Document:

EXHIBIT 10.4

                        WARRANT TO PURCHASE COMMON STOCK

THIS WARRANT AND THE  SECURITIES  ISSUABLE  HEREUNDER  HAVE NOT BEEN  REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS. THEY
MAY NOT BE SOLD,  OFFERED  FOR SALE,  PLEDGED OR  OTHERWISE  TRANSFERRED  IN THE
ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT AND ANY APPLICABLE
STATE  SECURITIES  LAWS OR THE  AVAILABILITY  OF AN EXEMPTION FROM  REGISTRATION
UNDER SUCH ACT AND ANY APPLICABLE STATE SECURITIES LAWS.

                        WARRANT TO PURCHASE COMMON STOCK

       NUMBER OF SHARES:         UP TO 1,689,612 SHARES (SUBJECT TO ADJUSTMENT)
       WARRANT PRICE:            $0.75 PER SHARE
       ISSUANCE DATE:            DECEMBER 3, 2004
       EXPIRATION DATE:          DECEMBER 3, 2007

THIS WARRANT CERTIFIES THAT for value received, Mercator Advisory Group, LLC, or
its registered assigns (hereinafter called the "HOLDER") is entitled to purchase
from International Card Establishment,  Inc. (hereinafter called the "COMPANY"),
the  above  referenced  number  of fully  paid  and  nonassessable  shares  (the
"SHARES") of common stock (the "COMMON STOCK"), of Company, at the Warrant Price
per Share referenced  above;  the number of shares  purchasable upon exercise of
this Warrant  referenced  above being subject to adjustment from time to time as
described  herein.  This  Warrant  is issued  in  connection  with that  certain
Subscription  Agreement  of even date  herewith,  by and between the Company and
Holder (the  "SUBSCRIPTION  AGREEMENT").  The exercise of this Warrant  shall be
subject to the provisions, limitations and restrictions contained herein.

1. TERM AND EXERCISE.

1.1 TERM.  This  Warrant is  exercisable  in whole or in part (but not as to any
fractional  share of Common Stock),  at any time and from time to time after the
date hereof prior to 6:00 p.m. on the Expiration Date set forth above.

1.2  WARRANT  PRICE.  The Warrant  shall be  exercisable  at the  Warrant  Price
described above.

1.3  MAXIMUM  NUMBER OF SHARES.  The  maximum  number of Shares of Common  Stock
exercisable   pursuant   to  this   Warrant  is   1,689,612   Shares.   However,
notwithstanding anything herein to the contrary, in no event shall the Holder be
permitted  to  exercise  this  Warrant for a number of Shares  greater  than the
number that would cause the  aggregate  beneficial  ownership  of the  Company's
Common Stock (calculated  pursuant to Rule 13d-3 of the Securities  Exchange Act
of 1934, as amended) of the Holder and all persons affiliated with the Holder to
equal 9.99% of the Company's Common Stock then outstanding.

1.4  PROCEDURE  FOR  EXERCISE OF WARRANT.  Holder may  exercise  this Warrant by
delivering  the following to the  principal  office of the Company in accordance
with Section 5.1 hereof: (i) a duly executed Notice of Exercise in substantially
the form  attached  as Schedule  A, (ii)  payment of the  Warrant  Price then in
effect for each of the Shares being  purchased,  as  designated in the Notice of
Exercise,  and (iii) this Warrant.  Payment of the Warrant Price may be in cash,
certified or official  bank check  payable to the order of the Company,  or wire
transfer of funds to the  Company's  account (or any  combination  of any of the
foregoing) in the amount of the Warrant Price for each share being purchased.

1.5 DELIVERY OF CERTIFICATE AND NEW WARRANT. In the event of any exercise of the
rights represented by this Warrant, a certificate or certificates for the shares
of Common Stock so purchased, registered in the name of the Holder or such other
name or  names as may be  designated  by the  Holder,  together  with any  other
securities  or other  property  which the Holder is  entitled  to  receive  upon
exercise  of this  Warrant,  shall be  delivered  to the Holder  hereof,  at the
Company's expense, within a reasonable time, not exceeding fifteen (15) calendar
days, after the rights represented by this Warrant shall have been so exercised;
and, unless this Warrant has expired,  a new Warrant  representing the number of
Shares (except a remaining fractional share), if any, with respect to which this
Warrant  shall not then have been  exercised  shall also be issued to the Holder
hereof within such time. The person in whose name any  certificate for shares of
Common Stock is issued upon  exercise of this Warrant  shall for all purposes be
deemed to have  become the holder of record of such  shares on the date on which
the Warrant was surrendered and payment of the Warrant Price was received by the
Company, irrespective of the date of delivery of such certificate,  except that,
if the date of such  surrender and payment is on a date when the stock  transfer
books of the Company are closed,  such person shall be deemed to have become the
holder of such Shares at the close of business  on the next  succeeding  date on
which the stock transfer books are open.

1.6  RESTRICTIVE  LEGEND.  Each  certificate for Shares shall bear a restrictive
legend in substantially the form as follows, together with any additional legend
required by (i) any  applicable  state  securities  laws and (ii) any securities
exchange upon which such Shares may, at the time of such exercise, be listed:

      THE SHARES OF STOCK EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
      UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE OFFERED,
      SOLD, PLEDGED OR OTHERWISE  TRANSFERRED  ("TRANSFERRED") IN THE ABSENCE OF
      SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM.  IN THE ABSENCE OF
      SUCH  REGISTRATION,  SUCH  SHARES MAY NOT BE  TRANSFERRED  UNLESS,  IF THE
      COMPANY REQUESTS,  THE COMPANY HAS RECEIVED A WRITTEN OPINION FROM COUNSEL
      IN FORM AND  SUBSTANCE  SATISFACTORY  TO THE  COMPANY  STATING  THAT  SUCH
      TRANSFER IS BEING MADE IN COMPLIANCE WITH ALL APPLICABLE FEDERAL AND STATE
      SECURITIES LAWS.

Any  certificate  issued  at any  time  in  exchange  or  substitution  for  any
certificate  bearing  such  legend  shall also bear such legend  unless,  in the
opinion of counsel for the Holder  thereof  (which  counsel  shall be reasonably
satisfactory  to the Company),  the securities  represented  thereby are not, at
such time, required by law to bear such legend.

1.7 FRACTIONAL  SHARES.  No fractional Shares shall be issuable upon exercise or
conversion of the Warrant. In the event of a fractional interest,  the number of
Shares to be issued shall be rounded down to the nearest whole Share.

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2. REPRESENTATIONS, WARRANTIES AND COVENANTS.

2.1 REPRESENTATIONS AND WARRANTIES.

(a) The Company is a corporation  duly organized,  validly  existing and in good
standing  under the laws of its  state of  incorporation  and has all  necessary
power and authority to perform its obligations under this Warrant;

(b) The  execution,  delivery  and  performance  of this  Warrant  has been duly
authorized by all necessary  actions on the part of the Company and  constitutes
the legal, valid and binding obligation of the Company,  enforceable against the
Company in accordance with its terms; and

(c)  This  Warrant  does  not  violate  and is not in  conflict  with any of the
provisions  of  the  Company's  Articles  of  Incorporation  or  Certificate  of
Determination, Bylaws and any resolutions of the Company's Board of Directors or
stockholders,  or any agreement of the Company, and no event has occurred and no
condition or circumstance  exists that might (with or without notice or lapse of
time)  constitute  or result  directly  or  indirectly  in such a  violation  or
conflict.

2.2  ISSUANCE  OF SHARES.  The Company  covenants  and agrees that all shares of
Common Stock that may be issued upon the exercise of the rights  represented  by
this  Warrant  will,  upon  issuance,   be  validly   issued,   fully  paid  and
nonassessable,  and free from all taxes,  liens and charges  with respect to the
issue thereof.  The Company  further  covenants and agrees that it will pay when
due and  payable  any and all  federal  and state  taxes which may be payable in
respect  of the  issue of this  Warrant  or any  Common  Stock  or  certificates
therefor  issuable  upon the  exercise  of this  Warrant.  The  Company  further
covenants  and agrees that the  Company  will at all times have  authorized  and
reserved,  free from preemptive  rights, a sufficient number of shares of Common
Stock to provide  for the  exercise  in full of the rights  represented  by this
Warrant.  If at any time the number of authorized but unissued  shares of Common
Stock of the  Company  shall not be  sufficient  to effect the  exercise  of the
Warrant in full,  subject to the  limitations  set forth in Section  1.3 hereto,
then the Company will take all such  corporate  action as may, in the opinion of
counsel to the Company,  be necessary or advisable to increase the number of its
authorized  shares of Common Stock as shall be sufficient to permit the exercise
of the  Warrant in full,  subject to the  limitations  set forth in Section  1.3
hereto,  including  without  limitation,  using its best  efforts  to obtain any
necessary  stockholder approval of such increase.  The Company further covenants
and agrees that if any shares of capital stock to be reserved for the purpose of
the issuance of shares upon the exercise of this  Warrant  require  registration
with or approval of any  governmental  authority  under any federal or state law
before such shares may be validly issued or delivered  upon  exercise,  then the
Company will in good faith and as expeditiously  as possible  endeavor to secure
such registration or approval,  as the case may be. If and so long as the Common
Stock  issuable  upon the  exercise  of this  Warrant is listed on any  national
securities  exchange or the Nasdaq Stock Market,  the Company will, if permitted
by the rules of such  exchange or market,  list and keep listed on such exchange
or market,  upon  official  notice of issuance,  all shares of such Common Stock
issuable upon exercise of this Warrant.

3. OTHER ADJUSTMENTS.

3.1 SUBDIVISION OR COMBINATION OF SHARES.  In case the Company shall at any time
subdivide  its  outstanding  Common Stock into a greater  number of shares,  the
Warrant  Price  in  effect  immediately  prior  to  such  subdivision  shall  be
proportionately  reduced, and the number of Shares subject to this Warrant shall
be  proportionately  increased,  and conversely,  in case the outstanding Common
Stock of the Company  shall be  combined  into a smaller  number of shares,  the
Warrant  Price  in  effect  immediately  prior  to  such  combination  shall  be
proportionately  increased,  and the number of Shares  subject  to this  Warrant
shall be proportionately decreased.

3.2 DIVIDENDS IN COMMON STOCK,  OTHER STOCK OR PROPERTY.  If at any time or from
time to time the  holders  of  Common  Stock  (or any  shares  of stock or other
securities at the time  receivable upon the exercise of this Warrant) shall have
received or become entitled to receive, without payment therefor:

(a) Common  Stock,  Options or any shares or other  securities  which are at any
time directly or indirectly  convertible  into or exchangeable for Common Stock,
or any rights or options to subscribe for,  purchase or otherwise acquire any of
the foregoing by way of dividend or other distribution;

(b) any cash paid or payable otherwise than as a regular cash dividend; or

(c) Common Stock or additional shares or other securities or property (including
cash) by way of spin-off, split-up,  reclassification,  combination of shares or
similar corporate rearrangement (other than Common Stock issued as a stock split
or  adjustments in respect of which shall be covered by the terms of Section 3.1
above) and additional shares,  other securities or property issued in connection
with a Change (as defined below) (which shall be covered by the terms of Section
3.4  below),  then and in each such case,  the  Holder  hereof  shall,  upon the
exercise of this Warrant,  be entitled to receive,  in addition to the number of
shares  of  Common  Stock  receivable  thereupon,  and  without  payment  of any
additional  consideration therefor, the amount of stock and other securities and
property  (including  cash in the cases referred to in clause (b) above and this
clause (c)) which such Holder  would hold on the date of such  exercise had such
Holder  been the holder of record of such  Common  Stock as of the date on which
holders of Common  Stock  received or became  entitled to receive such shares or
all other additional stock and other securities and property.

3.3  REORGANIZATION,  RECLASSIFICATION,  CONSOLIDATION,  MERGER OR SALE.  If any
recapitalization, reclassification or reorganization of the share capital of the
Company, or any consolidation or merger of the Company with another corporation,
or the sale of all or  substantially  all of its shares  and/or  assets or other
transaction (including,  without limitation,  a sale of substantially all of its
assets  followed by a liquidation)  shall be effected in such a way that holders
of Common Stock shall be entitled to receive shares,  securities or other assets
or property  (a  "CHANGE"),  then,  as a condition  of such  Change,  lawful and
adequate provisions shall be made by the Company whereby the Holder hereof shall
thereafter  have the right to purchase  and receive (in lieu of the Common Stock
of the Company  immediately  theretofore  purchasable  and  receivable  upon the
exercise of the rights  represented  hereby)  such shares,  securities  or other
assets or  property as may be issued or payable  with  respect to or in exchange
for the number of  outstanding  Common  Stock which such Holder  would have been
entitled to receive had such Holder exercised this Warrant  immediately prior to
the  consummation  of such Change.  The Company or its successor  shall promptly
issue to Holder a new Warrant for such new securities or other property. The new
Warrant shall provide for adjustments which shall be as nearly equivalent as may
be practicable to give effect to the adjustments  provided for in this Section 3
including,  without  limitation,  adjustments  to the  Warrant  Price and to the
number of securities or property issuable upon exercise of the new Warrant.  The
provisions of this Section 3.3 shall similarly apply to successive Changes.

4. OWNERSHIP AND TRANSFER.

4.1  OWNERSHIP  OF THIS  WARRANT.  The  Company may deem and treat the person in
whose  name  this  Warrant  is   registered  as  the  holder  and  owner  hereof
(notwithstanding  any  notations of  ownership or writing  hereon made by anyone
other than the Company) for all purposes and shall not be affected by any notice
to the contrary until  presentation of this Warrant for registration of transfer
as provided in this Section 4.

4.2  TRANSFER  AND  REPLACEMENT.  This  Warrant  and all  rights  hereunder  are
transferable  in whole or in part upon the books of the  Company  by the  Holder
hereof in person or by duly authorized attorney,  and a new Warrant or Warrants,
of the same tenor as this Warrant but  registered in the name of the  transferee
or  transferees  (and in the  name  of the  Holder,  if a  partial  transfer  is
effected)  shall be made and  delivered  by the Company  upon  surrender of this
Warrant duly endorsed,  at the office of the Company in accordance  with Section
5.1 hereof. Upon receipt by the Company of evidence  reasonably  satisfactory to
it of the loss,  theft or  destruction,  and,  in such  case,  of  indemnity  or
security  reasonably  satisfactory  to it, and upon surrender of this Warrant if
mutilated,  the Company  will make and  deliver a new Warrant of like tenor,  in
lieu of this Warrant;  provided that if the Holder hereof is an  instrumentality

                                                                          Page 2

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of a state or local government or an institutional  holder or a nominee for such
an instrumentality or institutional holder an irrevocable agreement of indemnity
by such Holder  shall be  sufficient  for all purposes of this  Warrant,  and no
evidence of loss or theft or destruction shall be necessary.  This Warrant shall
be promptly  cancelled by the Company upon the  surrender  hereof in  connection
with any transfer or  replacement.  Except as otherwise  provided  above, in the
case of the loss,  theft or destruction of a Warrant,  the Company shall pay all
expenses,  taxes and other charges  payable in  connection  with any transfer or
replacement  of this Warrant,  other than income taxes and stock  transfer taxes
(if any) payable in connection  with a transfer of this Warrant,  which shall be
payable by the Holder.  Holder  will not  transfer  this  Warrant and the rights
hereunder except in compliance with federal and state securities laws and except
after  providing  evidence of such  compliance  reasonably  satisfactory  to the
Company.

5. MISCELLANEOUS PROVISIONS.

5.1 NOTICES.  Any notice or other document  required or permitted to be given or
delivered  to the Holder  shall be  delivered  or forwarded to the Holder at c/o
Mercator Advisory Group, LLC, 555 South Flower Street,  Suite 4500, Los Angeles,
California 90071, Attention: David F. Firestone (Facsimile No. 213/553-8285), or
to such other  address or number as shall have been  furnished to the Company in
writing by the Holder, with a copy to Sheppard Mullin Richter & Hampton LLP, 333
South Hope Street,  48th Floor,  Los Angeles,  California  90071-1448  Attention
David C.  Ulich  (Facsimile  No.  213/620-1398).  Any  notice or other  document
required or permitted to be given or delivered to the Company shall be delivered
or forwarded  to the Company AT  International  Card  Establishment,  Inc.,  300
Esplanade  Drive,  19th  Floor,  Oxnard,  California  93036,  Attention  William
Lopshire (Facsimile No. 866-556-7642,  with a copy to Ronald J. Stauber, Inc., A
Law  Corporation,  1880  Century Park East,  Suite 300, Los Angeles,  California
90067 Attention:  Ronald J. Stauber,  Esq. (Facsimile No.  310-556-3687),  or to
such other  address or number as shall have been  furnished to Holder in writing
by the Company.

5.2 All notices,  requests and  approvals  required by this Warrant  shall be in
writing and shall be conclusively  deemed to be given (i) when hand-delivered to
the other  party,  (ii) when  received if sent by  facsimile  at the address and
number set forth above;  provided that notices  given by facsimile  shall not be
effective,  unless  either  (a) a  duplicate  copy of such  facsimile  notice is
promptly given by depositing the same in the mail, postage prepaid and addressed
to the party as set forth below or (b) the  receiving  party  delivers a written
confirmation of receipt for such notice by any other method permitted under this
paragraph;  and further  provided  that any notice given by  facsimile  received
after  5:00 p.m.  (recipient's  time) or on a  non-business  day shall be deemed
received on the next business day; (iii) five (5) business days after deposit in
the United States mail,  certified,  return receipt requested,  postage prepaid,
and  addressed  to the party as set forth below;  or (iv) the next  business day
after deposit with an international overnight delivery service, postage prepaid,
addressed  to the  party as set forth  below  with next  business  day  delivery
guaranteed;  provided that the sending party receives  confirmation  of delivery
from the delivery service provider.

5.3 NO RIGHTS AS  SHAREHOLDER;  LIMITATION OF LIABILITY.  This Warrant shall not
entitle the Holder to any of the rights of a shareholder  of the Company  except
upon exercise in accordance with the terms hereof.  No provision  hereof, in the
absence of affirmative  action by the Holder to purchase shares of Common Stock,
and no mere enumeration herein of the rights or privileges of the Holder,  shall
give rise to any liability of the Holder for the Warrant Price hereunder or as a
shareholder of the Company, whether such liability is asserted by the Company or
by creditors of the Company.

5.4 GOVERNING LAW. This Warrant shall be governed by and construed in accordance
with  the  laws of the  State of  California  as  applied  to  agreements  among
California  residents  made and to be  performed  entirely  within  the State of
California, without giving effect to the conflict of law principles thereof.

5.5  BINDING  EFFECT ON  SUCCESSORS.  This  Warrant  shall be  binding  upon any
corporation  succeeding the Company by merger,  consolidation  or acquisition of
all or substantially all of the Company's assets and/or  securities.  All of the
obligations of the Company  relating to the Shares issuable upon the exercise of
this Warrant shall survive the exercise and termination of this Warrant.  All of
the  covenants  and  agreements of the Company shall inure to the benefit of the
successors and assigns of the Holder.

5.6 WAIVER,  AMENDMENTS AND HEADINGS.  This Warrant and any provision hereof may
be changed,  waived,  discharged or terminated  only by an instrument in writing
signed by both parties (either generally or in a particular  instance and either
retroactively or  prospectively).  The headings in this Warrant are for purposes
of reference only and shall not affect the meaning or construction of any of the
provisions hereof.

5.7 JURISDICTION.  Each of the parties irrevocably agrees that any and all suits
or  proceedings  based on or arising under this Agreement may be brought only in
and shall be resolved in the federal or state courts  located in the City of Los
Angeles,  California  and consents to the  jurisdiction  of such courts for such
purpose.  Each of the parties  irrevocably waives the defense of an inconvenient
forum to the  maintenance of such suit or proceeding in any such court.  Each of
the parties  further  agrees that  service of process  upon such party mailed by
first  class mail to the  address  set forth in  Section  5.1 shall be deemed in
every respect  effective  service of process upon such party in any such suit or
proceeding.  Nothing  herein shall affect the right of a Holder to serve process
in any other manner  permitted by law.  Each of the parties  agrees that a final
non-appealable  judgment in any such suit or proceeding  shall be conclusive and
may be enforced in other  jurisdictions by suit on such judgment or in any other
lawful manner.

5.8  ATTORNEYS'  FEES AND  DISBURSEMENTS.  If any  action at law or in equity is
necessary to enforce or interpret the terms of this  Agreement,  the  prevailing
party or parties  shall be entitled  to receive  from the other party or parties
reasonable  attorneys' fees and disbursements in addition to any other relief to
which the prevailing party or parties may be entitled.

                                                                          Page 3

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IN WITNESS WHEREOF, the Company has caused this Warrant to be signed by its duly
authorized officer this ___ day of December, 2004.

COMPANY:
                                         INTERNATIONAL CARD ESTABLISHMENT, INC.

                                         BY_____________________________________

                                         PRINT NAME:____________________________

                                         TITLE:_________________________________

                                                                          Page 4

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                                   SCHEDULE A

                           FORM OF NOTICE OF EXERCISE

                [TO BE SIGNED ONLY UPON EXERCISE OF THE WARRANT]

                     TO BE EXECUTED BY THE REGISTERED HOLDER
                         TO EXERCISE THE WITHIN WARRANT

The  undersigned  hereby elects to purchase  _______ shares of Common Stock (the
"Shares")  of  International  Card  Establishment,  Inc.  under the  Warrant  to
Purchase  Common  Stock dated  September  __ , 2004,  which the  undersigned  is
entitled to purchase pursuant to the terms of such Warrant.  The undersigned has
delivered  $_________,  the aggregate  Warrant Price for _____ Shares  purchased
herewith,  in full in  cash or by  certified  or  official  bank  check  or wire
transfer.

         Please issue a certificate or certificates  representing such shares of
Common  Stock  in the  name  of the  undersigned  or in  such  other  name as is
specified below and in the denominations as is set forth below:

         _______________________________________________________________________
         [Type Name of Holder as it should appear on the stock certificate]

         _______________________________________________________________________
         [Requested Denominations - if no denomination is specified, a single
         certificate will be issued]

         _______________________________________________________________________
         The  initial  address  of such  Holder  to be  entered  on the books of
         Company shall be:

         _______________________________________________________________________
         _______________________________________________________________________
         _______________________________________________________________________

         The undersigned  hereby represents and warrants that the undersigned is
acquiring such shares for his own account for investment  purposes only, and not
for resale or with a view to distribution of such shares or any part thereof.

                                     By: _______________________________________

                                     Print Name: _______________________________

                                     Title:_____________________________________

                                     Dated:_____________________________________

                                      -1-

<PAGE>

                               FORM OF ASSIGNMENT
                                    (ENTIRE)

               [TO BE SIGNED ONLY UPON TRANSFER OF ENTIRE WARRANT]

                     TO BE EXECUTED BY THE REGISTERED HOLDER
                         TO TRANSFER THE WITHIN WARRANT

FOR  VALUE  RECEIVED   ___________________________  hereby  sells,  assigns  and
transfers  unto  _______________________________  all rights of the  undersigned
under and  pursuant  to the within  Warrant,  and the  undersigned  does  hereby
irrevocably  constitute and appoint  _____________________  Attorney to transfer
the  said  Warrant  on the  books  of  _________________,  with  full  power  of
substitution.

__________________________________________________
[Type Name of Holder]

By: _______________________________________________
Title:_____________________________________________

Dated:_____________________________________________

NOTICE

The signature to the foregoing Assignment must correspond exactly to the name as
written upon the face of the within Warrant,  without  alteration or enlargement
or any change whatsoever.

                                      -1-

<PAGE>

                               FORM OF ASSIGNMENT
                                    (PARTIAL)

              [TO BE SIGNED ONLY UPON PARTIAL TRANSFER OF WARRANT]

                     TO BE EXECUTED BY THE REGISTERED HOLDER
                         TO TRANSFER THE WITHIN WARRANT

FOR  VALUE  RECEIVED   ___________________________  hereby  sells,  assigns  and
transfers unto ____________________________ (i) the rights of the undersigned to
purchase  ____________________  shares of Common Stock under and pursuant to the
within  Warrant,  and (ii) on a  non-exclusive  basis,  all other  rights of the
undersigned  under and pursuant to the within Warrant,  it being understood that
the undersigned shall retain, severally (and not jointly) with the transferee(s)
named herein, all rights assigned on such  non-exclusive  basis. The undersigned
does  hereby  irrevocably  constitute  and  appoint   __________________________
Attorney  to  transfer  the said  Warrant  on the  books of  International  Card
Establishment, Inc., with full power of substitution.

___________________________________________________
[Type Name of Holder]

By:________________________________________________
Title:_____________________________________________

Dated:_____________________________________________

NOTICE

The signature to the foregoing Assignment must correspond exactly to the name as
written upon the face of the within Warrant,  without  alteration or enlargement
or any change whatsoever.

                                      -1-2004 Deferral Forms

Exhibit 10(i)

TO:       Energizer Holdings, Inc. Deferred Compensation Plan Participants

FROM:    ADP Executive Deferred Compensation

DATE:    November 18, 2003

RE:       2004 Deferred Compensation Plan Enrollment

Open Enrollment

Open enrollment for the Energizer Holdings, Inc. Deferred Compensation Plan will be conducted on the Web from Monday, November 17 through Wednesday, December 17, 2003. 

For 2004, you are given the opportunity to defer up to 75% of your Base Salary and up to 100% of your annual Incentive Plan Bonus. You are also able to make investment mix and distribution elections. 

By deferring all or a portion of your Base Salary and annual Incentive Plan Bonus, you are able to delay federal and most state income tax payments on the deferred amount, as well as investment earnings, until you receive a distribution from the Plan. In addition, you are eligible to receive Company Match on the portion of your 2004 bonus invested in Energizer Company Stock.

Please note that deferrals on both Base Salary and Incentive Plan Bonuses are made prior to 401(k) deductions; therefore you will not be able to make contributions from the deferred income into the 401(k) plan, (which means you will not receive a 401(k) match on this amount).

If you do not wish to defer any of your 2004 compensation, please indicate this by selecting the appropriate box on the enrollment election screen.

On the Web

To log on from any computer with access to the internet, simply enter http://www.worldclassexec.com.

in the address line of your Internet browser. Enter your User ID (Social Security Number) and your Personal Identification Number (PIN). Unless you have changed your PIN, it is the month and day of your birthday, entered mmdd (for example if your birthday is February 5th, your PIN is 0205). For assistance, please use the “Forgot your logon information?” link on the Web site logon screen, or call ADP at 1-866-266-4881 from 7 a.m. to 5 p.m. Pacific, Monday through Friday.

Once you have entered the site, click on the “Plan Enrollment” button on the left to access the enrollment screens.

Confirmation of Elections

A confirmation statement summarizing your elections (or non-participation) for 2004 will be sent to your company email address at the end of the enrollment period.

Questions

If you have any questions regarding the Plan or the site, please use the “Contact Us” section of the Web site or call us at 1-866-266-4881. 

 

	 
	 	 	 
	

	 

TO:       Energizer Holdings, Inc. Directors

FROM:    ADP Executive Deferred Compensation

DATE:    December 3, 2003

RE:       2004 Deferred Compensation Plan Enrollment

Open Enrollment

Enclosed is your 2004 Deferral Election Form for the Energizer Holdings, Inc. Deferred Compensation Plan. 

For 2004, you have the opportunity to defer up to 100% of your annual Director’s Fees and you may choose to invest your deferrals among the 14 Measurement Funds offered in the Plan. Any Fees deferred into Energizer Holdings, Inc. Common Stock will be eligible for additional Company Match.

 

Please complete the enclosed form and return it to ADP Retirement Services in the enclosed envelope by December 31, 2003, or mail the form to:

ADP Retirement Services

Attn: Energizer Plan Administrator

One Union Square, Suite 2812

600 University Street

Seattle, WA 98101

Confirmation of Elections

A confirmation statement summarizing your elections for 2004 will be mailed to you at the end of the enrollment period.

More Information

You may log onto the Web site, by typing http://www.worldclassexec.com in the address line of your Web browser, at any time to view your current deferral elections, investment mix, and current account balance. Your User ID is always your SSN. If you have not yet changed your PIN, the default is the month and day of your birth, entered in mmdd format (for example, if your birthday is February 5th, your PIN would be 0205). Please contact us at 1-866-266-4881 if you have any questions or need any assistance. 

Questions

If you have any questions regarding the Plan, or the Web site, please call us at 1-866-266-4881. We are available from 7a.m. to 5p.m. Pacific, Monday through Friday.

 

 

	 
	 	 	 
	

	 

DEFERRED COMPENSATION PLAN

Powered by ADP Retirement Services

l   Contact Us    l   Log Off

 

PLAN ENROLLMENT

Participant Information

Name:

SSN:

Deferral Amount

Please indicate how much of your annual compensation you would like to defer for the 2004 Plan Year.

	
Percentage
	 	
Amount
	
Amount

	 	
OR
	 	 
	 	
OR
	 	 

For Bonus Deferrals, if you chose a dollar amount,

You must choose one of the below:

m    100%up to a stated amount

m    100% in excess of a statement amount

Contribution Investment

Please indicate the amount or percentage of ongoing contributions you would like allocated to each fund.

	
Salary
	
Bonus
	
Fund

	
o%
	
o%
	
Energizer Common Stock

	
o%
	
o%
	
Prime Rate Fund

	
o%
	
o%
	
Vanguard 500 Idnex

	
o%
	
o%
	
Vanguard Bond Index

	
o%
	
o%
	
Vanguard Explorer

	
o%
	
o%
	
Vanguard International Growth

	
o%
	
o%
	
Vanguard Life Strategy Conservative Growth

	
o%
	
o%
	
Vanguard Life Strategy Growth

	
o%
	
o%
	
Vanguard Life Strategy Income

	
o%
	
o%
	
Vanguard Life Strategy Moderate Growth

	
o%
	
o%
	
Vanguard PRIMECAP

	
o%
	
o%
	
Vanguard Small-Cap

	
o%
	
o%
	
Vanguard Wellington

	
o%
	
o%
	
Vanguard Windsor II

Distribution Commencement

Please indicate when you would like your distributions to commence.

	
Event
	
Election

	
Termination:
	
o%

	
Specified Date:
	
o%

	 	
o Indicate any year after 2007.

	 	
Payments will be made effective January 1, of the year specified.

Distribution Form

Please indicate the form in which you would like your account distributed at Termination.

[Select from List]

o   If you chose “Installments”, indicate number 5 or 10.

 (If you chose “Lump Sum”, any installment number will be ignored.)

Any election you make with regard to the form of payment of your Deferred Compensation Plan account upon termination of employment will be revoked by your execution of a subsequent election concerning the form of payment upon termination of employment. To be effective, however, any such subsequent election must be made (1) during a calendar year preceding the calendar year preceding the calendar year in which you terminate employment and (2) at least six (6) months before you terminate employment.

Authorization

By submitting this form, I acknowledge receipt and represent that I have read the emmo outlining the Deferred Compensation Plan. I understand that the above elections are subject to the terms and conditions of the Plan and become irrevocable after 12/17/2003.

o    Check this box if you do not wish to

participate in this enrollment.

	
Submit Enrollment Election
	
Reset

Energizer Holdings, Inc.

Deferred Compensation Plan

Questions and Answers

QUESTIONS AND ANSWERS

The Company encourages you to read the Energizer Holdings, Inc. Deferred Compensation Plan, ("the Plan") in its entirety and to ask any questions you may have. If there is any discrepancy between these Questions and Answers and the provisions of the Plan now or in the future, the Plan provisions shall control. (Unless otherwise indicated in these questions and answers, capitalized terms have the meanings set forth in the Plan.)

Plan Objectives

 

Q What is the purpose of the Plan?

 

A The Plan is designed to allow Participants to defer annually a portion of their Base Salary and/or Incentive Plan Bonus on a pretax basis, receive a Company Matching Contribution on a portion of these deferrals and earn a potentially attractive, tax-deferred return on these deferrals.

Eligibility

 

Q Who is eligible for the Plan?

 

A Participation in the Plan is limited to a select group of management and/or highly compensated Employees. The Committee, described under "Plan Administration" below, will select, in its sole discretion, the Employees who may participate.

 

Base Salary and Incentive Plan Bonus

 

Q How much Base Salary and Incentive Plan Bonus can I defer under the Plan?

 

A You can elect to defer up to a maximum of 75% of your Base Salary per calendar year and up to 100% of your Incentive Plan Bonus per Fiscal Year. If you wish to participate in the Plan, you must defer at least $1,000 per calendar year. The amount of Base Salary you elect to defer will be deducted from each of your paychecks. The amount of Incentive Plan Bonus you elect to defer will be withheld from your check when the bonus would otherwise have been paid to you. You may not change during a calendar year the amount you have elected to defer during that year.

 

Energizer Holdings, Inc.

Deferred Compensation Plan

Questions and Answers

Q When do I make my Base Salary and Incentive Plan Bonus Deferral election?

A An electronic confirmation form must be completed and submitted during the annual enrollment period (which usually occurs during November and December of the calendar year preceding the year to which your deferral elections relate) in order to defer salary and/or your Incentive Bonus in the following year. Enrollment forms submitted after the end of the annual enrollment period cannot be accepted.

 

Q Can I change the amount of Base Salary and Incentive Plan Bonus I am deferring or stop my deferrals during a calendar year?

 

A No. IRS rules and regulations require that an irrevocable election be made prior to each calendar year. Therefore, changing or stopping the amount of Base Salary and Incentive Plan Bonus you elected to defer is not permitted.

 

Company Matching Amounts

 

Q Are there any Company Matching Amounts?

A Yes. The Company will make a Matching Contribution to your Account equal to 25% of your Incentive Plan Bonus Deferrals for the calendar year. In order to be eligible for the Company Matching Contribution, your Incentive Plan Bonus Deferrals must be invested in the Energizer Holdings, Inc. Common Stock Unit Fund for at least twelve (12) months, beginning on the first day of the first full month following the date the deferral is credited to your account. Any Company Matching Contributions that are credited to you because you elected to defer into the Energizer Holdings, Inc. Common Stock unit fund must remain invested in Energizer Common Stock unit fund for at least thirty six (36) months, beginning on the date the deferral is credited. The Company may change the amount of Matching Contribution in future years. The Company will not make a Matching Contribution on your Base Salary Deferrals.

 

 

Energizer Holdings, Inc.

Deferred Compensation Plan

Questions and Answers

 

 

Social Security Taxes

 

Q If my deferrals are considered pre-tax deferrals, why is FICA currently withheld?

 

A Your deferral amounts are considered earnings at the time that they are earned, regardless of when paid, for purposes of calculating Social Security taxes. Thus, FICA must be withheld at the time your deferrals are earned and credited to your Account.

 

Measurement Funds

 

Q How will the returns on your deferrals be calculated?

 

A Each year when you make your deferral election, you must select among the Measurement Funds. The Measurement Funds you select for your Base Salary Deferrals may be different from the Measurement Funds you select for your Incentive Plan Bonus Deferrals. Your allocation to a Measurement Fund must be in one percentage point (1%) increments, and the total must equal 100%. Your deferrals will begin to receive earnings when they are credited to your account. Base Salary Deferrals will be credited to your Account each pay period. Incentive Plan Bonus Deferrals will be credited to your Account on the date they would have otherwise been paid.

 

• Energizer Holdings, Inc. Common Stock

• Prime Rate Fund

• Vanguard Wellington Fund

• Vanguard 500 Index Fund

• Vanguard Windsor II Fund

• Vanguard Small-Cap Index Fund

• Vanguard International Growth Fund

• Vanguard Life Strategy Income Fund

• Vanguard Life Strategy Conservative Growth Fund

• Vanguard Life Strategy Moderate Growth Fund

• Vanguard Life Strategy Growth Fund

• Vanguard Explorer Fund

• Vanguard PRIMCAP Fund

• Vanguard Bond Index Fund 

 

The amounts you defer are not actually invested in the Measurement Funds at the time of your deferral. Instead, performance will be tracked for those Measurement funds you selected and your account will be debited or credited accordingly. Thus, for the

 

Energizer Holdings, Inc.

Deferred Compensation Plan

Questions and Answers

Vanguard Funds, deferred amounts will earn returns (which may be positive or negative) as if they had been invested at the net asset value (net of investment advisory fees) of the Measurement Funds. For the Energizer Holdings, Inc. Common Stock Unit Fund, deferred amounts will earn returns (which may be positive or negative) as if they had been invested in Energizer Holdings, Inc. Common Stock. Investments made into Energizer Holdings, Inc. Common Stock are made at the average of the previous 10 business days share price. Therefore, evaluating the account balance in this account always reflects the share price for the previous 10 business day average. Any amount of Incentive Plan Bonus Deferrals that are matched because you elected to invest in the Energizer Holdings, Inc. Common Stock Unit Fund must remain invested in such fund for at least thirty six (36) months, beginning on the first day of the first full month following the date the investment is credited to your Account.

 

Q Where can I get more information about the Measurement Funds?

 

A The Vanguard funds are listed on the New York Stock Exchange and their performance is reported in most major newspapers. In addition, if you also participate in Energizer's Savings Investment Plan, you can contact Vanguard directly or on its website.

 

Q What is the Prime Rate fund?

 

A The Prime Rate fund is not a Vanguard Fund. Rather, monies in this fund are credited on a daily basis with interest equivalents based on the average of the daily close of business prime rates as established by Morgan Guaranty Trust Co. of New York or such other bank as the Company may designate in the future.

 

Q Will I own shares of the Measurement Funds I select?

A For tax reasons, you will not have ownership interest in the selected Measurement Funds. As long as you have an Account in this Plan, you will be an unsecured general creditor of Energizer Holdings, Inc. for the amount of your Account.

 

 

Energizer Holdings, Inc.

Deferred Compensation Plan

Questions and Answers

Q After selecting my Measurement Funds, may I change them in the future?

 

A Yes. You may change your selections for your own contributions or your vested Company Matching Contributions daily among any of the available Measurement Funds by requesting making a request on the Web site by clicking on Change Requests. You may reallocate in any whole percentage point increments among the available Measurement Funds. Remember, however, that if you move all or part of your matched Incentive Plan Bonus Deferral out of the Energizer Common Stock Unit Fund before at least 12 months have passed, you will lose the Matching Company Contribution attributable to the Energizer Common Stock units you moved out of the Energizer Common Stock unit fund. For example, if you defer all or part of your Incentive Plan Bonus into the Energizer Common Stock unit fund and you then transfer 50% of those Energizer Common Stock units to another Measurement Fund at any time prior to twelve months following your deferral, then 50% of the Energizer Common Stock units matched by the Company to your deferral will be forfeited.

 

Distributions

 

Q When can I receive a distribution of all or part of my Account?

 

A Each annual enrollment period, you elect when you would like to receive the Base Salary Deferrals and Incentive Plan Bonus Deferrals you elect to defer for the next calendar year. You can elect to receive your deferrals at the following times: * In-Service Distributions -You elect a date (which is at least 3 years from the date of your deferral election) on which you will be paid your Base Salary Deferrals, Incentive Plan Bonus Deferrals and the vested portion of the Company Matching Contributions for the calendar year. However, if you terminate employment for any reason before the date you select your benefit to be paid to you, your benefit will be paid to you upon your termination of employment.

 

Energizer Holdings, Inc.

Deferred Compensation Plan

Questions and Answers

* Termination Distributions - You elect to receive your Base Salary Deferrals, Incentive Plan Bonus Deferrals and the vested portion of Company Matching Contributions for the calendar year on the date you terminate employment with the Company for any reason, including death, Disability and retirement (which means both that you are eligible to receive a benefit under the Company's Retirement Plan and that you cease employment with Energizer). Your Account will be adjusted up or down to reflect the investment performance of your selected Measurement Funds until your Account is fully distributed to you.

 

Q When do I elect how and when to receive a distribution from the Plan?

 

A Each annual enrollment period, you elect when and how you would like to receive your Base Salary Deferrals and Incentive Plan Bonus Deferrals for the next calendar year. Your vested Company Matching Contributions will be paid to you on the date you receive distribution of your deferrals and in the same form as your deferrals.

 

Q If I receive a distribution from the Plan, can I roll the money over into another plan to avoid taxes?

 

A No. The Plan is a nonqualified plan and distributions may not be rolled over into a tax-qualified retirement plan or IRA.

 

Q Can I take a loan from my Account?

 

A No. Loans from your Account are not available.

 

Q Can I withdraw from my Account while I am employed?

 

A Yes. You may elect to withdraw from you Account if the Committee determines, in its discretion, that your withdrawal is needed due to serious and immediate financial hardship from an unforeseeable emergency and that your withdrawal would not create adverse tax consequences for you. Serious and immediate financial hardship to you must result from a sudden and unexpected illness or accident of you or your dependent, loss of property due to casualty,

Energizer Holdings, Inc.

Deferred Compensation Plan

Questions and Answers

or other similar extraordinary and unforeseeable circumstances arising from events beyond your control. A distribution based upon such financial hardship cannot exceed the amount necessary to meet such immediate financial needs. If you withdraw from your Account, you will not be able to make any deferrals into the Plan for the full calendar year following the calendar year in which you withdraw from your Account.

 

Q When will I become vested in my Account?

 

A You are always 100% vested in your Base Salary Deferrals and Incentive Plan Bonus Deferrals and earnings on these amounts. You will become vested in Company Matching Contributions for deferrals made after April 1, 2000, at the end of the thirty-six (36) month period beginning on the first day of the month following the date the Company Matching Contribution is credited to your Account. If your employment terminates during the thirty six (36) month period for any reason other than retirement (which means both that you are eligible to receive a benefit under the Company's Retirement Plan and that you cease employment with Energizer), death, Disability, involuntary termination (other than Termination for Cause), or Change of Control in the Company, you will not be vested in such amounts. However, if your employment terminates on account of your retirement, death, Disability, involuntary termination (other than Termination for Cause), or Change of Control in the Company, you will become 100% vested in the Company Matching Contributions.

 

Q How will my Account be paid to me?

 

A Each annual enrollment period, you elect how you would like to receive your Base Salary Deferral and Incentive Plan Bonus Deferrals for the following year. The Company Matching Contributions will be paid to you in the same form as you elect to receive your deferrals. You can receive your account in a lump sum or in annual installments over a period of 5 or 10 years. If your benefit is paid to you in installment payments, the first installment will be paid to you no later than 60 days following the date your benefit is to be paid to you and each installment thereafter will be paid to you as soon as possible after January 1 of each year.

Energizer Holdings, Inc.

Deferred Compensation Plan

Questions and Answers

If the vested amount to be paid to you is less than $50,000, your benefit will automatically be paid to you in a lump sum, even though you may have elected to receive your benefit in installment payments. The lump sum will be paid to you no later than 60 days following the date the benefit is to be paid to you.

 

Q What happens in the event of my death?

 

A In the event of your death while an employee and before your 50th birthday, your designated beneficiary will receive in a lump sum payment the amount credited to your Account. If you die while an employee and after your 50th birthday, the amount credited to your Account shall be paid to your designated beneficiary in accordance with the applicable form of distribution elected by you. If you have not designated a beneficiary, then benefits shall be paid in a lump sum to your estate or as provided by law.

 

Q Who can I name as Beneficiary?

 

A You can name any individual or entity you wish to. Your tax advisor can provide you with more information on this topic.

 

Q Is the death benefit payable under the Plan taxable income to my Beneficiary?

 

A The death benefit payable to your Beneficiary is taxable as ordinary income. Your tax advisor can provide you with more information on this topic.

 

Q What happens if I become Disabled?

 

A If you become Disabled, you will become 100% vested in the Company Matching Contributions. Your benefit will be paid to you as soon as possible after your employment terminates because of your Disability. "Disability" means such physical or mental illness that prevents you from reporting to work and performing duties for the Company, as determined by the Company.

 

Energizer Holdings, Inc.

Deferred Compensation Plan

Questions and Answers

Q What happens if I take a Paid Leave of Absence?

 

A Deferrals will continue through the current election period. If you deferred an Incentive Plan Bonus that would have been paid during your absence, that deferral will be credited to your Account upon the earlier of the expiration of your leave of absence or your return to active employment.

 

Q What happens if I take an Unpaid Leave of Absence?

 

A You will be excused from making deferrals until the earlier of the date the Unpaid Leave of Absence expires or the date you return to paid active employment. On that date, deferrals shall resume for the remaining portion of the calendar year in which the return occurs, based on the deferral election, if any, made for that calendar year. If no election was made for that calendar year, no deferral will be withheld. If you deferred a bonus payment that would have been paid during your absence, that deferral will be credited to your account upon the earlier of the expiration of your leave of absence or your return to active employment.

 

Deferrals

 

Q What is the income tax effect of electing to defer income?

 

A Amounts you defer including the Company Matching Contribution under the Plan will not be taxed for federal income tax purposes in the year they would have otherwise been paid to you. In addition, earnings credited in accordance with the Plan will not be taxed for federal income tax purposes in the year they are credited to your Account Balance. Rather, these amounts will be taxed when they are paid to you.

 

Q How are my Annual Deferral Amounts taxed when they are distributed to me?

 

A Your deferral amounts and earnings accrued on such amounts, are taxed to you, as ordinary income when they are distributed to you. Unlike qualified plans, special income tax averaging is not available.

 

Energizer Holdings, Inc.

Deferred Compensation Plan

Questions and Answers

Q Why is there a penalty for exercising the Withdrawal Election?

 

A Under the federal tax law, the unrestricted right to withdraw amounts from your Account at any time creates current taxable income to you even if you do not elect a withdrawal. This, of course, would negate one of the main benefits of the Plan, namely the ability for you to avoid current income taxation on amounts deferred. The forfeiture of your ability to participate in the Plan for a full calendar year following the calendar year in which you withdraw from your Account is designed to make your right to withdraw from your Account a restricted right, which should prevent you from being taxed on the value of your Account before you actually receive it.

 

Q Will the distributions from the Plan affect my Social Security benefits after I retire?

 

A Yes and No. Distributions made from the Plan will not affect your Social Security benefits themselves. For purposes of Social Security, these distributions are considered "earned" when they are credited to your account; therefore, they do not constitute earned income under the earnings test when they are distributed to you. However, because the distributions will be considered gross income for federal income tax purposes, the y may have the effect of subjecting your social security benefits to federal income taxation. These issues need to be discussed with your tax advisor.

 

Q Will the Company guarantee the payment of my Account under all circumstances?

 

A The Company's obligation under the Plan shall be that of an unsecured promise to pay money in the future. Amounts payable to you or your Beneficiaries shall be paid from the general assets of the Company.

 

Energizer Holdings, Inc.

Deferred Compensation Plan

Questions and Answers

Q Can I assign or dispose of my interest in the Plan?

 

A No. You cannot in any way sell, assign, hypothecate, alienate, encumber or in any way transfer or convey in advance of receipt, any of your rights under the Plan.

 

Security

 

Q What happens to my Account if the Company becomes insolvent or bankrupt?

 

A In the event that the Company becomes insolvent, you will be an unsecured general creditor of the Company. Your claim against the assets of the Company will be considered in sequence with the claims of other general creditors of the Company.

 

Plan Administration

 

Q How frequently will I receive a statement of my Account?

 

A You will receive an account statement quarterly. The statement will be available to you as soon as practical after March 31, June 30 September 30, and December 31. The statement will be available on the Web site by clicking on Statements. Also, if you have elected to receive paper statements via the Web site, you will receive a paper statement at your home address as soon as practical after the above dates.

 

Q Who will oversee the operation of the Plan?

 

A The Energizer Benefit Committee, appointed by the Board of Directors, interprets and administers the Plan. The Committee has the authority and responsibility to interpret and enforce the Plan and all applicable regulations. The Board has the right to change membership in the Committee at any time, if it determines that to be necessary.

Energizer Holdings, Inc.

Deferred Compensation Plan

Questions and Answers

Q Where can I get more information about the Plan and its administrators?

A You may call: ADP Retirement Services - Executive Services (866) 266-4881 or Contact Us via the Web site or Gerry Auger (VP, Global HR Programs) (203) 882-2296

These questions and answers provide a summary of the Energizer Holdings, Inc. Deferred Compensation Plan ("the Plan'). For a complete description of Plan provisions and benefits, please refer to the Plan documents. If any conflicts arise between this summary and the Plan itself, the provisions of the Plan will control THESE QUESTIONS AND ANSWERS CONSTITUTE PART OF A PROSPECTUS COVERING SECURITIES WHICH MAY BE ISSUED UNDER THE ENERGIZER HOLDINGS, INC. DEFERRED COMPENSATION PLAN AND THAT HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933. THESE QUESTIONS AND ANSWERS SHOULD BE READ IN CONJUNCTION WITH THE PROSPECTUS FOR THE PLAN DATED SEPTEMBER 1, 2000.

 

	 
	 	 	 
	

	 

Energizer Holdings, Inc.

Deferred Compensation Plan

Questions and Answers for Directors

QUESTIONS AND ANSWERS

The Company encourages you to read the Energizer Holdings, Inc. Deferred Compensation Plan, ("the Plan") document in its entirety and to ask any questions you may have. If there is any discrepancy between these Questions and Answers and the provisions of the Plan, the Plan provisions shall control. (Unless otherwise indicated in these questions and answers, capitalized terms have the meanings set forth in the Plan.) Contact Energizer's Vice President, Global HR Programs for a copy of the Plan document or if you have any questions.

Plan Objectives

 

Q What is the purpose of the Plan?

A The Deferred Compensation Plan is designed to allow Participants who are Directors to defer all or a portion of their Director's Fees on a pre-tax basis, receive a Company match on a portion of these deferrals, and potentially earn an attractive, tax-deferred return on these deferrals.

Eligibility 

 

Q Who is eligible to participate in the Plan? A As a Director, you are eligible to participate in the Plan.

Deferrals

Q What is the income tax effect of electing to defer income?

A Amounts you defer including the Company match under the Plan will not be taxed for federal income tax purposes in the year they would have otherwise been paid to you. In addition, earnings credited in accordance with the Plan will not be taxed for federal income tax purposes in the year they are credited to your Account. Rather, these amounts will be taxed when they are paid to you.

Q How much of my Director's Fees can I defer under the Plan?

A You can elect to defer up to 100% of your Director's Fees per calendar year. Director's Fees include Board of Director fees, committee fees, annual retainer fees and other amounts paid to you as a Director.

 

Energizer Holdings, Inc.

Deferred Compensation Plan

Questions and Answers for Directors

The amount of Director's Fees you elect to defer will be withheld from your fees when the amount would otherwise have been paid to you. During the calendar year, you may not change the amount you have elected to defer during that year.

Q When do I make my Director's Fees deferral election?

A To participate in the Plan during calendar year 2005, you must enroll in the Plan and make your election by December 31, 2004. Enrollment forms received after the deadline will not be accepted and no deferrals will be made for calendar year 2005.

Q Can I change the amount of Director's Fees 1 am deferring or stop my deferrals during a calendar year?

A No. IRS rules and regulations require that an irrevocable election be made prior to each calendar year. Therefore, changing or stopping the amount of Director's Fees you elected to defer is not permitted.

Company Matching Amounts

Q Are there any Company Matching Amounts?

A Yes. The Company will make a matching contribution to your Account equal to 33 1/3% of the Energizer Common Stock units credited to you based on your Director's Fees for the calendar year that you have deferred into the Energizer Common Stock unit fund. The Company matching amounts will be credited to your account at the end of the calendar year.

In order to be eligible for the Company matching contribution, your Director's Fee Deferrals must be invested in the Energizer Holdings, Inc. Common Stock unit fund for at least twelve (12) months, beginning on December 31 of that calendar year. The matching funds credited by the Company to your account must remain invested in Energizer Common Stock for at least thirty-six (36) months, beginning on December 31 of that calendar year. The Company may change the amount of matching contribution for future calendar years.

 

Energizer Holdings, Inc.

Deferred Compensation Plan

Questions and Answers for Directors

Crediting Rate

Q How will the returns on the deferred amounts be calculated?

A Each year when you make your deferral election, you must select between the Measurement Funds. Your allocation to a fund must be in one-percentage point (1 %) increments, and the total must equal 100%. Your Director's Fee Deferrals will be credited to your Account on the date they would have otherwise been paid to you.

Here is a list of the Measurement Funds currently available:

• Energizer Holdings, Inc. Common Stock Unit Fund

• Prime Rate Fund

• Vanguard Wellington Fund

• Vanguard 500 Index Fund

• Vanguard Windsor II Fund

• Vanguard Small-Cap Index Fund

• Vanguard International Growth Fund

• Vanguard Life Strategy Income Fund

• Vanguard Life Strategy Conservative Growth Fund

• Vanguard Life Strategy Moderate Growth Fund

• Vanguard Life Strategy Growth Fund

• Vanguard Explorer Fund

• Vanguard PRIMECAP Fund

• Vanguard Bond Index Fund

The amounts you defer are not actually invested in the Measurement Funds at the time of your deferral. Instead, fund performance will be tracked for those Measurement funds you selected and your account will be debited or credited accordingly. Thus, for the Vanguard Funds, deferred amounts will earn returns (which may be positive or negative) as if they had been invested at the net asset value (net of investment advisory fees) of the Measurement Funds. For the Energizer Holdings, Inc. Common Stock Unit Fund, deferred amounts will earn returns (which may be positive or negative) as if they had been invested in Energizer Holdings, Inc. Common Stock. Investments made into the Energizer Holdings, Inc. Common Stock Unit Fund are made at the average of the previous 10 business days share price. Therefore, evaluating the account balance in this account always reflects the share price for the previous 10 business day average.

Energizer Holdings, Inc.

Deferred Compensation Plan

Questions and Answers for Directors

Q Where can I get more information about the Measurement Funds?

A These Vanguard funds are reported in most major newspapers. In addition, you can contact Energizer's Vice President, Global HR Programs to collect the information for you.

Q What is the Prime Rate fund?

A The Prime Rate fund is not a Vanguard Fund. Rather, monies in this fund are credited on a daily basis with interest equivalents based on the average of the daily close of business prime rates as established by Morgan Guaranty Trust Co. of New York or such other bank as the Company may designate in the future.

Q After selecting my Measurement Funds, may I change them in the future?

A Yes, with certain limitations for the Energizer Common Stock Unit Fund.

Your Director's Fee Deferrals must be invested in the Energizer Holdings, Inc. Common Stock Unit Fund for at least twelve (12) months, beginning on December 31 of that calendar year. The matching funds credited by the Company to your account must remain invested in the Energizer Common Stock Unit Fund for at least thirty-six (36) months, beginning on December 31 of that calendar year. Other than these limits on the Energizer Common Stock Unit Fund, you may change your selections daily among any of the available Measurement Funds. You may reallocate in any whole percentage point increments among the Measurement Funds. You may make These requested on the Web site by clicking on Change Requests.

Distributions 

 

Q When will my Account be paid to me? 

 

A Your Account will be paid as soon as practicable after the date you cease to be a Director or upon your death.

 

Energizer Holdings, Inc.

Deferred Compensation Plan

Questions and Answers for Directors

Q If I receive a distribution from the Plan, can I roll the money over into another plan to avoid taxes?

A No. The Plan is a nonqualified plan and distributions may not be rolled over into a tax-qualified retirement plan or IRA.

Q Can I take a loan from my Account?

A No. Loans from your Account are not available.

Q Can I withdraw from my Account while 1 am a Director?

A Yes. You may elect to withdraw from you Account if the Nominating and Executive Compensation Committee determines, in its discretion, that such funds are needed due to serious and immediate financial hardship from an unforeseeable emergency and that your withdrawal would not create adverse tax consequences for you. Serious and immediate financial hardship to you must result from a sudden and unexpected illness or accident of you or one of your dependents, loss of property due to casualty, or other similar extraordinary and unforeseeable circumstances arising from events beyond your control. A distribution based upon such financial hardship cannot exceed the amount necessary to meet such immediate financial needs. In addition, you will be required to wait a full calendar year before you are permitted to begin making deferrals again.

Q When will I become vested in my Account?

A You are always 100% vested in your Director's Fee Deferrals and Company matching contributions and earnings on these amounts.

Q How will my Benefit be paid to me?

A Your Account will be paid to you in a lump sum payment.

Q What happens in the event of my death?

A In the event of your death while a Director, your designated beneficiary will receive in a lump sum payment the amount credited to your Account.

 

Energizer Holdings, Inc.

Deferred Compensation Plan

Questions and Answers for Directors

If you have not designated a beneficiary, then benefits shall be paid in a lump sum to your estate or as provided by law.

Q Who can I name as Beneficiary?

A You can name any individual or entity you wish to. Your tax advisor can provide you with more information on this topic.

Q Is the death benefit payable under the Plan taxable income to my Beneficiary?

A The death benefit payable to your Beneficiary is taxable as ordinary income. Your tax advisor can provide you with more information on this topic.

Q How is my Account taxed when it is distributed to me?

A Your Account and earnings accrued on such amounts are taxed as ordinary income when they are distributed to you. Unlike qualified plans, special income tax treatment is not available.

Q Will the distribution from the Plan affect my Social Security benefits after I retire?

A Yes and No. The distribution made from the Plan will not affect your Social Security benefits themselves. For purposes of Social Security, the distribution is considered "earned" when it is credited to your account; therefore, the distribution does not constitute earned income under the earnings test when it is distributed to you. However, because the distribution will be considered gross income for federal income tax purposes, it may have the effect of subjecting your social security benefits to federal income taxation. These issues need to be discussed with your tax advisor.

 Q Will the Company guarantee the payment of my Account under all circumstances?

A The Company's obligation under the Plan is that of an unsecured promise to pay money in the future. Amounts payable to you or your Beneficiaries will be paid from the general assets of the Company.

 

Energizer Holdings, Inc.

Deferred Compensation Plan

Questions and Answers for Directors

Q Can I assign or dispose of my interest in the Plan?

A No. You cannot in any way sell, assign, hypothecate, alienate, encumber or in any way transfer or convey in advance of receipt, any of your rights under the Plan.

Security

Q What happens to my Account if the Company becomes insolvent or bankrupt?

A In the event that the Company becomes insolvent, you will be an unsecured general creditor of the Company. Your claim against the assets of the Company will be considered in sequence with the claims of other general creditors of the Company.

Plan Administration

Q How frequently will I receive a statement of my Account?

A You will receive an account statement quarterly. The statement will be available to you as soon as practical after March 31, June 30, September 30, and December 31. The statement will be available on the Web site by clicking on Statements.

Also, if you have elected to receive paper statements via the Web site, you will receive a paper statement at your home address as soon as practical after the above dates.

Q Who will oversee the operation of the Plan?

A The Nominating and Executive Compensation Committee of the Board of Directors interprets and administers the Plan (the Board has the right to change the membership of the Committee at any time). The Committee has the authority and responsibility to interpret and enforce the Plan and all applicable regulations.

 

Energizer Holdings, Inc.

Deferred Compensation Plan

Questions and Answers for Directors

Q Where can I get more information about the Plan and its administrators?

A If you have questions, you may call:

 Gerry Auger

 (Energizer,VP, Global HR Programs) (314) 985-2188

ADP Retirement Services

Executive Deferred Compensation

(866) 266-4881

These questions and answers provide a summary of the Energizer Holdings, Inc. Deferred Compensation Plan ("the Plan'). For a complete description of Plan provisions and benefits, please refer to the Plan document. If any conflicts arise between this summary and the Plan document itself, the provisions of the Plan document will control.

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