Document:

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                                                                  Exhibit 10.31

                              EMPLOYMENT AGREEMENT

                  EMPLOYMENT AGREEMENT, made as of January 2, 2001 (the
"Commencement Date") by and between, U.S. Industries, Inc., a Delaware
corporation, (the "Company"), and Alan Schutzman ("Executive").

                              W I T N E S S E T H:
                              -------------------

                  WHEREAS, the Company and Executive desire to enter into this
agreement (the "Agreement") as to the terms of his employment by the Company.

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

                  1. TERM OF EMPLOYMENT. Except for earlier termination as
provided in Section 7 hereof, Executive's employment under this Agreement shall
be for a two-year term (the "Employment Term") commencing on the Commencement
Date and ending two (2) years thereafter. Subject to Section 7 hereof, the
Employment Term shall be automatically extended for additional terms of
successive one (1) year periods unless the Company or Executive gives written
notice to the other at least ninety (90) days prior to the expiration of the
then current Employment Term of the termination of Executive's employment
hereunder at the end of such current Employment Term.

                  2. POSITIONS. (a) Executive shall serve as Associate General
Counsel and a senior executive of the Company and, upon the relocation of the
Company's headquarters to its Florida office following the spin-off or sale of
its LCA Group Inc.'s business segment, Executive

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shall serve as Vice President, General Counsel and Secretary, reporting to the
Company's Senior Vice President of Administration or other executive designated
by the Chief Executive Officer of the Company (the "Chief Executive Officer").
If requested by the Board of Directors of the Company (the "Board") or the Chief
Executive Officer, Executive shall also serve on the Board, as an executive
officer and director of subsidiaries and a director of associated companies of
the Company without additional compensation and subject to any policy of the
Compensation Committee of the Company's Board (the "Compensation Committee")
with regard to retention or turnover of the director's fees.

                  (b) Executive shall have such duties and authority, consistent
with his then position as shall be assigned to him from time to time by the
Board, or the Senior Vice President-Administration or her designee.

                  (c) During the Employment Term, Executive shall devote all of
his business time and efforts to the performance of his duties hereunder;
provided, however, that Executive shall be allowed, to the extent that such
activities do not materially interfere with the performance of his duties and
responsibilities hereunder, to manage his passive personal interests and to
serve on civic or charitable boards or committees, and subject to the next
sentence, serve on corporate boards of directors. Executive may serve on
corporate boards of directors only if approved in advance by the Board (which
approval may be withdrawn at any time) and shall not serve on any corporate
board of directors if such service would be inconsistent with his fiduciary
responsibilities to the Company.

                  3. BASE SALARY. During the Employment Term, the Company shall
pay Executive a base salary at the annual rate of not less than $185,000. Base
salary shall be payable in accordance with the usual payroll practices of the
Company. Executive's Base Salary shall be

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subject to annual review by the Board or the Compensation Committee during the
Employment Term and may be increased, but not decreased, from time to time by
the Board or the Compensation Committee, except that, prior to a Change in
Control (as defined in Exhibit A), it may be decreased proportionately in
connection with an across the board decrease generally applying to senior
executives of the Company. The base salary as determined as aforesaid from time
to time shall constitute "Base Salary" for purposes of this Agreement.

                  4. INCENTIVE COMPENSATION. (a) BONUS. For each fiscal year or
portion thereof during the Employment Term, Executive shall be eligible to
participate in an incentive bonus plan of the Company in accordance with, and
subject to, the terms of such plan, that provides an annualized cash target
bonus opportunity equal to at least 50% of Base Salary (the "Target Bonus").

                  (b) OTHER COMPENSATION. The Company may, upon recommendation
of the Compensation Committee, award to Executive such other bonuses and
compensation as it deems appropriate and reasonable.

                  5. EMPLOYEE BENEFITS AND VACATION. (a) During the Employment
Term, Executive shall be entitled to participate in all pension, incentive
compensation, retirement, savings, welfare and other employee benefit plans and
arrangements and fringe benefits and perquisites generally maintained by the
Company from time to time for the benefit of senior executive officers of the
Company of a comparable level in each case in accordance with their respective
terms as in effect from time to time.

                  (b) During the Employment Term, Executive shall be entitled to
vacation each year in accordance with the Company's policies in effect from time
to time, but in no event less

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than four (4) weeks paid vacation per calendar year. Executive shall also be
entitled to such periods of sick leave as is customarily provided by the Company
to its senior executive employees.

                  6. BUSINESS EXPENSES. The Company shall reimburse Executive
for the travel, entertainment and other business expenses incurred by Executive
in the performance of his duties hereunder, in accordance with the Company's
policies as in effect from time to time.

                  7. TERMINATION. (a) The employment of Executive and the
Employment Terms shall terminate as provided in Section 1 hereof or, if earlier,
upon the earliest to occur of any of the following events:

                             (i) the death of Executive;

                            (ii) the termination of Executive's Employment Term
                  by the Company due to Executive's Disability (as defined in
                  Exhibit A) pursuant to Section 7(b) hereof;

                           (iii) the termination of Executive's employment by
                  Executive for Good Reason (as defined in Exhibit A) pursuant
                  to Section 7(c) hereof;

                            (iv) the termination of Executive's employment by
                  the Company without Cause (as defined in Exhibit A) pursuant
                  to Section 7(e) hereof;

                             (v) the termination of employment by Executive
                  without Good Reason upon sixty (60) days prior written notice
                  pursuant to Section 7(e) hereof;

                            (vi) the termination of Executive's employment by
                  the Company for Cause pursuant to Section 7(d) hereof; or
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                           (vii) the retirement of Executive by the Company at
                  or after his sixty-fifth birthday.

                  (b) DISABILITY. If Executive incurs a Disability, the Company
may terminate Executive's Employment Term for Disability upon thirty (30) days
written notice by a Notice of Disability Termination, at any time thereafter
during such twelve (12) month period while Executive is unable to carry out his
duties as a result of the same or related physical or mental illness or
incapacity. Such termination shall not be effective if Executive returns to the
full time performance of his material duties within such thirty (30) day period.

                  (c) TERMINATION FOR GOOD REASON. A Termination for Good Reason
means a termination by Executive by written notice given within ninety (90) days
after the occurrence of the Good Reason event, unless such circumstances are
fully corrected prior to the date of termination specified in the Notice of
Termination for Good Reason. A Notice of Termination for Good Reason shall mean
a notice that shall indicate the specific Good Reason event relied upon and
shall set forth in reasonable detail the facts and circumstances claimed to
provide a basis for Termination for Good Reason. The failure by Executive to set
forth in the Notice of Termination for Good Reason any facts or circumstances
which contribute to the showing of Good Reason shall not waive any right of
Executive hereunder or preclude Executive from asserting such fact or
circumstance in enforcing his rights hereunder. The Notice of Termination for
Good Reason shall provide for a date of termination not less than ten (10) nor
more than sixty (60) days after the date such Notice of Termination for Good
Reason is given, provided that in the case of the events set forth in Section
(d)(iii) of Exhibit A the date may be two (2) days after the giving of such
notice.

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

                  (e) OTHER TERMINATIONS. The Executive's employment by the
Company shall be at will. Accordingly, the Company may terminate the Executive
at any time (with or without notice), for reasons other than Cause or for no
reason. The Executive may terminate his employment with the Company at any time
upon sixty (60) days prior written notice.

                  8. CONSEQUENCES OF TERMINATION OF EMPLOYMENT. (a) DEATH,
DISABILITY, VOLUNTARY RESIGNATION WITHOUT GOOD REASON, RETIREMENT, FOR CAUSE,
NONEXTENSION OF THE EMPLOYMENT TERM BY EXECUTIVE. If Executive's employment and
the Employment Term are terminated by reason of (i) Executive's death or
Disability, (ii) by Executive without Good Reason or as a result of a notice of
nonextension of the Employment Term by Executive or (iii) by the Company for
Cause or pursuant to Section 7(a)(vi) hereof, the Employment Term under this
Agreement shall terminate without further obligations to Executive or
Executive's legal representatives under this Agreement except for: (i) any Base
Salary earned but unpaid throught the date of termination, any earned but unpaid
bonus, any accrued but unused vacation pay payable pursuant to the Company's
policies, and any unreimbursed business expenses payable

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pursuant to Section 6 (collectively "Accrued Amounts") (which, amounts shall, in
the event of Executive's death, be promptly paid in a lump sum to Executive's
estate) and (ii) any other amounts or benefits owing to Executive under the then
applicable employee benefit plans, long term incentive plans or equity plans and
programs of the Company which shall be paid in accordance with such plans and
programs.

                  (b) TERMINATION BY EXECUTIVE FOR GOOD REASON, TERMINATION BY
THE COMPANY WITHOUT CAUSE, OR NONEXTENSION OF THE TERM BY THE COMPANY. If
Executive's employment and the Employment Term are terminated (i) by the
Executive for Good Reason, (ii) by the Company without Cause (and other than for
Disability or pursuant to Section 7(a)(vi)) or (iii) Executive's employment with
the Company terminates as a result of the Company giving notice of nonextension
of the Employment Term pursuant to Section 1 hereof, Executive shall be entitled
to receive the Accrued Amounts, and shall, subject to Sections 9(b), 9(c) and 10
hereof, be entitled to receive, (A) equal monthly payments of an amount equal to
his then monthly rate of Base Salary, but off the employee payroll, for a period
of twelve (12) months following the date of his termination and the product of
(x) the Target Bonus multiplied by (y) a fraction, the numerator of which is the
number of days of the fiscal year during which the Executive was employed by the
Company in which termination occurs and the denominator of which is 365, which
bonus shall be paid when bonuses are usually paid in accordance with the
Company's past practice or when such bonuses are paid to other senior
executives, if earlier; provided that if such termination occurs within two (2)
years after a Change in Control, in lieu of the foregoing, Executive shall
receive in a lump sum within five (5) days after compliance with such Section
9(b), an amount equal to (i) Executive's Base Salary and (ii) Target Bonus; (B)
any other amounts or benefits owing to Executive under the then applicable
employee benefit, long term incentive or equity plans and programs of the
Company which shall be paid in accordance with

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such plans and programs; provided that, if such termination occurs within two
(2) years after a Change in Control, Executive shall in any event receive any
accrued balance in any long term or equity compensation program and any earned
or declared annual bonus for any complete fiscal year which has not then been
paid; (C) if such termination is within two (2) years after a Change in Control,
one (1) year of additional service and compensation credit (at the compensation
level in the fiscal year ending immediately prior to the Change in Control) for
pension purposes under any defined benefit type qualified or nonqualified
pension plan or arrangement of the Company, which payments shall be made through
and in accordance with the terms of the nonqualified defined benefit pension
arrangement if any then exists, or, if not, in an actuarially equivalent lump
sum (using the actuarial factors then applying in the Company's defined benefit
plan covering Executive); (D) if such termination is within two (2) years after
a Change in Control, one (1) year of the maximum Company contribution (assuming
Executive deferred the maximum amount and continued to earn his then current
salary) under any type of qualified or nonqualified 401(k) plan; (E) payment of
Executive's and his dependents' COBRA coverage premiums to the extent, and so
long as, they remain eligible for COBRA coverage for up to one (1) year; and (F)
if such termination is within two (2) years after a Change in Control, payment
by the Company of the premiums and costs for Executive for one (1) year under
the Company's life and welfare plans which cover the senior executives of the
Company or materially similar benefits.

                  9. (a) NO MITIGATION; NO SET-OFF. In the event of any
termination of employment under Section 8, Executive shall be under no
obligation to seek other employment and there shall be no offset against any
amounts due Executive under this Agreement on account of any remuneration
attributable to any subsequent employment that Executive may obtain. Any amounts
due under Section 8 are in the nature of severance payments and are not in the
nature of a penalty. Such amounts are inclusive, and in lieu of any, amounts
payable under any other

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salary continuation or cash severance arrangement of the Company and to the
extent paid or provided under any other such arrangement shall be offset from
the amount due hereunder.

                  (b) Executive agrees that, as a condition to receiving the
payments and benefits provided under Section 8(b) hereunder he will execute,
deliver and not revoke (within the time period permitted by applicable law) a
release of all claims of any kind whatsoever against the Company, its
affiliates, officers, directors, employees, agents and shareholders in the then
standard form being used by the Company for senior executives (but without
release of the right of indemnification hereunder or under the Company's By-laws
or rights under benefit or equity plans that by their terms are intended to
survive termination of his employment).

                  (c) Upon any termination of employment, Executive hereby
resigns as an officer and director of the Company, any subsidiary and any
affiliate and as a fiduciary of any benefit plan of any of the foregoing.
Executive shall promptly execute any further documentation thereof as requested
by the Company and, if the Executive is to receive any payments from the
Company, execution of such further documentation shall be a condition thereof.

                  10. CONFIDENTIAL INFORMATION, NON-COMPETITION AND
NON-SOLICITATION OF THE COMPANY. (a) (i) Executive acknowledges that as a result
of his employment by the Company, Executive will obtain secret and confidential
information as to the Company and its affiliates and create relationships with
customers, suppliers and other persons dealing with the Company and its
affiliates and the Company and its affiliates will suffer substantial damage,
which would be difficult to ascertain, if Executive should use such confidential
information or take advantage of such relationship and that because of the
nature of the information that will be known to Executive and the relationships
created it is necessary for the Company and its affiliates to be

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protected by the prohibition against Competition as set forth herein, as well as
the Confidentiality restrictions set forth herein.

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

                  (iii) Executive acknowledges that the provisions of this
Agreement are reasonable and necessary for the protection of the businesses of
the Company and its affiliates and that part of the compensation paid under this
Agreement and the agreement to pay severance in certain instances is in
consideration for the agreements in this Section 10.

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

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                  (c) Solicitation shall mean: recruiting, soliciting or
inducing, of any nonclerical employee or employees of the Company or its
affiliates to terminate their employment with, or otherwise cease their
relationship with, the Company or its affiliates or hiring or assisting another
person or entity to hire any nonclerical employee of the Company or its
affiliates or any person who within six (6) months before had been a nonclerical
employee of the Company or its affiliates and were recruited or solicited for
such employment or other retention while an employee of the Company, provided,
however, that solicitation shall not include any of the foregoing activities
engaged in with the prior written approval of the Chief Executive Officer.

                  (d) If any restriction set forth with regard to Competition or
Solicitation is found by any court of competent jurisdiction, or an arbitrator,
to be unenforceable because it extends for too long a period of time or over too
great a range of activities or in too broad a geographic area, it shall be
interpreted to extend over the maximum period of time, range of activities or
geographic area as to which it may be enforceable. If any provision of this
Section 10 shall be declared to be invalid or unenforceable, in whole or in
part, as a result of the foregoing, as a result of public policy or for any
other reason, such invalidity shall not affect the remaining provisions of this
Section which shall remain in full force and effect.

                  (e) During and after the Employment Term, Executive shall hold
in a fiduciary capacity for the benefit of the Company and its affiliates all
secret or confidential information, knowledge or data relating to the Company
and its affiliates, and their respective businesses, including any confidential
information as to customers of the Company and its affiliates, (i) obtained by
Executive during his employment by the Company and its affiliates and (ii) not
otherwise public knowledge or known within the applicable industry. Executive
shall

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not, without prior written consent of the Company, unless compelled pursuant to
the order of a court or other governmental or legal body having jurisdiction
over such matter, communicate or divulge any such information, knowledge or data
to anyone other than the Company and those designated by it. In the event
Executive is compelled by order of a court or other governmental or legal body
to communicate or divulge any such information, knowledge or data to anyone
other than the foregoing, he shall promptly notify the Company of any such order
and he shall cooperate fully with the Company in protecting such information to
the extent possible under applicable law.

                  (f) Upon termination of his employment with the Company and
its affiliates, or at any time as the Company may request, Executive shall
promptly deliver to the Company, as requested, all documents (whether prepared
by the Company, an affiliate, Executive or a third party) relating to the
Company, an affiliate or any of their businesses or property which he may
possess or have under his direction or control other than documents provided to
Executive in his capacity as a participant in any employee benefit plan, policy
or program of the Company or any agreement by and between Executive and the
Company with regard to Executive's employment or severance.

                  (g) During the Employment Term and for two (2) years following
a termination of Executive's employment for any reason whatsoever, whether by
the Company or by Executive and whether or not for Cause, Good Reason or
non-extension of the Employment Term, Executive shall not engage in
Solicitation.

                  (h) During the Employment Term and for one (1) year following
a termination of Executive's employment for any reason whatsoever, whether by
the Company or by Executive

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and whether or not for Cause, Good Reason or non-extension of the Employment
Term, Executive shall not enter into Competition with the Company or its
affiliates.

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

                  (j) Furthermore, in the event of breach of this Section 10 by
Executive, while he is receiving amounts under Section 8(b) hereof, Executive
shall not be entitled to receive any future amounts pursuant to Section 8(b)
hereof.

                  11. INDEMNIFICATION. The Company shall indemnify and hold
harmless Executive to the extent provided in the Certificate of Incorporation
and By-Laws of the Company for any action or inaction of Executive while serving
as an officer and director of the Company or, at the Company's request, as an
officer or director of any other subsidiary or affiliate of the Company or as a
fiduciary of any benefit plan. The Company shall cover Executive under directors
and officers liability insurance both during and, while potential liability
exists, after the Employment Term in the same amount and to the same extent as
the Company covers its other officers and directors.

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                  12. SPECIAL TAX PROVISION. (a) Anything in this Agreement to
the contrary notwithstanding, in the event that any amount or benefit paid,
payable, or to be paid, or distributed, distributable, or to be distributed to
or with respect to Executive by the Company (whether pursuant to the terms of
this Agreement or any other plan, arrangement or agreement with the Company, any
person whose actions result in a change of ownership covered by Section
280G(b)(2) of the Internal Revenue Code of 1986, as amended (the "Code") or any
person affiliated with the Company or such person) as a result of a change in
ownership of the Company or a direct or indirect parent thereof after the
Spinoff covered by Code Section 280G(b)(2) (collectively, the "Covered
Payments") is or becomes subject to the excise tax imposed by or under Section
4999 of the Code (or any similar tax that may hereafter be imposed), and/or any
interest or penalties with respect to such excise tax (such excise tax, together
with such interest and penalties, is hereinafter collectively referred to as the
"Excise Tax"), the Company shall pay to Executive an additional amount (the "Tax
Reimbursement Payment") such that after payment by Executive of all taxes
(including, without limitation, any interest or penalties and any Excise Tax
imposed on or attributable to the Tax Reimbursement Payment itself), Executive
retains an amount of the Tax Reimbursement Payment equal to the sum of (i) the
amount of the Excise Tax imposed upon the Covered Payments, and (ii) without
duplication, an amount equal to the product of (A) any deductions disallowed for
federal, state or local income or payroll tax purposes because of the inclusion
of the Tax Reimbursement Payment in Executive's adjusted gross income, and (B)
the highest applicable marginal rate of federal, state or local income taxation,
respectively, for the calendar year in which the Tax Reimbursement Payment is
made or is to be made. The intent of this Section 12 is that (a) the Executive,
after paying his Federal, state and local income tax and any payroll taxes on
Executive, will be in the same position as if he was not subject to the Excise
Tax under Section 4999 of the Code and did not receive the

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extra payments pursuant to this Section 12 and (b) that Executive should never
be "out-of-pocket" with respect to any tax or other amount subject to this
Section 12, whether payable to any taxing authority or repayable to the Company,
and this Section 12 shall be interpreted accordingly.

                  (b) Except as otherwise provided in Section 12(a), for
purposes of determining whether any of the Covered Payments will be subject to
the Excise Tax and the amount of such Excise Tax,

                           (i)  such Covered Payments will be treated as
"parachute payments" (within the meaning of Section 280G(b)(2) of the Code) and
such payments in excess of the Code Section 280G(b)(3) "base amount" shall be
treated as subject to the Excise Tax, unless, and except to the extent that, the
Company's independent certified public accountants appointed prior to the change
in ownership covered by Code Section 280G(b)(2) or legal counsel (reasonably
acceptable to Executive) appointed by such public accountants (or, if the public
accountants decline such appointment and decline appointing such legal counsel,
such independent certified public accountants as promptly mutually agreed on in
good faith by the Company and the Executive) (the "Accountant"), deliver a
written opinion to Executive, reasonably satisfactory to Executive's legal
counsel, that Executive has a reasonable basis to claim that the Covered
Payments (in whole or in part) (A) do not constitute "parachute payments", (B)
represent reasonable compensation for services actually rendered (within the
meaning of Section 280G(b)(4) of the Code) in excess of the "base amount"
allocable to such reasonable compensation, or (C) such "parachute payments" are
otherwise not subject to such Excise Tax (with appropriate legal authority,
detailed analysis and explanation provided therein by the Accountants); and

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                           (ii) the value of any Covered Payments which are
non-cash benefits or deferred payments or benefits shall be determined by the
Accountant in accordance with the principles of Section 280G of the Code.

                  (c) For purposes of determining the amount of the Tax
Reimbursement Payment, Executive shall be deemed:

                           (i) to pay federal, state, local income and/or
payroll taxes at the highest applicable marginal rate of income taxation for the
calendar year in which the Tax Reimbursement Payment is made or is to be made,
and

                           (ii) to have otherwise allowable deductions for
federal, state and local income and payroll tax purposes at least equal to those
disallowed due to the inclusion of the Tax Reimbursement Payment in Executive's
adjusted gross income.

                  (d)(i)(A) In the event that prior to the time Executive has
filed any of his tax returns for the calendar year in which the change in
ownership event covered by Code Section 280G(b)(2) occurred, the Accountant
determines, for any reason whatever, the correct amount of the Tax Reimbursement
Payment to be less than the amount determined at the time the Tax Reimbursement
Payment was made, the Executive shall repay to the Company, at the time that the
amount of such reduction in Tax Reimbursement Payment is determined by the
Accountant, the portion of the prior Tax Reimbursement Payment attributable to
such reduction (including the portion of the Tax Reimbursement Payment
attributable to the Excise Tax and federal, state and local income and payroll
tax imposed on the portion of the Tax Reimbursement Payment being repaid by
Executive, using the assumptions and methodology utilized to calculate the Tax

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Reimbursement Payment (unless manifestly erroneous)), plus interest on the
amount of such repayment at the rate provided in Section 1274(b)(2)(B) of the
Code.

                  (B) In the event that the determination set forth in (A) above
is made by the Accountant after the filing by Executive of any of his tax
returns for the calendar year in which the change in ownership event covered by
Code Section 280G(b)(2) occurred but prior to one (1) year after the occurrence
of such change in ownership, Executive shall file at the request of the Company
an amended tax return in accordance with the Accountant's determination, but no
portion of the Tax Reimbursement Payment shall be required to be refunded to the
Company until actual refund or credit of such portion has been made to
Executive, and interest payable to the Company shall not exceed the interest
received or credited to Executive by such tax authority for the period it held
such portion (less any tax Executive must pay on such interest and which he is
unable to deduct as a result of payment of the refund).

                  (C) In the event Executive receives a refund pursuant to (B)
above and repays such amount to the Company, Executive shall thereafter file for
refunds or credits by reason of the repayments to the Company.

                  (D) Executive and the Company shall mutually agree upon the
course of action, if any, to be pursued (which shall be at the expense of the
Company) if Executive's claim for refund or credit is denied.

                           (ii) In the event that the Excise Tax is later
determined by the Accountants or the Internal Revenue Service to exceed the
amount taken into account hereunder at the time the Tax Reimbursement Payment is
made (including by reason of any payment the existence or amount of which cannot
be determined at the time of the Tax Reimbursement

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Payment), the Company shall make an additional Tax Reimbursement Payment in
respect of such excess (plus any interest or penalties payable with respect to
such excess) once the amount of such excess is finally determined.

                            (iii) In the event of any controversy with the
Internal Revenue Service (or other taxing authority) under this Section 12,
subject to subpart (i)(D) above, Executive shall permit the Company to control
issues related to this Section 12 (at its expense), provided that such issues do
not potentially materially adversely affect Executive, but Executive shall
control any other issues. In the event the issues are interrelated, Executive
and the Company shall in good faith cooperate so as not to jeopardize resolution
of either issue, but if the parties cannot agree Executive shall make the final
determination with regard to the issues. In the event of any conference with any
taxing authority as to the Excise Tax or associated income taxes, Executive
shall permit the representative of the Company to accompany him and Executive
and his representative shall cooperate with the Company and its representative.

                           (iv) With regard to any initial filing for a refund
or any other action required pursuant to this Section 12 (other than by mutual
agreement) or, if not required, agreed to by the Company and Executive, the
Executive shall cooperate fully with the Company, provided that the foregoing
shall not apply to actions that are provided herein to be at the sole discretion
of Executive.

                  (e) The Tax Reimbursement Payment, or any portion thereof,
payable by the Company shall be paid not later than the fifth (5th) day
following the determination by the Accountant and any payment made after such
fifth (5th) day shall bear interest at the rate provided in Code Section
1274(b)(2)(B). The Company shall use its best efforts to cause the Accountant,
to promptly deliver the initial determination required hereunder and, if not
delivered,

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within ninety (90) days after the change in ownership event covered by Section
280G(b)(2) of the Code, the Company shall pay Executive the Tax Reimbursement
Payment set forth in an opinion from counsel recognized as knowledgeable in the
relevant areas selected by Executive, and reasonably acceptable to the Company,
within five (5) days after delivery of such opinion. The amount of such payment
shall be subject to later adjustment in accordance with the determination of the
Accountant as provided herein.

                  (f) The Company shall be responsible for all charges of the
Accountant and if (e) is applicable the reasonable charges for the opinion given
by Executive's counsel.

                  (g) The Company and Executive shall mutually agree on and
promulgate further guidelines in accordance with this Section 12 to the extent,
if any, necessary to effect the reversal of excessive or shortfall Tax
Reimbursement Payments. The foregoing shall not in any way be inconsistent with
Section 12(d)(i)(D) hereof.

                  13 LEGAL AND OTHER FEES AND EXPENSES. In the event that a
claim for payment or benefits under this Agreement is disputed, the Company
shall pay all reasonable attorney, accountant and other professional fees and
reasonable expenses incurred by Executive in pursuing such claim, provided
Executive is successful with regard to a material portion of his claim.

                  14 MISCELLANEOUS.

                  (a) GOVERNING LAW. This Agreement shall be governed by and
construed in accordance with the laws of the State of Florida without reference
to principles of conflict of laws.
<Page>

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

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

                  (d) ASSIGNMENT. This Agreement shall not be assignable by
Executive. This Agreement shall be assignable by the Company only to an entity
which is owned, directly or indirectly, in whole or in part by the Company or by
any successor to the Company or an acquirer of all or substantial all of the
assets of the Company or all or substantially all of the assets of a group of
subsidiaries and divisions of the Company, provided such entity or acquirer
promptly assumes all of the obligations hereunder of the Company in a writing
delivered to Executive and otherwise complies with the provisions hereof with
regard to such assumption. Upon such assignment and assumption, all references
to the Company herein shall be to the assignee entity or acquirer, as the case
may be.

<Page>

                  (e) SUCCESSORS; BINDING AGREEMENT; THIRD PARTY BENEFICIARIES.
This Agreement shall inure to the benefit of and be binding upon the personal or
legal representatives, executors, administrators, successors, heirs,
distributees, devisees legatees and permitted assignees of the parties hereto.
In the event of the Executive's death while receiving amounts payable pursuant
to Section 8(b) hereof, any remaining amounts shall be paid to Executive's
estate.

                  (f) COMMUNICATIONS. For the purpose of this Agreement, notices
and all other communications provided for in this Agreement shall be in writing
and shall be deemed to have been duly given (i) when faxed or delivered, or (ii)
two (2) business days after being mailed by United States registered or
certified mail, return receipt requested, postage prepaid, addressed to the
respective addresses set forth on the initial page of this Agreement, provided
that all notices to the Company shall be directed to the attention of the
General Counsel and Secretary of the Company, or to such other address as any
party may have furnished to the other in writing in accordance herewith. Notice
of change of address shall be effective only upon receipt.

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

                  (h) SURVIVORSHIP. The respective rights and obligations of the
parties hereunder, including without limitation Section 11 hereof, shall survive
any termination of Executive's employment to the extent necessary to the agreed
preservation of such rights and obligations.
<Page>

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

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

                  (k) EXECUTIVE'S REPRESENTATION. Executive represents and
warrants to the Company that there is no legal impediment to him entering into,
or performing his obligations under this Agreement and neither entering into
this Agreement nor performing his contemplated service hereunder will violate
any agreement to which he is a party or any other legal restriction. Executive
further represents and warrants that in performing his duties hereunder he will
not use or disclose any confidential information of any prior employer or other
person or entity.

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

                           U.S. INDUSTRIES, INC.

                           By:
                              -------------------------   ------------------
                              Dorothy E. Sander               Date
                              Senior Vice President

                           By:
                              -------------------------   ------------------
                              Alan Schutzman                  Date
<Page>

                                    EXHIBIT A

         (a) CAUSE. For purposes of this Agreement, the term "Cause" shall be
limited to: (i) Executive's refusal or willful failure to perform his duties;
(ii) Executive's willful misconduct or gross negligence with regard to the
Company or its affiliates or their business, assets or employees (including,
without limitation, Executive's fraud, embezzlement or other act of dishonesty
with regard to the Company or its affiliates); (iii) Executive's willful
misconduct which has a material adverse impact on the Company or its affiliates,
whether economic, or reputation wise or otherwise, as determined by the Board;
(iv) Executive's conviction of, or pleading nolo contendere to, a felony or any
crime involving fraud, dishonesty or moral turpitude; (v) Executive's refusal or
willful failure to follow the lawful written direction of the Board, the Chief
Executive Officer or his designee; (vi) Executive's breach of a fiduciary duty
owed to the Company or its affiliates, including but not limited to Section 10
hereof; (vii) the representations or warranties in Section 14(k) hereof prove
false; or (vii) any other breach by Executive of this Agreement that remains
uncured for ten (10) days after written notice thereof is given to Executive.

         (b) CHANGE IN CONTROL. For purposes of this Agreement, the term "Change
in Control" shall mean the occurrence of any of the following (i) any "person"
as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act
of 1934 ("Act") (other than the Company, any trustee or other fiduciary holding
securities under any employee benefit plan of the Company, or any company owned,
directly or indirectly, by the stockholders of the Company in substantially the
same proportions as their ownership of Common Stock of the Company), is or
becomes the "beneficial owner" (as defined in Rule 13d-3 under the Act),
directly or indirectly, of securities of the Company representing twenty-five
percent (25%) or more of the combined voting power of the Company's then
outstanding securities; (ii) during any period of two (2) consecutive years,
individuals who at the beginning of such period constitute the Board, and any
new director (other than a director designated by a person who has entered into
an agreement with the Company to effect a transaction described in clause (i),
(iii), or (iv) of this paragraph) whose election by the Board or nomination for
election by the Company's stockholders was approved by a vote of at least
two-thirds of the directors then still in office who either were directors at
the beginning of the two-year period or whose election or nomination for
election was previously so approved, cease for any reason to constitute at least
a majority of the Board; (iii) a merger or consolidation of the Company with any
other corporation, other than a merger or consolidation which would result in
the voting securities of the Company outstanding immediately prior thereto
continuing to represent (either by remaining outstanding or by being converted
into voting securities of the surviving entity) more than fifty percent (50%) of
the combined voting power of the voting securities of the Company or such
surviving entity outstanding immediately after such merger or consolidation;
provided, however, that a merger or consolidation effected to implement a
recapitalization of the Company (or similar transaction) in which no person
acquires more than twenty-five percent (25%) of the combined voting power of the
Company's then outstanding securities shall not constitute a Change in Control
of the Company; or (iv) the stockholders of the Company approve a plan of
complete liquidation of the Company or the consummation of the sale or
disposition by the Company of all or substantially all of the Company's assets
other than (x) the sale or

<Page>

disposition of all or substantially all of the assets of the Company to a person
or persons who beneficially own, directly or indirectly, at least fifty percent
(50%) or more of the combined voting power of the outstanding voting securities
of the Company at the time of the sale or (y) pursuant to a spinoff type
transaction, directly or indirectly, of such assets to the stockholders of the
Company.

         (c) DISABILITY. For purposes of this Agreement, "Disability" shall mean
by reason of the same or related physical or mental illness or incapacity,
Executive is unable to carry out his material duties pursuant to this Agreement
for more than six (6) months in any twelve (12) month period.

         (d) GOOD REASON. For purposes of this Agreement, "Good Reason" shall
mean the occurrence, without Executive's express written consent in the case of
(i), (ii) or (iii) of any of the following circumstances: (i) a demotion of
Executive to a position other than Vice President (except in connection with the
termination of Executive's employment for Cause or due to Disability or as a
result of Executive's death, or temporarily as a result of Executive's illness
or other absence); (ii) a failure by the Company to pay Executive's Base Salary
in accordance with Section 3 hereof; (iii) within two (2) years after a Change
in Control and if Executive is then based at the Company's West Palm Beach
offices ("WPB"), a relocation of the Company's WPB to a location more than both
thirty-five (35) miles from Executive's residence at the time of the relocation
and the Company's then principal executive office or relocation of Executive
from the principal executive office; or (iv) with regard to a Relocation (as
defined below) not covered by (iii) above, a failure of the Company to provide
Executive with a relocation program that is at least as favorable in aggregate
as the Relocation Program set forth in Exhibit B hereof. For purposes of the
foregoing, Relocation shall mean a relocation of Executive's office by the
Company, at any time during the Employment Term, to a location more than
thirty-five (35) miles further than Executive's then current principal residence
is from Executive's then office.

                                      A-2
<Page>

                                                                       EXHIBIT B

                  RELOCATION PROGRAM

                  This document describes the Executive relocation/reimbursement
program (the "Relocation Program") available to the Executive.

                  I. The Executive  will be reimbursed by the Company for the
         actual costs  associated  with the sale of Executive's principal home
         ("Former Home"), as follows:

                           A.   Generally:

                                    Packing, shipping, moving, unpacking and
                                    insuring household goods and common personal
                                    possessions (carrier is typically prohibited
                                    from delivering perishables, frozen foods,
                                    plants or shrubbery, combustible items and
                                    paint, or articles of extraordinary value
                                    such as jewelry, precious stones, stamp
                                    collections, wills, stocks, etc.).

                                    Reasonable (at least three round trips with
                                    Executive and one dependent) pre-move
                                    travel, meals, etc. for house hunting.

                                    Selling expenses on Executive's Former Home
                                    as follows:

                                        -        Reasonable attorney's fees
                                        -        Transfer tax
                                        -        Real estate commission, up to a
                                                 maximum total of 6% of the
                                                 gross sales price.

                                    Disconnecting and connecting normal
                                    appliances at origin and destination (not
                                    including installation or overhauling of
                                    equipment).

                           B. The Company will pay for moving the following:

                              (1) Automobiles (maximum two), registered in
                           Executive's (or spouse's) name.

                              (2) One boat or trailer, registered in Executive's
                           (or spouse's) name.

                           C. The Company will not pay for moving firewood,
                  building materials, exclusive use of van, household cleaning
                  and maid service, assembly or disassembly of portable swimming
                  pools or items of a similar nature.

                           D. The Company will reimburse Executive for the
                  following  incidental expenses reasonably incurred in
                  connection with Executive's relocation:
<Page>

                                    (1) Travel expenses, including meals and
                           lodging incurred by Executive and dependents while
                           traveling from Former Home to Executive's new
                           location via personal car or common carrier, economy
                           class.

                                    (2) Meals and lodging expenses temporarily
                           incurred by Executive and dependents, if any, until
                           Executive obtains permanent living quarters. Such
                           reimbursement shall not exceed such costs for two
                           weeks or until two days following delivery of
                           Executive's personal or household goods, whichever
                           first occurs. Extensions may be granted at the
                           Company's discretion as a result of extenuating
                           circumstances.

                           E. The Company will reimburse Executive for the
                  following expenses in connection with purchasing a principal
                  house/home within a reasonable proximity to the new Company's
                  headquarters' location within twelve (12) months of the
                  relocation of Executive:

                                    (1) Reasonable attorney's fees;

                                    (2) Title search and any other filing fees;

                                    (3) Building and termite inspection;

                                    (4) Mortgage application, placement fee and
                           points (up to a maximum payment of the lesser of 1
                           1/2 points or $6,000 for points).

                           F. The Company will make a payment to Executive equal
                  to one month's Base Salary to cover other incidental expenses
                  relating to moving. Executive is not required to submit a
                  claim for this payment. This payment will be made within
                  thirty (30) days of Executive's actual physical permanent
                  relocation, upon notice from Executive confirming the move.

                  II.      Tax Issues

                                    Federal Income Tax law generally requires
                                    the Company to file forms with the Internal
                                    Revenue Service ("IRS") indicating the
                                    amount of moving and relocation expenses
                                    paid to Executive or to others on behalf of
                                    Executive. Such amounts may include, for
                                    example, the cost of moving household goods
                                    and real estate commissions which are paid
                                    directly by the Company to outside
                                    companies. The total of the amounts will
                                    generally be reported to the IRS on Form
                                    W-2, a copy of which will be sent to
                                    Executive.

                                    The Company shall advise Executive of the
                                    details of the moving expenses and
                                    reimbursements and will provide the
                                    information to

                                      B-2
<Page>

                                    Executive in accordance with applicable IRS
                                    Forms or Notices or, if no IRS Form or
                                    Notice is required, in a format selected by
                                    the Company.

                                    Executive generally will be required to
                                    include in taxable income the amounts shown
                                    on Form W-2 and will be permitted to claim
                                    certain moving expense deductions for
                                    amounts paid directly by the Executive and
                                    not reimbursed by the Company by filing Form
                                    3903 - Moving Expense Adjustment, or other
                                    applicable IRS forms. The Company will
                                    reimburse Executive for additional federal
                                    taxes incurred as a result of reporting
                                    income in excess of allowable deductions
                                    resulting from the relocation other than
                                    that resulting from a termination by the
                                    Executive without Good Reason or by the
                                    Company for Cause (the "Excess Amount").
                                    However, the income provided pursuant to
                                    Section I.F. will be subtracted from the
                                    Excess Amount prior to calculating the
                                    additional federal tax "gross-up". The
                                    Company will also reimburse Executive for
                                    additional state and other payroll taxes, if
                                    any, incurred as a result of paying for
                                    expenses referred to above, subject to the
                                    same limitations.

                                    The Company is also required to withhold
                                    federal income taxes from that portion of
                                    Executive's reimbursement which are included
                                    in income and non-deductible. The amount of
                                    such taxes withheld will be reimbursed to
                                    Executive.

                                    Because the tax reimbursement(s) will also
                                    be taxable income to Executive in the year
                                    received, the reimbursement(s) will be
                                    "grossed-up" so that the amount received
                                    will substantially equal the balance of the
                                    tax, as well as the tax on the
                                    reimbursement, at Executive's marginal rate
                                    of federal tax and, if applicable, any state
                                    tax and payroll taxes.

                                      B-3<Page>

                                                                 Exhibit 10.32

                  FIRST AMENDMENT made as of September 11, 2001 to the
Employment Agreement dated as of January 2, 2001 by and between U.S. Industries,
Inc., a Delaware Corporation (the "Company") and Alan Schutzman ("Executive").

                                  WITNESSETH:

                  WHEREAS, the Company and Executive have previously entered
into the Employment Agreement and the Executive has been employed as Associate
General Counsel and a senior executive of the Company; and

                  WHEREAS, the Company desires to employ Executive as Vice
President and Associate General Counsel and to make certain other amendments to
the Employment Agreement effective September 11, 2001(the "Effective Date").

                  NOW, THEREFORE, effective on the Effective Date, the parties
hereto agree as follows:

                  1. Section 2 of the Employment Agreement is amended by the
deletion of the first sentence of Section 2(a) in its entirety and the
substitution of the following in lieu thereof:

                  "Executive shall serve as Vice President and Associate General
                  Counsel reporting to an executive designated by the Chief
                  Executive Officer of the Company (the "Chief Executive
                  Officer")."

                  2. Section 3 of the Employment Agreement is amended by the
deletion of the first sentence in its entirety and the substitution of the
following in lieu thereof:

                  "During the Employment Term, the Company shall pay Executive a
                  base salary at the annual rate of not less than $215,000."
<Page>

                  3. Section 8 of the Employment Agreement is amended by the
deletion of Section 8(b)(A) in its entirety and the substitution of the
following in lieu thereof:

                  "(A) equal monthly payments of an amount equal to his then
                  monthly rate of Base Salary, but off the employee payroll, for
                  a period of twelve (12) months following the date of his
                  termination and the product of (x) the Target Bonus multiplied
                  by (y) a fraction, the numerator of which is the number of
                  days for the fiscal year during which the Executive was
                  employed by the Company in which termination occurs and the
                  denominator of which is 365, which bonus shall be paid when
                  bonuses are usually paid in accordance with the Company's past
                  practice or when such bonuses are paid to other senior
                  executives, if earlier; provided that if such termination
                  occurs within two (2) years after a Change in Control, in lieu
                  of the foregoing, Executive shall receive in a lump sum within
                  five (5) days after compliance with such Section 9(b), an
                  amount equal to (i) two (2) times Base Salary and (ii) two (2)
                  times the Target Bonus;"

                  4. Section 8(b)(C) and (D) are each amended by the deletion of
the words "one (1) year" and the substitution of the words "two (2) years" in
lieu thereof.

                  5. Section 8(b)(E) is amended by the addition of the following
words:

                  "and, if such termination is within two (2) years after a
                  Change in Control, payment of Executive's and his dependents'
                  COBRA coverage premiums shall be continued for up to two (2)
                  years, if eligible;"

                  6. Section 8(b)(F) shall be deleted.

                  7. THE EMPLOYMENT AGREEMENT. The Employment Agreement, as
amended herein, shall remain in full force and effect.
<Page>

                  IN WITNESS WHEREOF, USI has caused this Amendment to be
executed by its duly authorized officer and the Executive has hereunto set his
hand as of the date first above written.

                                   U.S. INDUSTRIES, INC.

                                   By:
                                      ------------------------------------------
                                      Name: Dorothy E. Sander
                                      Senior Vice President - Administration

                                      ------------------------------------------
                                      Alan Schutzman     ("Executive")

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