Document:

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                                                                  EXECUTION COPY

                                 AMENDMENT NO. 1
                                       TO
                            STOCK PURCHASE AGREEMENT

      This AMENDMENT NO. 1 to the Stock Purchase Agreement (this "Amendment") is
entered into as of this 27th day of August, 2004 by and among Kelso & Company,
L.P., a Delaware limited partnership, as the Stockholders' Representative on
behalf of the Kelso Stockholders (as hereinafter defined) and Third Party
Stockholders (as hereinafter defined) (the "Stockholders' Representative"),
Richard L. Bready, as the Management Representative on behalf of the Management
Stockholders (as hereinafter defined) and the Option Sellers (as hereinafter
defined) (the "Management Representative"), and THL Buildco, Inc., a Delaware
corporation ("Buyer") and a wholly owned subsidiary of Buyer Holdings (as
hereinafter defined).

                                    RECITALS

      WHEREAS, on July 15, 2004, THL Buildco Holdings, Inc., a Delaware
corporation ("Buyer Holdings"), and Buyer entered into the Stock Purchase
Agreement (the "Agreement") with the Sellers (as defined in the Agreement;
capitalized terms used herein and not otherwise defined in this amendment being
used herein as defined in the Agreement);

      WHEREAS, Section 10.4 of the Agreement provides that the Agreement may be
amended by the Stockholders' Representative (on behalf of the Kelso Stockholders
and Third Party Stockholders), the Management Representative (on behalf of the
Management Stockholders and the Option Sellers) and Buyer by an instrument in
writing executed by each such Person; and

      WHEREAS, the Stockholders' Representative, the Management Representative
and Buyer desire to amend the Agreement as set forth herein;

      NOW THEREFORE, in consideration of the foregoing recitals, mutual
agreements contained herein and for good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the Stockholders'
Representative (on behalf of the Kelso Stockholders and Third Party
Stockholders), the Management Representative (on behalf of the Management
Stockholders and the Option Sellers) and Buyer agree as follows:

1. AMENDMENTS.

      1.1. Exhibit Substitutions.

            1.1.1. Exhibit B to the Agreement shall be amended by deleting such
exhibit in its entirety and replacing it with Exhibit B (Treatment of Options)
attached hereto.
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            1.1.2. Exhibit C to the Agreement shall be amended by deleting such
exhibit in its entirety and replacing it with Exhibit C (Securityholders
Agreement) attached hereto.

            1.1.3. Exhibit D to the Agreement shall be amended by deleting such
exhibit in its entirety and replacing it with Exhibit D (Amended Bready
Employment Agreement) attached hereto.

            1.1.4. Exhibit F to the Agreement shall be amended by deleting such
exhibit in its entirety and replacing it with Exhibit F (LLC Agreement) attached
hereto.

            1.1.5. The Agreement shall be amended by attaching to the Agreement
Exhibit G (Deferred Compensation Plan), Exhibit H (LLC Unit Subscription
Agreement), Exhibit I (Option Cancellation Agreements), Exhibit J (Amended
Donnelly Employment Agreement), Exhibit K (Amended Hall Employment Agreement)
and Exhibit L (Hiley Consulting Agreement), in each case, in the forms attached
hereto.

      1.2. Recitals

            1.2.1. The third whereas clause shall be amended to read in its
entirety as follows:

                  WHEREAS, it is intended that prior to the Closing, certain
            investors shall purchase from Investors LLC limited liability
            company units of Investors LLC, Investors LLC, in turn, shall
            purchase from Buyer Holdings a number of shares of Buyer Holdings'
            common stock and Buyer Holdings, in turn, shall purchase from Buyer
            a number of shares of Buyer's common stock;

            1.2.2. The sixth, seventh and eighth whereas clauses in the recitals
to the Agreement shall be deleted in their entirety and replaced with the
following:

                  WHEREAS, at the Closing, upon the terms and subject to the
            conditions set forth herein, the Option Transaction with respect to
            Exchanged Options shall occur;

                  WHEREAS, at or immediately following the Closing, the Company
            shall cancel and terminate the Cancelled Options pursuant to Section
            12 of the Option Plan and Buyer shall deliver to the Company or OpCo
            an amount of cash sufficient for the Company or OpCo to make the
            payments to the holders of Cancelled Options provided for herein;

                  WHEREAS, immediately following the Closing, Buyer shall merge
            with and into the Company (the "Buyer Merger"), whereupon the
            separate existence of Buyer will cease, and the Company will be the
            surviving corporation;

                  WHEREAS, immediately following the Buyer Merger, the Company,
            as the surviving company of the Buyer Merger, shall merge with and
            into OpCo (the "Company Merger" and together with the Buyer Merger,
            the "Mergers"),

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            whereupon the separate existence of the Company will cease, and OpCo
            will be the surviving corporation; and

                  WHEREAS, immediately following the Company Merger, Buyer
            Holdings shall change its corporate name to "Nortek Holdings, Inc."

      1.3. Definitions.

            1.3.1. The following definitions shall be inserted in the
appropriate alphabetical order in Article I of the Agreement:

                  "Amended Donnelly Employment Agreement" shall mean the amended
            employment agreement to be entered into on the Closing Date by and
            among Kevin W. Donnelly, Buyer Holdings and OpCo, and to be
            substantially in the form attached as Exhibit J hereto.

                  "Amended Hall Employment Agreement" shall mean the amended
            employment agreement to be entered into on the Closing Date by and
            among Almon C. Hall, III, Buyer Holdings and OpCo, and to be
            substantially in the form attached as Exhibit K hereto.

                  "Class A Units" shall mean Class A Units of Investors LLC.

                  "Class B Units" shall mean Class B Units of Investors LLC.

                  "Class C Units" shall mean, collectively, Class C-1 Units and
            Class C-2 Units of Investors LLC.

                  "Deferred Compensation Account" shall have the meaning set
            forth in the Deferred Compensation Plan.

                  "Deferred Compensation Plan" shall mean the Deferred
            Compensation Plan of Buyer Holdings to become effective on the
            Closing Date, and to be substantially in the form attached as
            Exhibit G hereto.

                  "Hiley Consulting Agreement" shall mean the consulting
            agreement to be entered into on the Closing Date by and among David
            B. Hiley, Buyer Holdings and OpCo, and to be substantially in the
            form attached as Exhibit L hereto.

                  "Investors LLC" shall mean THL - Nortek Investors, LLC, a
            Delaware limited liability company.

                  "LLC Agreement" shall mean the limited liability company
            agreement of Investors LLC to be entered into on the Closing Date,
            and to be substantially in the form attached as Exhibit F hereto.

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                  "LLC Unit Subscription Agreement" shall mean a Senior
            Management Unit Subscription Agreement, to be entered into by and
            between Investors LLC and each Exchanged Option Holder, in each case
            substantially in the form attached as Exhibit H hereto, pursuant to
            which each such Exchanged Option Holder shall (a) purchase Class B
            Units (and, in the case of Jeremy Burkhardt, Class A Units) and (b)
            be granted any Class C Units.

                  "Option Cancellation Agreement" shall mean, as applicable, (a)
            in the case of an Option Seller, an Option Cancellation Agreement,
            to be entered into by and among Investors LLC, Buyer Holdings, Buyer
            and such Option Seller, substantially in the form attached as
            Exhibit I-1 hereto, (b) in the case of a holder of both Cancelled
            Options and Exchanged Options, an Option Cancellation Agreement, to
            be entered into by and among Investors LLC, Buyer Holdings, Buyer
            and such holder, substantially in the form attached as Exhibit I-2
            hereto and (c) in the case of a holder of Cancelled Options only, an
            Option Cancellation Agreement, to be entered into by and among
            Investors LLC, Buyer Holdings, Buyer and such holder, substantially
            in the form attached as Exhibit I-3 hereto.

                  "Option Seller Payment Letter" shall have the meaning set
            forth in Section 2.6(b).

                  "Securityholders Agreement" shall mean the Securityholders
            Agreement, to be entered into on the Closing Date by and among
            Investors LLC and certain other parties thereto, and to be
            substantially in the form attached as Exhibit C hereto.

                  "Seller Payment Letter" shall have the meaning set forth in
            Section 2.6(b).

            1.3.2. The following definitions in Article I of the Agreement shall
be amended to read in their entirety as follows:

                  "Amended Bready Employment Agreement" shall mean the amended
            employment agreement to be entered into on the Closing Date by and
            among Richard L. Bready, Buyer Holdings and OpCo, and to be
            substantially in the form attached as Exhibit D hereto.

                  "Cashed Out Options" shall mean all Options outstanding as of
            the Closing and set forth opposite each Option Seller's name on
            Exhibit B hereto under the heading "Cashed Out Options," which shall
            be cancelled in consideration for payment in accordance with ARTICLE
            II hereof.

                  "Exchanged Options" shall mean all Options outstanding as of
            the Closing and set forth opposite each person's name on Exhibit B
            hereto under the heading "Exchanged Options", which shall be
            cancelled as part of the Option Transaction.

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                  "Option Transaction" shall mean the transactions more fully
            described in Section 6.7(c) pursuant to which each Exchanged Option
            Holder tenders for cancellation his or her Exchanged Options, and in
            consideration therefor, Buyer Holdings credits his or her Deferred
            Compensation Account in the amount set forth opposite such Exchanged
            Option Holder's name on Exhibit B hereto under the heading "Option
            Cancellation Deferred Amount" and Buyer Holdings, on behalf of each
            such Exchanged Option Holder, delivers to Investors LLC a purchase
            price of $.10 per Class B Unit equal to $.10 for the purchase by the
            Exchanged Option Holder of the number of Class B Units set forth
            opposite such Exchanged Option Holder's name on Exhibit B hereto
            under the heading "Class B Units."

                  "Related Agreements" shall mean, collectively, the
            Securityholders Agreement, the Amended Bready Employment Agreement,
            the LLC Agreement, the Deferred Compensation Plan, the LLC Unit
            Subscription Agreements, the Option Cancellation Agreements, the
            Amended Donnelly Employment Agreement, the Amended Hall Employment
            Agreement, the Hiley Consulting Agreement and the Paying Agent
            Agreement.

            1.3.3. The following definitions in Article I of the Agreement shall
be deleted in their entirety:

                  "50% Option Equity Number"

                  "Buyer Holdings Common Stock"

                  "Buyer Holdings Common Stock Per Share Consideration"

                  "Converted Option Common Share"

                  "Deferred Share Right"

                  "Equity Value"

                  "Exchanged Option Consideration"

                  "New Option Plan"

                  "Stockholders Agreement"

                  "Trust Agreement"

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      1.4. Closing Mechanics.

            1.4.1. Clause (y) of Section 2.2 of the Agreement shall be amended
to read in its entirety as follows:

                  (y) the fact that each Exchanged Option Holder will receive a
            credit in a Deferred Compensation Account in lieu of cash payment as
            provided in Section 6.7(c) (for the avoidance of doubt, no actual
            investment of cash will be made in any Deferred Compensation
            Account).

            1.4.2. The first reference to "the Paying Agent" set forth in each
of Section 2.3(b)(i) and Section 2.3(b)(ii) of the Agreement shall be deleted in
their entirety and replaced with references to "Buyer." The second reference to
"the Paying Agent" set forth in each of Section 2.3(b)(i) and Section 2.3(b)(ii)
of the Agreement shall be deleted in their entirety.

            1.4.3. The parenthetical in Section 2.3(b)(ii) of the Agreement
shall be amended to read in its entirety as follows:

                  (the number of Cashed Out Options shall be set forth opposite
            such Option Seller's name on Exhibit B hereto under the heading
            "Cashed Out Options"), together with such other documents as the
            Sellers' Representative and Buyer may reasonably mutually agree to
            require;

            1.4.4. Section 2.3(e)(i) of the Agreement shall be amended to read
in its entirety as follows:

                  [Intentionally omitted.];

            1.4.5. Section 2.3(e)(ii) of the Agreement shall be amended to read
in its entirety as follows:

                  [Intentionally omitted.];

            1.4.6. Section 2.3(e)(iv) of the Agreement shall be amended by
inserting the following parenthetical at the end of such Section:

                  (less any amounts to be withheld in respect of Options
                  pursuant to Section 6.7(c)(iii) for Tax purposes)

            1.5. Paying Agent.

            1.5.1. The third sentence of Section 2.6(a) of the Agreement shall
be amended to read in its entirety as follows:

                  Pursuant to Section 2.3(c), Buyer shall make available to the
            Paying Agent immediately available funds in amounts necessary to pay
            (i) with respect to each Seller, an amount equal to such Seller's
            Individual Seller Consideration, and (ii)

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            with respect to each Option Seller, an amount equal to such Option
            Seller's Individual Option Seller Consideration (less any amounts to
            be withheld in respect of Options pursuant to Section 6.7(c)(iii)
            for Tax purposes), upon surrender of Individual Stock Certificate(s)
            or the execution and delivery of Option Acknowledgement, as the case
            may be, in accordance with Section 2.6(b).

            1.5.2. The fourth sentence of Section 2.6(a) of the Agreement shall
be amended to read in its entirety as follows

                  The parties understand and agree that (x) with respect to
            those Sellers and Option Sellers that have complied with the
            provisions of Section 2.3(b)(i) or Section 2.3(b)(ii), respectively,
            on the Closing Date, any and all interest or other income earned
            from and after the Closing Date to (but excluding) the date of
            payment of such Person's Individual Seller Consideration or
            Individual Option Seller Consideration (less any amounts to be
            withheld in respect of Options pursuant to Section 6.7(c)(iii) for
            Tax purposes), as the case may be, on funds made available to the
            Paying Agent pursuant to this Section 2.6(a) with respect to such
            Person's Individual Seller Consideration or Individual Option Seller
            Consideration (less any amounts to be withheld in respect of Options
            pursuant to Section 6.7(c)(iii) for Tax purposes), as the case may
            be, shall be paid to such Seller or Option Seller, and (y) any
            interest or income earned on funds made available to the Paying
            Agent pursuant to this Section 2.6(a) with respect to the Sellers or
            Option Sellers not described in clause (x) of this sentence, shall
            belong to and shall be paid to OpCo.

            1.5.3. Section 2.6(b) of the Agreement shall be amended to read in
its entirety as follows:

                  (b) Payment Procedure. With respect to each Seller, upon duly
            surrendering the certificate or certificates (the "Individual Stock
            Certificates") representing the number of shares of Class A Common
            Stock or Series B Preference Stock, as the case may be, set forth
            opposite such Seller's name on Exhibit A hereto, to Buyer (or to
            such other agent or agents as may be appointed by agreement of Buyer
            and the Sellers' Representative) in accordance with the provisions
            of Section 2.3(b)(i) (A) such Seller shall be entitled to receive
            its, his or her Individual Seller Consideration in exchange for the
            shares of Class A Common Stock or Series B Preference Stock, as the
            case may be, represented by the Individual Stock Certificates so
            surrendered and (B) the Sellers' Representative and Buyer shall
            execute and deliver a letter (a "Seller Payment Letter") to the
            Paying Agent instructing the Paying Agent to deliver to such Seller
            such Individual Seller Consideration with respect to such Seller.
            Until surrendered as contemplated by this Section 2.6(b), the
            Individual Stock Certificates held by any Seller shall be deemed at
            any time after the Closing Date to represent only the right to
            receive upon such surrender the Individual Seller Consideration as
            contemplated by this Section 2.6(b). With respect to each Option
            Seller, upon execution and delivery of an Option Cancellation
            Agreement,

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            substantially in the form attached as Exhibit I-1 hereto (each, an
            "Option Acknowledgement"), evidencing the cancellation of the number
            of Cashed Out Options and Exchanged Options set forth opposite such
            Option Seller's name on Exhibit B hereto under the headings "Cashed
            Out Options" and "Exchanged Options," respectively, to Buyer (or to
            such other agent or agents as may be appointed by agreement of Buyer
            and the Sellers' Representative) in accordance with the provisions
            of Section 2.3(b)(ii) (A) such Option Seller shall be entitled to
            receive his or her Individual Option Seller Consideration in
            exchange for the cancellation of such Cashed Out Options represented
            thereby and (B) the Sellers' Representative and Buyer shall execute
            and deliver a letter (an "Option Seller Payment Letter") to the
            Paying Agent instructing the Paying Agent to deliver to such Option
            Seller such Individual Option Seller Consideration with respect to
            such Option Seller. Until an Option Acknowledgment is executed and
            delivered as contemplated by this Section 2.6(b), (a) the Cashed Out
            Options held by any Option Seller shall be deemed at any time after
            the Closing Date to represent only the right to receive upon such
            surrender the Individual Option Seller Consideration as contemplated
            by this Section 2.6(b) and shall no longer be exercisable for shares
            of Class A Common Stock and (b) the Exchanged Options held by any
            Option Seller shall be deemed at any time after the Closing Date to
            represent only the right to receive upon such surrender a credit to
            such Option Seller's Deferred Compensation Account pursuant to the
            Option Transaction as contemplated by Section 6.7(c) and shall no
            longer be exercisable for shares of Class A Common Stock.

            1.5.4. The first sentence of Section 2.6(c) of the Agreement shall
be amended to read in its entirety as follows:

                  With respect to each Seller Payment Letter and Option Seller
            Payment Letter, the Paying Agent Agreement shall provide that the
            Paying Agent will use its best efforts to disburse funds in same day
            funds to the Sellers or Option Sellers, as the case may be, named
            therein on the date of such letter.

            1.5.5. The last sentence of Section 2.6(c) of the Agreement shall be
amended to read in its entirety as follows:

                  The Paying Agent Agreement shall provide that, upon receiving
            a Seller Payment Letter or Option Seller Payment Letter, the Paying
            Agent's obligation to deliver the payments contemplated thereby
            shall be absolute.

            1.5.6. Section 2.6(d) of the Agreement shall be amended to read in
its entirety as follows:

                  (d) Lost, Stolen or Destroyed Certificates. In the event that
            any Individual Stock Certificate or grant of Cashed Out Options
            shall have been lost, stolen or destroyed, upon the receipt by OpCo
            of customary documentation including an affidavit and an
            indemnification agreement from the holder thereof,

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            the Sellers' Representative and Buyer shall execute and deliver to
            the Paying Agent a Seller Payment Letter or Option Seller Payment
            Letter, as the case may be, with respect to the Class A Common Stock
            or Series B Preference Stock represented by such Individual Stock
            Certificate or the Cashed Out Options represented by such option
            grant.

            1.5.7. Section 2.6(f) of the Agreement shall be amended to read in
its entirety as follows:

                  [Intentionally omitted.]

      1.6. Seller Representations.

            1.6.1. The first sentence of Section 3.3 of the Agreement shall be
amended by deleting the words "under the heading "Option Ownership"" appearing
at the end of such sentence and replacing them with the following:

                  under the headings "Exchanged Options," "Cashed Out Options"
            and Cancelled Options."

            1.6.2. Section 3.6 of the Agreement shall be amended to read in its
entirety as follows:

                  [Intentionally omitted.]

      1.7. Options.

            1.7.1. Section 6.7(c)(i) of the Agreement shall be amended by adding
the following sentence to the end of Section 6.7(c)(i):

                  Following the Closing, Buyer will cause OpCo to pay each
            holder of Cancelled Options the Cancelled Option Consideration in
            respect of each Cancelled Option held by him or her pursuant to
            Section 12 of the Option Plan as promptly as practicable upon such
            holder's execution and delivery to OpCo of an Option Cancellation
            Agreement, substantially in the form attached as Exhibit I-2 or
            Exhibit I-3 hereto, as the case may be.

            1.7.2. Section 6.7(c)(ii) of the Agreement shall be amended to read
in its entirety as follows:

                  (ii) Each Exchanged Option shall be cancelled effective as of
            the Closing. In consideration therefor, effective as of the Closing
            Date, Buyer Holdings shall adopt the Deferred Compensation Plan and
            shall establish a Deferred Compensation Account pursuant to the
            Deferred Compensation Plan on behalf of each Exchanged Option Holder
            and credit to the Deferred Compensation Account of each such
            Exchanged Option Holder a deemed investment in the amount set forth
            opposite each such Exchanged Option Holder's name on Exhibit

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            B hereto under the heading "Option Cancellation Deferred Amount;" it
            being understood that the amount of each such Exchanged Option
            Holder's "Option Cancellation Deferred Amount" will be less than the
            amount set forth opposite each such Exchanged Option Holder's name
            on Exhibit B hereto under the heading "Gross Roll Over Amount" as a
            result of the netting against such later amount, pursuant to the
            terms of an Option Cancellation Agreement, substantially in the form
            attached as Exhibit I-1 or Exhibit I-2 hereto, as the case may be,
            to be executed and delivered by each Exchanged Option Holder, of the
            amount delivered to Investors LLC by Buyer Holdings, on behalf of
            each such Exchanged Option Holder, as payment of the $.10 per Class
            B Unit purchase price in connection with each such Exchanged Option
            Holder's purchase of Class B Units as part of the Option
            Transaction. Each deemed investment in each Deferred Compensation
            Account shall be represented by notional Class A Units in accordance
            with the Deferred Compensation Plan. For the avoidance of doubt, no
            actual investment of cash or Class A Units will be made in any
            Deferred Compensation Account. Each Deferred Compensation Account
            and the amounts and investments held therein shall be subject to the
            terms and conditions of the Deferred Compensation Plan.

            1.7.3. Section 6.7(c)(v) of the Agreement shall be amended to read
in its entirety as follows:

                  (v) In furtherance of Section 6.7(c)(ii), each person set
            forth on Section 6.7(c) of the Company Disclosure Letter hereby
            agrees to become an Exchanged Option Holder for all purposes
            hereunder and agrees to duly tender for cancellation by executing
            and delivering an Option Cancellation Agreement, substantially in
            the form attached as Exhibit I-1 or Exhibit I-2 hereto, as the case
            may be, with respect to the number of Exchanged Options set forth
            opposite his name on Exhibit B under the heading "Exchanged Options"
            in consideration for a credit to a Deferred Compensation Account to
            be established on such person's behalf in the form of a deemed
            investment in the amount set forth opposite such person's name on
            Exhibit B hereto under the heading "Option Cancellation Deferred
            Amount," such deemed investment to be represented by notional Class
            A Units in accordance with the Deferred Compensation Plan. In
            addition, each person set forth on Section 6.7(c) of the Company
            Disclosure Letter hereby agrees to purchase from Investors LLC
            pursuant to an LLC Unit Subscription Agreement the number of Class B
            Units set forth opposite such person's name on Exhibit B hereto
            under the heading "Class B Units" for a purchase price of $.10 per
            Class B Unit; it being understood that payment for the purchase of
            such Class B Units shall be made in accordance with the terms and
            conditions of the LLC Unit Subscription Agreement.

            1.7.4. Section 6.7(c)(vi) of the Agreement shall be deleted in its
entirety.

            1.7.5. Section 6.20 of the Agreement shall be amended to read in its
entirety as follows:

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                           6.20 Option Transaction. Prior to Closing, the Buyer
                  and the Sellers shall use their reasonable best efforts to
                  cause each holder of an Option (other than the persons set
                  forth on Section 6.7(c) of the Company Disclosure Letter) to
                  agree to become an Exchanged Option Holder for all purposes
                  hereunder and (a) duly tender for cancellation by executing
                  and delivering an Option Cancellation Agreement, substantially
                  in the form attached as Exhibit I-1 or Exhibit I-2 hereto, as
                  the case may be, with respect to the number of Exchanged
                  Options set forth opposite his or her name on Exhibit B under
                  the heading "Exchanged Options" on the same terms as provided
                  in Section 6.7(c) and (b) purchase from Investors LLC pursuant
                  to an LLC Unit Subscription Agreement the number of Class B
                  Units set forth opposite such person's name on Exhibit B
                  hereto under the heading "Class B Units" for a purchase price
                  of $0.10 per Class B Unit on the same terms as provided in
                  Section 6.7(c). Edward J. Cooney and David B. Hiley hereby
                  agree to execute and deliver an Option Cancellation Agreement
                  and LLC Unit Subscription Agreement on the same terms and
                  conditions as described in the immediately preceding sentence.

      1.8. LaCornue. Section 6.21 of the Agreement shall be amended to read in
its entirety as follows

                        [Intentionally omitted.]

      1.9. Conditions to the Sellers' Obligations. Section 7.2 of the Agreement
shall be amended by adding the following subsections immediately after Section
7.2(g):

                        (h) The representations and warranties of Buyer Holdings
                  contained in ARTICLE V of this Agreement shall be true and
                  correct in all respects as of the Closing Date as if made at
                  such time (or, to the extent such representations and
                  warranties speak as of a specified date, (including references
                  in ARTICLE V to "the date of this Agreement" or words of
                  similar import, they need only be true and correct in all
                  respects as of such specified date) interpreted without giving
                  effect to the words "materially" or "material" or to any
                  qualifications based on such terms or based on the defined
                  term "Buyer Material Adverse Effect," except where the failure
                  of all such representations and warranties to be true and
                  correct does not and would not reasonably be expected to have,
                  in the aggregate, a Buyer Material Adverse Effect. Without
                  limiting the foregoing, the representations and warranties
                  contained in the first sentence of Section 5.1 and in Section
                  5.2 and Section 5.4 shall be true and correct in all respects
                  as of the Closing Date (or, to the extent such representations
                  and warranties speak as of an earlier date, they shall be true
                  and correct in all respects as of such earlier date);

                        (i) Buyer Holdings shall have performed, or complied
                  with, in all material respects its agreements and covenants
                  contained in or contemplated by this Agreement that are
                  required to be performed by it at or prior to the Closing Date
                  pursuant to the terms hereof; and

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                        (j) The Sellers' Representatives, on behalf of Sellers,
                  shall have received a certificate signed by the Chief
                  Executive Officer of Buyer Holdings, dated the Closing Date,
                  to the effect that the conditions set forth in Section 7.2(h)
                  and Section 7.2(i) hereof have been satisfied.

      1.10. Company Disclosure Letter. Section 2.3(d)(iv) (Resignation of
Directors) to the Company Disclosure Letter shall be amended by deleting the
reference to "Joseph M. Cianciolo" in its entirety.

2. REFERENCE TO AND EFFECT UPON THE AGREEMENT. Except as specifically set forth
above, the Agreement shall remain in full force and effect and is hereby
ratified and confirmed. The execution, delivery and effectiveness of this
Amendment shall not constitute an amendment of any provision of the Agreement,
except as specifically set forth herein. On and after the effective date hereof,
each reference in the Agreement to "this Agreement" (including any reference
therein to "hereunder," "hereof," "hereby," "herein" or words of like import
referring thereto) shall mean and be a reference to the Agreement as amended by
this Amendment. Notwithstanding the foregoing, references to the date of the
Agreement, as amended hereby, shall in all instances remain as July 15, 2004,
and references to "the date hereof" and "the date of the Agreement" shall
continue to refer to July 15, 2004.

3. GOVERNING LAW. This Amendment shall be governed by and construed in
accordance with the laws of the State of Delaware (regardless of the laws that
might otherwise govern under applicable principles of conflicts of laws
thereof).

4. HEADINGS. The section headings contained in this Amendment are solely for the
purpose of reference, are not part of the agreement of the parties hereto, and
shall not in any way affect the meaning or interpretation of this Amendment.

5. COUNTERPARTS; EFFECTIVENESS. This Amendment may be signed in any number of
counterparts, each of which shall be deemed an original, with the same effect as
if the signatures thereto and hereto were upon the same instrument. This
Amendment shall become effective when each party hereto shall have received
counterparts hereof signed by all of the other parties hereto.

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

STOCKHOLDERS' REPRESENTATIVE:           KELSO & COMPANY, L.P., as
                                        Stockholders' Representative on behalf
                                        of the Kelso Stockholders and Third
                                        Party Stockholders

                                        By: Kelso & Companies, Inc., its general
                                        partner

                                        By:
                                           -------------------------------------
                                        Name: James J. Connors, II
                                        Title: Vice President & General Counsel

         [SIGNATURE PAGE TO AMENDMENT NO. 1 TO STOCK PURCHASE AGREEMENT]
<PAGE>
      IN WITNESS WHEREOF, the parties hereto have duly executed and delivered
this Amendment as of the date first written above.

Management representative:              Richard L. Bready, as Management
                                        Representative on behalf of the
                                        Management Stockholders and the Option
                                        Sellers

                                        ----------------------------------------

         [SIGNATURE PAGE TO AMENDMENT NO. 1 TO STOCK PURCHASE AGREEMENT]
<PAGE>
      IN WITNESS WHEREOF, the parties hereto have duly executed and delivered
this Amendment as of the date first written above.

BUYER:                                  THL BUILDCO, INC.

                                        By:
                                           -------------------------------------
                                        Name:    Kent R. Weldon
                                        Title:   Vice President

         [SIGNATURE PAGE TO AMENDMENT NO. 1 TO STOCK PURCHASE AGREEMENT]
<PAGE>
Acknowledged and agreed, as of
the date first written above:

------------------------
Name: Richard L. Bready

------------------------
Name: Almon C. Hall, III

------------------------
Name: Kevin W. Donnelly

------------------------
Name: David B. Hiley

------------------------
Name: Edward J. Cooney

         [SIGNATURE PAGE TO AMENDMENT NO. 1 TO STOCK PURCHASE AGREEMENT]
<PAGE>
                                                                       EXHIBIT B

                 [Attach Schedule Showing Treatment of Options]
<PAGE>
                                                                       EXHIBIT C

                   [Attach Form of Securityholders Agreement]
<PAGE>
                                                                       EXHIBIT D

              [Attach Form of Amended Bready Employment Agreement]
<PAGE>
                                                                       EXHIBIT F

                         [Attach Form of LLC Agreement]
<PAGE>
                                                                       EXHIBIT G

                   [Attach Form of Deferred Compensation Plan]
<PAGE>
                                                                       EXHIBIT H

                [Attach Form of LLC Unit Subscription Agreement]
<PAGE>
                                                                     EXHIBIT I-1

        [Attach Form of Option Cancellation Agreement for Option Sellers]
<PAGE>
                                                                     EXHIBIT I-2

 [Attach Form of Option Cancellation Agreement for Holders of Cancelled Options
                             and Exchanged Options]
<PAGE>
                                                                     EXHIBIT I-3

 [Attach Form of Option Cancellation Agreement for Holders of Cancelled Options
                                     Only]
<PAGE>
                                                                       EXHIBIT J

             [Attach Form of Amended Donnelly Employment Agreement]
<PAGE>
                                                                       EXHIBIT K

               [Attach Form of Amended Hall Employment Agreement]
<PAGE>
                                                                       EXHIBIT L

                   [Attach Form of Hiley Consulting Agreement]<PAGE>

                                                                  EXECUTION COPY

            NORTEK, INC., NORTEK HOLDINGS, INC. and RICHARD L. BREADY
                    AMENDED AND RESTATED EMPLOYMENT AGREEMENT

      This EMPLOYMENT AGREEMENT (this "Agreement") among NORTEK, INC, a Delaware
corporation ("Nortek"), NORTEK HOLDINGS, INC., a Delaware corporation ("Nortek
Holdings") (Nortek and Nortek Holdings, collectively being referred to
hereinafter as "Employer"), and Richard L. Bready, a resident of Rhode Island
(hereinafter called "Employee"), amends and restates that certain Employment
Agreement among Nortek, Prior Holdings (as defined below) and Employee dated as
of January 9, 2003 (the "Prior Agreement").

      WHEREAS, on July 15, 2004, THL Buildco Holdings, Inc. and THL Buildco,
Inc., companies affiliated with Thomas H. Lee Partners, L.P., entered into a
stock purchase agreement with affiliates of Kelso & Company, L.P., Employee and
certain other parties (the "Stock Purchase Agreement"), pursuant to which THL
Buildco, Inc. agreed to purchase all the outstanding capital stock of the
then-existing Nortek Holdings, Inc. ("Prior Holdings");

      WHEREAS, immediately following the Closing, as defined in the Stock
Purchase Agreement, (A) THL Buildco, Inc. merged with and into Prior Holdings
and Prior Holdings merged with and into Nortek, with Nortek continuing as the
surviving corporation, and (B) THL Buildco Holdings, Inc. became the new parent
company of Nortek and was renamed "Nortek Holdings, Inc" (which acquisition by
THL Buildco, Inc. and the related mergers are collectively referred to
hereinafter as the "Acquisition.");

      WHEREAS, Employee was employed by Nortek and Prior Holdings as Chairman
and Chief Executive Officer and Employee possesses intimate knowledge of the
business and affairs of Nortek and has acquired certain confidential information
and data with respect to Nortek;

      WHEREAS, at the time of the Acquisition, Employee was employed by Nortek
and Prior Holdings under the Prior Agreement;

      WHEREAS, Employer desires to assure that it will have the benefit of the
continued service and experience of Employee as Chairman, President and Chief
Executive Officer of Employer and an integral part of its management for a
period of time and Employee is willing to enter into an agreement to such ends
upon the terms and conditions set forth in this Agreement; and

      WHEREAS, Employee and Employer desire to enter into this Agreement, which
shall amend and restate the Prior Agreement and govern the terms of Employee's
employment with Employer as of the date of, and immediately following, the
Acquisition (the "Effective Time"). In consideration of the foregoing and the
mutual agreements herein contained, the parties mutually agree as follows:

<PAGE>

      1.    Employment Period and Duties

      (a) During the Employment Period, Employer shall employ Employee, and
Employee shall serve as an employee of Employer, provided, however, that if the
Stock Purchase Agreement is terminated according to its terms, then at the time
of such termination, this Agreement shall terminate and be of no force or
effect. For purposes of this Agreement, "Employment Period" shall mean the
period of time commencing at the Effective Time and ending, unless sooner
terminated pursuant to the provisions hereof, on December 31, 2009; provided
that on December 31, 2009 and each anniversary thereof, the Employment Period
shall automatically extend for one additional year unless written notice of
intent not to extend is delivered by Employer to Employee at least 90 days prior
to the scheduled end of the Employment Period.

      (b) During the Employment Period, Employee shall serve as Chairman,
President and Chief Executive Officer of Employer, or in such other executive
capacity at a similar level of responsibility and with such other duties as the
board of directors of Nortek Holdings (the "Board") and Employee may from time
to time mutually determine, and Employee accepts employment on the terms and
conditions contained herein and agrees to devote a substantial part of his
working time and energies to the business of Employer and to faithfully and
diligently perform the customary duties of his office and such other duties,
reasonable vacations (of not less than four weeks per year) and time devoted to
charitable and community service, and absences due to illness and holidays
excepted. Such other duties may include the performance of services for any of
Employer's subsidiaries and, without further remuneration (except as otherwise
agreed), may also include service as an officer or director of one or more of
Employer's subsidiaries. Nothing herein shall prohibit Employee from managing or
supervising his personal investments or from devoting attention to his other
business interests that do not materially interfere with his obligations to
Employer hereunder or compete with Employer or its subsidiaries.

      (c) During the Employment Period, Employer shall maintain an appropriately
appointed executive office for Employee in Providence, Rhode Island (or at such
other location as Employee and Employer shall mutually agree) of not less than
the size of Employee's current office and associated administrative space from
which Employee shall perform his duties and shall provide Employee with
executive secretarial and other administrative staff and services suitable to
his offices and duties, staffed by persons approved by Employee and with such
staff members' salaries and benefits as Employee shall approve.

      (d) During the Employment Period, Employer shall not, without obtaining
Employee's consent, terminate the employment of any employee listed in Exhibit A
hereto.

      2.    Compensation

      (a) Basic Salary. Employee shall receive a basic annual salary of not less
than $3,500,000 or such greater amount as determined from time to time at the
discretion of the Board (hereinafter called the "Basic Salary") during the
Employment Period, payable in equal monthly installments on the 15th day of each
month.

                                      -2-
<PAGE>

      (b) Incentive Compensation.

            (i) Employer shall pay Employee incentive compensation determined by
multiplying $5,000,000 by a fraction, the numerator of which is the number of
days from January 1, 2004 to the Effective Time and the denominator of which is
366. Such incentive compensation shall be paid in cash at the Effective Time.

            (ii) Employee shall not be entitled to earn any incentive or bonus
compensation during the Employment Period, other than as set forth in Section
2(b)(i) immediately above. The Board, however, may elect to award Employee
incentive or bonus compensation from time to time; provided that it does so
through an award that specifically designates Employee as the recipient and
provided further that any decision to make such an award, the amount of any such
award made, and all other terms and conditions thereof shall be at the
discretion of the Board. An award in one year shall not entitle Employee to an
award in any other year. Employee acknowledges that there is no direct or
implied agreement, promise or understanding of any kind to grant him incentive
or bonus compensation, other than as provided in Section 2(b)(i) hereof.

      (c) Equity Issuance. THL-Nortek Investors, LLC (the "LLC") shall issue to
Employee at the Effective Time 23,586.66 Class C Units of the LLC, subject to
the terms and conditions of the Management Unit Subscription Agreement, dated as
of August 27, 2004, between Employee and the LLC.

      (d) Life Time Medical Coverage.

            (i) From and after the date upon which the Employment Period expires
      or terminates for any reason (the "Triggering Date"), Employer shall
      provide Employee and his Spouse for so long as they shall live with
      lifetime Medical Coverage at no cost to Employee. For purposes of this
      Agreement, (x) "Spouse" shall mean any individual married to Employee only
      during the time such individual is married to Employee, provided that an
      individual who is married to Employee at the time of Employee's death
      shall be a Spouse for the remainder of such individual's lifetime and (y)
      "Medical Coverage" shall mean all medical and dental benefits that are
      provided Employee at the Effective Time, any medical or dental expense
      that would be deductible by Employee under section 213 of the Internal
      Revenue Code of 1986, as amended (the "Code"), including insurance
      premiums, long term care benefits (determined without regard to any
      limitation under section 213 of the Code), co-payments and deducible
      amounts (all determined without regard to the deductible threshold set
      forth in section 213(a) of the Code) if paid by the Employee directly, and
      such other reasonable medical and dental expenses that Employer may
      approve from time to time, but in no event shall Employer's reimbursement
      obligation for Employee, his Spouse or dependents under this Section 2(d)
      exceed $1,000,000 (exclusive of any gross up for taxes pursuant to
      Sections 2(d)(iii) or 8 hereof) in the aggregate during Employee's and his
      Spouse's lifetimes. Such Medical Coverage shall be extended to any
      dependent of Employee but only for so long as such person remains a
      "dependent" under the terms and conditions of Employer's health plan in
      existence at the Effective Time. Employer shall make all reasonable
      efforts to

                                      -3-
<PAGE>

      include Employee, his Spouse and dependents in any comprehensive medical
      and/or dental plan provided to active employees from time to time.
      Employee must make all reasonable effort to obtain and to maintain (at
      Employer's expense as provided herein) any form of comprehensive medical
      and/or dental insurance that Employer may require from time to time. If
      Employee is or becomes eligible for Medicare benefits, the coverage
      provided by this Section shall be supplemental to Medicare coverage, Parts
      A and B, and the Employee shall be required to submit claims to Medicare
      before making any claim for medical care under this Section.

            (ii) Upon the Triggering Date, or any time thereafter, upon the
      written request of Employee or his Spouse, Employer shall authorize a lump
      sum cash payment in lieu of lifetime Medical Coverage in an amount
      established by the Board that is reasonably sufficient to provide the
      lifetime Medical Coverage. For illustrative purposes, a sample calculation
      of such lump sum cash payment is set forth in Exhibit B hereto.

            (iii) Employer agrees to make a "gross up" payment to Employee to
      cover any and all state and federal income taxes that may be due as a
      result of the benefits provided under Section 2(d)(i) above and on any
      lump sum payment under Section 2(d)(ii) above (and the tax on any such
      "gross up" payment) as a consequence of providing such lifetime Medical
      Coverage to Employee, his Spouse and his dependents.

            (iv) Following the Triggering Date, Employee shall notify the
      Employer of any change in (x) his marital status or (y) the status of his
      dependents as "dependents," as soon as practicable following such change.

      (e) Benefits. Employee shall be eligible to participate in any deferred
compensation, pension or other benefit plan in which executive personnel of
Employer are eligible to participate. In addition, other than as provided in
Section 16 hereof, Employee shall be entitled to receive all other benefits or
participate in any employee benefit plans generally available to executive
personnel of Employer, including without limitation, any hospital, medical,
accident, disability, life insurance, and dental coverage, any stock option or
savings plans, or any pension or other retirement benefit plans.

      (f) Reimbursement and Perquisites. Employer shall promptly reimburse
Employee for all business expenses incurred by Employee during the Employment
Period; shall promptly pay or reimburse Employee for club and professional
association dues, assessments and fees for at least such clubs and associations
as Employee was a member of and Employer was making such payments or
reimbursements at the Effective Time; and shall provide to Employee for his
exclusive business and personal use two automobiles of his selection, pay all
expenses of ownership, operation, repair and maintenance of such vehicles,
provide a suitable substitute vehicle in the event either automobile is not
available for use by Employee for any reason and replace each such automobile
not less often than biannually with a new vehicle at the option of Employee.
Employer shall provide Employee with use of (or reimburse Employee for use of) a
private aircraft for business and personal travel in a manner consistent with
Employer's practice prior to the Effective Time, provided that, notwithstanding
the foregoing, Employee use of the

                                      -4-
<PAGE>

private aircraft for personal travel shall be limited to not more than fifty
(50) hours per year. Any tax liability to Employee resulting from any of any of
payments, reimbursements or other provision of perquisites provided pursuant to
this Section 2(f) shall be solely Employee's responsibility.

      3.    Termination

      (a) If Employee dies, the Employment Period or the Noncompete Period (as
defined in Section 4 hereof) shall end and his employment hereunder shall be
deemed to cease as of the date of his death.

      (b) If Employee is incapacitated by accident, sickness, or otherwise so as
to render him, for a period of 365 consecutive days, mentally or physically
incapable of performing the services required of him under this Agreement (such
incapacity, a "Disability") and, if requested by Employee, the basis for such
incapacity is certified by a licensed physician, Employer, acting through its
Board, may terminate the Employment Period.

      (c) Employee shall have the right to terminate the Employment Period
without Good Reason at any time by written notice to the Board, not less than 20
business days in advance of such termination.

      (d) Employer, acting through the Board, shall have the right to terminate
the Employment Period for Cause (as hereinafter defined), without further
obligation hereunder on the part of Employer or Employee except payment to
Employee of amounts earned or accrued hereunder to the date of termination,
pursuant to the procedures specified in this Section 3(d); provided that the
Employment Period shall not be terminated for Cause if prior to the finding of
the Board with respect thereto, the Employment Period shall have terminated for
any other reason. For purposes of this Agreement, "Cause" shall mean: (i) the
willful and continued failure of Employee to perform substantially Employee's
material duties pursuant to Section 1(b) hereof (other than any such failure
resulting from, or contributed to by, incapacity due to physical or mental
illness), after a written demand for substantial performance is delivered to
Employee by the Board which notice is adopted at an in-person meeting of the
Board called and held for such purpose (after reasonable notice is provided to
Employee and Employee is given an opportunity, together with

                                      -5-
<PAGE>

counsel, to be heard before the Board) and which notice specifically identifies
the manner in which Employee has not substantially performed his material
duties, or (ii) because of conviction of Employee of a crime involving theft,
embezzlement or fraud against Employer or a civil judgment in which Employer is
awarded damages from Employee in respect of a claim of loss of funds through
fraud or misappropriation by Employee. Performance by Employee of his duties
under Section 1(b) hereof shall be presumed to be substantially performed, and
any act, or failure or act, based upon authority given pursuant to a resolution
duly adopted by the Board or any committee of the Board or based upon the advice
of counsel for Employer (including members of its legal staff) or which has been
acquiesced in by the Board shall be conclusively presumed to be done, or omitted
to be done, by Employee consistent with his obligations under Section 1(b)
hereof. Termination of the Employment Period for Cause shall not occur unless
and until there shall have been delivered to Employee a copy of a resolution
duly adopted by the affirmative vote of all of the members of the Board
excluding Employee at an in-person meeting of the Board called and held for such
purpose (after notice of not less than 20 business days is provided to Employee
and Employee is given an opportunity, together with counsel, to be heard before
the Board), finding that, in the good faith opinion of the Board, termination
for Cause is justified based solely on information presented at such meeting.

      (e) Employer, acting through the Board, shall have the right to terminate
the Employment Period without Cause, by written notice to Employee, not less
than 20 business days in advance of such termination.

      (f) Good Reason. Employee shall have the right to terminate the Employment
Period at any time with Good Reason (as defined in Section 5) by written notice
to the Board.

      (g) Any amounts due Employee hereunder in the event of termination of the
Employment Period shall be considered severance pay in consideration of his past
services and in consideration of his continued services from the date hereof,
are considered reasonable by Employer and not in the nature of a penalty, shall
not be reduced by compensation or income received by Employee from any other
employment or other source and shall not be offset by any claims Employer may
have against Employee; timely payment of such amounts is further agreed by the
parties hereto to be in full satisfaction and compromise of any claims arising
out of the performance or nonperformance of this Agreement that either party
might have against the other, other than any claims Employee may have under the
provisions of Section 8 hereof.

      4.    Noncompetition and Confidentiality

      (a) Employee agrees that he shall not compete with Employer as hereinafter
provided for a period (the "Noncompete Period") equal to:

            (i) if the Employment Period is terminated pursuant to Section 3(c)
      or (d) hereof, one year beginning as of the first day following such
      termination, or

            (ii) if the Employment Period is terminated pursuant to Section
      3(b), (e) or (f) hereof or as described in Section 5(a), clause (y), the
      longer of (x) one year beginning as of the first day following such
      termination of the Employment Period and (y) a period commencing on the
      first day following such termination and ending on December 31, 2009.

      (b) Employee's agreement not to compete with Employer during the
Noncompete Period shall be limited to prohibiting Employee from owning a greater
than 5% equity interest in, serving as a director, officer, employee or partner
of, or being a consultant to or co-venturer with any business enterprise or
activity that competes in North America with any line of business conducted by
Employer or any of its subsidiaries at the termination of the Employment Period
and accounting for more than 5% of Employer's gross revenues for its fiscal year
ending immediately prior to the year in which the Employment Period ends. During
the Noncompete Period, Employee agrees that he will not hire or attempt to hire
any person employed by Employer or any of its subsidiaries during the 24 month
period prior to the termination of the Employment Period, assist such a hiring
by any other person or entity, encourage any such employee to terminate his
relationship with Employer (or any such subsidiary) or solicit or encourage any
customer or vendor of Employer to terminate its relationship with Employer.

                                      -6-
<PAGE>

      (c) Employee shall hold in a fiduciary capacity for the benefit of
Employer all secret or confidential information, knowledge or data relating to
Employer or any of its subsidiaries, and their respective businesses, which
shall have been obtained by Employee during Employee's employment by Employer or
any of their predecessors and which shall not be or become public knowledge
(other than by acts by Employee or representatives of Employee in violation of
this Agreement). After termination of Employee's employment with Employer,
Employee shall not, without the prior written consent of Employer or as may
otherwise be required by law or legal process, communicate or divulge any such
information, knowledge or data to anyone other than Employer and those
designated by it.

      (d) It is agreed that Employer, in addition to any other remedies
available to it, shall be entitled to preliminary and permanent injunctive
relief against any breach or threatened breach by Employee of any of the
covenants in this Section 4. Employee and Employer further agree that, in the
event that any provision of this Section 4 shall be determined by any court of
competent jurisdiction to be unenforceable by reason of its being extended over
too great a time, too large a geographic area or too great a range of
activities, such provision shall be deemed to be modified to permit its
enforcement to the maximum extent permitted by law.

      5.    Severance Pay-Termination by Employer

      (a) If (x) the Employment Period shall terminate by reason of Employer's
exercise of its right under Section 3(e) to terminate without Cause or in the
event Employee elects to terminate the Employment Period for Good Reason or (y)
Employee's employment is terminated due to the Employer's delivery of notice not
to extend the Employment Period pursuant to Section 1(a) hereof, Employer shall
thereafter be obligated to provide and Employee, or in the event of his death,
his estate, shall be entitled to receive, for a period of one year beginning as
of the first day following such termination (or, if longer, for a period
commencing on such date and ending on December 31, 2009):

            (i) an amount for each year, payable in the manner set forth in
      Section 2 hereof, equal to $1,750,000;

            (ii) continued coverage, at the expense of the Employer, under the
      same or equivalent disability, accident and life insurance policies as
      Employee was covered by immediately prior to termination of the Employment
      Period;

            (iii) an executive office for Employee located outside of Employer's
      headquarters but within Providence, Rhode Island and secretarial and other
      administrative services, all reasonably suitable to Employee's then
      current needs and consistent with his former offices and duties during the
      Employment Period.; and

            (iv) continuation of the perquisites specified in Section 2(f)
      hereof.

      (b) For purposes of this Agreement, "Good Reason" shall mean:

            (i) any reduction of, or failure to pay, Employee's Basic Salary or
      other compensation as described in Section 2(a) and 2(b)(i) hereof;

                                      -7-
<PAGE>

            (ii) any failure to provide the benefits or payments required by
      Sections 2(c) ("Equity Issuance"), 2(d) ("Lifetime Medical Coverage"), 8
      (Gross-Up Payment) and 10 (Indemnification) of this Agreement, any
      deferred compensation plan established on or after the Effective Time in
      which Employee is a participant, or Sections 6.4(a), 7.1, 8.2 or Article X
      of the Securityholders Agreement by and among Employee, the LLC and
      certain other parties, dated as of August 27, 2004 (the "Securityholders
      Agreement") or the registration rights provided in the Registration Rights
      Agreement (as defined in the Securityholders Agreement) when in effect.

            (iii) assignment to Employee of any duties materially inconsistent
      with his position (including status, offices and titles), authority,
      duties or responsibilities as contemplated by Section 1(b) above or any
      other action by Employer which results in a material diminution of such
      position, authority, duties or responsibilities;

            (iv) relocation of Employer's principal executive offices, or any
      event that causes Employee to have his principal place of work changed, to
      any location outside Providence, Rhode Island;

            (v) any requirement by Employer that Employee travel away from his
      office in the course of his duties significantly more than the number of
      consecutive days or aggregate days in any calendar year than was required
      of him prior to the Effective Time; and

            (vi) without limiting the generality or effect of the foregoing, any
      other material breach by Employer, LLC or any successor thereto or
      transferee of substantially all the assets thereof, of this Agreement, the
      Securityholders Agreement or the Registration Rights Agreement or any
      material breach by the LLC of the Limited Liability Company Agreement with
      respect to Employee;

      provided, however, that Employee may not terminate the Employment Period
      for Good Reason unless and until he has given Employer notice specifically
      identifying the nature of the Good Reason and provided Employer a
      reasonable opportunity to cure and the Good Reason continues uncured.

      6.    Death Benefit

      If the Employment Period shall terminate by reason of Employee's death,
his estate or designated beneficiary shall thereafter be entitled to receive
from Employer a death benefit for a period of one year beginning as of the first
day following his death (or, if longer, for a period commencing on such date and
ending on December 31, 2009) in an annual amount equal to $1,750,000, such death
benefit shall be payable in the manner set forth in Section 2 hereof.

      7.    Disability Benefit

      If the Employment Period shall terminate by reason of Employee's
Disability, Employee, or in the event of his death, his estate, shall thereafter
be entitled to receive from Employer: (i)

                                      -8-
<PAGE>

for a period of one year commencing from the date of such termination (or, if
longer, for a period commencing on such date and ending on December 31, 2009), a
disability benefit in an annual amount equal to $1,750,000, payable in the
manner set forth in Section 2 hereof.

      8.    Gross-up Payment

      (a) In the event that it is determined that any payment or benefit
provided by Employer or any of their predecessors to or for the benefit of
Employee, either under this Agreement or otherwise, and whether before or after
the date hereof, will be subject to the excise tax imposed by section 4999 of
the Code or any successor provision ("section 4999"), Employer will, prior to
the date on which any amount of the excise tax must be paid or withheld, make an
additional lump-sum payment (the "gross-up payment") to Employee. The gross-up
payment will be sufficient, after giving effect to all federal, state and other
taxes and charges (including interest and penalties, if any) with respect to the
gross-up payment, to make Employee whole for all taxes (including withholding
taxes) and any associated interest and penalties, imposed under or as a result
of section 4999.

      (b) Determinations under this Section 8 will be made by the Employer's tax
accountant as of the Effective Time unless Employee has reasonable objections to
the use of that firm, in which case the determinations will be made by a
comparable firm chosen by Employee after consultation with Employer (the firm
making the determinations to be referred to as the "Firm"). The determinations
of the Firm will be binding upon Employer and Employee except as the
determinations are established in resolution (including by settlement) of a
controversy with the Internal Revenue Service to have been incorrect. All fees
and expenses of the Firm will be paid by Employer.

      (c) If the Internal Revenue Service asserts a claim that, if successful,
would require Employer to make a gross-up payment or an additional gross-up
payment, Employer and Employee will cooperate fully in resolving the controversy
with the Internal Revenue Service. Employer will make or advance such gross-up
payments as are necessary to prevent Employee from having to bear the cost of
payments made to the Internal Revenue Service in the course of, or as a result
of, the controversy. The Firm will determine the amount of such gross-up
payments or advances and will determine after resolution of the controversy
whether any advances must be returned by Employee to Employer. Employer will
bear all expenses of the controversy and will gross Employee up for any
additional taxes that may be imposed upon Employee as a result of its payment of
such expenses.

      (d) Employer shall provide Employee with a letter of credit no later than
the Effective Time covering Employee's potential exposure, if any, to the excise
tax imposed by section 4999 (or any payment resulting from such exposure) on
terms reasonably acceptable to Employer and Employee.

      9.    Expenses

      Employer agrees to reimburse Employee for all reasonable expenses incurred
by Employee in connection with the negotiation of this Agreement, the Stock
Purchase Agreement and any other agreements and transactions contemplated
thereby.

                                      -9-
<PAGE>

      10.   Indemnification

      Anything in this Agreement to the contrary notwithstanding, Employer
agrees to pay all costs and expenses incurred by Employee in connection with the
enforcement of this Agreement and will indemnify and hold harmless Employee from
and against any damages, liabilities and expenses (including without limitation
fees and expenses of counsel) incurred by Employee in connection with any
litigation or threatened litigation, including any regulatory proceedings,
arising out of the making, performance or enforcement of this Agreement or
termination of the Employment Period.

      11.   Survival

      Provisions of this Agreement shall survive any expiration or termination
of this Agreement, if so provided herein or if necessary or desirable to
accomplish the purposes of such provisions, including without limitation
Sections 4, 8 and 10 hereof.

      12.   Notices

      All notices or other communications given hereunder shall be in writing
and shall be deemed to have been duly given if mailed by certified mail or hand
delivered, if to Employer, at 50 Kennedy Plaza, Providence, Rhode Island
02903-2360, attention of the General Counsel, with a copy to Thomas H. Lee
Partners, L.P., 75 State Street Boston, MA 02109, attention of Anthony DiNovi,
or at such other address(es) as Employer shall have furnished to Employee in
writing, or if to Employee, at 280 Irving Avenue, Providence RI 02906, or at
such other address as Employee shall have furnished to Employer in writing.

      13.   Governing Law

      This Agreement shall be governed by the laws of the State of Rhode Island
and Providence Plantations.

      14.   Severability

      The provisions of this Agreement are severable, and in the event that any
one or more paragraphs are deemed illegal or unenforceable, the remaining
paragraphs shall remain in full force and effect.

      15.   Effectiveness/Prior Agreements

      This Agreement shall be binding on Employee and Employer as of the date
hereof. If the Effective Time does not occur, this Agreement shall be of no
force and effect. As of the Effective Time, the Prior Agreement shall terminate
and no payments shall thereafter be made thereunder. Under no circumstances
shall the Closing or the Acquisition or any shareholder approval thereof or any
event relating thereto be deemed a "Change of Control" for any purposes under
the Prior Agreement. This Agreement will constitute the entire agreement between
Employer and Employee and will supersede all prior negotiations and written or
oral agreements with respect to the full time employment of Employee by
Employer, including the Prior Agreement and all other prior employment
agreements between Employee and Employer or any

                                      -10-
<PAGE>

of its predecessors, except as explicitly provided herein. No changes,
alterations or modifications may be made to this Agreement, except by a writing
signed by each of the parties hereto.

      16.   Waivers and Acknowledgements

      Employee acknowledges that he is not a participant in the Nortek, Inc.
Change in Control Severance Benefit Plan for Key Employees, As Amended and
Restated June 12, 1997 or any similar plan and waives any and all rights to
participate in the Nortek, Inc. Second Amended and Restated Change in Control
Severance Benefit Plan for Key Employees or any other such plans. Employee
acknowledges that he is not now a participant in any SERP sponsored by Nortek,
Nortek Holdings or any of their affiliates and he hereby waives any right to
such participation hereafter. Employee acknowledges that Exhibit C hereto sets
forth all life insurance policies to which Employer and he, or any trust
established by him, are a party and agrees that, upon the transfer of those life
insurance policies from Employer to Employee, any split dollar agreements
associated with any of those policies has terminated and Employer has no further
obligation with respect to those policies and agreements, including without
limitation the payment of any further premiums.

      17.   Assignment

      Neither Employer nor Employee may make any assignment of this Agreement or
any interest herein, by operation of law or otherwise, without the prior written
consent of the other; provided, however, that Nortek and Nortek Holdings each,
in the event that it shall hereafter, consolidate with, or merge into, any other
entity or transfer all or substantially all of its properties or assets to
another entity, may assign its rights and obligations under this Agreement
without the consent of Employee to such other entity. This Agreement shall inure
to the benefit of and be binding upon Employer and Employee, their respective
successors, executors, administrators, heirs and permitted assigns.

      18.   Counterparts.

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

      19.   Acknowledgements.

      The parties agree that the following are to be accomplished at the
Effective Time: (a) payment to Employee of incentive compensation as specified
in Section 2(b)(i) hereof; (b) payment to Employee in accordance with Section 6
of the amended and restated agreement between Nortek and Employee dated as of
the 1st of June, 2001; (c) forgiveness of the principal and interest outstanding
at the Effective Time on the loan to Employee described in section 2(f) of the
Prior Agreement; and (d) transfer to Employee of all life insurance policies
listed on Exhibit C hereto.

                    [Remainder of page intentionally blank]

                                      -11-
<PAGE>

      IN WITNESS WHEREOF, the undersigned have duly executed this Agreement as
of August 27, 2004.

                                              NORTEK, INC.

                                              By:______________________________
                                              Name:
                                              Title:

                                              NORTEK HOLDINGS, INC.

                                              By:______________________________
                                              Name:
                                              Title:

                                              _________________________________
                                              Richard L. Bready

                                      -12-
<PAGE>

                                                                       EXHIBIT A

                                      -13-
<PAGE>

                                                                       EXHIBIT B

                                      -14-
<PAGE>

                                                                       EXHIBIT C

                             LIFE INSURANCE POLICIES

AIG Sun America, Policy No. 7013959A

Prudential Policy No. 79-789-625

New York Life Policy No. 62-782-609

New York Life Policy No. 75-500-312

                                      -15-

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