Document:

Exhibit 10.50

 

SECURITY AGREEMENT

 

THIS
SECURITY AGREEMENT (the “Agreement”),  is entered into and made effective as of December       ,
2007, by and between SENESCO TECHNOLOGIES,
INC., a Delaware corporation
with its principal place of business located at 303 George Street, Suite 420,
New Brunswick, NJ 08901 (the “Parent”), and the each subsidiary
of the Parent listed on Schedule I attached hereto (each a “Subsidiary,”
and collectively and together with the Parent, the “Company”), in favor
of the BUYER(S) (the “Secured
Party”) listed on Schedule I attached to the Securities Purchase Agreement
(the “Securities Purchase Agreement”) dated August 29, 2007 between
the Company and the Secured Party.

 

WHEREAS,
the Parent shall issue and sell to the Secured Party, as
provided in the Securities Purchase Agreement, and the Secured Party shall
purchase secured convertible debentures (the “Convertible Debentures”),
which shall be convertible into shares of the Parent’s common stock;

 

WHEREAS,
to induce the Secured Party to enter into the transaction
contemplated by the Securities Purchase Agreement, the Convertible Debentures,
the Registration Rights Agreement of even date herewith between the Parent and
the Secured Party (the “Registration Rights Agreement”), and the Irrevocable
Transfer Agent Instructions among the Parent, the Secured Party, the Parent’s
transfer agent, and James M.
Davis (the “Transfer Agent Instructions”) (collectively referred
to as the “Transaction Documents”), each Company hereby grants to the
Secured Party a security interest in and to the pledged property of each
Company identified on Exhibit A hereto (collectively referred to as
the “Pledged Property”) to secure all of the Obligations (as defined
below);

 

WHEREAS, the
Company is entering into a Security Agreement with YA Global Investments, L.P.
(“YA Global”) (the “YA Global Security Agreement”), which grants YA
Global a first position security interest in and to the Pledged Property ahead
of the grant of the security interest in and to the Pledged Property to the
Secured Party hereunder; and

 

WHEREAS, the
Secured Party and YA Global are entering into a subordination agreement (the “Subordination
Agreement”) describing the nature of the junior security interests granted
by the Company to the Secured Party hereunder and the senior security interest
granted to YA Global under the YA Global Security Agreement.

 

NOW,
THEREFORE, in consideration of the promises and the mutual
covenants herein contained, and for other good and valuable consideration, the
adequacy and receipt of which are hereby acknowledged, the parties hereto
hereby agree as follows:

 

1

 

ARTICLE
1.

 

DEFINITIONS AND INTERPRETATIONS

 

Section 1.1.                                  Recitals.

 

The above recitals are
true and correct and are incorporated herein, in their entirety, by this
reference.

 

Section 1.2.                                  Interpretations.

 

Nothing herein expressed
or implied is intended or shall be construed to confer upon any person other
than the Secured Party any right, remedy or claim under or by reason hereof.

 

Section 1.3.                                  Obligations
Secured.

 

The security interest created hereby in the Pledged
Property constitutes continuing collateral security for all of the obligations
of the Parent now existing or hereinafter incurred to the Buyers under the
Transaction Documents and whether arising before, on or after the date hereof
including, without limitation following obligations (collectively, the “Obligations”):

 

(a)  for so long as the Convertible Debentures are outstanding,
the payment by the Parent, as and when due and payable (by scheduled maturity,
acceleration, demand or otherwise), of all amounts from time to time owing by
it in respect of the Securities Purchase Agreement, the Convertible Debentures
and the other Transaction Documents;
and

 

(b)              for so
long as the Convertible Debentures are outstanding, the due performance and
observance by the Parent of all of its other obligations from time to time
existing in respect of any of the Transaction Documents, including without
limitation, the Parent’s obligations with respect to any conversion or
redemption rights of the Secured Party under the Convertible Debentures.

 

ARTICLE
2.

 

PLEDGED PROPERTY; EVENT OF DEFAULT

 

Section 2.1.                                  Pledged
Property.

 

(a)                                 As
collateral security for all of the Obligations, the Company hereby pledges to
the Secured Party, and creates in the Secured Party for its benefit, a
continuing security interest in and to all of the Pledged Property whether now
owned or hereafter acquired.

 

(b)                                Without
limiting the generality of the foregoing, as additional security for the
payment and performance of the Obligations, each Company hereby grants to the
Secured Party a continuing security interest in, and hereby collaterally
assigns to the Secured Party, all of such Company’s right, title and interest
in and to each 

 

2

 

Deposit Account (as defined below) and in and to any
deposits or other sums at any time credited to each such Deposit Account.  In connection with the foregoing, each
Company hereby authorizes and directs each bank or other depository institution
which maintains any Deposit Account to pay or deliver to the Secured Party upon
the Secured Party’s written demand thereof made at any time after the
occurrence of an Event of Default has occurred all balances in each Deposit
Account with such depository for application to the Obligations then
outstanding.

 

(c)                                 Simultaneously
with the execution and delivery of this Agreement, the Company shall make,
execute, acknowledge, file, record and deliver to the Secured Party any
documents reasonably requested by the Secured Party to perfect its security
interest in the Pledged Property. 
Simultaneously with the execution and delivery of this Agreement, the
Company shall make, execute, acknowledge and deliver to the Secured Party such
documents and instruments, including, without limitation, financing statements,
certificates, affidavits and forms as may, in the Secured Party’s reasonable
judgment, be necessary to effectuate, complete or perfect, or to continue and
preserve, the security interest of the Secured Party in the Pledged Property,
and the Secured Party shall hold such documents and instruments as secured
party, subject to the terms and conditions contained herein.

 

Section 2.2.                                  Event
of Default.

 

An “Event of Default”
shall be deemed to have occurred under this Agreement upon an Event of Default
under and as defined in the Convertible Debentures.

 

Section 2.3                                     Grant
of Security Interest to YA Global.

 

The Company is granting a
security interest in and to the Pledged Property to YA Global under the YA
Global Security Agreement.  The security
interests granted by the Company to the Secured Party hereunder shall be junior
to the security interest granted by the Company to YA Global under the YA
Global Security Agreement irrespective of priority, regardless of the date,
manner, or order of perfection of the respective security interests, liens and
encumbrances granted or to be granted by the Company to or for the benefit of
the Secured Party hereunder or YA Global under the YA Global Security
Agreement.  So long as this Agreement
shall remain in effect, the security interests, liens, and encumbrances granted
to the Secured Party shall be junior to the security interests, liens and encumbrances
of granted to YA Global.  The Secured
Party and YA Global are entering into the Subordination Agreement further
describing the ranking  of the
security interests granted by the Company to the Secured Party hereunder and to
YA Global under the YA Global Security Agreement.

 

3

 

ARTICLE
3.

 

ATTORNEY-IN-FACT; PERFORMANCE

 

Section 3.1.                                  Secured
Party Appointed Attorney-In-Fact.

 

Upon the occurrence and
during the continuance of an Event of Default: (a) the Company hereby
appoints the Secured Party as its attorney-in-fact, with full authority in the
place and stead of the Company and in the name of the Company or otherwise,
from time to time in the Secured Party’s discretion to take any action and to
execute any instrument which the Secured Party may reasonably deem necessary to
accomplish the purposes of this Agreement, including, without limitation, to
receive and collect all instruments made payable to the Company representing
any payments in respect of the Pledged Property or any part thereof and to give
full discharge for the same; (b) the Secured Party may demand, collect,
receipt for, settle, compromise, adjust, sue for, foreclose, or realize on the
Pledged Property as and when the Secured Party may determine, and (c) to
facilitate collection, the Secured Party may notify account debtors and
obligors on any Pledged Property to make payments directly to the Secured
Party.

 

Section 3.2.                                  Secured
Party May Perform.

 

If the Company fails to
perform any agreement contained herein, the Secured Party, at its option, may
itself perform, or cause performance of, such agreement, and the expenses of
the Secured Party incurred in connection therewith shall be included in the
Obligations secured hereby and payable by the Company under Section 8.3.

 

ARTICLE
4.

 

REPRESENTATIONS AND WARRANTIES

 

Section 4.1.                                  Authorization;
Enforceability.

 

Each of the parties
hereto represents and warrants that it has taken all action necessary to
authorize the execution, delivery and performance of this Agreement and the
transactions contemplated hereby; and upon execution and delivery, this
Agreement shall constitute a valid and binding obligation of the respective
party, subject to applicable bankruptcy, insolvency, reorganization, moratorium
and similar laws affecting creditors’ rights or by the principles governing the
availability of equitable remedies.

 

Section 4.2.                                  Ownership
of Pledged Property.

 

The Company represents
and warrants that it is the legal and beneficial owner of the Pledged Property
free and clear of any lien, security interest, option or other charge or
encumbrance (each, a “Lien”) except for the security interest created by
this Agreement and other Permitted Liens. 
For purposes of this Agreement, “Permitted Liens” means: (1) the
security interest created by this Agreement and the YA Global Security
Agreement, (2) existing Liens disclosed by the Company to the Secured
Party; (3) inchoate Liens for taxes, assessments or governmental charges
or levies not yet due, as to which the grace period, if any, related thereto
has not yet expired, or being contested in 

 

4

 

good faith and by appropriate proceedings for which
adequate reserves have been established in accordance with GAAP; (4) Liens
of carriers, materialmen, warehousemen, mechanics and landlords and other
similar Liens which secure amounts which are not yet overdue by more than 60
days or which are being contested in good faith by appropriate proceedings; (5) licenses,
sublicenses, leases or subleases granted to other Persons not materially
interfering with the conduct of the business of the Company; (6) Liens
securing capitalized lease obligations and purchase money indebtedness incurred
solely for the purpose of financing an acquisition or lease; (7) easements,
rights-of-way, restrictions, encroachments, municipal zoning ordinances and
other similar charges or encumbrances, and minor title deficiencies, in each
case not securing debt and not materially interfering with the conduct of the
business of the Company and not materially detracting from the value of the
property subject thereto; (8) Liens arising out of the existence of
judgments or awards which judgments or awards do not constitute an Event of
Default; (9) Liens incurred in the ordinary course of business in
connection with workers compensation claims, unemployment insurance, pension
liabilities and social security benefits and Liens securing the performance of
bids, tenders, leases and contracts in the ordinary course of business,
statutory obligations, surety bonds, performance bonds and other obligations of
a like nature (other than appeal bonds) incurred in the ordinary course of
business (exclusive of obligations in respect of the payment for borrowed
money); (10) Liens in favor of a banking institution arising by operation
of law encumbering deposits (including the right of set-off) and contractual
set-off rights held by such banking institution and which are within the
general parameters customary in the banking industry and only burdening deposit
accounts or other funds maintained with a creditor depository institution; (11)
usual and customary set-off rights in leases and other contracts; and (12)
escrows in connection with acquisitions and dispositions.

 

ARTICLE
5.

 

DEFAULT; REMEDIES; SUBSTITUTE COLLATERAL

 

Section 5.1                                     Method
of Realizing Upon the Pledged Property: Other Remedies.

 

If any Event of Default
shall have occurred and be continuing:

 

(a)                                 The
Secured Party may exercise in respect of the Pledged Property, in addition to
any other rights and remedies provided for herein or otherwise available to it,
all of the rights and remedies of a secured party upon default under the
Uniform Commercial Code (whether or not the Uniform Commercial Code applies to the
affected Pledged Property), and also may (i) take absolute control of the
Pledged Property, including, without limitation, transfer into the Secured
Party’s name or into the name of its nominee or nominees (to the extent the
Secured Party has not theretofore done so) and thereafter receive, for the
benefit of the Secured Party, all payments made thereon, give all consents,
waivers and ratifications in respect thereof and otherwise act with respect
thereto as though it were the outright owner thereof, (ii) require the
Company to assemble all or part of the Pledged Property as directed by the
Secured Party and make it available to the Secured Party at a place or places
to be designated by the Secured Party that is reasonably convenient to both
parties, and the Secured Party may enter into and occupy any premises owned or
leased by the Company where the Pledged Property or any part 

 

5

 

thereof is located or assembled for a reasonable
period in order to effectuate the Secured Party’s rights and remedies hereunder
or under law, without obligation to the Company in respect of such occupation,
and (iii) without notice except as specified below and without any
obligation to prepare or process the Pledged Property for sale, (A) sell
the Pledged Property or any part thereof in one or more parcels at public or
private sale, at any of the Secured Party’s offices or elsewhere, for cash, on
credit or for future delivery, and at such price or prices and upon such other
terms as the Secured Party may deem commercially reasonable and/or (B) lease,
license or dispose of the Pledged Property or any part thereof upon such terms
as the Secured Party may deem commercially reasonable.  The Company agrees that, to the extent notice
of sale or any other disposition of the Pledged Property shall be required by
law, at least ten (10) days’ notice to the Company of the time and place
of any public sale or the time after which any private sale or other
disposition of the Pledged Property is to be made shall constitute reasonable
notification.  The Secured Party shall
not be obligated to make any sale or other disposition of any Pledged Property
regardless of notice of sale having been given. 
The Secured Party may adjourn any public or private sale from time to
time by announcement at the time and place fixed therefor, and such sale may,
without further notice, be made at the time and place to which it was so
adjourned.  The Company hereby waives any
claims against the Secured Party arising by reason of the fact that the price
at which the Pledged Property may have been sold at a private sale was less
than the price which might have been obtained at a public sale or was less than
the aggregate amount of the Obligations, even if the Secured Party accepts the
first offer received and does not offer such Pledged Property to more than one
offeree, and waives all rights that the Company may have to require that all or
any part of such Pledged Property be marshaled upon any sale (public or
private) thereof.  The Company hereby
acknowledges that (i) any such sale of the Pledged Property by the Secured
Party may be made without warranty, (ii) the Secured Party may
specifically disclaim any warranties of title, possession, quiet enjoyment or
the like, and (iii) such actions set forth in clauses (i) and (ii) above
shall not adversely affect the commercial reasonableness of any such sale of
Pledged Property.

 

(b)                                Any
cash held by the Secured Party as Pledged Property and all cash proceeds
received by the Secured Party in respect of any sale of or collection from, or
other realization upon, all or any part of the Pledged Property shall be
applied (after payment of any amounts payable to the Secured Party pursuant to Section 8.3
hereof) by the Secured Party against, all or any part of the Obligations in
such order as the Secured Party shall elect, consistent with the provisions of
the Securities Purchase Agreement.  Any
surplus of such cash or cash proceeds held by the Secured Party and remaining
after the indefeasible payment in full in cash of all of the Obligations shall
be paid over to whomsoever shall be lawfully entitled to receive the same or as
a court of competent jurisdiction shall direct.

 

(c)                                 In
the event that the proceeds of any such sale, collection or realization are
insufficient to pay all amounts to which the Secured Party is legally entitled,
the Company shall be liable for the deficiency, together with interest thereon
at the rate specified in the Convertible Debentures for interest on overdue principal
thereof or such other rate as shall be fixed by applicable law, together with
the costs of collection and the 

 

6

 

reasonable fees, costs, expenses and other client
charges of any attorneys employed by the Secured Party to collect such
deficiency.

 

(d)                                The
Company hereby acknowledges that if the Secured Party complies with any
applicable state, provincial, or federal law requirements in connection with a
disposition of the Pledged Property, such compliance will not adversely affect
the commercial reasonableness of any sale or other disposition of the Pledged
Property.

 

(e)                                 The
Secured Party shall not be required to marshal any present or future collateral
security (including, but not limited to, this Agreement and the Pledged
Property) for, or other assurances of payment of, the Obligations or any of
them or to resort to such collateral security or other assurances of payment in
any particular order, and all of the Secured Party’s rights hereunder and in
respect of such collateral security and other assurances of payment shall be
cumulative and in addition to all other rights, however existing or
arising.  To the extent that the Company
lawfully may, the Company hereby agrees that it will not invoke any law
relating to the marshaling of collateral which might cause delay in or impede
the enforcement of the Secured Party’s rights under this Agreement or under any
other instrument creating or evidencing any of the Obligations or under which
any of the Obligations is outstanding or by which any of the Obligations is
secured or payment thereof is otherwise assured, and, to the extent that it
lawfully may, the Company hereby irrevocably waives the benefits of all such
laws.

 

Section 5.2                                     Duties
Regarding Pledged Property.

 

The Secured Party shall
have no duty as to the collection or protection of the Pledged Property or any
income thereon or as to the preservation of any rights pertaining thereto,
beyond the safe custody and reasonable care of any of the Pledged Property
actually in the Secured Party’s possession.

 

ARTICLE
6.

 

AFFIRMATIVE COVENANTS

 

The Company covenants and
agrees that, from the date hereof and until the Obligations have been fully
paid and satisfied or the Convertible Debentures have been fully converted,
unless the Secured Party shall consent otherwise in writing (as provided in Section 8.4
hereof):

 

Section 6.1.                                  Existence,
Properties, Etc.

 

(a)                                  The
Company shall do, or cause to be done, all things, or proceed with due
diligence with any actions or courses of action, that may be reasonably
necessary (i) to maintain Company’s due organization, valid existence and
good standing under the laws of its state of incorporation, and (ii) to
preserve and keep in full force and effect all qualifications, licenses and
registrations in those jurisdictions in which the failure to do so could have a
Material Adverse Effect (as defined below); and (b) the Company shall not
do, or cause to be done, any act impairing the Company’s corporate power or
authority (i) to carry on the Company’s business as now conducted, and (ii) to

 

7

 

execute or deliver this Agreement or any other
document delivered in connection herewith, including, without limitation, any
UCC-1 Financing Statements required by the Secured Party (which other loan
instruments collectively shall be referred to as the “Loan Instruments”) to
which it is or will be a party, or perform any of its obligations hereunder or
thereunder.  For purpose of this Agreement,
the term “Material Adverse Effect” shall mean any material and adverse
affect as determined by Secured Party in its reasonable discretion, whether
individually or in the aggregate, upon (a) the Company’s assets, business,
operations, properties or condition, financial or otherwise; (b) the
Company’s ability to make payment as and when due of all or any part of the
Obligations; or (c) the Pledged Property.

 

Section 6.2.                                  Financial
Statements and Reports.

 

The Company shall furnish
to the Secured Party within a reasonable time such financial data as the
Secured Party may reasonably request.

 

Section 6.3.                                  Accounts
and Reports.

 

The Company shall
maintain a standard system of accounting in accordance with generally accepted
accounting principles consistently applied (“GAAP”) and provide, at its
sole expense, to the Secured Party the following:

 

(a)                                 as
soon as available, a copy of any notice or other communication alleging any
nonpayment or other material breach or default, or any foreclosure or other
action respecting any material portion of its assets and properties, received
respecting any of the indebtedness of the Company in excess of $500,000 (other
than the Obligations), or any demand or other request for payment under any
guaranty, assumption, purchase agreement or similar agreement or arrangement
respecting the indebtedness or obligations of others in excess of $500,000; and

 

(b)                                within
fifteen (15) days after the making of each submission or filing, a copy of
any report, financial statement, notice or other document, whether periodic or
otherwise, submitted to the shareholders of the Company, or submitted to or
filed by the Company with any governmental authority involving or affecting (i) the
Company that could reasonably be expected to have a Material Adverse Effect; (ii) the
Obligations; (iii) any part of the Pledged Property; or (iv) any of
the transactions contemplated in this Agreement or the Loan Instruments
(except, in each case, to the extent any such submission, filing, report,
financial statement, notice or other document is posted on EDGAR Online).

 

Section 6.4.                                  Maintenance
of Books and Records; Inspection.

 

The Company shall
maintain its books, accounts and records in accordance with GAAP, and permit
the Secured Party, its officers and employees and any professionals designated
by the Secured Party in writing, at any time during normal business hours and
upon reasonable notice to visit and inspect any of its properties (including
but not limited to the collateral security described in the Transaction
Documents and/or the Loan Instruments), corporate books and financial records,
and to discuss its accounts, affairs 

 

8

 

and finances with any employee, officer or director
thereof (it being agreed that, unless an Event of Default shall have occurred
and be continuing, there shall be no more than two (2) such visits and
inspections in any Fiscal Year).

 

Section 6.5.                                  Maintenance
and Insurance.

 

(a)                                 The
Company shall maintain or cause to be maintained, at its own expense, all of
its material assets and properties in good working order and condition,
ordinary wear and tear excepted, making all necessary repairs thereto and
renewals and replacements thereof.

 

(b)                                The
Company shall maintain or cause to be maintained, at its own expense, insurance
in form, substance and amounts (including deductibles), which the Company deems
reasonably necessary to the Company’s business, (i) adequate to insure all
assets and properties of the Company of a character usually insured by persons
engaged in the same or similar business against loss or damage resulting from
fire or other risks included in an extended coverage policy; (ii) against
public liability and other tort claims that may be incurred by the Company; (iii) as
may be required by the Transaction Documents and/or applicable law and (iv) as
may be reasonably requested by Secured Party, all with financially sound and
reputable insurers.

 

Section 6.6.                                  Contracts
and Other Collateral.

 

The Company shall perform
all of its obligations under or with respect to each instrument, receivable,
contract and other intangible included in the Pledged Property to which the
Company is now or hereafter will be party on a timely basis and in the manner
therein required, including, without limitation, this Agreement, except to the
extent the failure to so perform such obligations would not reasonably be
expected to have a Material Adverse Effect.

 

Section 6.7.                                  Defense
of Collateral, Etc.

 

The Company shall defend
and enforce its right, title and interest in and to any part of:  (a) the Pledged Property; and (b) if
not included within the Pledged Property, those assets and properties whose
loss would reasonably be expected to have a Material Adverse Effect, each
against all manner of claims and demands on a timely basis to the full extent
permitted by applicable law (other than any such claims and demands by holders
of Permitted Liens).

 

Section 6.8.                                  Taxes
and Assessments.

 

The Company shall (a) file
all material tax returns and appropriate schedules thereto that are required to
be filed under applicable law, prior to the date of delinquency (taking into
account any extensions of the original due date), (b) pay and discharge
all material taxes, assessments and governmental charges or levies imposed upon
the Company, upon its income and profits or upon any properties belonging to
it, prior to the date on which penalties attach thereto, and (c) pay all
material taxes, assessments and governmental charges or levies that, if unpaid,
might become a lien or charge upon any of 

 

9

 

its properties; provided,
however, that the Company in good faith may contest any such tax,
assessment, governmental charge or levy described in the foregoing clauses (b) and
(c) so long as appropriate reserves are maintained with respect thereto if
and to the extent required by GAAP.

 

Section 6.9.                                  Compliance
with Law and Other Agreements.

 

The Company shall
maintain its business operations and property owned or used in connection
therewith in compliance with (a) all applicable federal, state and local
laws, regulations and ordinances governing such business operations and the use
and ownership of such property, and (b) all agreements, licenses,
franchises, indentures and mortgages to which the Company is a party or by
which the Company or any of its properties is bound, except where the failure
to so comply would not reasonably be expected to have a Material Adverse
Effect.

 

Section 6.10.                            Notice
of Default.

 

The Company shall give
written notice to the Secured Party of the occurrence of any Event of Default.

 

Section 6.11.                            Notice
of Litigation.

 

The Company shall give
notice, in writing, to the Secured Party of (a) any actions, suits or
proceedings wherein the amount at issue is in excess of $250,000, instituted by
any persons against the Company, or affecting any of the assets of the Company,
and (b) any dispute, not resolved within fifteen (15) days of the
commencement thereof, between the Company on the one hand and any governmental
or regulatory body on the other hand, which might reasonably be expected to
have a Material Adverse Effect on the business operations or financial
condition of the Company.

 

Section 6.13.                            Future
Subsidiaries.

 

If the Company shall
hereafter create or acquire any subsidiary, simultaneously with the creation or
acquisition of such subsidiary, the Company shall cause such subsidiary to
grant to the Secured Party a security interest of the same tenor as created
under this Agreement.

 

Section 6.14.                            Establishment of Deposit
Account, Dominion Account Agreements.

 

Within ten (10) days
of the date hereof, each Company, the Secured Party, and each applicable bank
or other depository institution shall enter into a deposit account agreement (“Deposit
Account Agreement”) in the form of Exhibit B with respect to each of
the Company’s savings, passbook, money market or other depository accounts, and
all certificates of deposit, maintained by each Company with any bank, savings
and loan association, credit union or other depository institution (each, a “Deposit
Account”) maintained or used by each Company providing dominion and control
over such accounts to the Secured Party such that upon notice by the Secured
Party to such bank or other 

 

10

 

depository institution of the occurrence of an Event
of Default all actions under such account shall be taken solely at the Secured
Party’s direction.  Each Company’s
current Deposit Accounts are set forth on Schedule 6.14 attached hereto.

 

Each Company shall cause
all cash, all collections and proceeds from accounts receivable, all receipts
from credit card payments, and all proceeds from the sale of any Pledged
Property to be deposited into a Deposit Account in the ordinary course of
business and consistent with past practices.

 

While any Convertible
Debentures remain outstanding, the Company shall have valid and effective
Deposit Account Agreements in place at all times with respect to all of its
Deposit Accounts.  No Deposit Account
shall be established, used or maintained by the Company unless it first enters
into a Deposit Account Agreement.

 

With respect to each
Deposit Account, from an after the occurrence of an Event of Default, the
Secured Party shall have the right, at any time and from time to time, to
exercise its rights under such Deposit Account Agreement, including, for the
avoidance of any doubt, the exclusive right to give instructions to the
financial institution at which such Deposit Account is maintained as to the disposition
of funds or other property on deposit therein or credited thereto.  The Secured Party hereby covenants and agrees
that it will not send any such notice to a financial institution at which any
such Deposit Account is maintained directing the disposition of funds or other
property therein unless and until the occurrence of an Event of Default.

 

ARTICLE
7.

 

NEGATIVE COVENANTS

 

The Company covenants and
agrees that, from the date hereof until the Obligations have been fully paid
and satisfied, the Company shall not, unless the Secured Party shall consent
otherwise in writing:

 

Section 7.1.                                  Liens
and Encumbrances.

 

Directly or indirectly
make, create, incur, assume or permit to exist any Lien in, to or against any
part of the Pledged Property other than Permitted Liens.

 

Section 7.2.                                  Restriction
on Redemption and Cash Dividends

 

Directly or indirectly,
redeem, repurchase or declare or pay any cash dividend or distribution on its
capital stock without the prior express written consent of the Secured Party.

 

Section 7.3.                                  Incurrence
of Indebtedness.

 

Directly
or indirectly, incur or guarantee, assume or suffer to exist any indebtedness,
other than the indebtedness evidenced by the Convertible Debentures and 

 

11

 

other Permitted Indebtedness.  “Permitted Indebtedness” means: (i) indebtedness
evidenced by Convertible Debentures and indebtedness to YA Global pursuant to
the YA Global Closing (as defined in the Securities Purchase Agreement); (ii) indebtedness
described on the Disclosure Schedule to the Securities Purchase Agreement; (iii) indebtedness
incurred solely for the purpose of financing the acquisition or lease of any
equipment by the Company, including capital lease obligations with no recourse
other than to such equipment; (iv) indebtedness (A) the repayment of
which has been subordinated to the payment of the Convertible Debentures on
terms and conditions acceptable to the Secured Party, including with regard to
interest payments and repayment of principal, (B) which does not mature or
otherwise require or permit redemption or repayment prior to or on the 91st
day after the maturity date of any Convertible Debentures then outstanding; and
(C) which is not secured by any assets of the Company; (v) indebtedness
solely between the Company and/or one of its domestic subsidiaries, on the one
hand, and the Company and/or one of its domestic subsidiaries, on the other
which indebtedness is not secured by any assets of the Company or any of its
subsidiaries, provided that (x) in each case a majority of the equity of
any such domestic subsidiary is directly or indirectly owned by the Company,
such domestic subsidiary is controlled by the Company and such domestic
subsidiary has executed a security agreement in the form of this Agreement and (y) any such loan shall be
evidenced by an intercompany note that is pledged by the Company or its
subsidiary, as applicable, as collateral pursuant to this Agreement; (vi) reimbursement
obligations in respect of letters of credit issued for the account of the
Company or any of its subsidiaries for the purpose of securing performance
obligations of the Company or its subsidiaries incurred in the ordinary course
of business so long as the aggregate face amount of all such letters of credit
does not exceed $500,000 at any one time; and (vii) renewals, extensions
and refinancing of any indebtedness described in clauses (i) or (iii) of
this subsection.

 

Section 7.4.                                  Places
of Business.

 

Change the location of
its chief place of business, chief executive office or any place of business
disclosed to the Secured Party, unless such change in location is to a
different location within the United States and the Company provides notice to
the Secured Party of new location within 10 days’ of such change in location.

 

ARTICLE
8.

 

MISCELLANEOUS

 

Section 8.1.                                  Notices.

 

All notices or other
communications required or permitted to be given pursuant to this Agreement
shall be in writing and shall be considered as duly given on:  (a) the date of delivery, if delivered
in person or by nationally recognized overnight delivery service or (b) five (5) days
after mailing if mailed from within the continental United States by certified
mail, return receipt requested to the party entitled to receive the same:

 

12

 

	
  If to the
  Secured Party:

  	
   

  	
  Stanford Venture
  Capital Holdings, Inc.

  
	
   

  	
   

  	
  6075 Poplar
  Avenue, Suite 300

  
	
   

  	
   

  	
  Memphis, TN
  38119

  
	
   

  	
   

  	
  Attention:

  	
  James M. Davis

  
	
   

  	
   

  	
   

  	
  President and
  Director

  
	
   

  	
   

  	
  Telephone:
  

  	
  (901)
  537-1600

  
	
   

  	
   

  	
  Facsimile:

  	
  (901) 680-5265

  
	
   

  	
   

  	
   

  
	
  With a copy to:

  	
   

  	
  Akerman
  Senterfitt

  
	
   

  	
   

  	
  One Southeast
  Third Avenue, 25th Floor

  
	
   

  	
   

  	
  Miami, FL 33131

  
	
   

  	
   

  	
  Attention:

  	
  Jose
  Gordo, Esq.

  
	
   

  	
   

  	
  Telephone:

  	
  (305) 755-5812

  
	
   

  	
   

  	
  Facsimile:

  	
  (305) 349-4789

  
	
   

  	
   

  	
   

  
	
  And if to the
  Company:

  	
   

  	
  Senesco
  Technologies, Inc.

  
	
   

  	
   

  	
  303 George
  Street, Suite 420

  
	
   

  	
   

  	
  New Brunswick,
  NJ 08901

  
	
   

  	
   

  	
  Attention:

  	
  Chief Executive
  Officer

  
	
   

  	
   

  	
  Telephone:

  	
   

  
	
   

  	
   

  	
  Facsimile:

  	
   

  
	
   

  	
   

  	
   

  
	
  With a copy to:

  	
   

  	
  Morgan,
  Lewis & Bochius

  
	
   

  	
   

  	
  502 Carnegie
  Center

  
	
   

  	
   

  	
  Princeton, NJ
  08540

  
	
   

  	
   

  	
  Attention:

  	
   

  
	
   

  	
   

  	
  Telephone:

  	
  (609) 919-6633

  
	
   

  	
   

  	
  Facsimile:

  	
  (609) 919-6701

  

 

Any party may change its
address by giving notice to the other party stating its new address.  Commencing on the tenth (10th) day after the giving of
such notice, such newly designated address shall be such party’s address for
the purpose of all notices or other communications required or permitted to be
given pursuant to this Agreement.

 

Section 8.2.                                  Severability.

 

If any provision of this
Agreement shall be held invalid or unenforceable, such invalidity or
unenforceability shall attach only to such provision and shall not in any
manner affect or render invalid or unenforceable any other severable provision
of this Agreement, and this Agreement shall be carried out as if any such
invalid or unenforceable provision were not contained herein.

 

13

 

Section 8.3.                                  Expenses.

 

In the event of an Event
of Default, the Company will pay to the Secured Party the amount of any and all
reasonable out-of-pocket expenses, including the reasonable fees and expenses
of its counsel, which the Secured Party may incur in connection with:  (i) the custody or preservation of, or
the sale, collection from, or other realization upon, any of the Pledged
Property; (ii) the exercise or enforcement of any of the rights of the
Secured Party hereunder or (iii) the failure by the Company to perform or
observe any of the provisions hereof.

 

Section 8.4.                                  Waivers,
Amendments, Etc.

 

The Secured Party’s delay
or failure at any time or times hereafter to require strict performance by
Company of any undertakings, agreements or covenants shall not waive, affect,
or diminish any right of the Secured Party under this Agreement to demand
strict compliance and performance herewith. 
Any waiver by the Secured Party of any Event of Default shall not waive
or affect any other Event of Default, whether such Event of Default is prior or
subsequent thereto and whether of the same or a different type.  None of the undertakings, agreements and
covenants of the Company contained in this Agreement, and no Event of Default,
shall be deemed to have been waived by the Secured Party, nor may this
Agreement be amended, changed or modified, unless such waiver, amendment,
change or modification is evidenced by an instrument in writing specifying such
waiver, amendment, change or modification and signed by the Secured Party in
the case of any such waiver, and signed by the Secured Party and the Company in
the case of any such amendment, change or modification.

 

Section 8.5.                                  Continuing
Security Interest; Partial Release.

 

(a)                                 This
Agreement shall create a continuing security interest in the Pledged Property
and shall: (i) remain in full force and effect until payment or conversion
in full of the Convertible Debentures; (ii) be binding upon the Company
and its successors and assigns; and (iii) inure to the benefit of the
Secured Party and its successors and assigns. 
Upon the payment or satisfaction in full or conversion in full of the
Convertible Debentures, this Agreement and the security interest created hereby
shall terminate, and, in connection therewith, the Company shall be entitled to
the return, at its expense, of such of the Pledged Property as shall not have
been sold in accordance with Section 5.2 hereof or otherwise applied
pursuant to the terms hereof and the Secured Party shall deliver to the Company
such documents as the Company shall reasonably request to evidence such
termination.

 

(b)                                Effective
upon the closing of a disposition of any Pledged Property, provided the Secured
Party consents in writing prior to such disposition or such disposition is made
in the ordinary course of business, the security interest granted hereunder in
the Pledged Property so disposed of shall terminate and the Secured Party shall
deliver such documents as the Company shall reasonably request to evidence such
termination; provided, however, the security interest granted hereunder in all
remaining Pledged Property shall remain in full force and effect.

 

14

 

Section 8.6.                                  Independent
Representation.

 

Each party hereto
acknowledges and agrees that it has received or has had the opportunity to
receive independent legal counsel of its own choice and that it has been
sufficiently apprised of its rights and responsibilities with regard to the
substance of this Agreement.

 

Section 8.7.                                  Applicable
Law:  Jurisdiction.

 

This Agreement shall be
governed by and interpreted in accordance with the laws of the State of New
Jersey without regard to the principles of conflict of laws.  The parties further agree that any action
between them shall be heard in Hudson County, New Jersey, and expressly consent
to the jurisdiction and venue of the Superior Court of New Jersey, sitting in
Hudson County and the United States District Court for the District of New
Jersey sitting in Newark, New Jersey for the adjudication of any civil action
asserted pursuant to this Paragraph.

 

Section 8.8.                                  Waiver
of Jury Trial.

 

AS A FURTHER INDUCEMENT
FOR THE SECURED PARTY TO ENTER INTO THIS AGREEMENT AND TO MAKE THE FINANCIAL
ACCOMMODATIONS TO THE COMPANY, THE COMPANY HEREBY WAIVES ANY RIGHT TO TRIAL BY
JURY IN ANY LEGAL PROCEEDING RELATED IN ANY WAY TO THIS AGREEMENT AND/OR ANY
AND ALL OTHER DOCUMENTS RELATED TO THIS TRANSACTION.

 

Section 8.9.                                  Entire
Agreement.

 

This Agreement
constitutes the entire agreement among the parties and supersedes any prior
agreement or understanding among them with respect to the subject matter
hereof.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT
BLANK]

 

15

 

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

 

 

	
   

  	
  COMPANY:

  
	
   

  	
  SENESCO
  TECHNOLOGIES, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Bruce C. Galton

  
	
   

  	
  Name:   Bruce C. Galton

  
	
   

  	
  Title:    President
  & CEO

  

 

16

 

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

 

 

	
   

  	
  COMPANY:

  
	
   

  	
  SENESCO,
  INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Bruce C. Galton

  
	
   

  	
  Name:   Bruce C. Galton

  
	
   

  	
  Title:    President

  

 

17

 

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

 

 

	
   

  	
  SECURED
  PARTY:

  
	
   

  	
  STANFORD
  VENTURE CAPITAL HOLDINGS, 

  
	
   

  	
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ James M. Davis

  
	
   

  	
  Name:   James M. Davis

  
	
   

  	
  Title:    President
  and Director

  

 

18

 

SCHEDULE I

 

LEGAL NAMES; ORGANIZATIONAL IDENTIFICATION NUMBERS;
STATES OF ORGANIZATION

 

	
  Company’s Name

  	
   

  	
  State of

  Organization

  	
   

  	
  Employer

  ID

  	
   

  	
  Organizational

  ID

  
	
  SENESCO
  TECHNOLOGIES, INC.

  	
   

  	
  Delaware

  	
   

  	
   

  	
   

  	
   

  
	
  SENESCO,
  INC.

  	
   

  	
  New Jersey

  	
   

  	
   

  	
   

  	
   

  

 

19

 

EXHIBIT A

DEFINITION
OF PLEDGED PROPERTY

 

For the purpose of securing
prompt and complete payment and performance by the Company of all of the
Obligations, the Company unconditionally and irrevocably hereby grants to the
Secured Party a continuing security interest in and to, and lien upon, the
following Pledged Property of the Company:

 

(a)                                 all
goods of the Company, including, without limitation, machinery, equipment,
furniture, furnishings, fixtures, signs, lights, tools, parts, supplies and
motor vehicles of every kind and description, now or hereafter owned by the
Company or in which the Company may have or may hereafter acquire any interest,
and all replacements, additions, accessions, substitutions and proceeds
thereof, arising from the sale or disposition thereof, and where applicable,
the proceeds of insurance and of any tort claims involving any of the
foregoing;

 

(b)                                all
inventory of the Company, including, but not limited to, all goods, wares,
merchandise, parts, supplies, finished products, other tangible personal
property, including such inventory as is temporarily out of Company’s custody
or possession and including any returns upon any accounts or other proceeds,
including insurance proceeds, resulting from the sale or disposition of any of
the foregoing;

 

(c)                                 all
contract rights and general intangibles of the Company, including, without
limitation, goodwill, trademarks, trade styles, trade names, leasehold
interests, partnership or joint venture interests, patents and patent
applications, copyrights, deposit accounts whether now owned or hereafter created;

 

(d)                                all
documents, warehouse receipts, instruments and chattel paper of the Company
whether now owned or hereafter created;

 

(e)                                 all
accounts and other receivables, instruments or other forms of obligations and
rights to payment of the Company (herein collectively referred to as “Accounts”),
together with the proceeds thereof, all goods represented by such Accounts and
all such goods that may be returned by the Company’s customers, and all
proceeds of any insurance thereon, and all guarantees, securities and liens
which the Company may hold for the payment of any such Accounts including,
without limitation, all rights of stoppage in transit, replevin and
reclamation and as an unpaid vendor and/or lienor;

 

(f)                                   to
the extent assignable, all of the Company’s rights under all present and future
authorizations, permits, licenses and franchises issued or granted in
connection with the operations of any of its facilities;

 

(g)                                all
equity interests, securities or other instruments in other companies,
including, without limitation, any subsidiaries, investments or other entities
(whether or not controlled); and

 

 

(h)                                all
products and proceeds (including, without limitation, insurance proceeds) from
the above-described Pledged Property.

 

 

EXHIBIT B

 

FORM OF DEPOSIT ACCOUNT AGREEMENTExhibit 10.1

 

EXECUTION
COPY

 

 

EMPLOYMENT AGREEMENT

 

BETWEEN

 

RICHARD F. SMITH

 

AND

 

EQUIFAX INC.

 

 

 

EMPLOYMENT AGREEMENT

 

	
  1. Effective
  Date

  	
   

  	
  1

  
	
   

  	
   

  	
   

  
	
  2. Employment
  and Directorship

  	
   

  	
  1

  
	
   

  	
   

  	
   

  
	
  (a)

  	
   

  	
  Employment

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (b)

  	
   

  	
  Directorship

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3. Employment
  Period

  	
   

  	
  1

  
	
   

  	
   

  	
   

  
	
  4. Extent of
  Service

  	
   

  	
  2

  
	
   

  	
   

  	
   

  
	
  5. Compensation
  and Benefits

  	
   

  	
  2

  
	
   

  	
   

  	
   

  
	
  (a)

  	
   

  	
  Base Salary

  	
   

  	
  2

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (b)

  	
   

  	
  Incentive, Savings and Retirement Plans

  	
   

  	
  2

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (c)

  	
   

  	
  Welfare Benefit Plans

  	
   

  	
  3

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (d)

  	
   

  	
  Expenses

  	
   

  	
  4

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (e)

  	
   

  	
  Fringe Benefits

  	
   

  	
  4

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (f)

  	
   

  	
  Vacation

  	
   

  	
  4

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (g)

  	
   

  	
  Stock Ownership Guidelines

  	
   

  	
  4

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (h)

  	
   

  	
  409A Compliance

  	
   

  	
  5

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (i)

  	
   

  	
  Reimbursements

  	
   

  	
  5

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (j)

  	
   

  	
  Gross-Up Payments

  	
   

  	
  5

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6. Communication
  of Executive’s Employment

  	
   

  	
  5

  
	
   

  	
   

  	
   

  
	
  7. Termination
  of Employment

  	
   

  	
  5

  
	
   

  	
   

  	
   

  
	
  (a)

  	
   

  	
  Death or Retirement

  	
   

  	
  5

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (b)

  	
   

  	
  Disability

  	
   

  	
  5

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (c)

  	
   

  	
  Termination by the Company

  	
   

  	
  6

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (d)

  	
   

  	
  Termination by Executive

  	
   

  	
  6

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (e)

  	
   

  	
  Notice of Termination

  	
   

  	
  7

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (f)

  	
   

  	
  Date of Termination

  	
   

  	
  8

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8. Obligations
  of the Company upon Termination

  	
   

  	
  8

  
	
   

  	
   

  	
   

  
	
  (a)

  	
   

  	
  Termination by Executive for Good Reason;
  Termination by the Company Other Than for Cause or Disability

  	
   

  	
  8

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (b)

  	
   

  	
  Death, Disability or Retirement

  	
   

  	
  10

  

 

 

	
  (c)

  	
   

  	
  Cause or Voluntary Termination without Good Reason

  	
   

  	
  10

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (d)

  	
   

  	
  Expiration of Employment Period

  	
   

  	
  10

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (e)

  	
   

  	
  Resignations

  	
   

  	
  10

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (f)

  	
   

  	
  Specified Employee

  	
   

  	
  10

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9. Termination
  in Connection with a Change in Control

  	
   

  	
  11

  	 

	
   

  	
   

  	
   

  
	
  (a)

  	
   

  	
  Benefits Upon Certain Terminations Following a
  Change in Control

  	
   

  	
  11

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (b)

  	
   

  	
  Disability Following Change in Control

  	
   

  	
  13

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (c)

  	
   

  	
  Definitions

  	
   

  	
  13

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10. Non-exclusivity
  of Rights

  	
   

  	
  18

  	 

	
   

  	
   

  	
   

  
	
  11. Full
  Settlement; No Obligation to Mitigate

  	
   

  	
  18

  
	
   

  	
   

  	
   

  
	
  12. Certain
  Additional Payment by the Company

  	
   

  	
  18

  
	
   

  	
   

  	
   

  
	
  13. Representations
  and Warranties

  	
   

  	
  19

  
	
   

  	
   

  	
   

  
	
  14. Restrictions
  on Conduct of Executive

  	
   

  	
  19

  
	
   

  	
   

  	
   

  
	
  (a)

  	
   

  	
  General

  	
   

  	
  19

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (b)

  	
   

  	
  Definitions

  	
   

  	
  19

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (c)

  	
   

  	
  Restrictive Covenants

  	
   

  	
  21

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (d)

  	
   

  	
  Enforcement of Restrictive Covenants

  	
   

  	
  24

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15. Mediation
  and Arbitration

  	
   

  	
  25

  	 

	
   

  	
   

  	
   

  
	
  16. Assignment
  and Successors

  	
   

  	
  25

  
	
   

  	
   

  	
   

  
	
  17.
  Miscellaneous

  	
   

  	
  26

  
							

 

ii

 

EMPLOYMENT AGREEMENT

 

THIS
EMPLOYMENT AGREEMENT (this “Agreement”) is made and entered into this 23rd day
of September, 2008 by and between Equifax Inc., a Georgia corporation (the “Company”),
and Richard F. Smith (“Executive”), to be effective as of the Effective Date,
as defined in Section 1.

 

BACKGROUND

 

The
Company desires to continue the employment of Executive as the Chairman and
Chief Executive Officer of the Company from and after the Effective Date, in
accordance with the terms of this Agreement. 
Executive is willing to serve as such in accordance with the terms and
conditions of this Agreement.

 

This
Agreement is intended to replace and supersede (except to the extent there are
any unfulfilled obligations or performance requirements by the Company) in all
respects the Employment Agreement between the parties dated as of August 22,
2005, and the Change in Control Letter between the parties dated September 28,
2005.

 

NOW
THEREFORE, in consideration of the foregoing and of the mutual covenants and
agreements set forth herein, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

 

1.          Effective Date.  The effective date of this Agreement (the “Effective
Date”) shall be September 19, 2008.

 

2.          Employment and Directorship.

 

(a) 
Employment.  Executive is hereby
employed on the Effective Date as the Chairman and Chief Executive Officer
of the Company.  In his capacity as Chairman and Chief
Executive Officer of the Company, Executive shall have the duties,
responsibilities and authority commensurate with such positions as shall be
assigned to him by the Board of Directors of the Company, which shall be
consistent with the duties, responsibilities and authority of persons holding
such positions in a public company engaged in similar lines of business to that
engaged in by the Company and its subsidiaries from time to time.  In his capacity as Chairman and Chief
Executive Officer of the Company, Executive will report directly to the Board
of Directors.

 

(b) 
Directorship.  The Company will
cause Executive to be nominated to the Board of Directors of the Company and
shall recommend to the shareholders of the Company Executive’s election to the
Board.

 

3.          Employment Period.  Unless earlier terminated herein in
accordance with Section 7 hereof, Executive’s employment shall be for a
term beginning on the Effective Date and ending on the second anniversary of
the Effective Date (the “Employment Period”). 
Twelve (12) months before the second anniversary of the Effective
Date and twelve (12) months before each subsequent anniversary thereafter, the
Employment 

 

1

 

Period will be
automatically extended for an additional one-year period unless either party
gives prior written notice of nonrenewal. 
In the event prior notice of nonrenewal is given, Executive’s employment
shall terminate at the end of the remaining Employment Period then in effect.

 

4.          Extent of Service.  During the Employment Period, and excluding
any periods of vacation, holiday, sick leave and Company-approved leave of
absence to which Executive is entitled in accordance with Company policies,
Executive agrees to devote substantially all of his business time, attention,
skill and efforts exclusively to the faithful performance of his duties
hereunder.  Executive is
encouraged to (i) devote
reasonable time to charitable or community activities, (ii) serve on
corporate, civic, educational or charitable boards or committees, subject to
the Company’s standards of business conduct or other code of ethics, (iii) deliver
lectures or fulfill speaking engagements from time to time on an infrequent
basis, and/or (iv) manage personal business interests and investments,
subject to the Company’s standards of business conduct or other code of ethics,
and so long as such activities do not interfere in a material manner or on a
routine basis with the performance of Executive’s responsibilities under this
Agreement.

 

5.          Compensation and Benefits.

 

(a)        Base Salary.  During the Employment Period, the Company
will pay to Executive base salary at the rate of U.S. $1,450,000 per year (“Base
Salary”), less normal withholdings, payable in accordance with the Company’s
payroll practices for its employees from time to time.  The Compensation, Human Resources &
Management Succession Committee (the “Compensation Committee”) of the Board of
Directors of the Company shall review Executive’s Base Salary annually and may
increase (but not decrease) Executive’s Base Salary from year to year.  Such adjusted salary then shall become
Executive’s Base Salary for purposes of this Agreement.  The annual review of Executive’s salary by
the Compensation Committee will consider, among other things, Executive’s own
performance, and the Company’s performance.

 

(b)       Incentive, Savings and Retirement
Plans.  During the Employment Period,
Executive shall be entitled to participate in all incentive, savings and
retirement plans, practices, policies and programs available to senior
executive officers serving on the Senior Leadership Team of the Company who are
similarly situated with respect to plan eligibility and participation (“Peer Executives”),
and on the same basis as such Peer Executives. 
Without limiting the foregoing, the following shall apply:

 

(i)  Annual Bonus Opportunity. During the Employment Period,
Executive will be entitled to participate in the Company’s executive bonus
plan, pursuant to which he will have an opportunity to receive an annual cash
bonus based upon the achievement of performance goals established from year to
year by the Compensation Committee (such bonus earned at the stated “target”
level of achievement being referred to herein as the “Target Bonus”).  Executive’s Target Bonus will equal 100% of
his actual Base Salary earned in such year, with a maximum payout of 200% of
actual Base Salary, based on performance criteria to be established by the
Compensation Committee upon 

 

2

 

consultation with
Executive.  The annual cash bonus shall
be payable promptly following the availability to the Company of the required
data to calculate the annual bonus for the year for which the annual bonus is
earned (which data may in the Company’s discretion include audited financial
statements), but no later than March 15 of the year following the year for
which the annual bonus is earned, unless delay is required due to either (i) an
administrative impracticability in making the payment, which was unforeseeable
at the time the Executive’s right to receive the annual bonus arose, provided
the impracticability is not due to an action or failure to act on the part of
the Executive or a person under his control; or (ii) the fact that the payment
of such annual Bonus would jeopardize the ability of the Company to continue as
a going concern.  In such event, payment
of the annual bonus shall be made as soon as administratively practicable or as
soon as the payment would no longer jeopardize the Company’s ability to
continue as a going concern, as applicable.

 

(ii) 
Regular Equity Grants.  During the
Employment Period, Executive will be eligible for grants, under the Company’s
long-term incentive plan or plans, of long-term incentive awards having terms
and determined in the same manner as awards to other Peer Executives, unless
Executive consents to a different type of award or different terms of such
award than are applicable to other Peer Executives. Nothing herein requires the
Board of Directors to make grants of long-term incentive awards in any year.

 

(iii)       SERP.  During the Employment Period, Executive will
be eligible to participate in the Supplemental Retirement Plan for Executives of
Equifax Inc. (SERP), which provides a maximum annual life-time retirement
benefit of 50% of base salary and bonus, based on years of service and
reduced by benefits from the Company’s tax-qualified retirement plan.  Calculation of Executive’s SERP benefits
shall include five year’s service credit for all purposes of the SERP.  Executive shall be immediately vested in his
SERP benefit as of the Effective Date.

 

(c)        Welfare Benefit Plans.  During the Employment Period, Executive and
Executive’s eligible dependents shall be eligible for participation in, and
shall receive all benefits under, the welfare benefit plans, practices,
policies and programs provided by the Company (including, without limitation,
medical, prescription drug, dental, disability, employee life, dependent life,
accidental death and travel accident insurance plans and programs) (“Welfare
Plans”) to the extent available to other Peer Executives.  Without limiting the foregoing, the following
shall apply:

 

(i) 
Diagnostic Health Care.  During
the Employment Period, the Company will reimburse Executive up to $5,000
annually for physical examinations and other covered diagnostic health care
services that are not otherwise covered by the Company’s medical plan.

 

(ii) 
Life Insurance.  During the
Employment Period, the Company will provide life insurance in the amount of up
to $10,000,000.  Three million dollars of
life insurance will be provided without medical evidence of insurability, and
the balance will 

 

3

 

be
provided upon provision of evidence of Executive’s insurability required by the
Company’s life insurance provider.

 

(iii) 
Gross-Up Policy. To the extent that the Company has a policy for
grossing up any such benefits for tax purposes, the gross up will be made
consistent with the Company’s methodologies and procedures as in effect from
time to time.

 

(d)       Expenses.  During the Employment Period, Executive shall
be entitled to receive prompt reimbursement for all reasonable expenses incurred
by Executive in the course of performing his duties and responsibilities under
this Agreement, in accordance with the policies, practices and procedures of
the Company to the extent available to other Peer Executives with respect to
travel, entertainment and other business expenses.

 

(e)        Fringe Benefits.  During the Employment Period, Executive shall
be entitled to fringe benefits in accordance with the plans, practices,
programs and policies of the Company available to other Peer Executives.  Without limiting the foregoing, the following
shall apply:

 

(i) 
Financial Planning and Tax Preparation Services.  During the Employment Period, the Company
will reimburse Executive up to $50,000 annually incurred in financial planning
and tax preparation services to be provided by Deloitte & Touche LLP
or other service provider of Executive’s choosing.

 

(ii) 
Club Memberships.  During the
Employment Period, Executive will be permitted to use the Company’s membership
at East Lake Golf Club and the Company shall reimburse Executive for any
costs or fees associated with any business use. 
The Company shall reimburse Executive for initiation fees and dues at one other social or golf club of Executive’s
choosing in the Atlanta area.

 

(iii) 
Gross-Up Policy.  To the extent that
the Company has a policy for grossing up any such fringe benefits for tax
purposes, the gross up will be made consistent with the Company’s methodologies
and procedures as in effect from time to time.

 

(f)        Vacation.  During the Employment Period, Executive will
be entitled to five weeks paid vacation time per year.

 

(g)       Stock Ownership Guidelines
Executive acknowledges and agrees to comply with the Company’s stock ownership
guidelines for the Chief Executive Officer position, as the same may be amended
from time to time.  As of the Effective
Date, such guidelines require the Chief Executive Officer to achieve, within
four years of assuming the CEO position, a level of ownership equal to six
times annual base salary in outright ownership or, alternatively, ten times
base salary in outright ownership plus vested and unexercised stock options.

 

4

 

(h)       409A Compliance.  To the extent Executive is subject to any
additional taxes, interest and/or penalties under Code Section 409A for
any benefits or payments under any Equifax Inc. nonqualified deferred
compensation plan or arrangement, the Company shall provide a gross-up payment
to Executive in order to place him in the same after-tax position he would have
been had no additional taxes, interests or penalties become due and payable
under Code Section 409A.

 

(i)         Reimbursements.  All eligible expenses reimbursed under this Section 5
must be incurred by the Executive during the Employment Period and all
reimbursements shall be paid promptly after submission by the Executive of such
expenses to the Company, but, for purposes of Code Section 409A, in all
events shall be paid to the Executive on or before the last day of the
Executive’s taxable year following the taxable year in which the applicable
expense was incurred (however, this period is by no means an outside payment
date or diminishes the Executive’s right to be paid promptly).  For purposes of Code Section 409A, the
amount of expenses eligible for reimbursement during the Executive’s taxable
year may not affect the expenses eligible for reimbursement in any other
taxable year.

 

(j)         Gross-Up Payments.  Any
gross-up payment to which Executive is entitled to pursuant to this Section 5
shall be paid by the Company to the Executive or the applicable taxing
authorities on or before the date in which such taxes are due, but, for
purposes of Code Section 409A, in all events by the end of the Executive’s
taxable year following the Executive’s taxable year in which the Executive
remits the related taxes (however, this
period is by no means an outside payment date or diminishes the Executive’s
right to be paid promptly).

 

6.          Communication of Executive’s
Employment.  Executive and the
Company shall mutually agree upon any communication to the public (through SEC
filings, press releases or otherwise), or to Executive’s former employer,
concerning Executive’s employment with the Company or departure from his former
employer.

 

7.          Termination of Employment.

 

(a)        Death or Retirement.  Executive’s employment shall terminate
automatically upon Executive’s death or Retirement during the Employment
Period.  For purposes of this Agreement, “Retirement”
shall mean normal retirement as defined in the Company’s then-current
retirement plan, or if there is no such retirement plan, “Retirement” shall
mean voluntary termination after age 55 with at least five years of service.

 

(b)       Disability.  The Company may terminate
Executive’s employment for “Disability.” 
For purposes of this Agreement, termination by the Company of Executive’s
employment for “Disability” means termination following and because of
Executive’s failure to perform his duties as an employee for a period of at
least one hundred eighty (180) consecutive calendar days as a result of total
and permanent incapacity due to physical or mental illness or injury.  Executive’s incapacity must be 

 

5

 

certified by a licensed
medical doctor selected by Executive.  If
the Company disagrees with the certification of Executive’s incapacity, it may
appoint another medical doctor to certify his or her opinion as to Executive’s
incapacity, and if that doctor does not certify as to Executive’s incapacity,
then the two doctors will appoint a third medical doctor to certify their
opinions as to Executive’s incapacity, and the decision of a majority of the
three doctors will prevail.  The Company
will bear the costs of the doctors’ opinions. Failing such independent certification,
Executive’s termination shall be deemed a termination by the Company without
Cause and not a termination by reason of his Disability.

 

(c)        Termination by the Company.  The Company may terminate Executive’s
employment during the Employment Period with or without Cause.  For purposes of this Agreement (other than Section 9),
“Cause” shall mean:

 

(i)    the willful and continued
failure of Executive to perform substantially Executive’s duties with the
Company (other than any such failure resulting from incapacity due to physical
or mental illness), or

 

(ii)   Executive’s intentional
violation of the Company’s Code of Ethics or Insider Trading Policy; or

 

(iii)  the commission by
Executive, or a plea of guilty or nolo contendere by Executive, to a felony or
crime involving moral turpitude.

 

The
cessation of employment of Executive shall not be deemed to be for Cause under
clause (i) above unless and until (a) there shall have been delivered
to Executive a copy of a resolution adopted by the Compensation Committee of
the Board specifying the manner in which such Committee considers that
Executive has not substantially performed his duties, (b) Executive shall have been given 90
days to cure such breach, and (c) at the end of such 90-day cure period
the Committee finds that Executive
still is not substantially performing his duties.  Such finding shall be
effective to terminate Executive’s employment for Cause only if Executive was
provided reasonable notice of the proposed action and was given an opportunity
to be heard by the Committee.

 

(d)       Termination by Executive.  Executive’s employment may be terminated by
Executive for Good Reason or no reason. 
For purposes of this Agreement (other than Section 9), unless
written consent of Executive is obtained, “Good Reason” shall mean:

 

(i) 
Executive’s demotion from the position of Chief Executive Officer of the
Company, or a material diminution in his authority, duties or responsibilities
in such position, excluding for this purpose an isolated, insubstantial and
inadvertent action not taken in bad faith and which is remedied by the Company
promptly after receipt of notice thereof given by Executive;

 

6

 

(ii)   a reduction by the Company
in Executive’s Base Salary or Target Bonus or maximum bonus opportunity, as in
effect on the Effective Date, as the same may be increased from time to time;
or

 

(iii)  the Company’s requiring
Executive to be based more than thirty-five (35) miles from the Company’s
principal executive offices in Atlanta, Georgia; or

 

(iv)  any failure by the Company
to comply with and satisfy Section 16(c) of this Agreement; or

 

(v)   the material breach by the
Company of any other material provision of this Agreement.

 

Good
Reason shall not include Executive’s death or Disability; provided that Executive’s
mental or physical incapacity following the occurrence of an event described in
clause (i) — (v) above shall not affect Executive’s ability to
terminate for Good Reason.  In the event
that “Cause” for Executive’s termination exists under this Agreement and the
Company acts to terminate Executive’s employment for Cause, Executive shall not
be entitled to exercise a termination for Good Reason or to receive payments or
benefits pursuant to Section 8 of this Agreement for termination for Good
Reason.  Except as provided in Section 8(a),
Executive’s continued employment shall not constitute consent to, or a waiver
of rights with respect to, any circumstance constituting Good Reason
hereunder.  Any claim of “Good Reason”
under this Agreement shall be communicated by Executive to the Company in
writing within 30 days of his knowledge of its occurrence, which writing shall
specifically identify the factual details concerning all events giving rise to
Executive’s claim of Good Reason under this Section 7(d).  General description of unspecified events
shall not constitute proper notice of Good Reason or termination for Good
Reason.  The Company shall have an
opportunity to cure any claimed event of Good Reason within 30 days of notice
of Good Reason given by Executive.

 

(e)        Notice of Termination.  Any termination by the Company for Cause or
by Executive for Good Reason shall be communicated by Notice of Termination to
the other party hereto given in accordance with Section 17(f) of this
Agreement.  For purposes of this
Agreement, a “Notice of Termination” means a written notice which (i) indicates
the specific termination provision in this Agreement relied upon, (ii) to
the extent applicable, sets forth in reasonable detail the facts and
circumstances claimed to provide a basis for termination of Executive’s
employment under the provision so indicated, and (iii) specifies the
termination date, within the parameters of Section 7(f).  The failure by Executive or the Company to
set forth in the Notice of Termination any fact or circumstance which
contributes to a showing of Good Reason or Cause shall not waive any right of
Executive or the Company, respectively, hereunder or preclude Executive or the
Company, respectively, from asserting such fact or circumstance in enforcing
Executive’s or the Company’s rights hereunder.

 

7

 

(f)        Date of Termination.  “Date of Termination” means (i) if
Executive’s employment is terminated by the Company for Cause, the date of the
Board’s final determination that Cause exists, as provided in Section 7(c),
or a date within 30 days thereafter, as specified in the Notice of Termination,
(ii) if Executive’s employment is terminated by Executive for Good Reason,
the date of the expiration of the 30-day cure period unless cure shall have
been effected by the Company during such period, or any date between 30 and 60
days after receipt of the Notice of Termination, as specified in such notice, (iii) if
Executive’s employment is terminated by the Company other than for Cause or
Disability, the Date of Termination shall be the date of receipt of the Notice
of Termination or a date within 90 days after receipt of the Notice of
Termination, as specified in such notice, (iv) if Executive’s employment is
terminated by reason of death, Retirement or Disability, the Date of
Termination shall be the date of death or Retirement of Executive or the
Disability Effective Date, as the case may be, and (v) if Executive’s
employment is terminated by Executive without Good Reason, the Date of
Termination shall be 30 days following the Company’s receipt of the Notice of
Termination, unless the Company specifies an earlier Date of Termination.

 

8.          Obligations of the Company upon
Termination.

 

(a)        Termination by Executive for Good
Reason; Termination by the Company Other Than for Cause or Disability.  If, during the Employment Period, the Company
shall terminate Executive’s employment other than for Cause or Disability, or
Executive shall terminate employment for Good Reason during the 60-day period
following the occurrence of the event giving rise to Good Reason, then, and
with respect to the payments and benefits described in clauses (i)(B) and (ii) below,
only if Executive executes, returns, and does not revoke a Release in
substantially the form of Exhibit A hereto (the “Release”) within
60 days after the Date of Termination and complies fully with the Release and
with all provisions of Section 14 of this Employment Agreement below,
including maintaining compliance for any time period specified therein:

 

(i)         the Company shall provide to Executive
in a single lump sum cash payment within 60 days after the Executive incurs a “separation
from service” within the meaning of Treasury Regulations Section 1.409A-1(h) or,
if later, the date that such payment can be made without triggering an excise
tax under Section 409A of the Code, the aggregate of the following
amounts:

 

A.           the sum of the
following amounts, to the extent not previously paid to Executive (the “Accrued
Obligations”): (1) Executive’s Base Salary through the Date of
Termination, (2) a payment for the year in which the Date of Termination
occurs, computed as the product of (x) Executive’s highest annual Bonus
earned under the Company’s executive bonus plan with respect to the three (3) calendar
years immediately preceding the year in which the Date of Termination occurs
and (y) a fraction, the numerator of which is the number of days in the
current fiscal year through the Date of Termination, and the denominator of
which is 365, (3) any accrued pay in lieu of unused vacation, and (4) unless
Executive has designated a later payout date in connection with the 

 

8

 

terms
of a deferral plan or agreement or unless any later payout date is required by
applicable law, including without limitation Section 409A of the Code, any
vested compensation previously deferred by Executive (together with any amount
equivalent to accrued interest or earnings thereon); and

 

B.            a severance payment
(the “Severance Payment”) equal to the product of (1) 12 (or if the Date
of Termination occurs prior to the second anniversary of the Effective Date,
the number of full months remaining in the Employment Period after the Date of
Termination) (the “Severance Factor”), times (2) one twelfth of the sum of
Executive’s Base Salary and highest annual Bonus earned under the Company’s
executive bonus plan with respect to the three (3) calendar years
immediately preceding the year in which the Date of Termination occurs; and

 

(ii)        the Company shall continue to provide
after Executive’s Date of Termination, for a number of months equal to the
Severance Factor (the “Welfare Benefits Continuation Period”), or such longer
period as may be provided by the terms of the appropriate plan, program,
practice or policy, any group health benefits to which Executive and/or
Executive’s eligible dependents would otherwise be entitled to continue under
the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”), or, at
the Company’s option, shall reimburse Executive for premiums he actually incurs
in continuing such group health benefits pursuant to COBRA; provided, however, that if Executive
becomes employed with another employer (including self-employment) and becomes
eligible to receive group health benefits under another employer provided plan,
the Company’s obligation to provide group health benefits, or to reimburse
COBRA group health insurance continuation premiums, as described herein shall
cease, except as otherwise provided by law and provided,
further, that the Welfare Benefits Continuation Period shall run
concurrently with any period for which Executive is eligible to elect health
coverage under COBRA.  All
premiums reimbursed under this Section 8(a)(ii) shall be paid
promptly after submission by the Executive to the Company, but, for purposes of
Code Section 409A, in all events shall be paid to the Executive on or
before the last day of the Executive’s taxable year following the taxable year
in which the applicable expense was incurred (however, this period is by no
means an outside payment date or diminishes the Executive’s right to be paid
promptly).  For purposes of Code Section 409A,
the amount of premiums for reimbursement during the Executive’s taxable year
may not affect the premiums for reimbursement in any other taxable year; and

 

(iii)       to the extent not theretofore paid or
provided, the Company shall timely pay or provide to Executive, without
duplication of the amounts otherwise payable under this Agreement, any other
amounts or benefits required to be paid or provided or which Executive is
eligible to receive under any plan, program, policy or practice of the Company
to the extent provided to Peer Executives prior to the Date of Termination
(such other amounts and benefits, without duplication, shall be hereinafter
referred to as the “Other Benefits”).

 

9

 

(b)       Death,
Disability or Retirement.  If Executive’s employment is terminated by
reason of his death, Disability or Retirement during the Employment Period,
this Agreement shall terminate without further obligations to Executive or his
estate, beneficiaries or legal representatives, other than for payment of
Accrued Obligations and the timely payment or provision of Other Benefits.  Accrued Obligations shall be paid to
Executive or his estate, beneficiary or legal representative, as applicable, in
a lump sum in cash within 30 days of the Date of Termination or, if later, the
date that such payment can be made without triggering an excise tax under Section 409A
of the Code.  With respect to the
provision of Other Benefits, the term Other Benefits as used in this Section 8(b) shall
include, without limitation, and Executive or his estate, beneficiaries or
legal representatives, as applicable, shall be entitled to receive, benefits
under such plans, programs, practices and policies relating to death,
Disability or retirement benefits, if any, as are applicable to Executive or
his family on the Date of Termination.

 

(c)        Cause
or Voluntary Termination without Good Reason.  If Executive’s employment
shall be terminated for Cause during the Employment Period, or if Executive
voluntarily terminates employment during the Employment Period without Good
Reason, this Agreement shall terminate without further obligations to
Executive, other than for payment of Accrued Obligations (excluding the
pro-rata bonus described in clause 2 of Section 8(a)(i)(A)) and the timely
payment or provision of Other Benefits.

 

(d)       Expiration
of Employment Period.  Upon the expiration of the Employment Period,
this Agreement shall terminate without further obligations to Executive, other
than the timely payment or provision of Other Benefits.  With respect to the provision of Other
Benefits, if Executive remains employed by the Company following such
expiration date, he shall be entitled to participate in any general severance
policy of the Company that covers Peer Executives; provided, however, that the severance provided to Executive
under such policy shall not be less than one times Executive’s Base Salary and
Target Bonus as in effect on the date of his termination of employment, payable
in a lump sum, and such payment shall be conditioned on Executive’s signing a
release substantially in the form of Exhibit A to this Agreement
rather than the standard form of release under such severance policy.

 

(e)        Resignations. 
Termination of Executive’s employment for any reason whatsoever shall
constitute Executive’s resignation from the Board of Directors of the Company
and resignation as an officer of the Company, its subsidiaries and affiliates.

 

(f)        Specified
Employee.  Notwithstanding any provision in the
Agreement to the contrary, to the extent necessary to avoid the imposition of
tax on the Executive under Code Section 409A, any severance payments under
this Agreement, including but not limited to any payments that may be due under
Section 9, that are otherwise payable to the Executive within the first
six (6) months following the Executive’s separation from service, shall be
delayed and paid as soon as practicable following the end of the six-month
period following the Executive’s separation from service if, immediately prior
to the Executive’s separation from service, the Executive is determined to be a
“specified employee” (within 

 

10

 

the meaning of Code Section 409A)
of the Company (or any related “service recipient” within the meaning of Code Section 409A
and the regulations thereunder).  During any period in which a payment to the
Executive is delayed pursuant to the foregoing, the Executive shall be entitled
to interest on the delayed payment at a per annum rate equal to the highest
rate of interest applicable to six (6)-month non-callable certificates of
deposit with daily compounding offered by the following institutions: Citibank
N.A., Wells Fargo Bank, N.A. or Bank of America, N.A., on the date of such
separation from service.  Upon the expiration of the applicable six-month
period, any payment which would have otherwise been made during that period
(whether in a single sum or in installments) shall be paid to the Executive or
the Executive’s beneficiary in one lump sum, including all accrued interest,
on the first (1st) business day following the end of such six-month period.

 

9.         Termination in Connection with a Change in
Control.  Notwithstanding Section 7 and 8 of this
Agreement, if Executive’s employment is terminated during a Change in Control
Period, the terms of this Section 9 relating to Executive’s termination of
employment (including, without limitation, the definitions of “Cause” and “Good
Reason” (as defined in this Section 9) for such termination) shall govern
the determination of any benefits to be paid upon a Change in Control, but not
those which might become otherwise payable under other Sections of this
Agreement, and Executive will be entitled to the higher of the severance
benefits payable pursuant to this Section 9 or under other Sections of
this Agreement, without duplication.

 

(a)       Benefits
Upon Certain Terminations Following a Change in Control.  If,
within six (6) months prior to the Change in Control in connection with a
Change in Control or within three (3) years after a Change in Control, the
Company terminates the Executive’s employment other than for Cause (as defined
in this Section 9), Disability, or death, or the Executive terminates his
employment for Good Reason (as defined in this Section 9), then, subject
to the Executive executing, returning, and not revoking the Release within 60
days after the Date of Termination and complying fully with the Release and
with all provisions of Section 14 of this Agreement below, including
maintaining compliance for any time period specified therein:

 

(i)         Compensation
through Date of Termination.  The Company will pay the Executive the sum of
the following amounts, to the extent not previously paid to the Executive:  (A) the Executive’s Base Salary through
the Date of Termination, (B) with respect to any year then completed, any
unpaid amount accrued to the Executive pursuant to any incentive compensation
plans maintained by the Company (the “Incentive Plan”), and (C) with respect
to any year then partially completed, a pro rata portion (prorated for the
number of days through the Date of Termination) of the Executive’s highest
annual bonus earned under the Incentive Plan with respect to the three (3) calendar
years immediately preceding the year in which the Executive’s Date of
Termination occurs;

 

(ii)        Additional
Severance and Additional Retirement Benefit.  The Company will pay to the
Executive within 60 days after the Executive incurs a “separation from service”
within the meaning of Treasury Regulation Section 1.409A-1(h) 

 

11

 

or,
if later, the date that such payment can be made without triggering an excise
tax under Section 409A of the Code:

 

(A)       a lump
sum amount equal to three (3) times the sum of (I) the Executive’s
Base Salary at the highest rate
in effect during the twelve (12) months immediately preceding the Date of
Termination plus (II) the highest annual bonus earned under the Incentive
Plan with respect to the three (3) calendar years immediately preceding
the year in which the Executive’s Date of Termination occurs; and

 

(B)        If the
Executive is a participant in the Equifax Inc. Pension Plan (the “Retirement Plan”), a lump sum retirement
benefit, in addition to the benefits to which the Executive is or would be
entitled under the Retirement Plan, that is the actuarial equivalent of the
Executive’s benefits calculated pursuant to the terms of the Retirement Plan as
in effect on the Effective Date (the “Existing Retirement Plan”) with the
following adjustments: (I) regardless of the Executive’s Years of Vesting
Service under the Retirement Plan, the Executive will be treated as if he were
100% vested under the Retirement Plan; (II) the number of Years of Benefit
Service used will be the actual number of Years of Benefit Service accumulated
under the terms of the Existing Retirement Plan as of the Date of Termination
plus an additional number of Years of Benefit Service (up to a maximum of five (5) additional
years) equal to the number of additional Years of Benefit Service that the
Executive would have earned if he had remained an employee of the Company until
attainment of age sixty-two (62); (III) the Final Average Earnings (for
purposes of applying the benefit formula under the Retirement Plan) will be
determined using (a) the highest monthly rate of Base Salary in effect
during the twelve (12) months immediately preceding the Date of Termination,
plus (b) the highest annual bonus earned under the Incentive Plan with
respect to the three (3) calendar years immediately preceding the year in
which the Executive’s Date of Termination occurs, (regardless of the earnings
limitations under the Retirement Plan or governmental regulations applicable to
those plans); and (IV) the monthly retirement benefit so calculated will
be reduced by an amount equal to the monthly retirement benefit payable to the
Executive under the Retirement Plan in effect on the Executive’s Date of
Termination. All capitalized terms used in this subparagraph, unless otherwise
defined, will have the same meanings as those terms are defined in the
Retirement Plan. The actuarial
equivalent will be calculated based on the assumptions contained in the
Retirement Plan on the Effective Date; provided that the assumptions on which
the actuarial equivalent will be calculated will be no less favorable to the
Executive than those assumptions contained in the Retirement Plan on the date
of the Change in Control.

 

(iii)       Continued
Benefits and Benefit Plans.

 

(A)      Unless the
Executive’s employment is terminated for Cause, the Company will maintain in
full force and effect, for the Executive’s continued benefit for three (3) years
after his Date of Termination, the group health, dental, vision, life
insurance, disability and similar coverages in which he is entitled to
participate immediately prior to the Date of Termination at the same level as
for active employees and in the same manner as if the Executive’s employment
had not terminated. Any 

 

12

 

additional
coverages the Executive had at termination, including dependent coverage, will
also be continued for that period on the same terms, to the extent permitted by
the applicable policies or contracts. The Executive will be responsible for
paying any costs he was paying for those coverages at the time of termination
by separate check payable to the Company each month in advance. If the terms of
any benefit plan referred to in this subparagraph 9(a)(iii)(A) or the laws
applicable to any such plan do not permit the Executive’s continued
participation, then the Company will arrange for other coverages satisfactory
to the Executive at the Company’s expense that provide substantially similar
benefits to the benefits provided as of the Date of Termination, or the Company
will pay the Executive a lump sum amount equal to the costs the Executive would
have to pay to obtain those coverage(s) for the three-year period, with
such lump sum amount paid in accordance with the timing rules set forth in
subparagraph 9(a)(ii).

 

(B)        If the
Executive has satisfied the requirements for receiving the Company’s retiree
medical coverage on his Date of Termination or will satisfy those requirements
prior to the last day of the three-year benefit continuation period provided in
subparagraph 9(a)(iii)(A) above, the Executive (and his dependents) will
be covered by, and receive benefits under, the Company’s retiree medical
coverage program for other Peer Executives. The Executive’s retiree medical
coverage will commence on the date his health care coverage terminates under
subparagraph 9(a)(iii)(A), and will continue for the life of the Executive (i.e., the coverage will be vested and may
not be terminated), subject only to those changes in the level of coverage that
apply to other Peer Executives generally.

 

(C)        In
accordance with the timing set forth in subparagraph 9(a)(ii), the Company will
pay the Executive a lump sum amount equal to the additional amounts the Company
would have been required to contribute on behalf of the Executive, assuming the
Executive continued to be eligible to participate in the Company’s 401(k) Retirement
and Savings Plan (the “401(k) Plan”) for the three-year period after his
Date of Termination and the Executive made contributions to the 401(k) Plan
at the maximum permissible level (based upon the terms of the 401(k) Plan
as in effect on the Date of Termination).

 

(b)       Disability
Following Change in Control.  In the case of the Executive’s termination of
employment by the Company for Disability following a Change in Control, the
Executive will continue to receive his Base Salary at the rate in effect and
participation in incentives under terms of the Company’s incentive plans
payable during the one hundred eighty (180) day qualification period until
termination of the Executive’s employment for Disability. After that
termination, the Executive’s benefits will be determined in accordance with the
Company’s long-term disability plan then in effect and any of the Company’s
other benefit plans and practices then in effect that apply to the
Executive.  The Company will have no
further obligation to Executive under this Section 9.

 

(c)       Definitions.  For
purposes of this Section 9, the following terms shall have the meanings
assigned to them below:

 

13

 

(i)         “Cause”
means (A) the Executive’s willful and continued failure to substantially
perform his duties with the Company (other than any failure resulting from the
Executive’s incapacity due to physical or mental illness), after a written
demand for substantial performance is delivered to the Executive by the
Chairman of the Compensation, Human Resources & Management Succession
Committee of the Board of Directors, or successor thereto (referred to as the “Compensation
Committee” herein) that specifically identifies the manner in which the
Chairman believes that the Executive has not substantially performed his
duties, or (B) the Executive’s willful engagement in misconduct that is
materially injurious to the Company, monetarily or otherwise. For purposes of
this subparagraph 9(c)(i), no act, or failure to act, on the Executive’s part
will be considered “willful” unless done, or omitted to be done, by the
Executive not in good faith and without reasonable belief that the Executive’s
action or omission was in the best interest of the Company. Notwithstanding the
above, the Executive will not be deemed to have been terminated for Cause
unless and until he has been given a copy of a Notice of Termination from the
Chairman of the Compensation Committee of the Board of Directors, after
reasonable notice to the Executive and an opportunity for the Executive,
together with his counsel, to be heard before the Board of Directors of the
Company, finding that in the
good faith opinion of two-thirds of the Board of Directors, the Executive
committed the conduct set forth above in clauses (A) or (B) of this
subparagraph 9(c)(i), and specifying the particulars of that finding in detail.

 

(ii)        “Change
in Control” means the occurrence of any of the following events during the
Employment Period:

 

(A)     The accumulation by any Person of Beneficial
Ownership of twenty percent (20%) or more of the combined voting power of the
Company’s Voting Stock; provided that for purposes of this subparagraph
9(c)(ii)(A), a Change in Control will not be deemed to have occurred if the
accumulation of twenty percent (20%) or more of the voting power of the Company’s
Voting Stock results from any acquisition of Voting Stock (I) directly
from the Company that is approved by the Incumbent Board, (II) by the
Company, (III) by any employee benefit plan (or related trust) sponsored
or maintained by the Company or any Subsidiary, or (IV) by any Person
pursuant to a Business Combination that complies with all of the provisions of
clauses (I), (II) and (III) of subparagraph 9(c)(ii)(B);

 

(B)      The consummation
of a Business Combination, unless, immediately following that Business
Combination, (I) all or substantially all of the Persons who were the
beneficial owners of Voting Stock of the Company immediately prior to that
Business Combination beneficially own, directly or indirectly, more than
sixty-six and two-thirds percent (66-2/3%) of the then outstanding shares of
common stock and the combined voting power of the then outstanding voting
securities entitled to vote generally in the election of Directors of the
entity resulting from that Business Combination (including, without limitation,
an entity that as a result of that transaction owns the Company or all or
substantially all of the Company’s assets either directly or through one or
more subsidiaries) in substantially the same proportions relative to each other
as their ownership, immediately prior to that Business Combination, of the
Voting 

 

14

 

Stock of the Company, (II) no
Person (other than the Company, that entity resulting from that Business
Combination, or any employee benefit plan (or related trust) sponsored or
maintained by the Company, any Eighty Percent (80%) Subsidiary or that entity
resulting from that Business Combination) beneficially owns, directly or
indirectly, twenty percent (20%) or more of the then outstanding shares of
common stock of the entity resulting from that Business Combination or the
combined voting power of the then outstanding voting securities entitled to
vote generally in the election of directors of that entity, and (III) at
least a majority of the members of the Board of Directors of the entity
resulting from that Business Combination were members of the Incumbent Board at
the time of the execution of the initial agreement or of the action of the
Board providing for that Business Combination;

 

(C)      A sale or other disposition
of all or substantially all of the assets of the Company;

 

(D)      Approval by the shareholders
of the Company of a complete liquidation or dissolution of the Company, except
pursuant to a Business Combination that complies with all of the provisions of
clauses (I), (II) and (III) of subparagraph 9(c)(ii)(B).

 

(E)      For purposes of this
subparagraph 9(c)(ii), the following definitions will apply:

 

“Beneficial
Ownership” means beneficial ownership as that term is used in Rule 13d-3
promulgated under the Exchange Act.

 

“Business
Combination” means a reorganization, merger or consolidation of the Company.

 

“Eighty
Percent (80%) Subsidiary” means an entity in which the Company directly or
indirectly beneficially owns eighty percent (80%) or more of the outstanding
Voting Stock.

 

“Exchange
Act” means the Securities Exchange Act of 1934, including amendments, or
successor statutes of similar intent.

 

“Incumbent
Board” means a Board of Directors at least a majority of whom consist of
individuals who either are (I) members of the Company’s Board of Directors
as of the Effective Date or (II) members who become members of the Company’s
Board of Directors subsequent to the Effective Date whose election, or
nomination for election by the Company’s shareholders, was approved by a vote
of at least two-thirds (2/3) of the directors then comprising the Incumbent
Board (either by a specific vote or by approval of the proxy statement of the
Company in which that person is named as a nominee for director, without
objection to that nomination), but excluding, for that purpose, any individual
whose initial assumption of office occurs as a result of an actual or
threatened election contest (within the meaning of Rule 14a-11 of the
Exchange 

 

15

 

Act) with respect to the
election or removal of directors or other actual or threatened solicitation of
proxies or consents by or on behalf of a Person other than the Board of
Directors.

 

“Person”
means any individual, entity or group (within the meaning of Section 13(d)(3) or
14(d)(2) of the Exchange Act).

 

“Voting
Stock” means the then outstanding securities of an entity entitled to vote
generally in the election of members of that entity’s Board of Directors.

 

(iii)       “Good
Reason” means:

 

(A)       The
assignment to the Executive of duties inconsistent with his position and status
with the Company as they existed immediately prior to the Change in Control
Date (as defined below), or a substantial change in the Executive’s title,
offices or authority, or in the nature of his responsibilities, as they existed
immediately prior to the Change in Control Date (or if the Executive receives a
promotion or an increase in responsibilities or authority after the Change in
Control Date, then a change with respect to the Executive’s enhanced position,
status, responsibilities or authority), except in connection with the
termination of the Executive’s employment for Cause or Disability or as a
result of the Executive’s death or by the Executive other than for Good Reason;

 

(B)        A
reduction by the Company in the Executive’s Base Salary, as may be increased
from time to time, excluding for this purpose an isolated, insubstantial and
inadvertent action not taken in bad faith which is remedied by the Company
within ninety (90) days after notice thereof is given by the Executive;

 

(C)        A
material diminution of annual bonus opportunity under the Incentive Plan, as in
effect immediately prior to the Change in Control Date (or similar incentive
plan which, taken as a whole, provides substantially similar benefits), or a
failure by the Company to continue the Executive’s participation in the
Incentive Plan on at least the basis of the Executive’s participation
immediately prior to the Change in Control Date or to pay the Executive the
amounts that he would be entitled to receive in accordance with the Incentive
Plan, excluding for this purpose an isolated, insubstantial and inadvertent
action not taken in bad faith which is remedied by the Company within ninety
(90) days after notice thereof is given by the Executive;

 

(D)        The
Company’s requiring the Executive to be based more than thirty-five (35) miles
from the location where the Executive is based immediately prior to the Change
in Control Date, except for required travel on the Company’s business to an
extent substantially consistent with the Executive’s business travel
obligations prior to the Change in Control Date, or if the Executive consents
to that relocation, the failure by the Company to pay (or reimburse the
Executive for) all reasonable moving expenses incurred by the Executive or to
indemnify the Executive against any loss realized in the sale of the Executive’s
principal residence in connection with that relocation;

 

16

 

(E)        The
failure by the Company to continue in effect any retirement or compensation
plan, supplemental retirement plan, performance share plan, stock option plan,
life insurance plan, health and accident plan, disability plan or any other
benefit plan in which the Executive is participating immediately prior to the
Change in Control Date (or provide plans providing the Executive with
substantially similar benefits), the taking of any action by the Company that
would adversely affect the Executive’s participation or materially reduce the
Executive’s benefits under any of those plans or deprive the Executive of any
material fringe benefit enjoyed by the Executive immediately prior to the
Change in Control Date, or the failure by the Company to provide the Executive
with the number of paid vacation days to which the Executive is then entitled
in accordance with the Company’s normal vacation practices in effect
immediately prior to the Change in Control Date, excluding for this purpose an
isolated, insubstantial and inadvertent action not taken in bad faith which is
remedied by the Company within ninety (90) days after notice thereof is given
by the Executive;

 

(F)        Any
failure by the Company to obtain the assumption of this Agreement by any
successor, as required in Section 16(c); or

 

(G)        Any
purported termination of the Executive’s employment that is not effected
pursuant to a Notice of Termination satisfying the requirements of subparagraph
9(d) (and, if applicable, subparagraph 9(c)(i)).

 

For
purposes of this subparagraph 9(c)(iii), “Change in Control Date” means the
date six months prior to the date of the Change in Control.

 

10.        Non-exclusivity
of Rights.  Nothing in this Agreement shall prevent or
limit Executive’s continuing or future participation in any employee benefit
plan, program, policy or practice provided by the Company and for which
Executive may qualify, except as specifically provided herein.  Amounts that are vested benefits or that
Executive is otherwise entitled to receive under any employee benefit plan, policy,
practice or program of the Company, its subsidiaries or any of its affiliated
companies at or subsequent to the Date of Termination shall be payable in
accordance with such plan, policy, practice or program except as explicitly
modified by this Agreement.

 

11.        Full
Settlement; No Obligation to Mitigate.  The Company’s obligation to
make the payments provided for in this Agreement and otherwise to perform its
obligations hereunder shall not be affected by any set-off, counterclaim,
recoupment, defense or other claim, right or action which the Company may have
against Executive or others.  In no event
shall Executive be obligated to seek other employment or take any other action
by way of mitigation of the amounts payable to Executive under any of the provisions
of this Agreement and, except as explicitly provided herein, such amounts shall
not be reduced whether or not Executive obtains other employment.

 

12.        Certain
Additional Payments by the Company..  If
any payments or benefits provided pursuant to this Agreement or any other
payments or benefits provided to Executive by the Company are subject to an
excise tax on an “excess parachute payment” 

 

17

 

under
Section 4999 of the Code, or any successor provision of the Code, or are
subject to an excise or penalty tax under any similar provision of any other
revenue system to which Executive may be subject, the Company will provide a
gross-up payment to Executive in order to place him in the same after-tax
position he would have been in had no excise or penalty tax become due and
payable under Code Section 4999 (or any successor provision) or any
similar provision of that other revenue system. 
Any gross-up payment to which Executive is entitled as a result of the
applicability of an excise tax under Code Section 4999 or any successor
provision of the Code, or as a result of any excise or penalty tax under any
similar provision of any other revenue system to which Executive may be
subject, will be determined in accordance with a “Policy with Respect to Tax
Gross-up Payments” adopted, or which will be adopted, by the Board of Directors
(or a Committee of the Board), and once that policy is adopted, no amendment of
that policy that adversely affects Executive will be effective with respect to
Executive’s rights under this Agreement without Executive’s written
consent.  Any gross-up payment to
which Executive is entitled pursuant to this Section 12, shall be paid by
the Company to the Executive or the applicable taxing authorities on or before
the date in which such taxes are due, but, for purposes of Code Section 409A,
in all events by the end of the Executive’s taxable year following the taxable
year in which the Executive remits the related taxes (however, this period is by no means an
outside payment date or diminishes the Executive’s right to be paid promptly).

 

13.        Representations
and Warranties.  Executive hereby represents and warrants to
the Company that Executive is not a party to, or otherwise subject to, any
covenant not to compete with any person or entity, and Executive’s execution of
this Agreement and performance of his obligations hereunder will not violate
the terms or conditions of any contract or obligation, written or oral, between
Executive and any other person or entity.

 

14.        Restrictions on Conduct of Executive.

 

(a)        General. 
Executive and the Company understand and agree that the purpose of the
provisions of this Section 14 is to protect legitimate business interests
of the Company, as more fully described below, and is not intended to impair or
infringe upon Executive’s right to work, earn a living, or acquire and possess
property from the fruits of his labor. 
Executive hereby acknowledges that Executive has received good and
valuable consideration for the post-employment restrictions set forth in this Section 14
in the form of the compensation and benefits provided for herein.  Executive hereby further acknowledges that
the post-employment restrictions set forth in this Section 14 are
reasonable and that they do not, and will not, unduly impair his ability to
earn a living after the termination of this Agreement.

 

In addition, the parties acknowledge: (A) that
Executive’s services under this Agreement require unique expertise and talent
in the provision of Competitive Services and that Executive will have
substantial contacts with customers, suppliers, advertisers and vendors of the
Company; (B) that pursuant to this Agreement, Executive will be placed in
a position of trust and responsibility and he will have access to a substantial
amount of Confidential Information and Trade Secrets and that the Company is
placing 

 

18

 

him
in such position and giving him access to such information in reliance upon his
agreement not to solicit customers during the Restricted Period; (C) that
due to Executive’s unique experience and talent, the loss of Executive’s
services to the Company under this Agreement cannot reasonably or adequately be
compensated solely by damages in an action at law; (D) that Executive is
capable of competing with the Company; and (E) that Executive is capable
of obtaining gainful, lucrative and desirable employment that does not violate
the restrictions contained in this Agreement.

 

Therefore, Executive shall be subject to the restrictions
set forth in this Section 14.

 

(b)       Definitions.  The
following capitalized terms used in this Section 14 shall have the
meanings assigned to them below, which definitions shall apply to both the
singular and the plural forms of such terms:

 

“Competitive
Position” means any
employment with a Competitor in the capacity of a senior executive officer in
which Executive has duties for such Competitor that involve Competitive
Services and that are the same or similar to those services actually performed
by Executive for the Company.

 

“Competitive
Services” means the
business of automated credit risk management and financial technologies for the
internet and traditional lending environments.

 

“Competitor” means any of the following companies: Acxiom
Corporation, CBC Companies, CSC Credit Services, The Dun & Bradstreet
Corporation, Experian Inc., Fair Issac Corporation, Nexis-Lexis and Trans Union
Corporation, each of which is engaged, wholly or in part, in Competitive
Services within the Restricted Territory.

 

“Confidential Information” means all information regarding the Company, its activities, business
or clients that is the subject of reasonable efforts by the Company to maintain
its confidentiality and that is not generally disclosed by practice or authority
to persons not employed by the Company, but that does not rise to the level of
a Trade Secret.  “Confidential
Information” shall include, but is not limited to, financial plans and data
concerning the Company; management planning information; business plans;
operational methods; market studies; marketing plans or strategies; product
development techniques or plans; customer lists; customer files, data and
financial information, details of customer contracts; current and anticipated
customer requirements; identifying and other information pertaining to business
referral sources; past, current and planned research and development; business
acquisition plans; and new personnel acquisition plans.  “Confidential Information” shall not include
information that has become generally available to the public by the act of one
who has the right to disclose such information without violating any right or
privilege of the Company.  This
definition shall not limit any definition of “confidential information” or any
equivalent term under state or federal law.

 

19

 

“Determination Date” means the date of termination of Executive’s employment with the
Company for any reason whatsoever or any earlier date (during the Employment
Period) of an alleged breach of the Restrictive Covenants by Executive.

 

“Person”
means any individual or any corporation, partnership, joint venture, limited
liability company, association or other entity or enterprise.

 

“Principal or Representative” means a principal, owner, partner, stockholder, joint venturer,
investor, member, trustee, director, officer, manager, employee, agent,
representative or consultant.

 

“Protected Customers” means any Person to whom the Company has sold its products or services
or solicited to sell its products or services, other than through general
advertising targeted at consumers, during the 12 months prior to the
Determination Date.

 

“Protected Employees” means employees of the Company who were employed by the Company or its
affiliates at any time within six months prior to the Determination Date, other
than those who were discharged by the Company or such affiliated employer
without cause.

 

“Restricted Period” means the Employment Period plus one year after the Date of Termination.

 

“Restricted Territory” means the United States of America.

 

“Restrictive Covenants” means the restrictive covenants contained in Section 14(c) hereof.

 

“Third Party Information” means confidential or proprietary information subject to a duty on the
Company’s and its affiliates’ part to maintain the confidentiality of such
information and to use it only for certain limited purposes.

 

“Trade Secret”
means all information, without regard to form, including, but not limited to,
technical or nontechnical data, a formula, a pattern, a compilation, a program,
a device, a method, a technique, a drawing, a process, financial data,
financial plans, product plans, distribution lists or a list of actual or
potential customers, advertisers or suppliers which is not commonly known by or
available to the public and which information: 
(A) derives economic value, actual or potential, from not being
generally known to, and not being readily ascertainable by proper means by,
other persons who can obtain economic value from its disclosure or use; and (B) is
the subject of efforts that are reasonable under the circumstances to maintain
its secrecy.  Without limiting the
foregoing, Trade Secret means any item of confidential information that
constitutes a “trade secret(s)” under the common law or statutory law of the
State of Georgia.

 

20

 

“Work Product”
means all inventions, innovations, improvements, developments, methods,
processes, programs, designs, analyses, drawings, reports, and all similar or
related information (whether or not patentable) that relate to the Company’s or
its affiliates’ actual or anticipated business, research and development, or
existing or future products or services and that are conceived, developed,
contributed to, made, or reduced to practice by Executive (either solely or
jointly with others) while employed by the Company or its affiliates.

 

(c)        Restrictive
Covenants.

 

(i)         Restriction
on Disclosure and Use of Confidential Information and Trade Secrets.  Executive understands and agrees that the
Confidential Information and Trade Secrets constitute valuable assets of the
Company and its affiliated entities, and may not be converted to Executive’s
own use.  Accordingly, Executive hereby
agrees that Executive shall not, directly or indirectly, during the Employment
Period and for a period of two years after the Date of Termination, reveal,
divulge, or disclose to any Person not expressly authorized by the Company any
Confidential Information, and Executive shall not, directly or indirectly,
during the Employment Period and for a period of two years after the Date of
Termination, use or make use of any Confidential Information in connection with
any business activity other than that of the Company.  Executive shall not directly or indirectly
transmit or disclose any Trade Secret of the Company to any Person, and shall
not make use of any such Trade Secret, directly or indirectly, for himself or
for others, without the prior written consent of the Company throughout
the term of this Agreement and for the period during which the information
remains a Trade Secret under applicable law.  The parties acknowledge and
agree that this Agreement is not intended to, and does not, alter either the
Company’s rights or Executive’s obligations under any state or federal
statutory or common law regarding trade secrets and unfair trade practices.

 

Anything herein to the contrary notwithstanding,
Executive shall not be restricted from disclosing or using Confidential
Information or any Trade Secret that is required to be disclosed by law, court
order or other legal process; provided, however,
that in the event disclosure is required by law, Executive shall provide the
Company with prompt notice of such requirement so that the Company may seek an
appropriate protective order prior to any such required disclosure by
Executive.

 

Executive acknowledges that any and all Confidential
Information is the exclusive property of the Company and agrees to deliver to
the Company on the Date of Termination, or at any other time the Company may
request in writing, any and all Confidential Information which he may then
possess or have under his control in whatever form same may exist, including,
but not by way of limitation, hard copy files, soft copy files, computer disks,
and all copies thereof.

 

(ii)        Nonsolicitation
of Protected Employees.  Executive understands
and agrees that the relationship between the Company and each of its Protected
Employees constitutes a valuable asset of the Company and may not be converted
to 

 

21

 

Executive’s
own use.  Accordingly, Executive hereby
agrees that during the Restricted Period, Executive shall not directly or
indirectly on Executive’s own behalf or as a Principal or Representative of any
Person or otherwise solicit or induce any Protected Employee to terminate his
employment relationship with the Company or to enter into employment with any
other Person.

 

(iii)       Restriction
on Relationships with Protected Customers. 
Executive understands and agrees that the relationship between the
Company and each of its Protected Customers constitutes a valuable asset of the
Company and may not be converted to Executive’s own use.  Accordingly, Executive hereby agrees that,
during the Restricted Period, Executive shall not, without the prior written
consent of the Company, directly or indirectly, on Executive’s own behalf or as
a Principal or Representative of any Person, solicit, divert, take away or
attempt to solicit, divert or take away a Protected Customer for the purpose of
providing or selling Competitive Services; provided,
however, that the prohibition of this covenant shall apply only to
Protected Customers with whom Executive had Material Contact on the Company’s
behalf during the 12 months immediately preceding the Date of Termination; and,
provided further, that the prohibition
of this covenant shall not apply to the conduct of general advertising
activities.  For purposes of this
Agreement, Executive had “Material Contact” with a Protected Customer if (a) he
had business dealings with the Protected Customer on the Company’s behalf; (b) he
was responsible for supervising or coordinating the dealings between the
Company and the Protected Customer; or (c) he obtained Trade Secrets or
Confidential Information about the customer as a result of his association with
the Company.

 

(iv)      Noncompetition with the Company.  In consideration of the compensation and
benefits being paid and to be paid by the Company to Executive hereunder, Executive hereby
agrees that, during the Restricted Period, Executive will not, without prior
written consent of the Company, directly or indirectly obtain, serve in or
operate in a Competitive Position with a Competitor where his duties involve
operations of such Competitor within the Restricted Territory.  Executive acknowledges that in the performance
of his duties for the Company he is charged with operating on the Company’s
behalf throughout the Restricted Territory and he hereby acknowledges,
therefore, that the Restricted Territory is reasonable.

            

(v)       Ownership
of Work Product.  Executive acknowledges
that the Work Product belongs to the Company or its affiliates and Executive
hereby assigns, and agrees to assign, all of the Work Product to the Company or
its affiliates.  Any copyrightable work
prepared in whole or in part by Executive in the course of his work for any of
the foregoing entities shall be deemed a “work made for hire” under the
copyright laws, and the Company or such affiliate shall own all rights
therein.  To the extent that any such
copyrightable work is not a “work made for hire,” Executive hereby assigns and
agrees to assign to the Company or such affiliate all right, title, and
interest, including without limitation, copyright in and to such copyrightable
work.  Executive shall promptly disclose
such Work Product and copyrightable work to the Board and 

 

22

 

perform
all actions reasonably requested by the Board (whether during or after the
Employment Period) to establish and confirm the Company’s or such affiliate’s
ownership (including, without limitation, assignments, consents, powers of
attorney, and other instruments).

 

(vi)      Third
Party Information.  Executive
understands that the Company and its affiliates will receive Third Party
Information.  During the Employment
Period and thereafter, and without in any way limiting the provisions of Section 14(c)(i) above,
Executive will hold Third Party Information in the strictest confidence and
will not disclose to anyone (other than personnel of the Company or its
affiliates who need to know such information in connection with their work for
the Company or its affiliates) or use, except in connection with his work for
the Company or its affiliates, Third Party Information unless expressly
authorized by a member of the Board (other than Executive) in writing.

 

(vii)     Use
of Information of Prior Employers. 
During the Employment Period, Executive will not improperly use or
disclose any confidential information or trade secrets, if any, of any former
employers or any other person to whom Executive has an obligation of
confidentiality, and will not bring onto the premises of the Company or any of
its affiliates any unpublished documents or any property belonging to any
former employer or any other person to whom Executive has an obligation of confidentiality
unless consented to by in writing the former employer or person.  Executive will use in the performance of his
duties only information which is (i) generally known and used by persons
with training and experience comparable to Executive’s and which is (x) common
knowledge in the industry or (y) is otherwise legally in the public
domain, (ii) is otherwise provided or developed by the Company or its
affiliates or (iii) in the case of materials, property or information
belonging to any former employer or other person to whom Executive has an
obligation of confidentiality, approved for such use in writing by such former
employer or person.

 

(d)       Enforcement
of Restrictive Covenants.

 

(i)         Rights
and Remedies Upon Breach.  In the
event Executive breaches, or threatens to commit a breach of, any of the
provisions of the Restrictive Covenants, the Company shall have the right and
remedy to enjoin, preliminarily and permanently, Executive from violating or
threatening to violate the Restrictive Covenants and to have the Restrictive
Covenants specifically enforced by any court or tribunal of competent
jurisdiction, it being agreed that any breach or threatened breach of the
Restrictive Covenants would cause irreparable injury to the Company and that
money damages would not provide an adequate remedy to the Company.  Such right and remedy shall be independent of
any others and severally enforceable, and shall be in addition to, and not in
lieu of, any other rights and remedies available to the Company at law or in
equity.

 

(ii)        Severability
of Covenants.  Executive acknowledges
and agrees that the Restrictive Covenants are reasonable and valid in time and
scope and in all other 

 

23

 

respects.  The covenants set forth in this Agreement
shall be considered and construed as separate and independent covenants.  Should any part or provision of any covenant
be held invalid, void or unenforceable, such invalidity, voidness or unenforceability
shall not render invalid, void or unenforceable any other part or provision of
this Agreement.  If any portion of the
foregoing provisions is found to be invalid or unenforceable because its
duration, the territory, the definition of activities or the definition of
information covered is considered to be invalid or unreasonable in scope, the
invalid or unreasonable term shall be redefined, or a new enforceable term
provided, such that the intent of the Company and Executive in agreeing to the
provisions of this Agreement will not be impaired and the provision in question
shall be enforceable to the fullest extent of the applicable laws.

 

(iii)       Reformation.  The parties hereunder agree that it is their
intention that the Restrictive Covenants be enforced in accordance with their
terms to the maximum extent possible under applicable law.  The parties further agree that, in the event
any tribunal of competent jurisdiction shall find that any provision hereof is
not enforceable in accordance with its terms, the tribunal shall reform the Restrictive
Covenants such that they shall be enforceable to the maximum extent permissible
at law.

 

15.        Mediation
and Arbitration.  The parties shall endeavor to resolve any
claim or dispute arising under or relating to this Agreement, or the breach,
termination or validity of any term of this Agreement, by mediation under the
International Institute for Conflict Prevention & Resolution (CPR)
Mediation Procedure then currently in effect; provided, however, that the
Company shall retain the right at any time to seek equitable remedies, as
provided in Section 14(d), for breaches or threatened breaches of the
Restrictive Covenants.  Unless the
parties agree otherwise, the mediator will be selected from the CPR Panels of
Distinguished Neutrals.  The place of
mediation shall be Atlanta, Georgia.  Any
controversy or claim arising out of or relating to this Agreement, including
the breach, termination or validity thereof, which remains unresolved 45 days
after the appointment of a mediator, shall be finally resolved by arbitration
in accordance with the CPR Rules for Non-Administered Arbitration then
currently in effect, by a sole; provided, however, that if one party fails to
participate in the mediation as agreed herein, the other party can commence
arbitration prior to the expiration of the time periods set forth above. The
arbitration shall be governed by the Federal Arbitration Act, 9 U.S.C. §§ 1-16,
and judgment upon the award rendered by the arbitrator(s) may be entered
by any court having jurisdiction thereof. 
The place of arbitration shall be Atlanta, Georgia.

 

16.        Assignment
and Successors.

 

(a)        This Agreement is personal to Executive and without the prior
written consent of the Company shall not be assignable by Executive otherwise
than by will or the laws of descent and distribution.  This Agreement shall inure to the benefit of
and be enforceable by Executive’s legal representatives.

 

(b)       This
Agreement shall inure to the benefit of and be binding upon the Company and its
successors and assigns.

 

24

 

(c)        The
Company will require any Surviving Entity resulting from a Reorganization, Sale
or Acquisition (if other than the Company) to assume expressly and agree to
perform this Agreement in the same manner and to the same extent that the
Company would be required to perform it if no Reorganization, Sale or
Acquisition had taken place.  As used in
this Agreement, “Company” shall mean the Company as hereinbefore defined and a
legal successor to its business and/or a purchaser of all or substantially all
of its assets as aforesaid which assumes and agrees to perform this Agreement
by operation of law, or otherwise.

 

17.        Miscellaneous.

 

(a)        Waiver.  Failure of either party to insist, in one or
more instances, on performance by the other in strict accordance with the terms
and conditions of this Agreement shall not be deemed a waiver or relinquishment
of any right granted in this Agreement or of the future performance of any such
term or condition or of any other term or condition of this Agreement, unless
such waiver is contained in a writing signed by the party making the waiver.

 

(b)       Severability.  If any provision or covenant, or any part
thereof, of this Agreement should be held by any tribunal of competent
jurisdiction to be invalid, illegal or unenforceable, either in whole or in
part, such invalidity, illegality or unenforceability shall not affect the
validity, legality or enforceability of the remaining provisions or covenants,
or any part thereof, of this Agreement, all of which shall remain in full force
and effect.

 

(c)        Other
Agents.  Nothing
in this Agreement is to be interpreted as limiting the Company from employing
other personnel on such terms and conditions as may be satisfactory to it,
except that this Section 17(c) shall not override the provision of Section 7(d)(i).

 

(d)       Entire
Agreement.  Except as provided
herein, this Agreement contains the entire agreement between the Company and
Executive with respect to the subject matter hereof and, from and after the
Effective Date, this Agreement shall supersede any other agreement between the
parties with respect to the subject matter hereof, including without
limitation, the Prior Agreement.

 

(e)        Governing
Law.  Except to the extent preempted
by federal law, and without regard to conflict of laws principles, the laws of
the State of Georgia shall govern this Agreement in all respects, whether as to
its validity, construction, capacity, performance or otherwise.

 

(f)        Notices.  All notices, requests, demands and other
communications required or permitted hereunder shall be in writing and shall be
deemed to have been duly given if delivered or three days after mailing if
mailed, first class, certified mail, postage prepaid:

 

25

 

To the Company:       Equifax
Inc.

1550 Peachtree Street, N.W.

Atlanta, Georgia 30309

Attention: Chief Legal Officer

 

To Executive:              At the current address that the Company has
on file for the Executive.

 

Any
party may change the address to which notices, requests, demands and other
communications shall be delivered or mailed by giving notice thereof to the
other party in the same manner provided herein.

 

(g)       Amendments
and Modifications.  This Agreement
may be amended or modified only by a writing signed by both parties hereto,
which makes specific reference to this Agreement.

 

(h)       Construction.  Each party and his or its counsel have
reviewed this Agreement and have been provided the opportunity to revise this
Agreement and accordingly, the normal rule of construction to the effect
that any ambiguities are to be resolved against the drafting party shall not be
employed in the interpretation of this Agreement.  Instead, the language of all parts of this
Agreement shall be construed as a whole, and according to its fair meaning, and
not strictly for or against either party.

 

(i)         Withholding.  The Company or its subsidiaries, if
applicable, shall be entitled to deduct or withhold from any amounts owing from
the Company or any such affiliate to Executive any federal, state, local or
foreign withholding taxes, excise taxes, or employment taxes (“Taxes”) imposed
with respect to Executive’s compensation or other payments from the Company or
any of its affiliates.  In the event the
Company or its affiliates do not make such deductions or withholdings,
Executive shall indemnify the Company and its affiliates for any amounts paid
with respect to any such Taxes.

 

(j)         Legal Fees.

 

(i)         The Company
shall reimburse Executive’s reasonable legal fees and expenses incurred in
negotiating and documenting this Agreement and any other related documents or
matters. All such reimbursements shall be paid promptly after submission by the
Executive of such expenses to the Company, but, for purposes of Code Section 409A,
in all events shall be paid to the Executive on or before the last day of the
Executive’s taxable year following the taxable year in which the applicable
expense was incurred (however, this period is by no means an outside payment
date or diminishes the Executive’s right to be paid promptly).  For purposes of Code Section 409A, the
amount of expenses eligible for reimbursement during the Executive’s taxable
year may not affect the expenses eligible for reimbursement in any other
taxable year.

 

(ii)        In the event of any dispute between
Executive and the Company following a Change in Control (as defined in the Section 9),
the Company shall reimburse 

 

26

 

Executive for attorney’s
fees and expenses reasonably incurred by Executive in such dispute.
Notwithstanding the foregoing, in the event that the Company pays Executive’s
legal fees and expenses relating to a dispute hereunder and an arbitrator or a
court later determines that Executive’s positions with respect to such dispute were
advanced in bad faith, Executive shall promptly repay such legal fees and
expenses to the Company.  All such
reimbursements shall be paid promptly after submission by the Executive of such
expenses to the Company, but, for purposes of Code Section 409A, in all
events shall be paid to the Executive on or before the last day of the
Executive’s taxable year following the taxable year in which the applicable
expense was incurred (however, this period is by no means an outside payment
date or diminishes the Executive’s right to be paid promptly).  For purposes of Code Section 409A, the
amount of expenses eligible for reimbursement during the Executive’s taxable
year may not affect the expenses eligible for reimbursement in any other
taxable year.

 

(iii)       In the event of any dispute between
Executive and the Company, the Company shall reimburse Executive for attorney’s
fees and expenses reasonably incurred by Executive in such dispute in
connection with those issues upon which Executive is determined by an arbitrator
or a court to have prevailed upon the merits.  All
reimbursements by the Company pursuant to this Section (j)(iii) shall
be paid to the Executive promptly after the settlement, final judgment or award
on the claim, but, for purposes of Code Section 409A and in accordance
with Treasury Regulations Section 1.409A-3(g), no later than the end of
the first taxable year of the Executive in which the Executive and the Company
enter into a legally binding settlement of such dispute, the Company concedes
that the amount is payable, or the Company is required to make such payment
pursuant to a final and nonappealable judgment or other binding decision
(however, this provision by no means diminishes the Executive’s right to be
paid promptly).

 

(k)        Indemnification.  After the Executive’s Date of Termination,
the Company will indemnify and hold Executive harmless from and against any
claim relating to Executive’s performance as an officer, director or employee
of the Company or any of its subsidiaries or other affiliates or in any other
capacity, including any fiduciary capacity, in which Executive served at the
Company’s request, in each case to the maximum extent permitted by law and
under the Company’s Articles of Incorporation and Bylaws (the “Governing
Documents”), provided that under no circumstances will the protection afforded
to Executive under this paragraph be less than that afforded under the
Governing Documents as in effect on the date of this Agreement except for
changes mandated by law.  Executive will
continue to receive the benefits of, and be covered by, any policy of directors
and officers liability insurance maintained by the Company for the benefit of
its directors, officers and employees.

 

(Signatures on following page)

 

27

 

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

 

	
   

  	
  EQUIFAX INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   L. Phillip Humann, Chairman, 

  
	
   

  	
   

  	
   Compensation, Human Resources &

  
	
   

  	
   

  	
   Management Succession Committee of 

  
	
   

  	
   

  	
   the Board of Directors

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  EXECUTIVE:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Richard F. Smith

  

 

28

 

EXHIBIT A

 

Form of Release

 

 

THIS RELEASE (“Release”) is granted effective as of the
         day of
                  ,
        , by Richard F. Smith (“Executive”)
in favor of Equifax Inc. (the “Company”). 
This is the Release referred to in that certain Employment Agreement
effective as of September 19, 2005 by and between the Company and
Executive (the “Employment Agreement”), with respect to which this Release is
an integral part.

 

FOR AND IN CONSIDERATION of the payments and
benefits provided by Section 8 of the Employment Agreement and the Company’s
other promises and covenants as recited in the Employment Agreement, the
receipt and sufficiency of which are hereby acknowledged, Executive, for
himself, his successors and assigns, now and forever hereby releases and
discharges the Company and all its past and present officers, directors,
stockholders, employees, agents, parent corporations, predecessors,
subsidiaries, affiliates, estates, successors, assigns, benefit plans,
consultants, administrators, and attorneys (hereinafter collectively referred
to as “Releasees”) from any and all claims, charges, actions, causes of action,
sums of money due, suits, debts, covenants, contracts, agreements, promises,
demands or liabilities (hereinafter collectively referred to as “Claims”)
whatsoever, in law or in equity, whether known or unknown, which Executive ever
had or now has from the beginning of time up to the date this Release (“Release”)
is executed, including, but not limited to, claims under the Age Discrimination
in Employment Act, as amended by the Older Workers Benefit Protection Act,
Title VII of the Civil Rights Act of 1964 (and all of its amendments), the
Americans with Disabilities Act, as amended, or any other federal or state
statutes, all tort claims, all claims for wrongful employment termination or
breach of contract, and any other claims which Executive has, had, or may have
against the Releasees on account of or arising out of Executive’s employment
with or termination from the Company; provided,
however, that nothing contained in this Release shall in any way
diminish or impair (i) any rights of Executive to the benefits conferred
or referenced in the Employment Agreement, (ii) any rights to
indemnification that may exist from time to time under any Indemnification
Agreement between Executive and the Company, or the Company’s articles of
incorporation or bylaws, or Georgia law, or (iii) Executive’s ability to
raise an affirmative defense in connection with any lawsuit or other legal
claim or charge instituted or asserted by the Company against Executive
(collectively, the “Excluded Claims”).

 

Without limiting the generality of the foregoing,
Executive hereby acknowledges and covenants that in consideration for the sums
being paid to him he has knowingly waived any right or opportunity to assert
any claim that is in any way connected with any employment relationship or the
termination of any employment relationship which existed between the Company
and Executive.  Executive further
understands and agrees that, except for the Excluded Claims, he has knowingly
relinquished, waived and forever released any and all remedies arising out of
the aforesaid employment relationship or the termination thereof, including,
without limitation, claims for backpay, front pay, liquidated damages,
compensatory damages, general damages, special damages, punitive damages,
exemplary damages, costs, expenses and attorneys’ fees.

 

2

 

Executive specifically acknowledges and agrees that
he has knowingly and voluntarily released the Company and all other Releasees
from any and all claims arising under the Age Discrimination in Employment Act
(“ADEA”), 29 U.S.C. § 621, et seq., which Executive ever had or
now has from the beginning of time up to the date this Release is executed,
including but not limited to those claims which are in any way connected with
any employment relationship or the termination of any employment relationship
which existed between the Company and Executive.  Executive further acknowledges and agrees
that he has been advised to consult with an attorney prior to executing this
Release and that he has been given twenty-one (21) days to consider this
Release prior to its execution. 
Executive also understands that he may revoke this Release at any time
within seven (7) days following its execution.  Executive understands, however, that this
Release shall not become effective and that none of the consideration described
above shall be paid to him until the expiration of the seven-day revocation
period.

 

Executive agrees never to seek reemployment or
future employment with the Company or any of the other Releasees.

 

Executive acknowledges that the terms of this
Release must be kept confidential. 
Accordingly, Executive agrees not to disclose or publish to any person
or entity the terms and conditions or sums being paid in connection with this
Release, except as required by law, as necessary to prepare tax returns, or as
necessary to enforce the Excluded Claims.

 

It is understood and agreed by Executive that the
payment made to him is not to be construed as an admission of any liability
whatsoever on the part of the Company or any of the other Releasees, by whom
liability is expressly denied.

 

Executive agrees and covenants that he will not make
any derogatory or disparaging statements about or relating to the Company, its
business practices, its products, its services or its employment practices and
that he will not engage in any harassing conduct directed at Company.  For purposes of this provision, “Company”
means and includes the Company and its officers, directors, agents,
representatives and employees.  Nothing
in this provision is intended to prohibit Executive from testifying truthfully
in any judicial or quasi-judicial proceeding.

 

This Release is executed by Executive voluntarily
and is not based upon any representations or statements of any kind made by the
Company or any of the other Releasees as to the merits, legal liabilities or
value of his claims.  Executive further
acknowledges that he has had a full and reasonable opportunity to consider this
Release and that he has not been pressured or in any way coerced into executing
this Release.

 

Executive acknowledges and agrees that this Release
may not be revoked at any time after the expiration of the seven-day revocation
period and that he will not institute any suit, action, or proceeding, whether
at law or equity, challenging the enforceability of this Release.  Furthermore, with the exception of an action
to challenge his waiver of 

 

3

 

claims
under the ADEA, if Executive does not prevail in an action to challenge this
Release, to obtain an order declaring this Release to be null and void, or in
any action against the Company or any other Releasee based upon a claim which
is covered by the release set forth herein, Executive shall pay to the Company
and/or the appropriate Releasee all their costs and attorneys’ fees incurred in
their defense of Executive’s action.

 

This Release and the rights and obligations of the
parties hereto shall be governed and construed in accordance with the laws of
the State of Georgia.  If any provision
hereof is unenforceable or is held to be unenforceable, such provision shall be
fully severable, and this document and its terms shall be construed and
enforced as if such unenforceable provision had never comprised a part hereof,
the remaining provisions hereof shall remain in full force and effect, and the
court or tribunal construing the provisions shall add as a part hereof a
provision as similar in terms and effect to such unenforceable provision as may
be enforceable, in lieu of the unenforceable provision.

 

This document contains all terms of the Release and
supersedes and invalidates any previous agreements or contracts.  No representations, inducements, promises or
agreements, oral or otherwise, which are not embodied herein shall be of any
force or effect.

 

IN WITNESS WHEREOF, the undersigned acknowledges
that he has read these three pages and he sets his hand and seal this
         day of
                        ,
20      .

 

 

	
   

  	
   

  
	
   

  	
  Richard F. Smith

  

 

 

Sworn to and subscribed
before me this            day
of
                            ,
20      .

 

 

	
   

  	
   

  
	
  Notary Public

  	
   

  

 

 

My
Commission Expires:

 

4

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