shelf Registration Statement. 
  
 (g) The Issuers shall furnish to each Exchanging Dealer which so requests, without charge, at least one copy of the Exchange Offer
Registration Statement and any post-effective amendment thereto, including all material incorporated by reference therein, and, if the Exchanging Dealer so requests in writing, all exhibits thereto (including exhibits incorporated by reference
therein). 
  
 (h) The Issuers shall promptly
deliver to each Initial Purchaser, each Exchanging Dealer and each other person required to deliver a Prospectus during the Exchange Offer Registration Period, without charge, as many copies of the Prospectus included in such Exchange Offer
Registration Statement and any amendment or supplement thereto as any such person may reasonably request. The Issuers consent to the use of the Prospectus or any amendment or supplement thereto by any Initial Purchaser, any Exchanging Dealer and any
such other person that may be required to deliver a Prospectus following the Registered Exchange Offer in connection with the offering and sale of the New Securities covered by the Prospectus, or any amendment or supplement thereto, included in the
Exchange Offer Registration Statement. 
  
 (i)
Prior to the Registered Exchange Offer or any other offering of Securities pursuant to any Registration Statement, the Issuers shall arrange, if necessary, for the qualification of the Securities or the New Securities for sale under the laws of such
jurisdictions as any Holder shall reasonably request and shall maintain such qualification in effect so long as required; provided that in no event shall the Issuers be obligated to qualify to do business in any jurisdiction where it is not
then so qualified or to take any action that would subject it to service of process in suits, other than those arising out of the Initial Placement, the Registered Exchange Offer or any offering pursuant to a Shelf Registration Statement, in any
such jurisdiction where it is not then so subject. 
  
 (j) The Issuers shall cooperate with the Holders of Securities to facilitate the timely preparation and delivery of certificates representing New Securities or Securities to be issued or sold pursuant to any Registration Statement free of
any restrictive legends and in such denominations and registered in such names as Holders may request. 
  
 (k) (i) Upon the occurrence of any event contemplated by subsections (c)(ii) through (v) above, the Issuers shall promptly (or within the
time period provided for by clause (ii) hereof, if applicable) prepare a post-effective amendment to the applicable Registration Statement or an amendment or supplement to the related Prospectus or file any other required document so that, as
thereafter delivered to Initial Purchasers of the securities included therein, the Prospectus will not include an untrue statement of a material fact or omit to state any 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. In such circumstances, the period of effectiveness of the Exchange Offer Registration Statement provided for in Section 2 shall be extended by the
number of days from and including the date of the giving of a notice of suspension pursuant 

  

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to Section 4(c) to and including the date when the Initial Purchasers, the Holders of the Securities and any known Exchanging Dealer shall have received such
amended or supplemented Prospectus pursuant to this Section 4(k)(i). 
  
 (ii) Upon the occurrence or existence of any pending corporate development or any other material event that, in the reasonable judgment of the Issuers, makes it appropriate to suspend the availability of a Shelf
Registration Statement and the related Prospectus, the Issuers shall give notice (without notice of the nature or details of such events) to the Holders that the availability of the Shelf Registration is suspended and, upon actual receipt of any
such notice, each Holder agrees not to sell any Registrable Securities pursuant to the Shelf Registration until such Holder’s receipt of copies of the supplemented or amended Prospectus provided for in Section 3(i) hereof, or until it is
advised in writing by the Issuers that the Prospectus may be used, and has received copies of any additional or supplemental filings that are incorporated or deemed incorporated by reference in such Prospectus. The period during which the
availability of the Shelf Registration and any Prospectus is suspended (the “Deferral Period”) shall not exceed 45 days in any three-month period or 90 days in any twelve-month period. 
  
 (l) Not later than the effective date of any Registration
Statement, the Issuers shall provide a CUSIP number for the Securities or the New Securities, as the case may be, registered under such Registration Statement and provide the Trustee with printed certificates for such Securities or New Securities,
in a form eligible for deposit with The Depository Trust Company. 
  
 (m) The Issuers shall comply with all applicable rules and regulations of the Commission and shall make generally available to their security holders an earnings statement satisfying the provisions of Section 11(a) of
the Act as soon as practicable after the effective date of the applicable Registration Statement and in any event no later than 45 days after the end of a 12-month period (or 90 days, if such period is a fiscal year) beginning with the first month
of the Issuers’ first fiscal quarter commencing after the effective date of the applicable Registration Statement. 
  
 (n) The Issuers shall cause the Indenture to be qualified under the Trust Indenture Act in a timely manner. 
  
 (o) The Issuers may require each Holder of securities to be
sold pursuant to any Shelf Registration Statement to furnish to the Issuers such information regarding the Holder and the distribution of such securities as the Issuers may from time to time reasonably require for inclusion in such Registration
Statement. The Issuers may exclude from such Shelf Registration Statement the Securities of any Holder that unreasonably fails to furnish such information within a reasonable time after receiving such request. 
  
 (p) In the case of any Shelf Registration Statement, the
Issuers shall enter into customary agreements (including, if requested, an underwriting agreement in customary form) and take all other appropriate actions in order to expedite or facilitate the registration or the disposition of the Securities, and
in connection therewith, if an underwriting agreement is entered into, cause the same to contain indemnification provisions and procedures no less favorable than those set forth in Section 6 hereof. 
  

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 (q) In the case of any Shelf Registration Statement, the Issuers shall: 
  
 (i) make reasonably available for inspection by the Holders
of Securities to be registered thereunder, any underwriter participating in any disposition pursuant to such Registration Statement, and any attorney, accountant or other agent retained by the Holders or any such underwriter all relevant financial
and other records and pertinent corporate documents of the Issuers and their subsidiaries; 
  
 (ii) cause the Issuers’ officers, directors, employees, accountants and auditors to supply all relevant information reasonably
requested by the Holders or any such underwriter, attorney, accountant or agent in connection with any such Registration Statement as is customary for similar due diligence examinations; provided, however, that any information that is
designated in writing by any Issuer, in good faith, as confidential at the time of delivery of such information shall be kept confidential by the Holders or any such underwriter, attorney, accountant or agent, unless such disclosure is made in
connection with a court proceeding or required by law, or such information becomes available to the public generally or through a third party without an accompanying obligation of confidentiality; 
  
 (iii) in the case of any Shelf Registration that involves an
underwritten public offering, make such representations and warranties to the Holders of Securities registered thereunder and the underwriters, if any, in form, substance and scope as are customarily made by issuers to underwriters in primary
underwritten offerings and covering matters including, but not limited to, those set forth in the Purchase Agreement; 
  
 (iv) in the case of any Shelf Registration that involves an underwritten public offering, obtain opinions of counsel to the Issuers and
updates thereof (which counsel and opinions (in form, scope and substance) shall be reasonably satisfactory to the Managing Underwriters, if any) addressed to each selling Holder and the underwriters, if any, covering such matters as are customarily
covered in opinions requested in underwritten offerings and such other matters as may be reasonably requested by such Holders and underwriters; 
  
 (v) in the case of any Shelf Registration that involves an underwritten public offering, obtain “cold comfort” letters and
updates thereof from the independent certified public accountants of the Issuers (and, if necessary, any other independent certified public accountants of any subsidiary of the Issuers or of any business acquired by the Issuers for which financial
statements and financial data are, or are required to be, included in the Registration Statement), addressed to each selling Holder of Securities or New Securities registered thereunder (provided such Holder provides such accountants with the
representations as such accountants customarily require in similar situations) and the underwriters, if any, in customary form and covering matters of the type customarily covered in “cold comfort” letters in connection with primary
underwritten offerings; and 
  

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 (vi) in the case of any Shelf Registration that involves an underwritten public offering,
deliver such documents and certificates as may be reasonably requested by the Majority Holders or the Managing Underwriters, if any, including those to evidence compliance with Section 4(k) and with any customary conditions contained in the
underwriting agreement or other agreement entered into by the Issuers. 
  
 The actions set forth in clauses (iii), (iv), (v) and (vi) of this paragraph (q) shall be performed at (A) the effectiveness of such Registration Statement and each post-effective amendment thereto; and (B) each closing under any
underwriting or similar agreement as and to the extent required thereunder. 
  
 (r) In the case of any Exchange Offer Registration Statement, the Issuers shall, if requested by an Initial Purchaser, or by a broker dealer that holds Securities that were acquired as a result of market making or
other trading activities: 
  
 (i) make reasonably
available for inspection by the requesting party, and any attorney, accountant or other agent retained by the requesting party, all relevant financial and other records, pertinent corporate documents and properties of the Issuers and their
subsidiaries; 
  
 (ii) cause the Issuers’
officers, directors, employees, accountants and auditors to supply all relevant information reasonably requested by the requesting party or any such attorney, accountant or agent in connection with any such Registration Statement as is customary for
similar due diligence examinations; provided, however, that any information that is designated in writing by any Issuer, in good faith, as confidential at the time of delivery of such information shall be kept confidential by such
Initial Purchaser or any such attorney, accountant or agent, unless such disclosure is made in connection with a court proceeding or required by law, or such information becomes available to the public generally or through a third party without an
accompanying obligation of confidentiality; 
  
 (iii) upon request by such Initial Purchaser, make such representations and warranties to the requesting party, in form, substance and scope as are customarily made by issuers to underwriters in primary underwritten offerings and covering
matters including, but not limited to, those set forth in the Purchase Agreement; 
  
 (iv) upon request by such Initial Purchaser, obtain opinions of counsel to the Issuers and updates thereof (which counsel and opinions (in
form, scope and substance) shall be reasonably satisfactory to the requesting party and its counsel), addressed to the requesting party, covering such matters as are customarily covered in opinions requested in underwritten offerings and such other
matters as may be reasonably requested by the requesting party or its counsel; 
  

 13 

 (v) upon request by such Initial Purchaser, obtain “cold comfort” letters and
updates thereof from the independent certified public accountants of the Issuers (and, if necessary, any other independent certified public accountants of any subsidiary of the Issuers or of any business acquired by the Issuers for which financial
statements and financial data are, or are required to be, included in the Registration Statement), addressed to the requesting party, in customary form and covering matters of the type customarily covered in “cold comfort” letters in
connection with primary underwritten offerings, or if requested by the requesting party or its counsel in lieu of a “cold comfort” letter, an agreed-upon procedures letter under Statement on Auditing Standards No. 35, covering matters
requested by the requesting party or its counsel; and 
  
 (vi) deliver such documents and certificates as may be reasonably requested by the requesting party or its counsel, including those to evidence compliance with Section 4(k) and with conditions customarily contained in underwriting
agreements. 
  
 The foregoing actions set forth
in clauses (iii), (iv), (v), and (vi) of this Section 4(r) shall be performed at the close of the Registered Exchange Offer and the effective date of any post-effective amendment to the Exchange Offer Registration Statement. 
  
 (s) If a Registered Exchange Offer is to be consummated,
upon delivery of the Securities by Holders to the Issuers (or to such other person as directed by the Issuers) in exchange for the New Securities, the Issuers shall mark, or caused to be marked, on the Securities so exchanged that such Securities
are being cancelled in exchange for the New Securities. In no event shall the Securities be marked as paid or otherwise satisfied. 
  
 (t) The Issuers shall use their reasonable best efforts if the Securities have been rated prior to the initial sale of such Securities, to
confirm such ratings will apply to the Securities or the New Securities, as the case may be, covered by a Registration Statement. 
  
 (u) In the event that any Broker-Dealer shall underwrite any Securities or participate as a member of an underwriting syndicate or selling
group or “assist in the distribution” (within the meaning of the NASD Rules) thereof, whether as a Holder of such Securities or as an underwriter, a placement or sales agent or a broker or dealer in respect thereof, or otherwise, the
Issuers shall assist such Broker-Dealer in complying with the NASD Rules. 
  
 (v) The Issuers shall use their reasonable best efforts to take all other steps necessary to effect the registration of the Securities or the New Securities, as the case may be, covered by a Registration Statement.

  
 5. Registration Expenses. The Issuers shall bear all
expenses incurred in connection with the performance of their obligations under Sections 2, 3 and 4 hereof and, in the event of any Shelf Registration Statement, will reimburse the Holders for the reasonable fees and disbursements of one firm or
counsel (which shall initially be Cahill Gordon & Reindel LLP, but 

  

 14 

 
which may be another nationally recognized law firm experienced in securities matters designated by the Majority Holders) to act as counsel for the Holders
in connection therewith, and, in the case of any Exchange Offer Registration Statement, will reimburse the Initial Purchasers for the reasonable fees and disbursements of counsel acting in connection therewith. 
  
 6. Indemnification and Contribution. (a) The Issuers agree, jointly
and severally, to indemnify and hold harmless each Holder of Securities or New Securities, as the case may be, covered by any Registration Statement, each Initial Purchaser and, with respect to any Prospectus delivery as contemplated in Section 4(h)
hereof, each Exchanging Dealer, the directors, officers, employees, Affiliates and agents of each such Holder, Initial Purchaser or Exchanging Dealer and each person who controls any such Holder, Initial Purchaser or Exchanging Dealer within the
meaning of either the Act or the Exchange Act against any and all losses, claims, damages or liabilities, joint or several, to which they or any of them may become subject under the Act, the Exchange Act or other federal or state statutory law or
regulation, at common law or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon any untrue statement or alleged untrue statement of a material fact contained in the
Registration Statement as originally filed or in any amendment thereof, or in any preliminary Prospectus or the Prospectus, or in any amendment thereof or supplement thereto, 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 (in the case of any preliminary Prospectus or the Prospectus, in the light of the circumstances under which they were made) not misleading, and
agrees to reimburse each such indemnified party, as incurred, for any legal or other expenses reasonably incurred by it in connection with investigating or defending any such loss, claim, damage, liability or action; provided, however,
that the Issuers will not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon any such untrue statement or alleged untrue statement or omission or alleged omission made therein in
reliance upon and in conformity with written information furnished to the Issuers by or on behalf of the party claiming indemnification specifically for inclusion therein. This indemnity agreement shall be in addition to any liability that the
Issuers may otherwise have. 
  
 The Issuers also agree, jointly
and severally, to indemnify as provided in this Section 6(a) or contribute as provided in Section 6(d) hereof to Losses of each underwriter, if any, of Securities or New Securities, as the case may be, registered under a Shelf Registration
Statement, their directors, officers, employees, Affiliates or agents and each person who controls such underwriter on substantially the same basis as that of the indemnification of the Initial Purchasers and the selling Holders provided in this
Section 6(a) and shall, if requested by any Holder, enter into an underwriting agreement reflecting such agreement, as provided in Section 4(p) hereof. 
  
 (b) Each Holder of securities covered by a Registration Statement (including each Initial Purchaser that is a Holder, in such capacity) severally and not
jointly agrees to indemnify and hold harmless each Issuer, each of its directors, each of its officers who signs such Registration Statement and each person who controls any Issuer within the meaning of either the Act or the Exchange Act, to the
same extent as the foregoing indemnity from the Issuers to each such Holder, but only with reference to written information relating to such Holder furnished to the Issuers by or on behalf of such Holder specifically for inclusion in the documents
referred to in the foregoing indemnity. This indemnity agreement will be in addition to any liability that any such Holder may otherwise have. 
  

 15 

 (c) Promptly after receipt by an indemnified party under this Section 6 or notice of the commencement of
any action, such indemnified party will, if a claim in respect thereof is to be made against the indemnifying party under this Section, notify the indemnifying party in writing of the commencement thereof; but the failure so to notify the
indemnifying party (i) will not relieve it from liability under paragraph (a) or (b) above unless and to the extent it did not otherwise learn of such action and such failure results in the forfeiture by the indemnifying party of substantial rights
and defenses; and (ii) will not, in any event, relieve the indemnifying party from any obligations to any indemnified party other than the indemnification obligation provided in paragraph (a) or (b) above. The indemnifying party shall be entitled to
appoint counsel (including local counsel) of the indemnifying party’s choice at the indemnifying party’s expense to represent the indemnified party in any action for which indemnification is sought (in which case the indemnifying party
shall not thereafter be responsible for the fees and expenses of any separate counsel, other than local counsel if not appointed by the indemnifying party, retained by the indemnified party or parties except as set forth below); provided,
however, that such counsel shall be satisfactory to the indemnified party. Notwithstanding the indemnifying party’s election to appoint counsel (including local counsel) to represent the indemnified party in an action, the indemnified
party shall have the right to employ separate counsel (including local counsel), and the indemnifying party shall bear the reasonable fees, costs and expenses of such separate counsel if (i) the use of counsel chosen by the indemnifying party to
represent the indemnified party would present such counsel with a conflict of interest; (ii) the actual or potential defendants in, or targets of, any such action include both the indemnified party and the indemnifying party and the indemnified
party shall have reasonably concluded that there may be legal defenses available to it and/or other indemnified parties that are different from or additional to those available to the indemnifying party; (iii) the indemnifying party shall not have
employed counsel reasonably satisfactory to the indemnified party to represent the indemnified party within a reasonable time after notice of the institution of such action; or (iv) the indemnifying party shall authorize the indemnified party to
employ separate counsel at the expense of the indemnifying party. An indemnifying party will not, without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any pending
or threatened claim, action, suit or proceeding in respect of which indemnification or contribution may be sought hereunder (whether or not the indemnified parties are actual or potential parties to such claim or action) unless such settlement,
compromise or consent includes an unconditional release of each indemnified party from all liability arising out of such claim, action, suit or proceeding. An indemnifying party shall not be liable for any settlement or compromise or consent to
entry of judgment in respect of any claim or action effected without its written consent, which consent may not be unreasonably withheld. Notwithstanding the foregoing sentence, if at any time an indemnified party shall have request an indemnifying
party to reimburse the indemnified party for fees and expenses of counsel in accordance with this Section 6 and the indemnifying party is in material breach of this Section 6, the indemnifying party agrees that it shall be liable for any settlement
of any proceeding effected without its written consent if (i) such settlement is entered into more than 30 days after receipt by such indemnifying party of the aforesaid request, (ii) the indemnifying party has received notice of the terms of the
proposed settlement and of the alleged bases of the material breach and (iii) the indemnifying party shall not have cured such breach within five business days of the notice referred to in clause (ii) immediately above. 
  

 16 

 (d) In the event that the indemnity provided in paragraph (a) or (b) of this Section 6 is unavailable to
or insufficient to hold harmless an indemnified party for any reason, then each applicable indemnifying party shall have a joint and several obligation to contribute to the aggregate losses, claims, damages and liabilities (including legal or other
expenses reasonably incurred in connection with investigating or defending any loss, claim, liability, damage or action) (collectively “Losses”) to which such indemnified party may be subject in such proportion as is appropriate to reflect
the relative benefits received by such indemnifying party, on the one hand, and such indemnified party, on the other hand, from the Initial Placement and the Registration Statement which resulted in such Losses; provided, however, that
in no case shall any Initial Purchaser be responsible, in the aggregate, for any amount in excess of the purchase discount or commission applicable to such Security, or in the case of a New Security, applicable to the Security that was exchangeable
into such New Security, as set forth in the Final Memorandum, nor shall any underwriter be responsible for any amount in excess of the underwriting discount or commission applicable to the securities purchased by such underwriter under the
Registration Statement which resulted in such Losses. If the allocation provided by the immediately preceding sentence is unavailable for any reason, the indemnifying party and the indemnified party shall contribute in such proportion as is
appropriate to reflect not only such relative benefits but also the relative fault of such indemnifying party, on the one hand, and such indemnified party, on the other hand, in connection with the statements or omissions which resulted in such
Losses as well as any other relevant equitable considerations. Benefits received by the Issuers shall be deemed to be equal to the total net proceeds from the Initial Placement (before deducting expenses) as set forth in the Final Memorandum.
Benefits received by the Initial Purchasers shall be deemed to be equal to the total purchase discounts and commissions as set forth on the cover page of the Final Memorandum, and benefits received by any other Holders shall be deemed to be equal to
the value of receiving Securities or New Securities, as applicable, registered under the Act. Benefits received by any underwriter shall be deemed to be equal to the total underwriting discounts and commissions, as set forth on the cover page of the
Prospectus forming a part of the Registration Statement which resulted in such Losses. Relative fault shall be determined by reference to, among other things, whether any untrue or any alleged untrue statement of a material fact or omission or
alleged omission to state a material fact relates to information provided by the indemnifying party, on the one hand, or by the indemnified party, on the other hand, the intent of the parties and their relative knowledge, access to information and
opportunity to correct or prevent such untrue statement or omission. The parties agree that it would not be just and equitable if contribution were determined by pro rata allocation (even if the Holders were treated as one entity for such purpose)
or any other method of allocation which does not take account of the equitable considerations referred to above. Notwithstanding the provisions of this paragraph (d), no person guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 6, each person who controls a Holder within the meaning of either the Act or the Exchange Act
and each director, officer, employee and agent of such Holder shall have the same rights to contribution as such Holder, and each person who controls any Issuer within the meaning of either the Act or the Exchange Act, each officer of any Issuer who
shall have signed the Registration Statement and each director of the Company shall have the same rights to contribution as such Issuer, subject in each case to the applicable terms and conditions of this paragraph (d). 
  

 17 

 (e) The provisions of this Section 6 will remain in full force and effect, regardless of any
investigation made by or on behalf of any Holder or the Issuers or any of the indemnified persons referred to in this Section 6, and will survive the sale by a Holder of securities covered by a Registration Statement. 
  
 7. Underwritten Registrations. (a) If any of the Securities or New
Securities, as the case may be, covered by any Shelf Registration Statement are to be sold in an underwritten offering, the Managing Underwriters shall be selected by the Majority Holders. 
  
 (b) No person may participate in any underwritten offering pursuant to any
Shelf Registration Statement, unless such person (i) agrees to sell such person’s Securities or New Securities, as the case may be, on the basis reasonably provided in any underwriting arrangements approved by the persons entitled hereunder to
approve such arrangements; and (ii) completes and executes all questionnaires, powers of attorney, indemnities, underwriting agreements and other documents reasonably required under the terms of such underwriting arrangements. 
  
 8. Registration Defaults. If any of the following events shall occur,
then the Issuers shall pay liquidated damages (the “Registration Default Damages”) to the Holders of Securities in respect of the Securities as follows: 
  
 (a) if any Registration Statement required by this Agreement is not filed with the Commission on or prior to
the date specified for such filing in this Agreement, then Registration Default Damages shall accrue on the affected Registrable Securities at a rate of 0.25% per annum during the 90-day period immediately following such specified date and shall
increase by 0.25% per annum at the end of each subsequent 90-day period, but in no event shall such rate exceed 1.00% per annum; or 
  
 (b) if any Registration Statement required by this Agreement is not declared effective by the Commission on or prior to the date by which
reasonable best efforts are to be used to cause such effectiveness under this Agreement, then commencing on the day after such specified date, Registration Default Damages shall accrue on the affected Registrable Securities at a rate of 0.25% per
annum during the 90-day period immediately following such specified date and shall increase by 0.25% per annum at the end of each subsequent 90-day period, but in no event shall such rate exceed 1.00% per annum; or 
  
 (c) if any Registration Statement required by this Agreement
has been declared effective but ceases to be effective at any time at which it is required to be effective under this Agreement, then commencing on the day the Registration Statement ceases to be effective, Registration Default Damages shall accrue
on the affected Registrable Securities at a rate of 0.25% per annum during the 90-day period immediately following such date on which the Registration Statement ceases to be effective and shall increase by 0.25% per annum at the end of each
subsequent 90-day period, but in no event shall such rate exceed 1.00% per annum; 
  

 18 

 provided, however, that (1) upon the filing of the Registration Statement (in the case of paragraph (a)
above), (2) upon the effectiveness of the Registration Statement (in the case of paragraph (b) above), or (3) upon the effectiveness of the Registration Statement which had ceased to remain effective (in the case of paragraph (c) above),
Registration Default Damages shall cease to accrue. 
  
 9. No
Inconsistent Agreements. The Issuers have not entered into, and agree not to enter into, any agreement with respect to their securities that is inconsistent with the rights granted to the Holders herein or that otherwise conflicts with the
provisions hereof. 
  
 10. Amendments and Waivers. The
provisions of this Agreement may not be amended, qualified, modified or supplemented, and waivers or consents to departures from the provisions hereof may not be given, unless the Issuers have obtained the written consent of the Holders of a
majority of the aggregate principal amount at maturity of the Registrable Securities outstanding; provided that, with respect to any matter that directly or indirectly affects the rights of any Initial Purchaser hereunder, the Issuers shall
obtain the written consent of each such Initial Purchaser against which such amendment, qualification, supplement, waiver or consent is to be effective; provided, further, that no amendment, qualification, supplement, waiver or consent
with respect to Section 8 hereof shall be effective as against any Holder of Registered Securities unless consented to in writing by such Holder; and provided, further, that the provisions of this Article 10 may not be amended,
qualified, modified or supplemented, and waivers or consents to departures from the provisions hereof may not be given, unless the Issuers have obtained the written consent of the Initial Purchasers and each Holder. Notwithstanding the foregoing
(except the foregoing provisos), a waiver or consent to departure from the provisions hereof with respect to a matter that relates exclusively to the rights of Holders whose Securities or New Securities, as the case may be, are being sold pursuant
to a Registration Statement and that does not directly or indirectly affect the rights of other Holders may be given by the Majority Holders, determined on the basis of Securities or New Securities, as the case may be, being sold rather than
registered under such Registration Statement. 
  
 11.
Notices. All notices and other communications provided for or permitted hereunder shall be made in writing by hand-delivery, first-class mail, telex, telecopier or air courier guaranteeing overnight delivery: 
  
 (a) if to a Holder, at the most current address given by
such holder to the Issuers in accordance with the provisions of this Section 11, which address initially is, with respect to each Holder, the address of such Holder maintained by the Registrar under the Indenture; 
  
 (b) if to the Initial Purchasers, initially at the address
or addresses set forth in the Purchase Agreement; and 
  
 (c) if to the Issuers, initially at their address set forth in the Purchase Agreement. 
  
 All such notices and communications shall be deemed to have been duly given when received. 
  

 19 

 The Initial Purchasers or the Issuers by notice to the other parties may designate additional or
different addresses for subsequent notices or communications. 
  
 12. Successors. This Agreement shall inure to the benefit of and be binding upon the parties hereto, their respective successors and assigns, including, without the need for an express assignment or any consent by the Issuers
thereto, subsequent Holders of Securities and the New Securities, and the indemnified persons referred to in Section 6 hereof. The Issuers hereby agree to extend the benefits of this Agreement to any Holder of Securities and the New Securities, and
any such Holder may specifically enforce the provisions of this Agreement as if an original party hereto. 
  
 13. Counterparts. This Agreement may be signed in one or more counterparts, each of which shall constitute an original and all of which together
shall constitute one and the same agreement. 
  
 14.
Headings. The section headings used herein are for convenience only and shall not affect the construction hereof. 
  
 15. Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York applicable to contracts
made and to be performed in the State of New York. The parties hereto each hereby waive any right to trial by jury in any action, proceeding or counterclaim arising out of or relating to this Agreement. 
  
 16. Severability. In the event that any one of more of the provisions
contained herein, or the application thereof in any circumstances, is held invalid, illegal or unenforceable in any respect for any reason, the validity, legality and enforceability of any such provision in every other respect and of the remaining
provisions hereof shall not be in any way impaired or affected thereby, it being intended that all of the rights and privileges of the parties shall be enforceable to the fullest extent permitted by law. 
  
 17. Securities Held by the Issuers, etc. Whenever the consent or
approval of Holders of a specified percentage of principal amount of Securities or New Securities is required hereunder, Securities or New Securities, as applicable, held by any Issuer or their Affiliates (other than subsequent Holders of Securities
or New Securities if such subsequent Holders are deemed to be Affiliates solely by reason of their holdings of such Securities or New Securities) shall not be counted in determining whether such consent or approval was given by the Holders of such
required percentage. 
  

 20 

 If the foregoing is in accordance with your understanding of our agreement, please sign and return to us
the enclosed duplicate hereof, whereupon this letter and your acceptance shall represent a binding agreement between the Issuers and the several Initial Purchasers. 
  

			
	Very truly yours,
	
	RURAL/METRO OPERATING COMPANY, LLC
		
	By:	 	  

	Name:	 	 
	Title:	 	 
	
	RURAL/METRO (DELAWARE) INC.
		
	By:	 	  

	Name:	 	 
	Title:	 	 
	
	RURAL/METRO CORPORATION
		
	By:	 	  

	Name:	 	 
	Title:	 	 

  

 21 

			
	AID AMBULANCE AT VIGO COUNTY, INC,	 	RURAL/METRO OF OREGON, INC.,
	AMBULANCE TRANSPORT SYSTEMS, INC.,	 	RURAL/METRO OF ROCHESTER, INC.,
	AMERICAN LIMOUSINE SERVICE, INC.,	 	RURAL/METRO OF SAN DIEGO, INC.,
	BEACON TRANSPORTATION, INC.,	 	RURAL/METRO OF SOUTH CAROLINA, INC.,
	CHOICE AMERICAN AMBULANCE SERVICE, INC.,	 	RURAL/METRO OF SOUTH DAKOTA, INC.,
	COASTAL EMS, INC.,	 	RURAL/METRO OF SOUTHERN OHIO, INC.,
	CORNING AMBULANCE SERVICE, INC.,	 	RURAL/METRO OF TEXAS, INC.,
	DONLOCK, LTD.,	 	RURAL/METRO PROTECTION SERVICES, INC.,
	E.M.S. VENTURES, INC.,	 	RURAL/METRO TEXAS HOLDINGS, INC.,
	EMS VENTURES OF SOUTH CAROLINA, INC.,	 	SIOUX FALLS AMBULANCE, INC.,
	EASTERN AMBULANCE SERVICE, INC.,	 	SOUTH GEORGIA EMERGENCY MEDICAL SERVICES, INC.,
	EASTERN PARAMEDICS, INC.,	 	SOUTHWEST AMBULANCE AND RESCUE OF ARIZONA, INC.,
	GOLD CROSS AMBULANCE SERVICES, INC.,	 	SOUTHWEST AMBULANCE OF CASA GRANDE, INC.,
	KEEFE & KEEFE AMBULETTE, LTD.,	 	SOUTHWEST AMBULANCE OF NEW MEXICO, INC.,
	KEEFE & KEEFE, INC.,	 	SOUTHWEST AMBULANCE OF TUCSON, INC.,
	LASALLE AMBULANCE INC.,	 	SOUTHWEST GENERAL SERVICES, INC.,
	MEDI-CAB OF GEORGIA, INC.,	 	SW GENERAL, INC.,
	MEDICAL EMERGENCY DEVICES AND SERVICES (MEDS), INC.,	 	THE AID AMBULANCE COMPANY, INC.,
	MEDICAL TRANSPORTATION SERVICES, INC.,	 	THE AID COMPANY, INC.,
	MEDSTAR EMERGENCY MEDICAL SERVICES, INC.,	 	TOWNS AMBULANCE SERVICE, INC.,
	MERCURY AMBULANCE SERVICE, INC.,	 	VALLEY FIRE SERVICE, INC.,
	METRO CARE CORP.,	 	W&W LEASING COMPANY, INC.,
	MOBILE MEDICAL TRANSPORTATION, INC.,	 	 
	MO-RO-KO, INC.,	 	RMC CORPORATE CENTER, L.L.C.,
	MULTI CAB INC.,	 	An Arizona Limited Liability Company
	MULTI-CARE INTERNATIONAL, INC.,	 	By: RURAL/METRO CORPORATION,
	MULTI-CARE MEDICAL CAR SERVICE, INC.,	 	An Arizona Corporation, Its Member
	MULTI-HEALTH CORP.,	 	 
	MYERS AMBULANCE SERVICE INC.,	 	RURAL/METRO OF INDIANA, L.P.,
	NATIONAL AMBULANCE & OXYGEN SERVICE, INC.,	 	A Delaware Limited Partnership
	NORTH MISS. AMBULANCE SERVICE, INC.,	 	By: THE AID AMBULANCE COMPANY, INC.,
	PROFESSIONAL MEDICAL SERVICES, INC.,	 	A Delaware Corporation, Its General Partner
	RISC AMERICA ALABAMA FIRE SAFETY SERVICES, INC.,	 	 
	RMC INSURANCE LTD.,	 	RURAL/METRO OF INDIANA II, L.P.,
	RMFD OF NEW JERSEY, INC.,	 	A Delaware Limited Partnership
	R/M MANAGEMENT CO., INC.,	 	By: THE AID AMBULANCE COMPANY, INC.,
	R/M OF MISSISSIPPI, INC.,	 	A Delaware Corporation, Its General Partner
	R/M OF TENNESSEE G.P., INC.,	 	 
	R/M OF TENNESSEE L.P., INC.,	 	RURAL/METRO MID-SOUTH, L.P.,
	R/M OF TEXAS, G.P., INC.,	 	A Delaware Limited Partnership
	R/M PARTNERS, INC.,	 	By: R/M OF TENNESSEE G.P., INC.,
	RURAL/METRO COMMUNICATIONS SERVICES, INC.,	 	A Delaware Corporation, Its General Partner
	RURAL/METRO CORPORATION (an Arizona Corporation),	 	 
	RURAL/METRO CORPORATION OF FLORIDA,	 	RURAL/METRO OF NORTH TEXAS, L.P.,
	RURAL/METRO CORPORATION OF TENNESSEE,	 	A Delaware Limited Partnership
	RURAL/METRO FIRE DEPT., INC.,	 	By: R/M OF TEXAS G.P., INC.,
	RURAL/METRO HOSPITAL SERVICES, INC.,	 	A Delaware Corporation, Its General Partner
	RURAL/METRO LOGISTICS, INC.,	 	 
	RURAL/METRO MID-ATLANTIC, INC.,	 	RURAL/METRO OF TEXAS, L.P.,
	RURAL/METRO MID-ATLANTIC II, INC.	 	A Delaware Limited Partnership
	RURAL/METRO OF ALABAMA, INC.,	 	By: R/M OF TEXAS G.P., INC.,
	RURAL/METRO OF ARKANSAS, INC.,	 	A Delaware Corporation, Its General Partner
	RURAL/METRO OF ARLINGTON, INC.,	 	 
	RURAL/METRO OF BREWERTON, INC.,	 	RURAL/METRO OF TENNESSEE, L.P.,
	RURAL/METRO OF CALIFORNIA, INC.,	 	A Delaware Limited Partnership
	RURAL/METRO OF CENTRAL ALABAMA, INC.,	 	By: R/M OF TENNESSEE G.P., INC.,
	RURAL/METRO OF CENTRAL COLORADO, INC.,	 	A Delaware Corporation, Its General Partner
	RURAL/METRO OF CENTRAL OHIO, INC.,	 	 
	RURAL/METRO OF COLORADO, INC.,	 	 
	RURAL/METRO OF GEORGIA, INC.,	 	 
	RURAL/METRO OF GREATER SEATTLE, INC.,	 	 By:

	RURAL/METRO OF INDIANA, INC.,	 	Name:
	RURAL/METRO OF KENTUCKY, INC.,	 	Title:
	RURAL/METRO OF MISSISSIPPI, INC.,	 	 
	RURAL/METRO OF NEBRASKA, INC.,	 	 
	RURAL/METRO OF NEW YORK, INC.,	 	 
	RURAL/METRO OF NORTH FLORIDA, INC.,	 	 
	RURAL/METRO OF NORTHERN OHIO, INC.,	 	 
	RURAL/METRO OF OHIO, INC.,	 	 

  
  
  
  

 1 

 The foregoing Agreement is hereby confirmed and 
 accepted as of the date first above written. 
  
 CITIGROUP GLOBAL MARKETS INC. 
 J.P. MORGAN SECURITIES INC. 
  

			
	By:	 	CITIGROUP GLOBAL MARKETS INC.
		
	By	 	  

	Name:	 	 
	Title:	 	 

  

 1 

 ANNEX A 
  
 Each broker-dealer that receives new securities for its own account pursuant to the Exchange Offer must acknowledge that it will deliver a prospectus in
connection with any resale of such new securities. The Letter of Transmittal states that by so acknowledging and by delivering a prospectus, a broker-dealer will not be deemed to admit that it is an “underwriter” within the meaning of the
Act. This prospectus, as it may be amended or supplemented from time to time, may be used by a broker-dealer in connection with resales of new securities received in exchange for securities where such securities were acquired by such broker-dealer
as a result of market-making activities or other trading activities. The issuers have agreed that, starting on the expiration date and ending on the close of business one year after the expiration date, it will make this prospectus available to any
broker-dealer for use in connection with any such resale. See “Plan of Distribution”. 
  

 A-1 

 ANNEX B 
  
 Each broker-dealer that receives new securities for its own account in exchange for securities, where such securities were acquired by such broker-dealer
as a result of market-making activities or other trading activities, must acknowledge that it will deliver a prospectus in connection with any resale of such new securities. See “Plan of Distribution”. 
  

 B-1 

 ANNEX C 
  

PLAN OF DISTRIBUTION 
  
 Each broker-dealer that receives new securities for its own account pursuant to the Exchange Offer must acknowledge that it will deliver a prospectus in
connection with any resale of such new securities. This prospectus, as it may be amended or supplemented from time to time, may be used by a broker-dealer in connection with resales of new securities received in exchange for securities where such
securities were acquired as a result of market-making activities or other trading activities. The issuers have agreed that, starting on the expiration date and ending on the close of business one year after the expiration date, they will make this
prospectus, as amended or supplemented, available to any broker-dealer for use in connection with any such resale. In addition, until
                    , 20    , all dealers effecting transactions in the new securities may be required to deliver a
prospectus. 
  
 The issuers will not receive any proceeds from any
sale of new securities by brokers-dealers. New securities received by broker-dealers for their own account pursuant to the Exchange Offer may be sold from time to time in one or more transactions in the over-the-counter market, in negotiated
transactions, through the writing of options on the new securities or a combination of such methods of resale, at market prices prevailing at the time of resale, at prices related to such prevailing market prices or negotiated prices. Any such
resale may be made directly to purchasers or to or through brokers or dealers who may receive compensation in the form of commissions or concessions from any such broker-dealer and/or the purchasers of any such new securities. Any broker-dealer that
resales new securities that were received by it for its own account pursuant to the Exchange Offer and any broker or dealer that participates in a distribution of such new securities may be deemed to be an “underwriter” within the meaning
of the Act and any profit of any such resale of new securities and any commissions or concessions received by any such persons may be deemed to be underwriting compensation under the Act. The Letter of Transmittal states that by acknowledging that
it will deliver and by delivering a prospectus, a broker-dealer will not be deemed to admit that it is an “underwriter” within the meaning of the Act. 
  

For a period of one year after the expiration date, the issuers will promptly send additional copies of this prospectus and any amendment or supplement
to this prospectus to any broker-dealer that requests such documents in the Letter of Transmittal. The issuers have agreed to pay all expenses incident to the Exchange Offer (including the expenses of one counsel for the holder of the securities)
other than commissions or concessions of any brokers or dealers and will indemnify the holders of the securities (including any broker-dealers) against certain liabilities, including liabilities under the Act. 
  
 [If applicable, add information required by Regulation S-K Items 507
and/or 508.] 
  

 C-1 

 ANNEX D 
  
 Rider A 
  
 PLEASE FILL IN YOUR NAME AND ADDRESS BELOW IF YOU ARE A BROKER-DEALER AND WISH TO RECEIVE 10 ADDITIONAL COPIES OF THE PROSPECTUS AND 10 COPIES OF ANY AMENDMENTS OR SUPPLEMENTS THERETO. 
  

			
	Name:	 	  

	 Address:
  
	 	  

	 	 	  

  
 Rider B 
  
 If the undersigned is not a Broker-Dealer, the undersigned represents that it acquired the
New Securities in the ordinary course of its business, it is not engaged in, and does not intend to engage in, a distribution of New Securities and it has no arrangements or understandings with any person to participate in a distribution of the New
Securities. If the undersigned is a Broker-Dealer that will receive New Securities for its own account in exchange for Securities, it represents that the Securities to be exchange for New Securities were acquired by it as a result of market-making
activities or other trading activities and acknowledges that it will deliver a prospectus in connection with any resale of such New Securities; however, by so acknowledging and by delivering a prospectus, the undersigned will not be deemed to admit
that it is an “underwriter” within the meaning of the Act.Exhibit 10(g)

EMPLOYMENT AGREEMENT

     EMPLOYMENT AGREEMENT (this “Agreement”), effective October 2, 2004 (the “Effective Date”), by and between Playtex Products, Inc., a Delaware corporation (the “Company”), and Neil P. DeFeo, an individual (the “Executive”).

WITNESSETH:

     WHEREAS, the Company desires to employ the Executive to serve it in the capacity of President and Chief Executive Officer and to perform services on its behalf in said position;

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

     1. EMPLOYMENT

     The Company agrees to employ the Executive, and the Executive agrees to serve the Company, on the terms and conditions set forth herein.

     2. TERM

     Subject to Section 5 hereof, the Executive’s employment under this Agreement shall commence on the Effective Date and shall end on the later of (a) December 29, 2007, and (b) the last day of the fiscal year of the Company (a “Fiscal Year,” which, as of the Effective Date, is the one-year period ending on the Saturday immediately prior to each December 31st) ending during 2007 (the “Initial Term”); provided that such term shall be automatically extended for additional one-year periods, unless, not later than 180 days prior to the expiration of the Initial Term (or any extension thereof pursuant to this Section 2) either party hereto shall provide written notice of its or his desire not to extend the term hereof to the other party hereto. As used herein, the term “Term” shall mean the Initial Term together with each one-year extension.

     3. POSITION AND DUTIES

          (a) The Executive shall be duly elected, effective on the Effective Date, and shall thereafter during the Term continue to serve, as President and Chief Executive Officer of the Company and shall perform such duties and exercise such supervision and powers over and with regard to the business of the Company customarily associated with the position of President and Chief Executive Officer, as well as such duties and services prescribed herein and as may be reasonably prescribed from time to time by the Board of Directors of the Company (the “Board”).  All employees of the Company shall report directly or indirectly to the Executive; the Executive shall report to the Board.  The Executive shall perform his duties to the best of his ability and in a diligent and proper manner.  In addition, effective on the Effective Date, the Executive

shall, in accordance with the Company’s by-laws, be duly elected and shall thereafter during the Term continue to serve as a member of the Board.

          (b) Except during vacations and periods of illness, the Executive shall, during the Term, devote all his business time (as opposed to personal time) and attention to the performance of services for the Company and its subsidiaries; provided, however, that the Executive shall be permitted, to the extent such activities do not violate Sections 11 or 12 hereof, to (i) continue to serve on the boards of the business enterprises and charitable organizations on which he is serving as of the Effective Date, (ii) subject to the prior consent of the compensation committee of the Board (the “Committee”), serve on any board of any business enterprise other than those referenced in clause (i) above, and (iii) serve on any board of any charitable organization other than those referenced in clause (i) above without obtaining such a consent, provided that the

 Executive notifies the Committee of such service promptly following his election to any such board.  Notwithstanding the foregoing, the Committee shall have the right, at any time during the Term, to require that the Executive resign from his position on any such board or trusteeship, effective as soon as such resignation may be properly effected under applicable law, and the charters, by-laws or other governing documents of the applicable organization or enterprise.  On or before the Effective Date, the Executive shall provide the Committee with a list of the boards and committees on which he is serving as of the Effective Date.

     4. COMPENSATION AND RELATED MATTERS

          (a) Salary.  During the Term, the Company shall pay to the Executive a salary at a rate of not less than $825,000 per annum, payable in accordance with normal payroll practices of the Company, but not less frequently than monthly.  The Executive’s salary may be increased from time to time by the Committee and, if so increased, shall not thereafter be decreased during the Term.  As used herein, “Base Salary” means the Executive’s initial salary hereunder as the same may be increased.  With respect to the Executive’s Base Salary for any Fiscal Year following Fiscal Year 2005, the Committee shall review the Base Salary at least once each Fiscal Year.

          (b) Welfare and Retirement Benefits.  During the Term, the Executive shall be entitled to participate in all of the Company’s employee pension plans, welfare benefit plans, tax-deferred savings plans or other welfare or retirement benefits or arrangements (including any insurance or trust arrangements maintained generally for the benefit of the Company’s employees) and in which the executive officers of the Company are entitled generally to participate (collectively, the “Company Benefit Plans”) on terms no less favorable than those available to other senior executives of the Company.  In addition, during the Term, the Company shall (i) pay the premiums on that certain term life insurance policy that is in effect on the life of the Executive as of the date of this Agreement with a face amount equal to $1,500,000; (ii) reimburse the Executive

 for monthly country club dues at one country club selected by the Executive and for monthly dues and personal training or exercise class fees at one athletic club selected by the Executive; and (iii) reimburse the Executive for costs incurred by the

2

Executive for financial planning services in an amount not to exceed $10,000 per full calendar year.

          (c) Automobile.  During the Term, the Company shall provide or otherwise make available to the Executive, at the Company’s expense, an automobile to be used by the Executive in connection with the Company’s business in accordance with the Company’s policy regarding automobiles, provided, however, that the aggregate annual cost to the Company of such automobile shall not exceed $25,000.

          (d) Wind-Down Payment.  The Company shall pay to the Executive, no later than five days following the Effective Date, a payment in the amount of $200,000 in connection with the wind-down of the Executive’s Westport, Connecticut office.

          (e) Annual Bonus.

               (i) The Executive shall be eligible to earn an annual bonus (the “Bonus”) for each full Fiscal Year ending during the Term, based upon the Company’s achievement of performance goals to be established by the Committee for each Fiscal Year.  Concurrently with the adoption of performance targets for other employee bonus plans, but in no event later than 90 days after the commencement of each Fiscal Year, the Committee shall establish a Company performance target (the “Target”) for such Fiscal Year, which may consist of one or more performance measurements.  For purposes of this Agreement, the “Actual Performance” of the Company shall be determined by the Committee, and, if the Target for a Fiscal Year includes a measurement that is earnings-based, such measurement shall be determined after deducting current

 amounts for all Company bonus programs, including the Bonus for which Actual Performance is being determined.  For the avoidance of doubt, any earnings-based measurement will be an “after bonus” amount such that, if all bonuses amount to $100, and the measurement criteria before deducting bonuses is $900, then the Actual Performance for the period would be $800.  The Committee will determine annually if Actual Performance equals or exceeds Target for the Fiscal Year, and the amount of the Bonus shall be determined as follows:

	 	 	 
	Actual Performance
	 	Percentage of Base Salary
	

	 	

	Less than 90% of Target
	 	    0
	90% of Target
	 	  50%
	100% of Target    
	 	100% 
	125% of Target
	 	200%
	Greater than 125% of Target
	 	200% plus, for each one-percentage
	
	 	point over 125% of Target, an
	
	 	additional 4% of Base Salary

The Bonus shall be calculated using straight line interpolation for Actual Performance between 90% and 100% of Target.   For Actual Performance between 100% and 125% of Target, the Bonus shall be 100% of Base Salary plus 4% of Base Salary for each whole

3

one-percentage point by which the Actual Performance exceeds the Target.  The applicable Base Salary shall be that in effect on the last day of the relevant Fiscal Year.

               (ii) Notwithstanding the foregoing, any portion of the Bonus which would otherwise be earned in respect of any Fiscal Year in excess of 200% of Base Salary (such portions, the “Excess Bonus”), shall not be deemed earned until the last day of the Fiscal Year following the Fiscal Year to which such Excess Bonus relates and shall only be earned and payable if the Company achieves Actual Performance for the subsequent Fiscal Year of not less than 90% of the Actual Performance for the Fiscal Year for which the Excess Bonus was calculated.  The Bonus with respect to any Fiscal Year shall in no event be greater than 500% of Base Salary.

               (iii) Except as otherwise provided with respect to the Excess Bonus or in Section 6 hereof, the Bonus shall be paid on the date on which bonuses are typically paid to the senior most executives of the Company (such date, the “Bonus Payment Date”); provided, however, that the Bonus Payment Date shall in no event be later than 90 days following the end of the Fiscal Year to which such Bonus relates, and provided, further, that such Bonus shall not be payable to an Executive whose employment with the Company is terminated after the Fiscal Year as to which such Bonus relates and before the Bonus Payment Date by the Company under subsection 5(c) hereof (for Cause).

               (iv) In respect of Fiscal Year 2004, the Executive shall be eligible for a bonus, if applicable, in an amount to be determined by the Committee in its sole discretion.

               (v) Notwithstanding anything herein to the contrary, the Bonus will be earned and paid in accordance with the terms of a to-be-established executive bonus plan (“Bonus Plan”) to be adopted by the Board no later than December 25, 2004, and submitted for approval to the Company’s shareholders at the next shareholders meeting following its adoption, in a manner intended to qualify the Bonus as “performance-based compensation” under Section 162(m) of the Internal Revenue Code of 1986, as amended (the “Code”) and the regulations promulgated thereunder.  Accordingly, no Bonus shall be earned or paid in the event the Bonus Plan is not approved by the shareholders of the Company.  The Bonus Plan shall provide that the Target and its constituent performance measurements may be equitably adjusted by the
Committee in its sole discretion to reflect changes in capitalization, including, without limitation, recapitalizations, reorganizations, mergers, consolidations, combinations, exchanges, other relevant changes in capitalization, extraordinary non-recurring events, acquisitions and other corporate changes.

               (vi) The Executive shall not be entitled to receive an annual cash bonus pursuant to any plan or arrangement of the Company that is in existence as of the Effective Date, provided that no flexible benefit or deferred compensation plan shall be deemed such a plan or arrangement.

4

          (f) Stock Options.  On the Effective Date, the Company shall grant to the Executive “non qualified” stock options to purchase 1,531,421 shares of common stock of the Company, par value $0.01 per share (the “Common Stock”), which stock options shall be referred to herein as the “Options”. The terms of the Options shall be governed by (i) the Playtex Products, Inc. 2003 Stock Option Plan for Directors and Executive and Key Employees of Playtex Products, Inc. (as it may be amended), and (ii) the Non Qualified Stock Option Agreement annexed hereto as Exhibit A.

          (g) Restricted Stock.  On the Effective Date, the Executive shall purchase from the Company, and the Company shall sell to the Executive, 612,568  shares of Common Stock (the “Restricted Stock”) at a per share purchase price equal to $0.01, which is the par value of one share of Common Stock.  The Restricted Stock shall be subject to (i) the transfer and forfeiture restrictions set forth in (A) a new Company Stock Award Plan (the “Stock Plan”) to be adopted by the Board no later than December 25, 2004, and (B) an individual restricted stock award agreement substantially in the form provided to the Executive prior to the Effective Date (the “Restricted Stock Agreement”) and (ii) shareholder approval of the Stock Plan in a manner intended to qualify the award of Restricted Stock as “performance-based compensation”

under Section 162(m) of the Code and the regulations promulgated thereunder.

          (h) Change in Control Stock Award.  If, on or prior to the last day of the Initial Term, (i) a Change in Control (as defined below) occurs, or (ii) the Company enters into an agreement which, if consummated, would result in a Change in Control, and such Change in Control actually occurs within one year after the date of such agreement (even though the Change in Control may not actually occur until after the expiration of the Initial Term), and, in the case of the event described in either clause (i) or clause (ii), the Executive remains in the employ of the Company through the date of the Change in Control (or subsequent thereto), the Company shall award to the Executive, effective immediately prior to the Change in Control, an additional award of unrestricted shares of Common Stock, at a per share purchase price no greater than $0.01, which is the par
value of one share of Common Stock, which shall represent one percent (1%) of the outstanding Common Stock, on a fully diluted basis, on the date of such grant (“Change in Control Stock Award”).  The Change in Control Stock Award shall be granted under and governed by the terms of the Stock Plan.  Unless otherwise agreed to between the Committee and the Executive, in the event the Change in Control is a transaction for which the consideration paid in exchange for the Common Stock is exclusively in the form of shares or other equity securities of an acquirer, then, except as otherwise provided in Section 7 hereof, the Executive shall be required to pay to the Company or an affiliate, in cash, all amounts that the Company or such affiliate is required to withhold under federal, state or local law in connection with the Change in Control Stock Award.

     For purposes of this Agreement, the term “Change in Control” shall mean the first to occur of any of the following:  (A) any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), is or becomes the “beneficial owner” (as defined in Rules 13d-3 and

5

13d-5 under the Exchange Act, except that a person shall be deemed to have beneficial ownership of all shares that such person has the right to acquire, whether such right is exercisable immediately or only after the passage of time), directly or indirectly, of more than 40% of the voting stock of the Company (B) the sale, lease, transfer, conveyance or other disposition, in one or a series of related transactions, of all or substantially all of the assets of the Company to any person or group, or (C) a change in the composition of the Board occurring within a rolling 24-month period, as a result of which fewer than a majority of the directors are Incumbent Directors.  “Incumbent Directors” shall mean directors who either (x) are members of the Board as of the Effective Date or (y) are elected, or nominated for election, to the Board pursuant to the By-Laws as in effect on the Effective Date, but shall not include
an individual not otherwise an Incumbent Director whose election or nomination is in connection with an actual or threatened proxy contest, including but not limited to a consent solicitation, relating to the election of directors to the Board.

          (i) Vacations.  During the Term, the Executive shall be entitled to the number of paid vacation days in each Fiscal Year determined in accordance with the Company’s vacation policies, but in no event less than four weeks.

          (j) Expenses.  During the Term, the Executive shall be entitled to receive reimbursement from the Company of all reasonable business expenses incurred by the Executive in performing services hereunder, including all travel expenses and living expenses while away from home on business or at the request of, and in the service of, the Company; provided that such expenses are incurred and accounted for in accordance with the policies and procedures established by the Company from time to time.

          (k) Certain Benefits.  During the Term, the Company shall furnish the Executive with office space, secretarial assistance and such other facilities and services as shall be suitable to the Executive’s position and adequate for the performance of his duties as set forth in Section 3 hereof.

          (l) Initial Attorneys’ Fees.  The Company shall reimburse the Executive for all reasonable attorneys’ fees and costs incurred by the Executive in the negotiation and creation of this Agreement and the related Non Qualified Stock Option Agreement and Restricted Stock Award Agreement and in the review on his behalf of corporate governance and similar matters of the Company insofar as those matters relate to the duties of the Company’s chief executive officer or an officer member of the Board.

     5. TERMINATION

     The Executive’s employment hereunder and the Term may be terminated under the following circumstances:

          (a) Death. The Executive’s employment hereunder shall terminate upon his death.

6

          (b) Disability.  If the Executive is unable to timely and regularly perform his duties hereunder due to physical or mental illness, injury or incapacity, as determined by the Board in good faith based on medical evidence acceptable to it (a “Disability”), and such Disability continues for a period of six consecutive months, then the Company may terminate the Executive’s employment hereunder.  A return to work for less than 30 consecutive days during any period of Disability shall not be deemed to interrupt the running of (and shall be included in) the aforementioned six-month period.

          (c) Termination by the Company for Cause.  The Company may terminate the Executive’s employment hereunder at any time for Cause.  For purposes of this Agreement, “Cause” shall mean a termination of employment of the Executive by the Company due to (i) the commission by the Executive of an act of fraud or embezzlement against the Company or any of its subsidiaries or the conviction of the Executive in a court of law, or guilty plea or no contest plea, of any charge involving an act of fraud or embezzlement that is material (including the willful and unauthorized disclosure of information of the Company or any of its subsidiaries which the Executive knows or should know to be material, confidential and proprietary to the Company or any of its subsidiaries, which results, or could reasonably have been expected to result, in material financial loss
to the Company or any of its subsidiaries), (ii) the conviction of the Executive in a court of law, or guilty plea or no contest plea, to a felony charge (A) materially involving the Company or (B) materially affecting the Executive’s ability for a sustained period to perform services in the manner required hereunder, (iii) the willful misconduct of the Executive as an employee of the Company or any of its subsidiaries which is reasonably likely to result in injury or financial loss to (I) the Company or (II) to any subsidiaries of the Company, which injury or loss is material to the Company taken as a whole, (iv) the willful failure of the Executive to render services to the Company or any of its subsidiaries in accordance with the Executive’s employment, which failure amounts to a material neglect of the Executive’s duties to the Company and does not result from physical illness, injury or incapacity, and which failure is not cured promptly after adequate notice of such
failure and a reasonably detailed explanation has been presented by the Company to the Executive, or (v) a willful material breach of any of the covenants in subsections 3(a) and 3(b) and Sections 11 and 12 hereof by the Executive, which breach is not cured, if curable, within 30 days after a written notice of such breach is delivered to the Executive.  The Executive shall not be deemed to have been terminated for Cause unless the Company shall have given or delivered to the Executive (1) reasonable notice setting forth in reasonable detail the facts and circumstances claimed to provide a basis for termination for Cause, and (2) a reasonable opportunity for the Executive, together with his counsel, to request reconsideration by and be heard before the Board, provided; however, that such notice and opportunity to be heard shall not be required if the Board, based on the advice of counsel, deems it inconsistent with its fiduciary duties and so advises the Executive.

     For purposes of determining whether the Executive was given “reasonable notice” and “reasonable opportunity to be heard” in connection with any determination by the Board as to whether Cause exists, 10 business days’ notice of the Board meeting

7

shall be deemed to constitute “reasonable notice” (without prejudice to the determination of whether some other period would also constitute “reasonable notice”), and the opportunity for the Executive and his counsel to present arguments to the Board at such meeting as to why the Executive believes that no Cause exists shall constitute “reasonable opportunity to be heard” (without prejudice to the determination of whether some other forum or method would also constitute a “reasonable opportunity to be heard”).  For purposes of this Agreement, no act, or failure to act, on the Executive’s part shall be deemed “willful” unless done, or omitted to be done, by the Executive not in good faith and without reasonable belief that the Executive’s action or omission was in the best interest of the Company.

          (d) Termination by the Executive for Good Reason.  The Executive may voluntarily terminate his employment hereunder at any time for Good Reason.  For purposes of this Agreement, “Good Reason” shall mean (i) a material breach by the Company of this Agreement (including, without limitation, Section 4(e) hereof) or of the Non Qualified Stock Option Agreement or the Restricted Stock Agreement which breach is not cured within 30 days after the Board’s receipt of written notice of such non-compliance from the Executive; (ii) the assignment to the Executive by the Company of duties materially and adversely inconsistent with the Executive’s position, duties or responsibilities as in effect immediately after the Effective Date, including, but not limited to, any material reduction in such position, duties or responsibilities, or a change in the

Executive’s title or office, as then in effect, or any removal of the Executive from any of such positions, titles or offices, or any failure to elect or reelect the Executive as a member of the Board or any removal of the Executive as such a member, except in connection with the termination of his employment pursuant to any of subsections 5(a), 5(b) or 5(c) hereof; (iii) the relocation of the Company’s headquarters to a place more than 30 miles from its present location without the approval of the Executive; or (iv) the failure of the Board to adopt, or of the Company’s shareholders to approve, the Stock Plan or the Bonus Plan in accordance with each of Sections 4(e) and 4(g) hereof, as applicable.

          (e) Termination by the Company Without Cause.  The Company may at any time terminate the Executive for any reason, and, except for the amounts payable pursuant to subsection 6(b) hereof (or as otherwise set forth in any equity agreement), the Executive shall have no claim against the Company under this Agreement or otherwise by reason of such termination.

          (f) Termination by the Executive Without Good Reason. The Executive may at any time terminate his employment hereunder without Good Reason; provided that the Executive will be required to give the Company at least 90 days’ advance written notice of a resignation without Good Reason.

          (g) Notice of Termination.  Any termination of the Executive’s employment hereunder, by the Company or by the Executive (other than termination pursuant to subsection 5(a) hereof), shall be communicated by written “Notice of Termination” to the other party hereto.  For purposes of this Agreement, a “Notice of Termination” shall mean a notice which shall indicate the specific termination provision

8

in this Agreement relied upon and shall set forth in reasonable detail the facts and circumstances, if any, claimed to provide a basis for termination of the Executive’s employment under the provision so indicated.

     6. COMPENSATION UPON TERMINATION

          (a) Death or Disability.  If the Executive’s employment hereunder terminates pursuant to subsections 5(a) hereof (Death) or 5(b) hereof (Disability), the Executive or his estate (as the case may be) shall be entitled to receive (i) any accrued but unpaid Base Salary through the end of the month in which such termination occurs or, in the event of a Disability and if later, the date on which payments to him commence under the Company’s long term disability plan, (ii) a lump sum payment in an amount equal to the pro-rata portion (based on days worked) of the Bonus that the Executive would have been entitled to receive for the Fiscal Year in which the termination occurs based on the Company attaining 100% of Target (the “Pro-Rata Bonus”), excluding any Excess Bonus (addressed in subsection 6(a)(iv) below), (iii) any Bonus, including any
Excess Bonus, that has been fully earned and that is payable with respect to a Fiscal Year that ended prior to the Executive’s termination of employment but that has not yet been paid as of such termination (by way of illustration, if the Executive is terminated in 2007, and the Company’s Actual Performance in 2005 was greater than 125% of Target, and the Company’s Actual Performance for 2006 was 90% or greater than the Company’s Actual Performance for 2005 such that the Executive had the right to be paid an Excess Bonus in respect of 2005, but, as of the date of his termination in 2007, the Bonus for 2006 has not yet been paid and, accordingly, the Excess Bonus in respect of 2005 has not yet been paid, the Executive shall be entitled to payment of such Bonus and Excess Bonus (together, the “Earned but Unpaid Bonus”)), (iv) if the Company’s Actual Performance during the Fiscal Year preceding the Fiscal Year of the Executive’s termination was greater than 125% of Target

,
and the Company’s Actual Performance during the Fiscal Year of the Executive’s termination is 90% or greater than the Company’s Actual Performance for the prior year, then the Executive shall be entitled to receive an Excess Bonus, which amount shall not be pro-rated and shall be paid on the same date that bonuses are payable to other senior executives of the Company (the “Severance Excess Bonus”), and (v) reimbursement of any unreimbursed business expenses properly incurred by the Executive in accordance with Company policy prior to the date of the Executive’s termination.  The Executive shall have no further rights to any compensation or other benefits under this Agreement, and any other benefits (including rights to stock, stock options, retirement income and insurance) due the Executive following termination of the Executive’s employment hereunder on account of death or Disability shall be determined in accordance with the plans, policies and practices of the Company;
provided, however, that the Executive shall not be entitled to any payments or benefits under any separately stated severance plan, policy or program of the Company.

9

          (b) Termination by the Company Without Cause or by the Executive for Good Reason.

               (i) If the Executive’s employment is terminated by the Company pursuant to subsection 5(e) hereof (Without Cause) or if the Executive terminates his employment pursuant to subsection 5(d) hereof (for Good Reason), then the Executive shall be entitled to receive:  (A) any accrued but unpaid Base Salary through the date of termination; (B) the Pro-Rata Bonus; (C) any Earned but Unpaid Bonus; (D) any Severance Excess Bonus; (E) reimbursement of any unreimbursed business expenses properly incurred by the Executive in accordance with Company policy prior to the date of the Executive’s termination; and (F) subject to the Executive’s continued compliance with Sections 11 and 12 of this Agreement, (1) the “Salary Severance Benefit” and the “Bonus Severance Benefit”
(as each term is defined in subsection 6(b)(ii)) and (2) continued medical and dental coverage (which coverage shall be provided by the Company paying the applicable premiums under COBRA) through the earlier of (I) the end of the Severance Term (as such term is defined in subsection 6(b)(ii)(1)) and (II) the Executive’s becoming eligible to receive comparable benefits from any other source, of which the Executive is required to promptly notify the Company.   The Salary Severance Benefit and the Bonus Severance Benefit shall be paid over the Severance Term in accordance with the Company’s usual payroll practices and shall be subject to the Executive’s continued compliance with Sections 11 and 12 of this Agreement.  The Executive shall have no further rights to any compensation or other benefits under this Agreement, and any other benefits (including rights to stock, stock options, retirement income and insurance), due the Executive following termination pursuant to subsection 5(e) or 5(d) hereo

f
shall be determined in accordance with the
plans, policies and practices of the Company; provided, however, that the Executive shall not be entitled to payments or benefits under any separately stated severance plan, policy or program of the Company.

               (ii) For purposes of this Section 6, the following terms shall have the meaning set forth in this subsection 6(b)(ii).

               (1) “Severance Term” shall mean 18 months.

               (2) “Salary Severance Benefit” shall mean the Executive’s Base Salary that would have been payable from the effective date of termination through the end of the Severance Term based on the Base Salary in effect on the effective date of the termination.

               (3) “Bonus Severance Benefit” shall mean the “Average Bonus” multiplied by the Bonus Multiple.  The Bonus Multiple shall be 1.5.

               (4) The “Average Bonus” shall mean:  (i) with respect to a termination that occurs in Fiscal Year 2004, zero; (ii) with respect to a termination that occurs in Fiscal Year 2005, the Bonus that the Executive would have been entitled to receive with respect to Fiscal Year 2005 if the Executive had remained employed through

10

the Bonus Payment Date, based on the Company attaining 100% of Target; (iii) with respect to a termination that occurs in Fiscal Year 2006, the Bonus actually paid to the Executive with respect to Fiscal Year 2005; and (iv) with respect to a termination during a Fiscal Year subsequent to Fiscal Year 2005, the average of the Bonuses actually paid to the Executive in the two Fiscal Years preceding the termination.

               (iii) Termination Following a Change in Control.  Notwithstanding anything to the contrary in this Agreement, if the Executive’s employment is terminated pursuant to subsections 5(d) or 5(e) hereof within one year following a Change in Control, in lieu of receiving the amounts set forth in Section 6(b)(i)(F)(1) hereof, the Executive shall receive a lump sum payment, payable as soon as reasonably practicable following the date of termination, in an amount equal to the sum of (A) the Salary Severance Benefit, where the Severance Term shall be 36 months, and (B) the Bonus Severance Benefit, where the Bonus Multiple shall be three.

          (c) Termination by the Company For Cause or by the Executive Without Good Reason.  If the Executive’s employment is terminated by the Company under subsection 5(c) hereof (for Cause) or by the Executive under subsection 5(f) hereof (without Good Reason), the Executive shall be entitled to receive:  (i) any accrued but unpaid Base Salary through the date of termination; and (ii) reimbursement of any unreimbursed business expenses properly incurred by the Executive in accordance with Company policy prior to the date of the Executive’s termination.  If the Executive’s employment hereunder is terminated by the Executive under subsection 5(f) hereof (without Good Reason), the Executive shall also be entitled to receive any Earned but Unpaid Bonus.  The Executive shall have no further rights to any compensation or other benefits under this Agreement,
and any other benefits (including rights to stock, stock options, retirement income and insurance), due the Executive following termination of the Executive’s employment under Section 5(c) or 5(f) hereof shall be determined in accordance with the plans, policies and practices of the Company; provided, however, that the Executive shall not be entitled to any payments or benefits under any separately stated severance plan, policy or program of the Company.

          (d) Expiration of the Employment Term.  In the event that the Company or the Executive elects not to extend the Term as provided in Section 2 hereof, the Executive’s employment shall be terminated upon the expiration of the Term, and, subject to Section 16 hereof, the provisions of this Agreement shall cease to apply effective as of such expiration, and the Executive shall be entitled to receive only the following:  (i) any accrued but unpaid Base Salary through the date of termination; (ii) reimbursement of any unreimbursed business expenses properly incurred by the Executive in accordance with Company policy prior to the date of termination; and (iii) any Earned but Unpaid Bonus.  The Executive shall thereafter receive no other compensation or benefits, other than pursuant to the terms of the plans, policies and practices of the Company;
provided, however, that the Executive shall not be entitled to any payments or benefits under any separately stated severance plan, policy or program of the Company.

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          (e) Execution of Release of All Claims.  Notwithstanding any other provision of this Agreement to the contrary, the Executive acknowledges and agrees that, except if the Executive’s employment hereunder terminates pursuant to Section 5(a) hereof (death), any and all payments to which the Executive is entitled under this Agreement are conditional upon and subject to the Executive’s execution of a release substantially in the form attached hereto as Exhibit B (which form may be reasonably modified to reflect changes in the law).

     7. EXCISE TAX GROSS-UP.

          (a) Notwithstanding anything in this Agreement to the contrary, and except as set forth in the last sentence of this subsection 7(a) below, if it is determined that any payment, benefit or distribution by the Company or its subsidiaries or affiliates to or for the benefit of the Executive (whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise, but determined without regard to any additional payments required under this Section 7) (a “Payment”) would be subject to the excise tax imposed by Section 4999 of the Code or to any interest or penalties with respect to such excise tax (such excise tax, together with any such interest and penalties, are hereafter collectively referred to as the “Excise Tax”), then Executive shall be entitled to receive an additional payment (a “Gross-Up
Payment”) in an amount such that, after payment by the Executive of all taxes (including any interest or penalties imposed with respect to such taxes), including, without limitation, any income taxes (and any interest and penalties imposed with respect thereto) and 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.  Notwithstanding the foregoing, if it is determined that the Executive is entitled to a Gross-Up Payment, but that the aggregate value of the Payments do not exceed 105% of the greatest amount (the “Reduced Amount”) that could be paid to the Executive such that the receipt of Payments would not give rise to any Excise Tax, then no Gross-Up Payment shall be made to the Executive, and the Payments, in the aggregate, shall be reduced to the Reduced Amount.

          (b) Subject to the provisions of Section 7(e) below, all determinations required to be made under this Section 7, including whether a Gross-Up Payment is required and the amount of such Gross-Up Payment and the assumptions to be utilized in arriving at such determination, shall be made by a nationally recognized certified public accounting firm selected by the Company (the “Accounting Firm”), which may be the Company’s regular outside auditors.  The Company will direct the Accounting Firm to submit its determination and detailed supporting calculations to both the Company and the Executive within 30 calendar days after the date of the Change in Control or the date of the Executive’s termination of employment or any earlier time selected by the Company.  All fees and expenses of the Accounting Firm in performing the determinations referred to in
this Section 7 shall be paid by the Company.  If the Accounting Firm determines that any Excise Tax is payable by the Executive, the Company shall pay the required Gross-Up Payment to the Executive no later than five calendar days prior to the due date for the Executive’s income tax return on which the Excise Tax is to be included.  Absent manifest error, any determination by the

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Accounting Firm as to the amount of the Gross-Up Payment shall be binding upon the Company and the Executive; provided, that following any payment of a Gross-Up Payment to the Executive (or to the Internal Revenue Service or other taxing authority on the Executive’s behalf) the Company may require the Executive to sue for a refund of all or any portion of the Excise Taxes paid on the Executive’s behalf, in which event the provisions of subsection 7(e) below shall apply.  As a result of the uncertainty in the application of Section 4999 of the Code (or any successor provision) at the time of the initial determination by the Accounting Firm hereunder, it is possible that Gross-Up Payments will not have been made by the Company, which should have been made (“Underpayment”), consistent with the calculations required to be made hereunder.  If the Company exhausts its remedies pursuant to subsection 7(e) hereof,

and the Executive thereafter is required to make a payment of any Excise Tax, the Executive shall so notify the Company, and the Company shall direct the Accounting Firm to determine the amount of the Underpayment that has occurred and to submit its determination and detailed supporting calculations to both the Company and the Executive as soon as reasonably practicable.  Any such Underpayment shall be promptly paid by the Company to the Executive (or to the Internal Revenue Service or other applicable taxing authority on the Executive’s behalf).

          (c) The Company and the Executive shall each provide the Accounting Firm access to and copies of any books, records and documents in the possession of the Company or the Executive, as the case may be, reasonably requested by the Accounting Firm, and otherwise cooperate with the Accounting Firm in connection with the preparation and issuance of the determination contemplated by subsection 7(b) hereof.

          (d) The federal, state and local income or other tax returns filed by the Executive will be prepared and filed on a consistent basis with the determination of the Accounting Firm with respect to the Excise Tax payable by the Executive.  The Executive will make proper payment of the amount of any Excise Tax, and at the request of the Company, provide to the Company true and correct copies (with any amendments) of the Executive’s federal income tax return as filed with the Internal Revenue Service and corresponding state and local tax returns, if relevant, as filed with the applicable taxing authority, and such other documents reasonably requested by the Company, evidencing such payment.

          (e) The Executive shall notify the Company in writing of any claim by the Internal Revenue Service that, if successful, would require the payment by Company of a Gross-Up Payment or an Underpayment.  Such notification shall be given as soon as practicable but no later than ten business days after the Executive receives written notification of such claim, and the Executive shall further apprise the Company of the nature of such claim and the date on which such claim is requested to be paid.  The Executive shall not pay such claim prior to the expiration of the 30-calendar-day period following the date on which he gives such notice to Company (or such shorter period ending on the date that any payment of taxes with respect to such claim is due).  If the

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Company notifies the Executive in writing prior to the expiration of such period that it desires to contest such claim, the Executive shall:

               (i) provide the Company any information reasonably requested by the Company relating to such claim,

               (ii) take such action in connection with contesting such claim as the Company shall reasonably request in writing from time to time, including, without limitation, accepting legal representation with respect to such claim by an attorney reasonably selected by the Company,

               (iii) cooperate with the Company in good faith in order effectively to contest such claim, and

               (iv) permit the Company to participate in any proceedings relating to such claim;

provided, however, that the Company shall bear and pay directly all costs and expenses (including additional interest and penalties) incurred in connection with such contest and shall indemnify and hold the Executive harmless, on an after-tax basis, for any Excise Tax or income tax (including interest and penalties with respect thereto) imposed as a result of such contest and payment of costs and expenses.  Without limitation on the foregoing provisions of this subsection 7(e), the Company shall control all proceedings taken in connection with such contest and, at its sole option, may pursue or forgo any and all administrative appeals, proceedings, hearings and conferences with the taxing authority in respect of such claim and may, at its sole option, either direct the Executive to pay the tax claimed and sue for a refund or contest the claim in any permissible manner, and the Executive agrees to prosecute such
contest to a determination before any administrative tribunal, in a court of initial jurisdiction and in one or more appellate courts, as the Company shall determine; provided, however, that if the Company directs the Executive to pay such claim and sue for a refund, the Company shall pay the amount of such payment to the Executive along with an additional Gross-Up Payment, and shall indemnify and hold the Executive harmless, on an after-tax basis, from any Excise Tax or income tax (including interest or penalties with respect thereto) imposed with respect to such payment; and further provided that any extension of the statute of limitations relating to payment of taxes for the taxable year of the Executive with respect to which such contested amount is claimed to be due is limited solely to such contested amount.  Furthermore, the Company’s control of the contest shall be limited to issues with respect to which a Gross-Up Payment would be payable hereunder, and the Executive shall be entitled to settle

or contest, as the case may be, any other issue raised by the Internal Revenue Service or any other taxing authority.

          (f) If, after the receipt by the Executive of an amount advanced by the Company pursuant to subsection 7(e), the Executive receives any refund with respect to such claim, the Executive shall promptly pay to the Company the amount of such refund (together with any interest paid or credited thereon after taxes applicable

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thereto).  If, after the receipt by the Executive of a Gross-Up Payment but before the payment by the Executive of the Excise Tax, it is determined by the Accounting Firm that the Excise Tax payable by the Executive is less than the amount originally computed by the Accounting Firm and consequently that the amount of the Gross-Up Payment is larger than that required by subsection 7(a), the Executive shall promptly refund to the Company the amount by which the Gross-Up Payment initially made to the Executive exceeds the Gross-Up Payment required under subsection 7(a) together with interest on such excess amount.

          (g) If it is ultimately determined (by Internal Revenue Service private letter ruling or closing agreement, court decision or otherwise) that Gross-Up Payments and/or advances and/or Underpayments and/or any other amount paid or made by the Company pursuant to this Section 7 were not necessary to accomplish the purpose of this Section 7, the Executive shall promptly cooperate with the Company to correct such overpayments (by way of assigning any refund to the Company as provided herein, by direct repayment or otherwise) in a manner consistent with the purpose of this Section 7, which is to protect the Executive by making him whole, but not more than whole, on an after-tax basis, from the application of the Excise Tax.

     8. LEGAL FEES; REIMBURSEMENT OF CERTAIN EXPENSES

     The Company shall promptly reimburse the Executive for the first $50,000 of reasonable legal fees and reasonable expenses incurred by the Executive in connection with seeking to obtain or enforce in good faith any right or benefit provided to the Executive by the Company pursuant to or in accordance with this Agreement, the Non Qualified Stock Option Agreement and the Restricted Stock Agreement and for 50% of all such amounts incurred by the Executive in excess of $50,000 up to a maximum of $100,000 of aggregate benefits paid under this Section 8, provided, however, that, notwithstanding the foregoing, the Company shall pay all of the reasonable legal fees and reasonable expenses incurred by the Executive if the Executive substantially prevails in such dispute.  In addition, the Company hereby agrees that the amount of any such legal fees and expenses reimbursed to the Executive

 in connection with obtaining or enforcing any right or benefit provided to the Executive by the Company pursuant to or in accordance with this Agreement will not be taken into account by the Company in determining the aggregate compensation paid or payable to the Executive under this Agreement.  None of the legal fees or reasonable expenses paid to the Executive by the Company under this Section 8 shall be recoverable.  The Company shall bear its own costs and attorneys’ fees in any dispute under this Agreement.

     9. INDEMNIFICATION AND INSURANCE

     During the Term and thereafter, the Executive shall be entitled to indemnification to the fullest extent permitted in accordance with the by-laws and/or charters or other formation and governing documents of the Company and its subsidiaries and affiliates and as provided under the terms of the Company’s directors and officers liability and (if applicable) fiduciary liability insurance policies (the “Policies”), as the Policies may be amended from time to time, or any successor policy, provided, that any

15

such policy shall have terms that are, in the aggregate, no less favorable than the terms of the relevant policy in effect on the Effective Date.  The Company agrees that, prior to the Executive’s election or appointment, at the Company’s request, as a director, officer, employee or agent of another corporation or of a partnership, joint venture, limited liability company, trust, enterprise or nonprofit entity, including service with respect to employee benefit plans, (i) the Company shall confirm said request to the Executive in writing, and (ii) the Company shall procure an endorsement to the Policies or any amended or successor policy if such an endorsement is required to cover the Executive in said capacity thereunder.

     10. TAXES

     Except as otherwise provided in Section 4(h) or 7 of this Agreement, the Company shall withhold from all amounts payable under this Agreement all federal, state, local and other taxes required by law to be withheld with respect to such payments.

     11. CONFIDENTIALITY

     The Executive acknowledges that the information, observations and data obtained by him while employed by the Company concerning the business or affairs of the Company and its subsidiaries and affiliates which are not available to the public, customers, suppliers and competitors of the Company which are in the nature of trade secrets, are proprietary or the disclosure of which could reasonably be expected to cause a financial loss to the Company, or otherwise have an adverse effect on the Company (“Confidential Information”) are the property of the Company or such subsidiary or affiliate.  Therefore, the Executive agrees that, except as required by law or the rules of any national securities exchange, he shall not disclose to any unauthorized person or use for his own account any Confidential Information without the prior written consent of the Board, unless and to the extent that any of

the aforementioned matters becomes generally known to the public or is ascertainable from public or published information and is available for use by the public other than as a result of the Executive’s acts or omissions to act.  The Executive shall deliver to the Company any time the Company may request in writing, all copies of all memoranda, notes, plans, records, reports, computer tapes and software and other documents and data, or the portions thereof, that contain the Confidential Information, which he may then possess or have under his control.

     12. NON-COMPETE; NON-SOLICITATION

          (a) The Executive acknowledges and agrees that the principal businesses of the Company are the production and sale of tampons, infant feeding and sun protection products (collectively, the “Company Businesses”), and the Executive agrees that, during the Noncompete Period (as defined below), he shall not, directly or indirectly, own, manage, control, participate in, consult with, render services for or in any manner engage in any business that competes anywhere in the United States, Canada or anywhere else in the world with the Company Businesses or with any businesses that the Company or its subsidiaries or affiliates have specific plans of conducting in the future and of which the Executive becomes aware during the Term (collectively, “Competing

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Businesses”).  Nothing herein shall prohibit the Executive from owning not more than 5% of the outstanding stock of any class of a corporation which is publicly traded or providing advice as to investment in a Competing Business, so long as the Executive has no active participation in the management of the business of such corporation or Competing Business.  For purposes of this Agreement, the term “Noncompete Period” means during the Term and for 18 months thereafter.

          (b) The Executive shall not knowingly, either directly or indirectly through another entity, (i) induce or attempt to induce any management or other key employees of the Company or its subsidiaries or affiliates to leave the employ of the Company or such subsidiary or affiliate, or in any way interfere with the relationship between the Company or its subsidiaries or affiliates and any such employee, (ii) hire any person who was a management or other key employee of the Company or its subsidiaries or affiliates at any time during the Executive’s employment with the Company until the later of the first anniversary of the termination of the Executive’s employment and the six-month anniversary of such employee’s departure from the Company, or (iii) during the Noncompete Period, induce or attempt to induce any customer, supplier, licensee or other

business relation of the Company or its subsidiaries or affiliates at any time during the Executive’s employment with the Company to cease doing business with the Company or its subsidiaries or affiliates, or in any way interfere with the relationship between any such customer, supplier, licensee or business relation and the Company or its subsidiaries or affiliates.

          (c) If, at the time of enforcement of this Section 12, a court shall hold that the duration, scope or area restrictions stated herein are unreasonable under circumstances then existing, the parties agree that the maximum duration, scope or area reasonable under such circumstances, if less, shall be substituted for the stated duration, scope or area and that the court or arbitrator shall be allowed to revise the restrictions contained herein to cover, if less, the maximum period, scope and area permitted by law.

          (d) In the event of the breach or a threatened breach by the Executive of any of the provisions of Sections 11 or 12 hereof, the Company, in addition and supplementary to other rights and remedies existing in its favor, may apply to any court of law or equity of competent jurisdiction for specific performance or injunctive or other relief in order to enforce or prevent any violations of the provisions hereof (without posting a bond or other security).

     13. SUCCESSORS; BINDING AGREEMENT

          (a) This Agreement shall be binding upon and inure to the benefit of the Company and any successor of the Company, including, any corporation acquiring directly or indirectly all or substantially all of the Common Stock, business or assets of the Company, whether by merger, restructuring, reorganization, consolidation, sale or otherwise (and such successor shall thereafter be deemed the “Company” for the purposes of this Agreement), and the Company shall use its reasonable efforts to procure and deliver to the Executive prior to the closing of any such transaction written

17

acknowledgment by such successor that it is so bound.  Each of the Company’s subsidiaries is hereby acknowledged to be a third-party beneficiary with respect to the provisions of Sections 11 and 12 hereof and shall be entitled to enforce such provisions as if it were a party hereto.

          (b) This Agreement and all rights of the Executive hereunder shall inure to the benefit of and be enforceable by the Executive’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees.  If the Executive should die while any amounts would be still payable to him hereunder if he had continued to live, all such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this Agreement to the Executive’s estate, provided that the Executive shall be entitled to select (and change, to the extent permitted under any applicable law) a beneficiary or beneficiaries to receive any compensation or benefit payable under this Agreement following the Executive’s death by giving the Company written notice thereof. In the event of the Executive’s death or of a judicial
determination of his incompetence, reference in this Agreement to the Executive shall be deemed to refer, as appropriate, to his beneficiary, estate or other legal representative.

     14. NO MITIGATION; NO OFFSET

     The Company agrees that, subsequent to the Executive’s termination of employment by the Company, the Executive is not required to seek other employment or to attempt in any way to reduce any amounts payable to him due under this Agreement, and that the amount of any payment that the Company is obligated to make to the Executive shall not be reduced by any compensation earned by the Executive as the result of employment by another employer, by retirement benefits, by offset against any amount claimed to be owed by the Executive to the Company, or otherwise.

     15. NOTICE

     For the purposes of this Agreement, notices, demands and all other communications provided for in the Agreement shall be in writing and shall be deemed to have been duly given when hand delivered or (unless otherwise specified) when mailed by United States certified mail, return receipt requested, postage prepaid, addressed as follows:

     If to the Executive:

Neil P. DeFeo

21 Woody Lane

Westport, Connecticut  06880

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     With a  copy to:

Levett Rockwood P.C.

33 Riverside Avenue

Westport, Connecticut  06880

Attn:  Robert O. Barberi

     If to the Company:

Playtex Products, Inc.

300 Nyala Farms Road

Westport, Connecticut 06880

Attention:  Chairman of the Board

     With copies to:

Vice President, General Counsel and Secretary of

Playtex Products,  Inc., at the address above

and

Paul, Weiss, Rifkind, Wharton & Garrison LLP

1285 Avenue of the Americas

New York, New York  10019-6064

Attention:  Robert M. Hirsh

or to such other address as any party may have furnished to the others in writing in accordance herewith, except that notices of change of address shall be effective only upon receipt.

     16. SURVIVORSHIP

     The respective rights and obligations of the parties hereunder, including the rights and obligations set forth in Sections 6, 7, 8, 9, 10, 11 and 12 of this Agreement, shall survive any termination of this Agreement to the extent necessary to the intended preservation of such rights and obligations.

     17. REPRESENTATIONS AND WARRANTIES

          (a) The Company represents and warrants that (i) it is fully authorized and empowered to enter into this Agreement and that the Board has approved the terms of this Agreement, (ii) the execution of this Agreement and the performance of its obligations under this Agreement will not violate or result in a breach of the terms of any material agreement to which the Company is a party or by which it is bound, (iii) no approval by any governmental authority or body is required for it to enter into this

19

Agreement, and (iv) the Agreement is valid, binding and enforceable against the Company in accordance with its terms.

          (b) The Executive hereby represents to the Company that the execution and delivery of this Agreement by the Executive and the Company, and the performance by the Executive of the Executive’s duties hereunder, shall not constitute a breach of, or otherwise contravene, the terms of any employment or other agreement to which the Executive is a party or otherwise bound.

     18. MISCELLANEOUS

     The parties hereto agree that this Agreement contains the entire understanding and agreement between them, and supersedes all prior understandings and agreements between the parties respecting the employment by the Company of the Executive, and that the provisions of this Agreement may not be modified, waived or discharged unless such waiver, modification or discharge is agreed to in writing signed by the parties hereto.  No waiver by either party hereto at any time of any breach by the other party hereto of, or compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time.  No agreements or representations, oral or otherwise, express or implied, with respect to the subject matter hereof have been made by either party which are not set forth

expressly in this Agreement.  The validity, interpretations, construction and performance of this Agreement shall be governed by the laws of the State of New York without giving effect to conflict of laws principles.  The parties hereby consent to the jurisdiction of the state and federal courts located within the State of New York.

     19. VALIDITY

     The invalidity or unenforceability of any provision or provisions of this Agreement shall not affect the validity or enforceability of any other provision or provisions of this Agreement, which shall remain in full force and effect.

     20. COUNTERPARTS

     This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original but all of which together will constitute one and the same instrument.

[Remainder of the Page is Intentionally Left Blank]

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

	 	 
	
	PLAYTEX PRODUCTS, INC.

	
	 
	
	/s/ Doug Wheat
	
	Name: Douglas D. Wheat
	
	Title: Chairman of the Board
	
	 
	
	/s/ Neil P. DeFeo
	
	Neil P. DeFeo

EXHIBIT A

NON QUALIFIED STOCK OPTION AGREEMENT

EXHIBIT B

CROSS RELEASE

1.   Executive Release.

     In partial consideration of a portion of the payments and benefits described in the employment agreement (the “Agreement”), effective October 2, 2004, by and between Neil P. DeFeo (the “Executive”) and Playtex Products, Inc. (the “Company”), to which the Executive agrees the Executive is not otherwise entitled, the Executive, for and on behalf of himself and his heirs and assigns, subject to the following two sentences hereof, hereby waives and releases any common law, statutory or other complaints, claims, charges or causes of action of any kind whatsoever, both known and unknown, in law or in equity, which the Executive ever had, now has or may have against the Company and any of its shareholders who at any time on or after January 1, 1995 held in excess of five percent (5%) of the Company’s outstanding capital stock, and any of their respective subsidiaries,
affiliates, predecessors, successors, assigns, directors, officers, partners, members, employees, agents (collectively, the “Releasees”) by reason of facts or omissions which have occurred on or prior to the date that the Executive signs this Release, including, without limitation, any complaint, charge or cause of action arising under federal, state or local laws pertaining to employment, including the Age Discrimination in Employment Act of 1967 (“ADEA,” a law which prohibits discrimination on the basis of age), the National Labor Relations Act, the Civil Rights Act of 1991, the Americans With Disabilities Act of 1990, Title VII of the Civil Rights Act of 1964, all as amended; and all other federal, state and local laws and regulations.  By signing the Release, the Executive acknowledges that he intends to waive and release any rights known or unknown that he may have against the Releasees under these and any other laws; provided, that the Executive does not waive or release claims with

respect to the right to enforce Sections 6, 7, 8 and 9 of the Agreement, the Non Qualified Stock Option Agreement (as defined in the Agreement), the Restricted Stock Award Agreement and (as defined in the Agreement) any rights under any plan governed by the Employee Retirement Income Security Act of 1974, as amended (the “Unreleased Claims”).  Notwithstanding the foregoing, the Executive does not release, discharge or waive any rights to indemnification that he may have under the certificate of incorporation, the by-laws or equivalent governing documents of the Company or its subsidiaries or affiliates, the laws of the State of Delaware or any other state of which such subsidiary or affiliate is a domiciliary, or any indemnification agreement between the Executive and the Company, or any rights to insurance coverage under any directors’ and officers’ personal liability insurance or fiduciary insurance policy.

2.   Proceedings.

     The Executive acknowledges that he has not filed any complaint, charge, claim or proceeding, except with respect to an Unreleased Claim, if any, against any of the Releasees before any local, state or federal agency, court or other body (each individually a “Proceeding”).  The Executive represents that he is not aware of any basis

on which such a Proceeding could reasonably be instituted.  The Executive (i) acknowledges that he will not initiate or cause to be initiated on his behalf any Proceeding and will not participate in any Proceeding, in each case, except as required by law; and (ii) waives any right he may have to benefit in any manner from any relief (whether monetary or otherwise) arising out of any Proceeding, including any Proceeding conducted by the Equal Employment Opportunity Commission (“EEOC”).  Further, the Executive understands that by entering into the Agreement, he will be limiting the availability of certain remedies that he may have against the Company and limiting also his ability to pursue certain claims against the Releasees.  Notwithstanding the above, nothing in Section 1 of this Release shall prevent the Executive from (i) initiating or causing to be initiated on his behalf any complaint, charge, claim or
proceeding against the Company before any local, state or federal agency, court or other body challenging the validity of the waiver of his claims under ADEA contained in Section 1 of the Release (but no other portion of such waiver); or (ii) initiating or participating in an investigation or proceeding conducted by the EEOC.

3.   Time to Consider.

     The Executive acknowledges that he has been advised that he has twenty-one (21) days from the date of receipt of the Agreement to consider all the provisions of the Agreement and he does hereby knowingly and voluntarily waive said given twenty-one (21) day period.  THE EXECUTIVE FURTHER ACKNOWLEDGES THAT HE HAS READ THE RELEASE CAREFULLY, HAS BEEN ADVISED BY THE COMPANY TO, AND HAS IN FACT, CONSULTED AN ATTORNEY, AND FULLY UNDERSTANDS THAT BY SIGNING BELOW HE IS GIVING UP CERTAIN RIGHTS WHICH HE MAY HAVE TO SUE OR ASSERT A CLAIM AGAINST ANY OF THE RELEASEES, AS DESCRIBED IN SECTION 1 OF THIS RELEASE AND THE OTHER PROVISIONS HEREOF.  THE EXECUTIVE ACKNOWLEDGES THAT HE HAS NOT BEEN FORCED OR PRESSURED IN ANY MANNER WHATSOEVER TO SIGN THE RELEASE, AND THE EXECUTIVE AGREES TO ALL OF ITS TERMS VOLUNTARILY.

4.   Revocation.

     The Executive hereby acknowledges and understands that the Executive shall have seven (7) days from the date of his execution of the Release to revoke the Release (including, without limitation, any and all claims arising under ADEA) and that neither the Company nor any other person is obligated to provide any benefits to the Executive pursuant to Sections 6 or 7 of the Agreement until eight (8) days have passed since the Executive’s signing of this Release without the Executive’s signature having been revoked, in which event the Company immediately shall arrange and/or pay for any such benefits otherwise attributable to said eight- (8) day period.  If the Executive revokes the Release, the Executive will be deemed not to have accepted the terms of the Release, and no action will be required of the Company under any section of the Release.

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5.   Company Release.

     For and in partial consideration of the undertakings of the Executive in Section 1 of this Release, and for other good and valuable consideration the receipt of which is hereby acknowledged, the Company hereby agrees, on behalf of the Company and its shareholders and any of their respective subsidiaries, affiliates, predecessors, successors, assigns, directors, officers, partners and members (collectively, the “ Company Releasors”) to, and the Company Releasors do hereby release the Executive and his heirs and assigns (the “Executive Releasees”) from any and all common law, statutory or other complaints, claims, charges or causes of action of any kind which the Company Releasors ever had, now have or may have against the Executive Releasees or any of them, in law or equity, by reason of facts or omissions which have occurred on or prior to the date that the Company signs this
Release, including, without limitation, in connection with or in relationship to the Executive’s employment or other service relationship with the Company, the termination of any such employment or service relationship, and claims of breach of contract, retaliation, fraud, defamation and breach of fiduciary duty (the “Company Released Claims”), provided that such Company Released Claims shall not include (i) any claims to enforce the Company Releasors’ rights or obligations under or with respect to Sections 6, 7, 11 and 12 of the Agreement, or (ii) any claim alleging conduct in the nature of fraud or any other action or omission that (A) would constitute a felony under any federal, state or local law, or (B) would constitute “Cause” under the Agreement, whether or not the Executive’s employment with the Company is actually terminated for Cause.

6.   No Admission.

     This Cross Release does not constitute an admission of liability or wrongdoing of any kind by the Executive or the Company.

7.   General Provisions.

     A failure of any of the Releasees to insist on strict compliance with any provision of this Cross Release shall not be deemed a waiver of such provision or any other provision hereof.  If any provision of this Cross Release is determined to be so broad as to be unenforceable, such provision shall be interpreted to be only so broad as is enforceable, and in the event that any provision is determined to be entirely unenforceable, such provision shall be deemed severable, such that all other provisions of this Cross Release shall remain valid and binding upon the Executive and the Releasees.

8.   Governing Law.

     The validity, interpretations, construction and performance of this Cross Release shall be governed by the laws of the State of New York without giving effect to conflict of laws principles.  The parties hereby consent to the jurisdiction of the state and federal courts located within the State of New York.

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IN WITNESS WHEREOF, the Executive has hereunto set the Executive’s hand as of the day and year set forth opposite his signature below.

	 	 	 
	
	 	 
	DATE
	 	Neil P. DeFeo
	
	 	 
	
	 	PLAYTEX PRODUCTS, INC.
	DATE
	 	 
	
	 	 
	
	 	Name:
	
	 	Title:

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