Document:

Exhibit 10.1 Second Amended and Restated Employment Agreement

    Exhibit
      10.1

    

    SECOND
      AMENDED AND RESTATED EMPLOYMENT AGREEMENT

    

    

    WHEREAS,
      Brand Services, Inc., a Delaware corporation ("Company") and John M. Monter
      ("Executive") entered into an employment agreement dated June 1, 1999, as
      subsequently amended or otherwise modified and restated, including pursuant
      to
      the First Amendment thereto dated June 30, 2000 and the Amended and Restated
      Employment Agreement dated October 16, 2002 ("Prior Agreement");
      and

    

    WHEREAS,
      the parties desire to amend and completely restate the Prior Agreement as
      evidenced by this Agreement; 

    

    NOW,
      THEREFORE, in consideration of the premises and mutual covenants contained
      herein and for other good and valuable consideration, the parties hereto agree
      that, effective January 1, 2005 ("Effective Date"), the Prior Agreement is
      hereby amended and completely restated in accordance with the following:

    

    1. Employment
      Term.
      Subject
      to the terms and conditions of this Agreement, the Company shall continue to
      employ the Executive for the employment term which shall be the period
      commencing on the Effective Date and ending December 31, 2006, unless sooner
      terminated in accordance with this Agreement ("Employment Term"). The Employment
      Term may be extended for such period and subject to such terms as the parties
      may mutually agree in writing. 

    

    2. Position.
      Subject
      to the terms and conditions of this Agreement, during the Employment Term,
      the
      Executive shall serve as the Vice Chairman of the Company, assist the Chief
      Executive Officer, the Chairman, and the Board of Directors ("Board") of the
      Company, as reasonably requested by the Board, and shall have such duties and
      authority as
      the
      Board or the Chief Executive Officer may direct from time to time.

    

    3. Base
      Salary and Retainer.
      During
      the period beginning January 1, 2005 and ending December 31, 2005, the Company
      shall pay the Executive a base salary ("Base Salary") at the annual rate of
      not
      less than $449,000. During the period beginning January 1, 2006 and ending
      December 31, 2006, the Company shall pay the Executive a retainer ("Retainer")
      at the annual rate of not less than $150,000. The Base Salary and the Retainer
      shall be payable bi-weekly in arrears, in accordance with the usual payment
      practices of the Company, and retroactively from the period January 1, 2005
      until the date this Agreement is finally executed. The Executive’s Base Salary
      and/or Retainer may be increased, but not decreased, by the Compensation
      Committee of the Board upon periodic review not less frequently than annually,
      beginning on the Effective Date.

    

    4. Employee
      Benefits. 

    

    (a) During
      the Employment Term, the Executive shall be: 

    

    (i) entitled
      to participate on a basis no less favorable than other senior executives of
      the
      Company in all employee benefit plans, programs and policies of the Company,
      including, without limitation, any retirement, welfare benefit, perquisite,
      fringe benefits and other plans and arrangements of the Company applicable
      to
      senior executives of the Company as in effect from time to time; provided,
      however, that the Executive shall not be entitled to participate in incentive
      compensation plans, programs and policies available to senior executives of
      the
      Company generally except as otherwise specifically described herein;

    

    (ii) reimbursed
      on a monthly basis for the lease of an automobile in an amount not to exceed
      $775 per month; and

    

    (iii) reimbursed
      on a monthly basis for the then current monthly dues and assessments as charged
      by such country club of which the Executive is a member in an amount not
      exceeding $600 per month. 

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (b) In
      addition to the Base Salary, the Company shall make a credit on the Executive’s
      behalf to a nonqualified deferred compensation plan in an amount equal to 25
      percent of the Executive’s Base Salary during the period beginning on the
      Effective Date and ending on December 31, 2005. The Company shall ensure that
      such nonqualified deferred compensation plan, and any obligations or benefits
      thereunder with respect to the Executive, shall not be subject to a gross income
      inclusion or interest or additional tax by reason of Section 409A of the
      Internal Revenue Code of 1986, as amended ("Code").

    

    (c) During
      the period beginning on January 1, 2007 and ending on December 31, 2008, the
      Executive shall be entitled to participate, on a basis no less favorable than
      other senior executives of the Company (including, without limitation, with
      respect to premiums, co-pays, deductibles and other costs), in such medical
      plan
      as may be maintained by the Company.

    

    5. Business
      and Legal Expenses.
      The
      Company shall reimburse such of the Executive’s travel,
      entertainment,
      home
      DSL service, cell phone
      and
      other business (and
      not
      personal) expenses
      as are reasonably and necessarily incurred by the Executive during the
      Employment Term in the performance of his duties hereunder, as
      approved by the Board or
      the
      Company’s Chief
      Executive Officer.

    

    In
      addition, the Company shall reimburse the Executive the amount of reasonable
      expenses, including attorneys’ fees, incurred by the Executive in connection
      with the drafting and negotiation of this Agreement,
      which
      amount shall not exceed $15,000.

    

    6. Termination.
      Upon a
      termination of the Executive’s employment, the Executive shall be entitled to
      the payments described in this Section 6.

    

    (a) For
      Cause by the Company; Termination by the Executive.
      The
      Employment Term may be terminated prior to December 31, 2006 ("Expiration Date")
      either (i) by the Company for Cause (as defined below) or (ii) by the Executive
      for any reason.

    

    If,
      prior
      to the Expiration Date, the Employment Term is terminated by the Company for
      Cause or by the Executive for any reason, the Executive shall be entitled to
      receive his Base Salary or Retainer, as applicable, through the date of
      termination, any nonqualified deferred compensation plan contribution that
      has
      been earned but not yet credited and any unreimbursed business expenses, payable
      no later than 30 days following the date of termination, and the Executive
      shall
      be entitled to receive the Severance Benefits payable at such times and in
      such
      manner as described in Section 6(f) hereof; except that, if the Employment
      Term
      is terminated prior to December 31, 2005
      by the
      Executive for any reason and Severance Benefits have not already begun as of
      the
      date of such termination, Severance Benefits shall begin immediately following
      termination of employment, payable over a period of thirty-six months in the
      amount provided in Section 6(f)(i) for a period of twenty-four months and
      thereafter, in the amount provided in Section 6(f)(ii) for a period of twelve
      months.
      The
      Executive shall be entitled to such other compensation and benefits following
      such termination under applicable plans, policies and practices of the Company,
      in accordance with their terms.
      Notwithstanding
      the foregoing, in the event that the Executive is a specified employee, as
      determined under Section 409A of the Code, to the extent Severance Benefits
      have
      not already begun before the date of termination, any payment of Severance
      Benefits contemplated by this subsection (a) shall be made or begin, as
      applicable, on the date which is six (6) months after the date of his separation
      from service, as determined under Section 409A of the Code and the regulations
      and other guidance issued thereunder, and the Executive shall receive
      retroactive payments for such six-month period on
      the
      date which is six (6) months after the date of his separation from service,
      to
      the extent required to avoid adverse tax consequences under Section 409A of
      the
      Code and the regulations and other guidance issued thereunder.

    

    (b) Death.
      The
      Employment Term shall terminate prior to the Expiration Date upon the
      Executive’s death. If the Employment Term is terminated prior to the Expiration
      Date by reason of the Executive’s death, the Executive’s beneficiary designated
      in writing to the Company, or if none at such time, the Executive’s estate shall
      receive all amounts otherwise payable under Sections 3, 4(b) and 6(f) of this
      Agreement at such times as provided herein, as though the Employment Term had
      continued until the Expiration Date and the Executive were still living. The
      Executive’s beneficiary or estate, as applicable, shall be entitled to such
      other compensation and benefits following such death under applicable plans,
      policies and practices of the Company, in accordance with their terms.

    

    
      
        
        

      

      
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    (c) Disability;
      by the Company without Cause.
      The
      Employment Term shall terminate prior to the Expiration Date, at the Company’s
      election, if the Executive incurs a Disability (as defined below). In addition,
      the Employment Term may be terminated prior to the Expiration Date by the
      Company without Cause.

    

    If
      the
      Employment Term is terminated prior to the Expiration Date by reason of the
      Executive’s Disability or by the Company without Cause, subject to the
      Executive’s continued compliance with the covenants set forth in Section 9, the
      Executive shall continue to participate in all employee benefits and receive
      all
      amounts otherwise payable under this Agreement at such times as provided herein,
      as though the Employment Term had continued until the Expiration Date.
      Notwithstanding the foregoing, in the event that the Executive is a specified
      employee, as determined under Section 409A of the Code, any payment contemplated
      by this subsection (c) shall be made or begin, as applicable, on the date which
      is six (6) months after the date of his separation from service, as determined
      under Section 409A of the Code and the regulations and other guidance issued
      thereunder, and the Executive shall receive retroactive payments for such
      six-month period on the date which is six (6) months after the date of his
      separation from service, to the extent required to avoid adverse tax
      consequences under Section 409A of the Code and the regulations and other
      guidance issued thereunder.

    

    (d) Definitions.
      For
      purposes of this Section 6, the following terms shall have the following
      meanings: 

    

    (i) "Cause"
      shall mean: 

    

    (A) The
      Executive’s willful and continued failure substantially to perform his duties
      under the Agreement (other than as a result of total or partial incapacity
      due
      to physical or mental illness);

    

    (B) An
      act or
      acts on the Executive’s part constituting a felony under the laws of the United
      States or any state thereof or any other jurisdiction in which the Company
      conducts business; 

    

    (C) The
      Executive’s being under the influence of illegal drugs or alcohol while
      performing his duties hereunder; 

    

    (D) Any
      other
      act or omission which is materially injurious to the financial condition or
      business reputation of the Company or any of its affiliates; or

    

    (E) The
      Executive’s breach of the provisions of Section 9. 

    

    For
      purposes of this definition, no act or failure to act shall be deemed "willful"
      unless effected by the Executive not in good faith and without a reasonable
      belief that such action or failure to act was in or not opposed to the Company’s
      best interests.

    

    (ii) "Disability"
      shall mean the Executive’s inability, as a result of physical or mental illness,
      to perform the duties of the position(s) specified in Section 2 for a period
      of
      90 consecutive days or for an aggregate of 90 days in any twelve consecutive
      month period. Any question as to the existence of the Disability of the
      Executive as to which the Executive and the Company cannot agree shall be
      determined in writing by a qualified independent physician selected by the
      Company and acceptable to the Executive. The determination of Disability made
      in
      writing to the Company and the Executive shall be final and conclusive for
      all
      purposes of the Agreement. 

    

    (e) Notice
      of Termination.
      Any
      purported termination of the Employment Term prior to the Expiration Date by
      the
      Company or by the Executive shall be communicated by written notice of
      termination to the other party hereto, which notice shall indicate the specific
      termination provision in this Agreement relied upon and shall set forth in
      reasonable detail the facts and circumstances claimed to provide a basis for
      termination under the provision so indicated. 

    

    
      
        
        

      

      
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    (f) Additional Severance
      Benefits.
      The
      Executive shall be entitled to receive total cash payments of $1,347,338
      ("Severance Benefits") payable monthly over a period of thirty-six months as
      follows: 

    

    (i) During
      the period beginning January 1, 2006 and ending December 31, 2007, the Company
      shall pay to the Executive a monthly payment in the amount of $37,056; and
      

    

    (ii) During
      the period beginning January 1, 2008 and ending December 31, 2008, the Company
      shall pay to the Executive a monthly payment in the amount of
      $38,167.

    

    (g) Release.
      Any
      payments by the Company to the Executive under this Section 6 or in connection
      with any dispute arising under or in connection with this Agreement or relating
      to the Executive’s employment with the Company (including payments pursuant to
      arbitration as provided for in Section 12(l) hereof) will be contingent upon
      the
      execution by the Executive of a release of any claims the Executive may have
      against the Company, its affiliates or any successor to the Company, such
      release to be in a form satisfactory to the Company in its sole discretion;
      provided, however, that such release shall not include any claims to future
      benefits or payments due under this Agreement or otherwise or any claims that
      may otherwise arise in the future.

    

    (h) Deferred
      Compensation Plan.
      Notwithstanding anything herein to the contrary, the parties agree that any
      payment due Executive under the Company’s deferred compensation plan shall not
      begin until October 16, 2007, notwithstanding prior
      termination of employment,
      and the
      Company shall cause such plan documents as may be necessary to be amended to
      reflect the timing of such payment and shall provide Executive with such form,
      if any, as may be necessary for Executive to make any payment elections to
      reflect the intent of this paragraph, all before December 31, 2005; provided,
      however, that the parties hereby agree to amend this paragraph before December
      31, 2005 if necessary to avoid adverse tax consequences under Section 409A
      of
      the Code and the regulations and other guidance issued thereunder. 

    

    7. Equity
      Rights and Loan. 

    

    (a) Executive
      was previously granted 696,889 Performance Based Class C Units
      of Brand
      Holdings, LLC. Of that amount, Brand
      Holdings, LLC will convert 173,644 of these Class C Units into 173,644
      Performance Based Class C-1 Units,
      which
      shall be subject to performance-based vesting in accordance with the terms
      of
      Exhibit A to this Agreement.
      The
      balance of the Performance Based Class C Units shall lapse and be forfeited
      as
      of the Effective Date of this Agreement. 

    

    (b) 
      In
      addition, Executive
      was previously granted 113,447
      Time Based
      Class C
      Units.
      90,758
      Time
      Based Class C
      Units
      shall vest on December 31, 2005, notwithstanding
      the Executive’s prior termination. The balance of the Time Based Class C Units
      granted to the Executive shall lapse and be forfeited as of the Effective Date
      of this Agreement.
      

    

    (c)
       In
      addition, Executive, an individual retirement account established by Executive,
      and certain trusts established for Executive’s family members hold Class A and
      Class B Units of Brand Holdings, LLC. Notwithstanding anything to the contrary
      in the Limited Liability Company Agreement of Brand Holdings, LLC ("LLC
      Agreement"), the Company shall not have the option to purchase the Executive’s
      Class A Units, Class B Units, Class C Units, or Class C-1 Units (whether held
      in
      the Executive’s name and/or the names of his individual retirement account, his
      spouse, his children and/or trusts established on their behalf) with respect
      to
      or on account of termination of the Executive’s employment for any reason,
      including for Cause, by the Executive for any reason, or termination of the
      Executive without Cause or due to death or disability, whether such Units are
      granted under this Agreement or otherwise. For
      purposes of this Section
      7,
      "Company" shall include Brand Holdings, LLC. The Company shall cause such
      documents and agreements, as necessary, to be drafted or amended to reflect
      the
      intent of the foregoing, including without limitation, an amendment to Section
      8.9 of the LLC Agreement. 

     

    
 

    
      
        
        

      

      
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    (d) The
      Executive’s employment termination shall not be considered an event of default
      under the $1,000,000 Note between the Executive and Brand Holdings, LLC dated
      April 15, 2003, and such Note shall not become due and payable at that time,
      but, instead, shall continue to become due as otherwise provided therein as
      though there were not a termination of employment. The Company shall cause
      such
      documents and agreements, as necessary, to be drafted or amended to reflect
      the
      intent of this paragraph, including without limitation, an amendment to the
      Note.

    

    8. Change
      of Control.
      In the
      event of a Change of Control, as defined in the LLC Agreement ("Change of
      Control") after the Effective Date, the Executive shall receive the following:
      

    

    (a) The
      Base
      Salary that has not yet been paid to the Executive for the period beginning
      on
      the Effective Date and ending December 31, 2005; 

    

    (b) To
      the
      extent the same has not been made, a credit on the Executive’s behalf to a
      nonqualified deferred compensation plan in an amount equal to 25 percent of
      the
      Executive’s Base Salary during the period beginning on the Effective Date and
      ending on December 31, 2005, in accordance with Section 4(b); 

    

    (c) The
      Retainer that has not yet been paid to the Executive for the period beginning
      January 1, 2006 and ending December 31, 2006; 

    

    (d) The
      amount of the car allowance that has not yet been paid to the Executive under
      Section 4 for the period beginning on the Effective Date and ending December
      31,
      2006;

    

    (e) The
      amount of the country club reimbursement that has not yet been paid to the
      Executive under Section 4 for the period beginning on the Effective Date and
      ending December 31, 2006; 

    

    (f) The
      employee benefits described in subsection 4(a)(i) (or, if such benefits are
      not
      available to the Executive or have been materially modified after the Change
      of
      Control, benefits and coverages that are comparable to those the Executive
      participated in immediately before the Change of Control) through December
      31,
      2006, and coverage comparable to the medical coverage provided by the Company
      to
      the Executive immediately before the Change of Control through December 31,
      2008; and

    

    (g)
      The
      Severance Benefits that have not yet been paid to the Executive.

    

    All
      payments contemplated by this Section 8 shall be made within 30 days after
      a
      Change of Control in a lump sum cash payment, other than the coverages described
      in subsection 8(f) hereof, which shall be provided over the coverage period
      described therein. Notwithstanding the foregoing, to the extent necessary to
      avoid adverse tax consequences under Section 409A of the Code, such payments
      shall not be accelerated as a result of a Change of Control, but instead shall
      be made at the time they would otherwise have been payable
      hereunder.

    

    9. Non-Competition/Confidential
      Information.

    

    (a) The
      Executive acknowledges and recognizes the highly competitive nature of the
      businesses of the Company and its affiliates and accordingly agrees that during
      the Employment Term, and thereafter, through the twenty fourth (24th)
      month
      following the Executive’s termination date: 

    

    (i) The
      Executive will not directly or indirectly engage in any business which is in
      competition with any line of business conducted by the Company or its affiliates
      (including without limitation by performing or soliciting the performance of
      services for any person who is a customer or client of the Company or any of
      its
      affiliates) whether such engagement is as an officer, director, proprietor,
      employee, partner, investor (other than as holder of less than 1% of the
      outstanding capital stock of a publicly traded corporation), consultant,
      advisor, agent, sales representative or other participant, in any geographic
      area in which the Company or any of its affiliates conducted any such competing
      line of business.

    

    (ii) The
      Executive will not directly or indirectly assist others in engaging in any
      of
      the activities in which the Executive is prohibited from engaging in by clause
      (i) above.

    

    
      
        
        

      

      
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    (b) The
      Executive will not directly or indirectly induce any employee of the Company
      or
      any of its affiliates to engage in any activity in which the Executive is
      prohibited to engage by paragraph (a) above or to terminate his employment
      with
      the Company or any of its affiliates, and will not directly or indirectly employ
      or offer employment to any person who was employed by the Company or any of
      its
      affiliates unless such person shall have ceased to be employed by the Company
      or
      any of its affiliates for a period of at least 12 months.

    

    (c) The
      Executive will not at any time (whether during or after his employment with
      the
      Company) disclose or use for his own benefit or purposes or the benefit or
      purposes of any other person, firm, partnership, joint venture, association,
      corporation or other business organization, entity or enterprise other than
      the
      Company and any of its subsidiaries or affiliates, any trade secrets,
      information, data, or other confidential information relating to customers,
      development programs, costs, marketing, trading, investment, sales activities,
      promotion, credit and financial data, manufacturing processes, financing
      methods, plans, or the business and affairs of the Company generally or of
      any
      subsidiary or affiliate of the Company, provided that the foregoing shall not
      apply to information which is not unique to the Company or which is generally
      known to the industry or the public other than as a result of the Executive’s
      breach of this covenant. The Executive agrees that upon termination of his
      employment with the Company for any reason, he will return to the Company
      immediately all memoranda, books, papers, plans, information, letters and other
      data, and all copies thereof or therefrom, in any way relating to the business
      of the Company and its affiliates, except that he may retain personal notes,
      notebooks and diaries. The Executive further agrees that he will not retain
      or
      use for his account at any time any trade names, trademark or other proprietary
      business designation used or owned in connection with the business of the
      Company or its affiliates.

    

    10. Specific
      Performance and Other Remedies.
      The
      Executive acknowledges and agrees that the Company has no adequate remedy at
      law
      for a breach or threatened breach of any of the provisions of Section 9 and,
      in
      recognition of this fact, the Executive agrees that, in the event of such a
      breach or threatened breach, in addition to any remedies at law, the Company,
      without posting any bond and without notice to the Executive, shall be entitled
      to obtain equitable relief in the form of specific performance, temporary
      restraining order, temporary or permanent injunction or any other equitable
      remedy which may then be available. Nothing in this Agreement shall be construed
      as prohibiting the Company from pursuing any other remedies at law or in equity
      that it may have or any other rights that it may have under any other agreement.
      

    

    11. Excise
      Tax Imposed on Executive as a Result of Change of Control.
      If (i)
      there occurs a Change of Control after the Effective Date, and (ii) the
      Executive shall be liable for any tax imposed under Section 4999 of the Code
      as
      a result of payments under this Agreement, then not later than the due date
      for
      the payment of any such tax, the Company shall pay to the Executive (a) an
      amount equal to such tax, plus (b) an amount equal to any additional taxes
      incurred by the Executive as a result of the tax payments to the Executive
      pursuant to clause (a), immediately preceding, and this clause (b).

    

    12. Miscellaneous.

    

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

    

    (b) Entire
      Agreement/Amendments.
      This
      Agreement contains the entire understanding of the parties with respect to
      the
      employment of the Executive by the Company and supersedes any prior agreements
      between the Company and the Executive. 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. No provision in this Agreement may be amended unless such amendment
      is
      agreed to in writing.

    

    (c) Continuation
      of Employment.
      Unless
      the parties otherwise agree in writing, continuation of the Executive’s
      employment with the Company beyond the Expiration Date shall be deemed an
      employment at will and shall not be deemed to extend any of the provisions
      of
      this Agreement.

    

    
      
        
        

      

      
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    (d) 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. No waiver by either party of
      any
      breach by the other party of any condition or provision contained in this
      Agreement to be performed by such other shall be deemed a waiver of a similar
      or
      dissimilar condition or provision at the same or any prior or subsequent time.
      Any waiver must be in writing and signed by the Executive or the Company, as
      the
      case may be.

    

    (e) Severability.
      It is
      expressly understood and agreed that although the Executive and the Company
      consider the restrictions contained in Section 9 to be reasonable, if a final
      judicial determination is made by a court of competent jurisdiction that the
      time or territory restriction in Section 9 or any other restriction contained
      in
      Section 9 is an unenforceable restriction against the Executive, such provision
      shall not be rendered void but shall be deemed amended to apply to such maximum
      time and territory, if applicable, or otherwise to such maximum extent as such
      court may judicially determine or indicate to be enforceable. Alternatively,
      if
      any court of competent jurisdiction finds that any restriction contained in
      Section 9 is unenforceable, and such restriction cannot be amended so as to
      make
      it enforceable, such finding shall not affect the enforceability of any of
      the
      other restrictions contained herein. In the event that any one or more of the
      other provisions of this Agreement shall be or become invalid, illegal or
      unenforceable in any respect, the validity, legality and enforceability of
      the
      remaining provisions of this Agreement shall not be affected
      thereby.

    

    (f) Assignment.
      This
      Agreement shall not be assignable by either party without the consent of the
      other party. 

    

    (g) Successors.
      This
      Agreement shall inure to the benefit of and be binding upon the personal or
      legal representatives, executors, administrators, successors, heirs,
      distributes, devisees and legatees of the parties hereto. The Executive shall
      be
      entitled to select (and change, to the extent permitted under any applicable
      law) a beneficiary or beneficiaries to receive any compensation or benefit
      payable hereunder following the Executive’s death by giving the Company written
      notice thereof. In the event of the Executive’s death or a judicial
      determination of his incompetence, reference in this Agreement to the Executive
      shall be deemed, where appropriate, to refer to his beneficiary, estate or
      other
      legal representative. 

    

    (h) 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
      when faxed or delivered or two business days after being mailed by United States
      registered or certified mail, return receipt requested, postage prepaid,
      addressed (i) to the Executive at his address then appearing in the personnel
      records of the Company; and (ii) to the Company at the Company’s then current
      headquarters, with a copy to Brand Holdings, LLC, c/o J.P. Morgan Partners,
      LLC,
      1221 Avenue of the Americas, 39th
      Floor,
      New York, NY 10020, Attention: Christopher Behrens; or (iii) to such other
      address as either party may have furnished to the other in writing in accordance
      herewith, with such notice of change of address being effective only upon
      receipt.

    

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

    

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

    

    (k) Representations.
      Each
      party represents and warrants to the other that he or it is fully authorized
      and
      empowered to enter into this Agreement and that the performance of his or its
      obligations under this Agreement will not violate any agreement between him
      or
      it and any other person or entity.

    

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

    (l) Arbitration.
      The
      parties agree that all disputes arising under or in connection with this
      Agreement, and any and all claims by the Executive relating to his employment
      with the Company, including any claims of discrimination arising under Title
      VII
      of the Civil Rights Act of 1964, as amended, the Age Discrimination in
      Employment Act, the Americans with Disabilities Act or any similar federal,
      state or local law will be submitted to arbitration in the County of St. Louis
      in the State of Missouri to the American Arbitration Association ("AAA") under
      its rules then prevailing for the type of claim in issue. The parties each
      hereby specifically submit to the personal jurisdiction of any federal or state
      court located in the County of St. Louis in the State of Missouri for any such
      action and further agree that service of process may be made within or without
      the State of Missouri by giving notice in the manner provided herein.

    

    In
      any
      action or proceeding relating to this Agreement, the parties agree that no
      damages other than compensatory damages shall be sought or claimed by either
      party and each party waives any claim, right or entitlement to punitive,
      exemplary, statutory or consequential damages, or any other damages, and each
      relevant arbitral panel is specifically divested of any power to award any
      damages in the nature of punitive, exemplary, statutory or consequential
      damages, or any other damages of any kind or nature in excess of compensatory
      damages.

    

    (m) Fees
      and Expenses.
      Notwithstanding any provision herein to the contrary, in the event of a breach
      of this Agreement by
      the
      Company
      at any
      time, whether or not litigation is commenced, then, the Company
      shall pay to the Executive,
      in
      addition to any damages incurred by the Executive,
      the
      costs and expenses incurred by the Executive
      in
      connection with such breach (including, without limitation, all court costs
      and
      reasonable attorneys’ fees and costs).

    

    (n) 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.

    

    (o) 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. 

    

    IN
      WITNESS WHEREOF, the parties have executed this Second Amended and Restated
      Employment Agreement as of June 20, 2005.

    

    
      	 	 	 
	 
 	 
 	 
 
	 	By:  	/s/ John
              M. Monter
	 	
              
John
              M. Monter

    

     

     

    The
      Executive acknowledges that this Agreement contains an arbitration provision
      which may be enforced by either party hereto.

     

    
      
        	 	 	 
	 	BRAND
                SERVICES, INC.
	 
 	 
 	 
 
	 	By:  	/s/ Paul
                T. Wood
	 	
                
Paul
                T. Wood
	 	Chief
                Executive Officer

      

    

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

    

    SCHEDULE
      A

    

    Calculation
      of Performance Vesting Percentage in Respect of Class C-1
      Units

    

    Capitalized
      terms used but not defined herein shall have the meanings given them in that
      certain Amended and Restated Limited Liability Company Agreement of Brand
      Holdings, LLC dated as of January 1, 2005.

    

    (1)
      Calculation
      of Performance Vesting Percentage.

    

    If
      a
      Distribution Event is consummated on or before December 31, 2009, the
      Performance Vesting Percentage (as defined below) shall be determined by
      reference to the Net
      Consideration
      Per
      Common Unit in respect of the Distribution Event measured against the scale
      of
      putative per Common Unit performance target values (the "Performance
      Targets")
      set
      forth in the table below. If a Distribution Event is not consummated on or
      before December 31, 2009, the Performance Vesting Percentage shall be determined
      as if the Company were sold at its Formula Value per Common Unit (as defined
      in
      the LLC Agreement) on such date.

     

    The
      "Performance
      Vesting Percentage" in
      any
      such case shall mean the percentage (from 0-100%) under the heading "Performance
      Vesting Percentage" in the table below that corresponds to the Net
      Consideration
      Per
      Common Unit or the Formula Value per Common Unit, as the case may be, as
      measured against such Performance Targets. 

     

    
      	
               

              Performance
                Targets (Per Common Unit)

            
	 	
              Net
                Consideration Per Common Unit or 

              Formula
                Value Per Common Unit

            
	
              Performance

              Vesting
                Percentage

            	
               

              Year
                Ending December 31, 2005

            	
               

              Year
                Ending December 31, 2006

            	
               

              Year
                Ending 

              December
                31, 2007

            	
               

              Year
                Ending 

              December
                31, 2008

            	
               

              Year
                Ending 

              December
                31, 2009

            
	
              100%

            	
              ≥$6.30

            	
              ≥11.20

            	
              ≥$18.90

            	
              ≥$24.85

            	
              ≥$30.80

            
	
              83.3%

            	
              ≥$5.40
                but <$6.30

            	
              ≥$9.60
                but <$11.20

            	
              ≥$16.20
                but <$18.90

            	
              ≥$21.30
                but <$24.85

            	
              ≥$26.40
                but <$30.80

            
	
              50%

            	
              ≥$4.50
                but <$5.40

            	
              ≥$8.00
                but <$9.60

            	
              ≥$13.50
                but <$16.20

            	
              ≥$17.75
                but <$21.30

            	
              ≥$22.00
                but <$26.40

            
	
              16.7%

            	
              ≥$3.60
                but <$4.50

            	
              ≥$6.40
                but <$8.00

            	
              ≥$10.80
                but <$13.50

            	
              ≥$14.20
                but <$17.75

            	
              ≥$17.60
                but <$22.00

            
	
              0%

            	
              <$3.60

            	
              <$6.40

            	
              <$10.80

            	
              <$14.20

            	
              <$17.60

            

    

    

    (2)
      Calculation
      of Number of Performance Vested Class C Units.

     

    The
      number of "Performance
      Vested Class C-1 Units" held
      by
      any Person at any time for purpose of the Agreement shall equal the Performance
      Vesting Percentage (as determined above in this Schedule
      A,
      and
      expressed as a decimal (e.g., 83.3% would be 0.83)) multiplied
      by the
      total number of Performance Based Class C-1 Units held by such
      Person.Exhibit 10.1

CONFIDENTIALITY, STANDSTILL AND BOARD REPRESENTATION AGREEMENT

          This Confidentiality, Standstill and Board Representation Agreement (the “Agreement”) is made as of the 7th day of July, 2005 by and between Artesyn Technologies, Inc. (“ARTESYN”) and JANA Partners LLC (“JANA”, and together with ARTESYN, the “Parties”).

          1.   BACKGROUND. ARTESYN and JANA intend to engage in discussions concerning potential strategic alternatives that JANA, as a significant stockholder of ARTESYN, believes that ARTESYN should evaluate; and ARTESYN is prepared to furnish to JANA and to JANA’s directors, officers, members, employees and agents, as applicable (collectively, “Representatives”), certain of its confidential or proprietary information and use its best efforts to cause a designee of JANA to be appointed to the ARTESYN Board of Directors (the “Board”). The Parties are entering into this Agreement in order to assure the confidentiality of the Confidential Information (as defined below) in accordance with the terms of this Agreement and to provide the terms upon which JANA will be entitled to have a designee appointed to and remain on the Board.

          2.    CONFIDENTIAL INFORMATION. As used in this Agreement, the term “Confidential Information” shall mean all information and data of ARTESYN or any of its affiliates furnished to JANA or any of its Representatives pursuant to this Agreement by or on behalf of ARTESYN, but does not include information that(i) was known by JANA or available to the public prior to the time of its disclosure, (ii) becomes available to the public through no act or omission of JANA or (iii) becomes available to JANA from a third party not known by JANA to be under any obligation of confidentiality to ARTESYN with respect thereto. In addition, the term “Confidential Information” shall be deemed to include any notes, analyses, compilations, studies, interpretations, memoranda or other documents prepared by JANA or its Representatives that contain, reflect or are based upon, in whole or in part, or
recollections or memorizations of, any Confidential Information furnished to JANA or its Representatives pursuant hereto.

          3.    USE AND DISCLOSURE OF CONFIDENTIAL INFORMATION. JANA and its Representatives shall use the Confidential Information only to assist JANA in evaluating potential strategic alternatives available to ARTESYN. The Confidential Information shall not be used or exploited for any other purpose without the prior written consent of ARTESYN. JANA and its Representatives shall hold in strict confidence, and shall not use or disclose any Confidential Information, except as may be required by law in the opinion of JANA’s outside counsel. In the event of any such disclosure pursuant to court order or governmental request, JANA will provide ARTESYN with reasonable prior written notice so that ARTESYN may seek a protective order or other appropriate remedy, and JANA shall exercise reasonable efforts to assist ARTESYN in obtaining such order or remedy. JANA shall disclose Confidential Information to
its Representatives only on a need to know basis for the purpose specified herein.  In any event, JANA shall be responsible for any breach of this Agreement by any of its Representatives, and agrees, at its sole expense, to use reasonable best efforts to safeguard the Confidential Information and restrain its Representatives from any prohibited or unauthorized disclosure or use of the Confidential Information. In addition, JANA hereby acknowledges that the federal securities laws, including Regulation FD thereof, impose restrictions on its ability to purchase, sell, trade or otherwise transfer securities of ARTESYN until such time as the material, non-public information provided by ARTESYN to JANA becomes publicly available or is no longer material and JANA further agrees hereby to comply with all such restrictions.

          4.    RETURN OF CONFIDENTIAL INFORMATION. JANA shall, upon conclusion of discussions between the Parties hereto, or at any earlier time upon ARTESYN’s request, return to ARTESYN all documents furnished to JANA by or on behalf of ARTESYN containing Confidential Information, and JANA shall destroy all copies, electronic or otherwise, of such material together with any notes, extracts and other materials prepared by JANA or JANA’s Representatives containing or based upon any Confidential Information. In addition, upon the written request of ARTESYN, JANA shall deliver an officer’s certificate certifying that it has complied with the provisions of this Section 4.

          5.    ACCURACY AND COMPLETENESS. While ARTESYN shall endeavor to furnish information that it considers to be relevant for the purpose of JANA’s investigation, neither ARTESYN nor its Representatives makes any representations or warranties as to the accuracy or completeness of the Confidential Information. JANA agrees that neither ARTESYN nor any of its Representatives shall have any liability to JANA resulting from JANA’s disclosure or use of the Confidential Information, whether or not permitted hereby.

          6.    STANDSTILL. JANA hereby agrees that, from the date hereof until six (6) months from the date of this Agreement (the “Standstill Period”), neither it nor any of its affiliates or associates (as each such term is defined in Rule 12b-2 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), directly or indirectly, will (and neither it nor its affiliates or associates will assist or encourage others to), without the prior written consent of ARTESYN: (i) seek or propose to influence or control the management or policies of ARTESYN or obtain representation on ARTESYN’s Board (except as set forth herein), or solicit, or participate in the solicitation of, any proxies or consents with respect to any securities of ARTESYN, or make any public announcement with respect to ARTESYN (except as required by law) or any of the foregoing or request permission to do
any of the foregoing; (ii) submit a proposal for, or offer of (with or without conditions) any extraordinary transaction (including, but not limited to, a tender offer, exchange offer, merger, acquisition or consolidation) involving ARTESYN or its securities or assets; or (iii) enter into any discussions, negotiations, arrangements or understandings with any third party with respect to any of the foregoing, or otherwise form, join or in any way participate in a “group” (as defined in Section 13(d)(3) of the Exchange Act) in connection with any of the foregoing, PROVIDED, HOWEVER, that JANA shall not be subject to the foregoing restrictions in the event that (A) ARTESYN calls a special meeting for the purpose of amending its articles of incorporation or bylaws, (B) ARTESYN’s Board without the concurrence of the JANA Designee (as defined below) authorizes any officer or other representative of ARTESYN to negotiate or pursue any material agreement containing a provision providing for any
material consequence upon a change of control of the Company or a sale of a substantial portion of the Company’s assets by sale, merger or otherwise, (C) the JANA Designee (as defined below) shall not have been appointed within twenty (20) calendar days from the date hereof other than as a result of action or inaction on the part of JANA, (D) 

ARTESYN’s Board without the concurrence of the JANA Designee (as defined below) authorizes any officer or other representative of ARTESYN to begin a process designed to culminate in the issuance of any equity securities or securities convertible into equity securities (other than pursuant to the exercise of options, warrants or other rights to acquire equity securities heretofore granted, conversion of outstanding convertible securities and grants of options, restricted stock or other equity compensation under existing agreements, plans or arrangements or under agreements with respect to the acquisition of any business or entity which is required to be approved by ARTESYN’s stockholders) or (E) ARTESYN’s Board without the concurrence of the JANA Designee (as defined below) authorizes any officer or other representative of ARTESYN to negotiate or pursue any agreement with respect to the acquisition or disposition of any business or entity
(provided that nothing contained herein shall prevent ARTESYN or ARTESYN’s Board from taking any of the foregoing actions).

          7.    BOARD REPRESENTATION. In accordance with ARTESYN’s articles of incorporation and bylaws, and subject to and consistent with ARTESYN’s Corporate Governance Guidelines and Governance and Nominating Committee Charter, ARTESYN will increase the size of its Board by one seat and fill the newly-created seat by appointing Marc A. Weisman or another person designated by JANA and reasonably acceptable to the Board (the “JANA Designee”) to the Board.  The JANA Designee shall provide ARTESYN with such information as ARTESYN reasonably requests, including, without limitation, all information about the JANA Designee as would be required to be included in a proxy statement with respect to the election of directors. The JANA Designee shall be appointed to any committee of the Board established to evaluate potential strategic alternatives and/or to pursue any alternative(s)
selected. The JANA Designee shall be entitled to the same option grants, compensation, expense reimbursements, indemnification and insurance coverage as the other non-management directors of ARTESYN. JANA shall be entitled to the JANA Designee, and the JANA Designee shall be entitled to serve in the aforementioned capacity, for a period of six months beginning as of the date hereof, unless otherwise agreed to in writing by JANA and ARTESYN, and at the end of such period such entitlement shall expire and, upon the request of ARTESYN, JANA will cause the JANA Designee to resign from the Board and any committees as of the end of such period.

          8.    NO WAIVER. No failure or delay by either Party in exercising any right or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial waiver thereof preclude any other or further exercise thereof or the exercise of any other right or remedy hereunder.

          9.    INJUNCTIVE RELIEF. Each party acknowledges and agrees that, because of the unique nature of this Agreement, the other party would suffer irreparable harm in the event of a breach by such party of any of its obligations under this Agreement, such that monetary damages would be inadequate to compensate the non-breaching party for such a breach. Each party agrees that under such circumstances the other party shall be entitled to injunctive relief, in addition to any other appropriate relief at law to which such party shall be entitled, and waives any requirement for the securing or posting of any bond in connection with such remedy.

          10.    COSTS; DAMAGES; ATTORNEYS’ FEES. In the event of an improper disclosure or use of Confidential Information by JANA or its Representative, JANA shall assume and discharge liability for all costs, damages and expenses sustained by the ARTESYN as may be caused or compounded thereby. If any suit or other action is commenced to construe or enforce any provision of this Agreement, the prevailing Party, in addition to all other amounts such Party shall be entitled to receive from the non-prevailing Party to such action, shall be awarded reasonable attorneys’ fees and court costs.

          11.    MISCELLANEOUS. This Agreement (i) shall be governed by, and construed in accordance with, the laws of the State of New York applicable to contracts entered into and to be performed wholly within said State, (ii) constitutes the entire agreement of the Parties hereto with respect to the subject matter hereof, superseding all prior agreements, written or oral, (iii) may not be amended, except in writing, (iv) may be executed in counterparts, (v) shall be binding upon and inure to the benefit of each Party’s successors and permitted assigns, (vi) may not be assigned without the prior written consent of the other Party and (vii) shall be enforceable, notwithstanding the unenforceability of any particular provision hereof, with respect to all other provisions hereof.

[THE REMAINDER OF THIS PAGE IS LEFT BLANK INTENTIONALLY.
 THE SIGNATURES FOLLOW ON THE NEXT PAGE (PAGE 4).]

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

	
  
 
  	
  
ARTESYN TECHNOLOGIES, INC.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
By:
  	
  
/s/  JOSEPH O’DONNELL
  
	
  
 
  	
  
 
  	
  

  
	
  
 
  	
  
Name:
  	
  
Joseph   O’Donnell
  
	
   
  	
  
Title:
  	
  
President   and Chief Executive Officer
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
JANA PARTNERS LLC
  
	
  
 
  	
  
 
  
	
  
 
  	
  
By:
  	
  
/s/  BARRY ROSENSTEIN
  
	
  
 
  	
  
 
  	
  

  
	
  
 
  	
  
Name:  
  	
  
Barry   Rosenstein
  
	
  
 
  	
  
Title:
  	
  
Managing   Partner

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