Document:

EX-10.1

 

Exhibit 10.1

December 7, 2006

Murray S. Kessler

President and Chief Operating Officer

UST Inc.

100 West Putnam Avenue

Greenwich, CT 06830

Dear Murray:

     UST Inc. (“UST” or the “Company”) is pleased to provide you with this letter agreement (the
“Agreement”) regarding the terms and conditions related to your employment with the Company.

     The Board of Directors of UST (the “Board of Directors” or the “Board”) recognizes your
contributions to the growth and success of the Company and desires to provide you with continued
employment and to make certain changes to your employment arrangements with the Company in order to
reinforce and recognize your continued attention and dedication to the Company’s success. In
addition, the Board recognizes that, as is the case with many publicly held corporations, the
possibility of a change in control may exist, and that the uncertainty and questions which may
arise among Company management as a result of the foregoing may cause the departure or distraction
of management to the detriment of the Company and its stockholders. As the Board considers it
essential and in the best interest of the Company and its stockholders to foster the continuous
employment of key management personnel in the event of a change in control of the Company, this
Agreement also contains terms related to a change in control of the Company.

     Accordingly, in consideration of the premises and respective covenants and agreements of the
parties contained herein, and intending to be legally bound hereby, the parties hereto agree as
follows:

	1.	 	Employment. The Company hereby agrees to continue to employ you, and you agree to
serve the Company on the terms and conditions set forth herein.

	2.	 	Term of Agreement. This Agreement shall commence on January 1, 2007 and end on the
fourth anniversary of such date; provided, however, that if a Change in
Control, as defined in Section 7, shall have occurred during the term of this Agreement, this
Agreement shall continue in effect for a period of not less than

 

 

	 	 	twenty-four (24) months beyond the month in which such Change in Control occurred. On
December 31, 2010 and on the last day of December of each year thereafter, the term of this
Agreement shall be one year unless, fifteen days prior to such last day of December, the
Company shall have delivered to you or you shall have delivered to the Company written
notice that this Agreement will not be extended. Prior to a Change in Control, in no event
shall the term of this Agreement extend beyond the date on which you cease to be an officer
of the Company or a subsidiary thereof, whether or not you continue to be an employee of
the Company or a subsidiary thereof; provided, however, if you cease to be an officer of
the Company or any subsidiary thereof for Good Reason as defined herein, this Agreement
shall continue in effect for a period of not less than thirty (30) days. You acknowledge
and agree that the non-renewal of the term of this Agreement shall not be considered a
termination of employment hereunder for any purpose, including entitlement to severance
payments or any other benefits provided for herein.
	 
	3.	 	Position and Duties. You shall serve as President and Chief Executive Officer of the
Company, be nominated each year as a member of the Company’s Board and shall have such
responsibilities and authority as may from time to time be assigned to you by the Board. You
shall devote substantially all your working time and efforts to the business and affairs of
the Company.

	4.	 	Place of Performance. In connection with your employment by the Company, you shall
be based at the principal executive offices of the Company wherever situated, except for
required travel on the Company’s business.

5. Compensation and Related Matters.

	 	(a)	 	Salary. During the period of your employment hereunder, the Company
shall pay your salary at an annual rate of $1,000,000 or such other rate as may from
time to time be determined by the Board. Such salary shall be paid in accordance with
the Company’s standard payroll practices. The salary payments hereunder shall not in
any way limit or reduce any other obligation of the Company hereunder, and no other
compensation, benefit or payment hereunder shall in any way limit or reduce the
obligation of the Company to pay your salary.
	 
	 	(b)	 	Bonus. During the period of your employment, you may be eligible for
an annual bonus under the Company’s Incentive Compensation Plan. Your annual bonus
target shall be $2,000,000, or such other amount as may from time be determined by the
Board.

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	 	(c)	 	Long-Term Incentive Compensation. During the period of your
employment, you shall be eligible to participate in the Company’s long-term incentive
plan as may be in effect from time to time. The awards under the Company’s long-term
incentive plan shall be made in the sole discretion of the Board.
	 
	 	(d)	 	Expenses. During the period of your employment, you shall be
entitled to receive prompt reimbursement for all reasonable expenses incurred by you
in performing services hereunder, including travel and living expenses while away from
home on business or at the request of and in the service of the Company, provided that
such expenses are incurred and accounted for in accordance with the policies and
procedures established by the Company.
	 
	 	(e)	 	Other Benefits. During the period of your employment, the Company
shall maintain in full force and effect, and you shall be entitled to continue to
participate in, all of the employee benefit plans and arrangements in effect on the
date hereof in which you participate or plan or arrangements providing you with at
least equivalent benefits thereunder, including without limitation each pension plan
and arrangement, life insurance and health-and-accident plan and arrangement, medical
insurance plan, disability plan, survivor income plan, relocation plan and vacation
plan (“Benefit Plans”); provided, however, that this provision shall not apply to
incentive compensation or long-term incentive plans maintained by the Company. The
Company shall not make any changes in such Benefit Plans that would adversely affect
your rights or benefits thereunder. Notwithstanding the foregoing, prior to a change
in control of the Company (as defined in Section 7), any change (including
termination) may be made to such Benefit Plans if it occurs pursuant to actions taken
by the Company which are applicable to all executives of the Company and does not
result in a proportionately greater reduction in your rights or benefits as compared
with any other executive of the Company. To the extent permissible under applicable
laws and regulations, you shall be entitled to participate in or receive benefits
under any employee benefit plan or arrangement made available by the Company in the
future to its employees, subject to and on a basis consistent with the terms,
conditions and overall administration of such plans and arrangements. Nothing paid to
you under any plan or arrangement presently in effect or made available in the future
shall be deemed to be in lieu of the salary pursuant to paragraph (a) of this Section.
	 
	 	(f)	 	Vacations. You shall be entitled to the number of vacation days in
each calendar year determined in accordance with the Company’s vacation plan. You
shall also be entitled to all paid holidays given by the Company to its executives.

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	6.	 	Offices. You agree to serve without additional compensation, if elected or appointed
thereto, as a director of the Company and any of its subsidiaries and in one or more executive
offices of any of the Company’s subsidiaries, provided that you are indemnified for serving in
any and all such capacities on a basis no less favorable than is currently provided pursuant
to the Company’s By-Laws.

	7.	 	Change in Control. For purposes of this Agreement, a “Change in Control” shall be a
change in control of UST and shall be deemed to have occurred if:
	 
	 	 	(A) any “person” (as such term is used in Sections 13(d) and 14(d) of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”)), other than (1) UST or any of its
subsidiaries, (2) any “person” who on the date hereof is a director or officer of UST, (3)
any trustee or other fiduciary holding securities under an employee benefit plan of UST,
(4) an underwriter temporarily holding securities pursuant to an offering of such
securities, or (5) any corporation owned, directly or indirectly, by the stockholders of
UST in substantially the same proportions as their ownership of stock of UST (a “Person”),
is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act (a
“Beneficial Owner”)), directly or indirectly, of securities of UST (not including in the
securities beneficially owned by such Person any securities acquired directly from UST or
its affiliates) representing 20% or more of the combined voting power of UST’s then
outstanding securities, excluding any Person who becomes such a Beneficial Owner in
connection with a transaction described in clause (C)(1) below; or
	 
	 	 	(B) the following individuals cease for any reason to constitute a majority of the number
of directors of UST then serving: individuals who, on the date hereof, constitute the Board
and any new director (other than a director whose initial assumption of office is in
connection with an actual or threatened election contest, including but not limited to a
consent solicitation, relating to the election of directors of UST) whose appointment or
election by the Board or nomination for election by UST’s stockholders was approved or
recommended by a vote of at least two-thirds (2/3) of the directors then still in office
who either were directors on the date hereof or whose appointment, election or nomination
for election was previously so approved or recommended; or
	 
	 	 	(C) there is consummated a merger or consolidation of UST or any direct or indirect
subsidiary of UST with any other corporation, other than (1) a merger or consolidation
which would result in the voting securities of UST outstanding immediately prior to such
merger or consolidation continuing to represent (either by remaining outstanding or by
being converted into voting securities of the surviving entity or any parent thereof), in
combination with the ownership of any trustee or other fiduciary holding securities under
an employee benefit plan of UST

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	 	 	or any subsidiary of UST, more than 50% of the combined voting power of the securities of
UST or such surviving entity or any parent thereof outstanding immediately after such
merger or consolidation, or (2) a merger or consolidation effected to implement a
recapitalization of UST (or similar transaction) in which no Person is or becomes the
Beneficial Owner, directly or indirectly, of securities of UST (not including in the
securities Beneficially Owned by such Person any securities acquired directly from UST or
its subsidiaries) representing 20% or more of the combined voting power of UST’s then
outstanding securities; or
	 
	 	 	(D) the stockholders of UST approve a plan of complete liquidation or dissolution of UST or
there is consummated an agreement for the sale or disposition by UST of all or
substantially all of UST’s assets, other than a sale or disposition by UST of all or
substantially all of UST’s assets to an entity, more than 50% of the combined voting power
of the voting securities of which are owned by stockholders of UST in substantially the
same proportions as their ownership of UST immediately prior to such sale.
	 
	8.	 	Termination of Employment.
	 
	 	 	(a) General. You shall be entitled to the benefits provided in Section 9 upon the
termination of your employment during the term of this Agreement prior to a Change in
Control unless such termination is (i) because of your death or Disability, (ii) by the
Company for Cause, or (iii) by you for any reason other than Good Reason as defined in
Section 8(d)(i) through (iii). If any of the events described in Section 7 constituting a
Change in Control shall have occurred, you shall be entitled to the benefits provided in
Section 10 upon the coincident or subsequent termination of your employment during the term
of this Agreement unless such termination is (x) because of your death or Disability, (y)
by the Company for Cause, or (z) by you for any reason other than Good Reason as defined in
Section 8(d)(A) through (H). In the event your employment with the Company is terminated
for any reason prior to a Change in Control and subsequently a Change in Control shall have
occurred, you shall not be entitled to the benefits provided in Section 10, unless such
termination occurs within thirty (30) days prior to a Change in Control and such
termination is by you for Good Reason or the Company without Cause in anticipation or
contemplation of such Change in Control.

	 	(b)	 	Disability. If, as a result of your incapacity due to physical or
mental illness, you shall have been absent from the full-time performance of your
duties with the Company for six (6) consecutive months, and within thirty (30) days
after written notice of termination is given you shall not have returned to the
full-time performance of your duties, your employment may be terminated for
“Disability.”

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	 	(c)	 	Cause. The Company may terminate your employment hereunder for
Cause. For purposes of this Agreement, “Cause” shall mean (i) the willful and
continuous failure by you to substantially perform your duties hereunder (other than
any such failure resulting from your incapacity due to physical or mental illness),
which failure is not cured within thirty (30) business days after demand for
substantial performance is delivered by the Company that specifically identifies the
manner in which the Company believes you have willfully and continuously not
substantially performed your duties; (ii) the willful engaging by you in misconduct
which is materially injurious to the Company, monetarily or otherwise (including, but
not limited to, your violation of the Company’s Code of Corporate Responsibility); or
(iii) the commission of an act or omission that constitutes a material breach of this
Agreement (including, but not limited to, the violation of your obligations under
Sections 11, 12 or 13 hereof), which act or omission is not cured within thirty (30)
business days after a notice is delivered by the Company that specifically identifies
the manner in which the Company believes you have materially breached this Agreement.
For purposes of this subsection, no act, or failure to act, on your part shall be
considered “willful” unless done, or omitted to be done, by you not in good faith and
without reasonable belief that your action or omission was legal, compliant with the
Company’s Code of Corporate Responsibility and in the best interest of the Company.
	 
	 	(d)	 	Good Reason. You shall be entitled to terminate your employment for
Good Reason. For purposes of this Agreement, “Good Reason” shall mean, without your
express written consent, (1) the occurrence prior to a Change in Control of any of the
circumstances set forth in paragraphs (i) through (iv) below and (2) the occurrence on
or following a Change in Control, of any of the circumstances set forth in paragraphs
(A) through (H) below, unless, in any case, such circumstances are fully corrected
prior to the Date of Termination specified in Notice of Termination, as defined in
Sections 8(f) and 8(g), respectively, given in respect thereof.
	 
	 	 	 	Good Reason Prior to a Change in Control.

	 	(i)	 	The assignment to you of any duties inconsistent with the
position in the Company that you held immediately prior to such assignment, or
a significant adverse alteration in the nature or status of your
responsibilities, from those in effect immediately prior to such alteration;

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	 	(ii)	 	A reduction by the Company in your annual base salary as in
effect on the date hereof or as the same may be increased from time to time;
	 
	 	(iii)	 	Any purported termination of your employment which is not
effected pursuant to a Notice of Termination satisfying the requirements of
Subsection (f) hereof (and, if applicable, the requirements of Subsection (c)
hereof); for purposes of this Agreement, no such purported termination shall
be effective.
	 
	 	(iv)	 	The failure by the Company to continue to provide you with
benefits substantially similar to those enjoyed by you under the Company’s
compensation and employee benefit plans in which you participate as of the
date hereof, or the taking of any action by the Company which would directly
or indirectly materially reduce any of such benefits (except with respect to
bonus and equity awards made under the UST Inc. Incentive Compensation Plan,
the 2005 UST Inc. Long-Term Incentive Plan and any successor plans which are
and shall continue to be in the discretion of Compensation Committee of the
Board, but which shall be determined on the same basis as other similarly
situated executives of the Company); provided, however, that
in no event shall any across-the-board or generally applicable change to the
compensation and employee benefit plans provided by the Company affecting all
similarly situated executives of the Company constitute Good Reason hereunder.

	 	 	 	Your right to terminate your employment pursuant to this Subsection (d) shall not
be affected by your incapacity due to physical or mental illness; provided,
however, that the Company’s reassignment of your duties and responsibilities during
a period of your incapacity due to physical or mental illness shall not under any
circumstances constitute Good Reason hereunder.
	 
	 	 	 	Good Reason on or Following a Change in Control.

	 	 	 	The following events shall constitute Good Reason on or following a Change
in Control if they occur within two (2) years of the occurrence of a Change
in Control and shall constitute Good Reason in contemplation or
anticipation of a Change in Control if they occur within 30 days prior to
the Change in Control.
	 
	 	(A)	 	The assignment to you of any duties inconsistent with the
position in the Company that you held immediately prior to the Change in

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	 	 	 	Control, or a significant adverse alteration in the nature or status of
your responsibilities, including your reporting responsibilities, from
those in effect immediately prior to such change; provided,
however, that no such alteration in your reporting responsibilities
alone shall be considered Good Reason hereunder prior to the date which is
six (6) months following the date of the Change in Control;
	 
	 	(B)	 	A reduction by the Company in your annual base salary or
target bonus as in effect on the date hereof or as the same may be increased
from time to time (other than reductions similarly affecting all officers of
the Company); provided, however, that in no event shall a reduction in your
annual bonus under UST’s Incentive Compensation Plan that is based on
performance against pre-established criteria be considered a reduction in your
target bonus;
	 
	 	(C)	 	The relocation of your principal place of employment to a
location more than fifty (50) miles from the Greenwich, Connecticut
metropolitan area (or, if different, the metropolitan area in which the
Company’s principal executive offices are located immediately prior to the
Change in Control) except for required travel on the Company’s business to an
extent substantially consistent with your present business travel obligations;
	 
	 	(D)	 	The failure by the Company to pay to you any portion of your
current compensation, except pursuant to a voluntary deferral by you or an
across-the-board compensation deferral similarly affecting all officers of the
Company and all officers of any Person whose actions resulted in a Change in
Control or any Person affiliated with the Company or such Person, or to pay to
you any portion of an installment of deferred compensation under any deferred
compensation program of the Company within seven (7) days of the date such
compensation is due;
	 
	 	(E)	 	The failure by the Company to continue in effect any
compensation plan in which you participate immediately prior to the Change in
Control which is material to your total compensation, including but not
limited to the UST Inc. Retirement Income Plan for Salaried Employees, UST
Inc. Employees’ Savings Plan, UST Inc. Officers’ Supplemental Retirement Plan,
UST Inc. Incentive Compensation Plan and the 2005 UST Inc. Long-Term Incentive
Plan, or any substitute plans adopted prior to the Change in Control, unless
an equitable arrangement (embodied in an ongoing substitute or alternative
plan) has been made with respect to such plan, or the

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	 	 	 	failure by the Company to continue your participation therein (or in a
substitute or alternative plan) on a basis not materially less favorable,
both in terms of the amount of benefits provided and the level of your
participation relative to other participants, as existed at the time of the
Change in Control;
	 
	 	(F)	 	The failure by the Company to continue to provide you with
benefits substantially similar to those enjoyed by you under any of the life
insurance, medical, health and accident, or disability plans in which you are
participating at the time of the Change in Control, the taking of any action
by the Company which would directly or indirectly materially reduce any of
such benefits or deprive you of any material fringe benefit enjoyed by you at
the time of the Change in Control, or the failure by the Company to provide
you with the number of paid vacation days to which you are entitled on the
basis of years of service with the Company in accordance with the Company’s
normal vacation policy in effect at the time of the Change in Control;
	 
	 	(G)	 	The failure of the Company to obtain a satisfactory agreement
from any successor to assume and agree to perform this Agreement, as
contemplated in Section 14 hereof; or
	 
	 	(H)	 	Any purported termination of your employment which is not
effected pursuant to a Notice of Termination satisfying the requirements of
Subsection (f) hereof (and, if applicable, the requirements of Subsection (c)
hereof); for purposes of this Agreement, no such purported termination shall
be effective.

	 	 	 	Your right to terminate your employment pursuant to this Subsection (d) shall
not be affected by your incapacity due to physical or mental illness, provided,
however, that the Company’s reassignment of your duties and responsibilities during
a period of your incapacity due to physical or mental illness shall not under any
circumstances constitute Good Reason hereunder. Your continued employment shall
not constitute consent to, or a waiver of rights with respect to, any circumstance
constituting Good Reason hereunder.
	 
	 	(e)	 	Employment by Affiliates. For purposes of this Agreement, in no
event shall a termination of your employment with the Company be deemed to occur as a
result of your transfer to, or employment by, UST or any of its affiliates during the
term of this Agreement.

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	 	(f)	 	Notice of Termination. Any purported termination of your employment
by the Company or by you shall be communicated by written “Notice of Termination” to
the other party hereto in accordance with this Section 8(f). “Notice of Termination”
shall mean a notice which shall indicate the specific termination provision in this
Agreement relied upon and shall set forth in reasonable detail the facts and
circumstances claimed to provide a basis for termination of your employment under the
provision so indicated.
	 
	 	(g)	 	Date of Termination, Etc. “Date of Termination” shall mean (a) if
your employment is terminated for Disability, thirty (30) days after Notice of
Termination is given (provided that you shall not have returned to the full- time
performance of your duties during such thirty (30) day period), and (b) if your
employment is terminated pursuant to Subsection (c) or (d) hereof or for any other
reason (other than Disability), the date specified in the Notice of Termination
(which, in the case of a termination pursuant to Subsection (c) hereof shall not be
less than thirty (30) days, unless a shorter time is provided by the Company prior to
the occurrence of a Change in Control, and in the case of a termination pursuant to
Subsection (d) hereof shall not be less than fifteen (15) nor more than sixty (60)
days, respectively, from the date such Notice of Termination is given).
Notwithstanding the foregoing, following the occurrence of a Change in Control, if,
within fifteen (15) days after any Notice of Termination is given, or, if later, prior
to the Date of Termination (as determined without regard to this provision), the party
receiving such Notice of Termination notifies the other party that a dispute exists
concerning the termination, then the Date of Termination shall be the date on which
the dispute is finally determined, either by mutual written agreement of the parties,
by a binding arbitration award, or by a final judgment, order or decree of a court of
competent jurisdiction (which is not appealable or with respect to which the time for
appeal therefrom has expired and no appeal has been perfected); and provided,
further, that the Date of Termination shall be extended by a notice of dispute
only if such notice is given in good faith and the party giving such notice pursues
the resolution of such dispute with reasonable diligence. Pending the resolution of
any such dispute following the occurrence of a Change in Control, the Company will
continue to pay you your full compensation in effect when the notice giving rise to
the dispute was given (including, but not limited to, base salary) and continue to
include you as a participant in all compensation, benefit and insurance plans in which
you were participating when the notice giving rise to the dispute was given, until the
dispute is finally resolved in accordance with this Subsection. Notwithstanding the
preceding sentence, to the extent necessary to avoid a violation of section
409A(a)(2)(B) of the Internal Revenue Code of 1986, as amended (the “Code”), as
reasonably determined by the Company, payment

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	 	 	 	of such compensation and provision of such compensation, benefit and insurance plan
coverage will be delayed until the date that is six months after the date of your
separation from service (within the meaning of section 409A of the Code); provided,
however, that the lump sum value of amounts which are delayed as a result of
section 409(A) of the Code shall be paid as soon as practicable thereafter.
Amounts paid during the pendency of a dispute under this Subsection are in addition
to all other amounts due under this Agreement, and shall not be offset against or
reduce any other amounts due under this Agreement and shall not be reduced by any
compensation earned by you as the result of employment by another employer.
	 
	 	(h)	 	Release/Resignations. As a condition and in consideration of the
benefits provided under Section 9(b) and Section 10 of this Agreement, you agree and
covenant (i) to execute a general release, in the form attached hereto as Appendix I
(the “Release”), of any and all claims you may have or may believe you have against
UST and/or its affiliates and their officers, directors, employees, agents or
representatives and any of their successors and/or assigns; (ii) as more particularly
described in the Release, not to seek any recovery against UST and/or its affiliates
and their officers, directors, employees, agents or representatives any of their
successors and/or assigns for any cause or reason related to or arising from your
employment with the Company or any of its affiliates or the termination thereof, other
than a failure or refusal of the Company to pay you (x) the benefits described in
Section 9(b) or Section 10 hereof, and (y) the benefits to which you are entitled
subsequent to your termination of employment pursuant to the terms of one or more of
the employee benefit plans maintained by the Company; (iii) to adhere to the
provisions of Section 11 hereof; and (iv) to cooperate fully with UST and its
affiliates concerning reasonable requests for information about the business of UST or
any of its affiliates or your involvement and participation therein, including, but
not limited to, with respect to the defense or prosecution of any claims or actions in
existence now or in the future as more particularly described in the Release. The
covenant set forth in clause (ii) of this Section 8(h) includes, without limitation,
seeking any recovery against UST, any of its affiliates or their officers, directors,
employees, agents or representatives and any of their successors and/or assigns in any
forum, including without limitation any court, administrative agency or otherwise. In
the event of your termination of employment under any of the circumstances described
in Section 8, you further agree to resign all offices or directorships that you may
hold with UST and any of its affiliates, as the case may be, in a form acceptable to
the Company.

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	9.	 	Severance Compensation Prior to a Change in Control. Prior to a Change in Control,
you shall be entitled to the following benefits, provided that such termination occurs during
the term of this Agreement:

	 	(a)	 	If your employment is terminated by the Company for Cause or by you for any
reason, or because of your death or Disability, the Company shall pay you your full
base salary through the Date of Termination at the rate in effect at the time Notice
of Termination is given, and provide you with all other normal post-termination
amounts (if any) to which you are entitled under the terms and conditions of any
compensation or benefit plan maintained by the Company in which you participated as of
the Date of Termination at the time such payments are due, and the Company shall have
no further obligations to you under this Agreement.
	 
	 	(b)	 	If your employment is terminated by the Company other than for Cause,
Disability or death or by you for Good Reason as defined in Section 8(d)(i) through
(iv), then you shall be entitled to the benefits provided below, subject to your
execution of a release described in Section 8(h) and provided that such release
becomes effective and has not been revoked in accordance with the terms thereof:

	 	(i)	 	the Company shall pay to you your full base salary through
the Date of Termination at the rate in effect at the time Notice of
Termination is given, no later than the fifth day following the Date of
Termination; and shall provide you with all other normal post-termination
amounts (if any) to which you are entitled under the terms and conditions of
any compensation or benefit plan of the Company at the time such payments are
due;
	 
	 	(ii)	 	to the extent that an annual bonus has not been paid to you
in respect of any fiscal year, the Company shall pay to you, at the time that
annual bonuses in respect of such fiscal year are regularly paid by the
Company (but not later than 2-1/2 months after the end of such fiscal year, or
as soon as practicable thereafter), the product of (x) the actual annual bonus
that you would have been entitled to under the UST Inc. Incentive Compensation
Plan had you remained employed through the regular payment date and (y) a
fraction, the numerator of which is the number of days that have elapsed in
each such fiscal year through the Date of Termination, and the denominator of
which is 365; provided, however, that payments shall be delayed until the date
that is six (6) months after your separation from service, within the meaning
of Code section 409A, to the extent the Company reasonably determines such
delay is

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	 	 	 	necessary to avoid a violation of Code section 409A(a)(2)(B); provided,
further, that the lump sum value of amounts which are delayed as a result
of section 409(A) of the Code shall be paid as soon as practicable
thereafter;
	 
	 	(iii)	 	in lieu of any further salary and bonus payments to you for
periods subsequent to the Date of Termination, the Company shall pay to you,
in 24 equal monthly installments, a severance payment equal to the product of
(1) the sum of (A) your annual salary rate in effect immediately prior to the
Date of Termination, and (B) an amount equal to seventy-five percent (75%) of
the target annual bonus in effect as of the Date of Termination, which shall
not be deemed to be less than $2,000,000, and (2) the number two (2);
provided, however, that payments shall be delayed until the date that is six
(6) months after your separation from service, within the meaning of Code
section 409A, to the extent the Company reasonably determines such delay is
necessary to avoid a violation of Code section 409A(a)(2)(B); provided,
further, that the lump sum value of amounts which are delayed as a result of
section 409(A) of the Code shall be paid as soon as practicable thereafter;
	 
	 	(iv)	 	for a twenty-four (24) month period following the Date of
Termination, the Company shall arrange to provide you with life insurance
benefits substantially similar to those which you were receiving immediately
prior to the Notice of Termination at a cost and level of benefits which are
substantially similar to those you were receiving prior to the Date of
Termination; provided, however, that the Company’s payments for such life
insurance shall be delayed until the date that is six (6) months after your
separation from service, within the meaning of Code section 409A, to the
extent the Company reasonably determines such delay is necessary to avoid a
violation of Code section 409A(a)(2)(B); provided, further, that the lump sum
value of amounts which are delayed as a result of section 409(A) of the Code
shall be paid as soon as practicable thereafter. Benefits otherwise
receivable by you pursuant to this paragraph (iv) shall be reduced to the
extent comparable coverage is actually provided to you by another employer
during the twenty-four (24) month period following your termination, and any
such coverage actually provided to you by such employer shall be reported to
the Company;
	 
	 	(v)	 	the Company shall provide you with group health insurance
coverage in accordance with Section 10(d) below. Benefits

13

 

	 	 	 	otherwise receivable pursuant to this paragraph (v) shall be reduced to the
extent comparable benefits are actually received by you from another
employer during the twenty-four (24) month period following your
termination, and any such benefits actually received by you from such
employer shall be reported to the Company;
	 
	 	(vi)	 	through the Date of Termination, you shall continue to accrue
benefits under the UST Inc. Officers’ Supplemental Retirement Plan (“SOP”),
UST Inc. Retirement Income Plan for Salaried Employees, UST Inc. Benefit
Restoration Plan and the UST Inc. Excess Retirement Benefit Plan (together,
the “Retirement Plans”) as in effect on the date hereof, notwithstanding any
subsequent amendment thereto; provided, however, that in no event shall you
accrue benefits under such Retirement Plans beyond the first anniversary of
your last day of active employment. In addition, regardless of your age and
years of service as of the Date of Termination, you shall be deemed to have
met the requirements of Section 2 of the SOP in order to be treated as a
Participant as such term is defined in the SOP; provided, however, that the
benefits payable to you under the SOP will be determined based upon your
actual age and service on your Date of Termination and in a manner consistent
with the methodology used in the schedule set forth in Section 3(c) of the
SOP. Any benefits due under SOP or any other retirement plans (including any
offset for payments under qualified plans) shall be payable in accordance with
the terms of the SOP and any other retirement plans and will become payable at
the time and in the form permitted under the SOP and any other retirement
plans, as may be amended from time to time. Notwithstanding the preceding
sentence, payments shall be delayed until the date that is six (6) months
after your separation from service, within the meaning of Code section 409(A),
to the extent the Company reasonably determines such delay is necessary to
avoid a violation of Code section 409(A)(a)(2)(B); and
	 
	 	(vii)	 	UST shall extend to you the same indemnification
arrangements as are generally provided to other similarly situated officers to
the extent authorized by applicable law and in accordance with Article VIII of
UST’s By-Laws.

	 	(c)	 	Except as provided in Section 9(b)(iv) or Section 10(d) hereof, you shall not
be required to mitigate the amount of any payment provided for in this Section 9 by
seeking other employment or otherwise, nor shall the amount of any payment or benefit
provided for in this Section 9 be reduced by any

14

 

	 	 	 	compensation earned by you as the result of employment by another employer, by
retirement benefits, by offset against any amount claimed to be owed by you to the
Company, or otherwise.

	10.	 	Severance Compensation on, in Anticipation or Contemplation of or Following a Change in
Control. In the event of your Disability or a termination by you for Good Reason or by
the Company without Cause on or following a Change in Control or a termination by you for Good
Reason or by the Company without Cause that is made in anticipation or contemplation of and
occurs within thirty (30) days prior to a Change in Control, you shall be entitled to the
following benefits upon termination of your employment; provided that such period of
Disability or termination occurs during the term of this Agreement:

	 	(a)	 	During any period that you fail to perform your full-time duties with the
Company as a result of a period of Disability, you shall continue to receive your base
salary at the rate in effect at the commencement of any such period, together with all
compensation payable to you under the Long-Term Disability Plan for Salaried Employees
or other plan during such period, until your employment is terminated pursuant to
Section 8(b) thereof. Thereafter your benefits shall be determined under the
Company’s retirement, insurance and other compensation programs then in effect in
accordance with the terms of such programs.
	 
	 	(b)	 	If your employment is terminated by reason of your death or by the Company
for Cause or by you other than for Good Reason as defined in Section 8(d)(A) through
(H), the Company shall pay you your full base salary through the Date of Termination
at the rate in effect at the time Notice of Termination is given, and provide you with
all other normal post-termination amounts (if any) to which you are entitled under the
terms and conditions of any compensation or benefit plan of the Company at the time
such payments are due, and the Company shall have no further obligations to you under
this Agreement.
	 
	 	(c)	 	If your employment is terminated by you for Good Reason as defined in Section
8(d)(A) through (H) or by the Company other than for Cause, Disability or death, then,
you shall be entitled to the benefits provided below, subject to your execution of a
release described in Section 8(h) and provided that such release becomes effective and
has not been revoked in accordance with the terms thereof:

	 	(i)	 	the Company shall pay to you your full base salary through
the Date of Termination at the rate in effect at the time Notice of
Termination is given, no later the fifth day following the Date of
Termination;

15

 

	 	 	 	and provide you with all other normal post-termination amounts (if any) to
which you are entitled under the terms and conditions of any compensation
or benefit plan of the Company at the time such payments are due;
	 
	 	(ii)	 	to the extent that an annual bonus has not been paid to you
in respect of any fiscal year, the Company shall pay to you, at the time that
annual bonuses in respect of such fiscal year are regularly paid by the
Company (but not later than 2-1/2 months after the end of such fiscal year, or
as soon as practical thereafter), the product of (x) an amount equal to the
target annual bonus in effect immediately preceding the Date of Termination
or, if greater, such target in effect immediately prior to the Change in
Control, and (y) a fraction, the numerator of which is the number of days that
have elapsed in the fiscal year in which the Date of Termination occurs
through the Date of Termination, and the denominator of which is 365;
provided, however, that payments shall be delayed until the date that is six
(6) months after your separation from service, within the meaning of Code
section 409(A), to the extent the Company reasonably determines such delay is
necessary to avoid a violation of Code section 409(A)(a)(2)(B);
	 
	 	(iii)	 	in lieu of any further salary and bonus payments to you for
periods subsequent to the Date of Termination, the Company shall pay as
severance pay to you, no later than the fifth day following the Date of
Termination (or, to the extent necessary to avoid a violation of section
409A(a)(2)(B) of the Code, as reasonably determined by the Company, on the
date that is six months after the date of your separation from service, within
the meaning of section 409A of the Code), a lump-sum payment equal to the
product of (1) the sum of (A) your annual salary rate in effect as of the Date
of Termination or, if greater, such rate in effect immediately prior to the
Change in Control, and (B) an amount equal to 100% of the target annual bonus
in effect as of the Date of Termination or, if greater, such target in effect
immediately prior to the Change in Control, which, in either case, shall not
be deemed to be less than $2,000,000, and (2) the number two (2);
	 
	 	(iv)	 	the Company also shall reimburse you for all legal fees and
expenses incurred by you as a result of such termination (including all such
fees and expenses, if any, incurred in contesting or disputing any such
termination or in seeking to obtain or enforce any right or benefit provided
by this Agreement or in connection with any tax

16

 

	 	 	 	audit or proceeding to the extent attributable to the application
of Code section 4999 to any payment or benefits provided hereunder), but
only to the extent that the reimbursement – (1) qualifies for exclusion
from income as a working condition fringe benefit pursuant to section 132
of the Code, (2) is otherwise exempt from coverage under section 409A of
the Code, or (3) may be paid without violating section 409A of the Code.
If more than one of (1) through (3) in the prior sentence applies, they
shall be applied in the manner that permits the maximum reimbursement;
	 
	 	(v)	 	for a twenty-four (24) month period after such termination,
the Company shall arrange to provide you with life insurance benefits
substantially similar to those which you were receiving immediately prior to
the Notice of Termination (as well as the group health coverage described in
Section 10(d) below), at a cost and level of benefits which are substantially
similar to those you were receiving prior to the Date of Termination;
provided, however, that the Company’s payments for such life insurance shall
be delayed until the date that is six (6) months after your separation from
service, within the meaning of Code section 409A, to the extent the Company
reasonably determines such delay is necessary to avoid a violation of Code
section 409A(a)(2)(B); provided, further, that the lump sum value of amounts
which are delayed as a result of section 409(A) of the Code shall be paid as
soon as practicable thereafter. Benefits otherwise receivable by you pursuant
to this paragraph (v) shall be reduced to the extent comparable coverage is
actually provided to you by another employer during the twenty-four (24) month
period following your termination, and any such coverage actually provided to
you by such employer shall be reported to the Company; and
	 
	 	(vi)	 	Notwithstanding any subsequent amendment to the SOP, you
shall be entitled to the benefits and treatment applicable to SOP accrued
benefits in the event of a Change in Control in accordance with the terms of
the SOP as in effect immediately preceding a Change in Control.

	 	(d)	 	For a twenty-four (24) month period after the termination referenced in
Section 9(b) or Section 10(c), the Company shall arrange to provide you with group
health coverage substantially similar to that which you were receiving immediately
prior to the Notice of Termination.

17

 

	 	(i)	 	If section 409A(a)(2)(B) of the Code (the “Six-Month Delay”)
applies to you at the Date of Termination and such coverage is provided under
a self-insured medical reimbursement plan maintained by the Company (within
the meaning of section 105(h) of the Code):

	 	(1)	 	there will be no charge to you for such
coverage for any month that falls within the first six months
following the date of your separation from service (within the meaning
of section 409A of the Code); provided, however, that no health
expenses will be paid or reimbursed pursuant to such no-charge
coverage later than December 31 of the second calendar year following
the calendar year in which your separation from service (within the
meaning of section 409A of the Code) occurred;
	 
	 	(2)	 	the charge to you for each remaining month of
coverage will equal the Company’s monthly COBRA charge for such
coverage, and you will be required to pay such monthly charge in
accordance with the Company’s standard COBRA premium payment
requirements; and
	 
	 	(3)	 	on the date that is six months following the
date of your separation from service (within the meaning of section
409A of the Code), the Company will pay you a lump sum in cash equal
to the product of the (I) the Company’s monthly COBRA charge on the
payment date for family coverage under the Company’s group health
plan, and (II) the difference between (a) the number twenty-four (24),
and (b) the number of months of coverage provided under clause (1)
above.

	 	(ii)	 	If the Six-Month Delay does not apply to you at the Date of
Termination and such coverage is provided under a self-insured medical
reimbursement plan maintained by the Company (within the meaning of section
105(h) of the Code):

	 	(1)	 	the charge to you for each month of such
coverage will equal the Company’s monthly COBRA charge for such
coverage, and you will be required to pay such monthly charge in
accordance with the Company’s standard COBRA premium payment
requirements; and

18

 

	 	(2)	 	on the Date of Termination, the Company will
pay you a lump sum in cash equal to the product of (I) the Company’s
monthly COBRA charge on the payment date for family coverage under the
Company’s group health plan, and (II) the number twenty-four (24).

	 	(iii)	 	Regardless of whether the Six-Month Delay applies to you at
the Date of Termination, if such coverage is provided under a fully-insured
medical reimbursement plan (within the meaning of section 105(h) of the Code),
there will be no charge to you for such coverage.

	 	(e)	 	If any of the Total Payments (as defined below) will be subject to the tax
(the “Excise Tax”) imposed by section 4999 of the Code, the Company shall pay to you
an additional amount (the “Gross-Up Payment”) such that the net amount retained by
you, after deduction of any Excise Tax on the Total Payments and any federal, state
and local income and employment taxes and Excise Tax upon the Gross-Up Payment, shall
be equal to the Total Payments. The Gross-Up Payment will be paid to you in a lump
sum no later than the fifth day following the Date of Termination or, to the extent
necessary to avoid a violation of Code section 409A(a)(2)(B), as reasonably determined
by the Company, on the date that is six months after the date of your separation from
service (within the meaning of section 409A of the Code). Notwithstanding the
foregoing provisions of this Section 10(e), if it shall be determined that you are
entitled to the Gross-Up Payment, but that the Parachute Value (as defined below) of
the Total Payments does not equal or exceed 110% of the Safe Harbor Amount (as defined
below), then no Gross-Up Payment shall be made to you and the amounts payable to you
under this Agreement shall be reduced to the extent necessary to cause the Parachute
Value of the Total Payments, in the aggregate, to be equal to the Safe Harbor Amount.
	 
	 	(f)	 	For purposes of determining whether any of the Total Payments will be subject
to the Excise Tax and the amount of such Excise Tax, (i) all payments or benefits
received or to be received by you in connection with a Change in Control or the
termination of your employment (whether payable pursuant to the terms of this
Agreement or of any other plan, arrangement or agreement with the Company or any of
its affiliates or successors, any person whose actions result in a Change in Control
or any person affiliated (or which, as a result of the completion of the transactions
causing a Change in Control, will become affiliated) with the Company or such person
within the meaning of section 1504 of the Code (such payments or benefits, excluding
the Gross-Up Payments, being hereinafter referred to as the

19

 

	 	 	 	“Total Payments”)) shall be treated as “parachute payments” (within the meaning of
section 280G(b)(2) of the Code) unless, in the opinion of tax counsel selected by
the independent auditors of the Company (as of the date immediately prior to the
Change in Control) and reasonably acceptable to you, such payments or benefits (in
whole or in part) do not constitute parachute payments, including by reason of
section 280G(b)(4)(A) of the Code; (ii) all “excess parachute payments” (within the
meaning of section 280G(b)(1) of the Code) shall be treated as subject to the
Excise Tax, unless in the opinion of such tax counsel such excess parachute
payments represent reasonable compensation for services actually rendered (within
the meaning of section 280G(b)(4)(B) of the Code) in excess of the “base amount”
(within the meaning of section 280G(b)(3) of the Code), or are not otherwise
subject to the Excise Tax; and (iii) the value of any noncash benefits or any
deferred payment or benefit shall be determined by the Company’s independent
auditors in accordance with the principles of sections 280G(d)(3) and (4) of the
Code and the regulations promulgated thereunder. For purposes of determining the
amount of the Gross-Up Payment, you shall be deemed to pay federal income taxes at
the highest marginal rate of federal income taxation in the calendar year in which
the Gross-Up Payment is to be made and state and local income and employment taxes
at the highest marginal rate of taxation in your state and locality of residence on
the Date of Termination (or such other date as is hereinafter described), net of
the maximum reduction in federal income taxes that could be obtained from deduction
of such state and local taxes. For purposes of this Agreement, (x) the term
“Parachute Value” when applied to any payment shall mean the present value as of
the date of the Change in Control of the portion of such payment that is treated as
a “parachute payment” under section 280G(b)(2) of the Code, as determined by tax
counsel for purposes of determining whether and to what extent the Excise Tax will
apply to you and (y) the term “Safe Harbor Amount” shall mean 2.99 times your “base
amount”, within the meaning of section 280G(b)(3) of the Code.
	 
	 	(g)	 	In the event that the Excise Tax is subsequently determined to be less than
the amount taken into account hereunder at the Date of Termination (or such other date
as in hereinafter described), you shall repay to the Company at the time that the
amount of such reduction in Excise Tax is finally determined the portion of the
Gross-Up Payment attributable to such reduction (plus the portion of the Gross-Up
Payment attributable to the Excise Tax and federal, state and local income and
employment taxes imposed on the Gross-Up Payment being repaid by you if such repayment
results in a reduction in Excise Tax or federal, state or local income and employment
taxes deduction) plus interest on the amount of such repayment

20

 

	 	 	 	at 120% of the applicable federal rate (as defined in section 1274(d) of the Code).
In the event that Excise Tax is determined to exceed the amount taken into account
hereunder at the time of the termination of your employment, or at such other time
as is hereinafter described (including by reason of any payment the existence or
amount of which cannot be determined at the time of the Gross-Up Payment), the
Company shall make an additional gross-up payment in respect of such excess (plus
any interest payable with respect to such excess) within five (5) business days
following the time that the amount of such excess is finally determined. To the
extent that payment of the amount provided for in the preceding sentence would
constitute a violation of Section 409A of the Code (as determined by the tax
counsel referenced in Section 10(f) or by another tax counsel selected in
accordance with the same procedure specified in Section 10(f)), such amount shall
include an additional sum such that the amount retained by you after deductions for
any amounts owed under Section 409A, or for any federal, state and local income and
employment taxes, shall be equal to the amount described in the preceding sentence.
	 
	 	(h)	 	Except as provided in Section 10(c)(v) or Section 10(d) hereof, you shall not
be required to mitigate the amount of any payment provided for in this Section 10 by
seeking other employment or otherwise, nor shall the amount of any payment or benefit
provided for in this Section 10 be reduced by any compensation earned by you as the
result of employment by another employer, by retirement benefits, by offset against any
amount claimed to be owed by you to the Company, or otherwise.

	11.	 	Noncompetition. You agree that you will not engage in any Competitive Activity
during the one-year period following your termination of employment with the Company for any
reason (or, where you receive payments pursuant to Section 9(b) or Section 10(c) hereof, then
during the two-year period following your termination of employment with the Company). For
purposes of this Section, “Competitive Activity” shall mean activity, without the written
consent of an authorized officer of UST, consisting of your participation in the management
of, or acting as a consultant for or employee of, any business operation of any enterprise if
such operation (a “Competitive Operation”) is then in substantial and direct competition with
any business operation of UST and/or any of its affiliates, any place in the world, as now or
hereafter designated by the Board; provided, however, that no business
operation may be designated as a business operation that is in substantial competition with
UST and/or any of its affiliates unless the profits, sales or assets attributable to such
business operation amount to at least ten percent (10%) of said business’ total profits, sales
or assets. Competitive Activity shall not include (1) the mere ownership of up to five
percent (5%) of the outstanding securities in any enterprise; or (2) the participation in the
management of, or acting

21

 

	 	 	as a consultant for or employee of, any enterprise or any business operation thereof, other
than in connection with a Competitive Operation of such enterprise, provided that
you do not furnish advice with respect to inventions, processes, customers, methods of
distribution, methods of manufacture, marketing or business strategy relating to any
Competitive Operation of such enterprise, or the formation of a Competitive Operation.
	 
	12.	 	Confidentiality. You agree not to disclose, either while employed by the Company or
at any time thereafter, to any person not employed by the Company, or not engaged to render
services to the Company, except with the prior written consent of an officer authorized to act
in the matter by the Board, any confidential information of the Company or its affiliates
obtained by you while in the employ of the Company, including, without limitation, information
relating to any of the Company’s or its affiliates’ inventions, processes, formulae, plans,
devices, compilations of information, methods of distribution, customers, client
relationships, marketing strategies or trade secrets; provided, however, that
this provision shall not preclude you from the use or disclosure of information known
generally to the public or of information not considered confidential by persons engaged in
the business conducted by the Company or from disclosure required by law or court order (and
to your legal counsel in connection therewith). The agreement herein made in this Section 12
shall be in addition to, and not in limitation or derogation of, any obligations otherwise
imposed by law upon you in respect of confidential information and trade secrets of the
Company or its affiliates.
	 
	13.	 	Non-Solicitation. You agree that you shall not solicit any person who is a customer
of the business conducted by the Company or its affiliates, or any business in which you have
been engaged on behalf of the Company or its affiliates at any time during the Term of this
Agreement and for a two (2) year period thereafter on behalf of an employer affiliated with
you or any business described in Section 11; or induce or attempt to persuade any employee of
the Company or any of its affiliates to terminate his employment relationship in order to
enter into employment with an employer affiliated with you or any business described in
Section 11.
	 
	14.	 	Successors: Binding Agreement.

	 	(a)	 	The Company shall require any successor (whether direct or indirect, by
purchase, merger, consolidation or otherwise) to all or substantially all of the
business and/or assets of the Company to expressly assume 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 such succession had taken place. Failure of the Company to obtain
such assumption and agreement

22

 

	 	 	 	prior to the effectiveness of any such succession shall be a breach of this
Agreement and shall entitle you to compensation from the Company in the same amount
and on the same terms to which you would be entitled hereunder if you terminate
your employment for Good Reason following a Change in Control, except that for
purposes of implementing the foregoing, the date on which any such succession
becomes effective shall be deemed the Date of Termination. As used in this
Agreement, “Company” shall mean the Company as hereinbefore defined and any
successor to its business and/or assets as aforesaid which assumes and agrees to
perform this Agreement by operation of law, or otherwise.
	 
	 	(b)	 	This Agreement shall inure to the benefit of and be enforceable by your
personal or legal representative, executors, administrators, successors, heirs,
distributees, devisees and legatees. If you should die while any amount would still
be payable to you hereunder if you had continued to live, all such payments, unless
otherwise provided herein, shall be paid in accordance with the terms of this
Agreement to your devisee, legatee or other designee or, if there is no such designee,
to your estate.

	15.	 	Notice. For the purpose of this Agreement, notices and all other communications
provided for in the Agreement shall be in writing and shall be deemed to have been duly given
when delivered or mailed by United States certified or registered mail, return receipt
requested, postage prepaid, addressed to the respective addresses set forth on the first page
of this Agreement, provided that all notice to the Company shall be directed to the attention
of the Board with a copy to the Secretary of the Company, or to such other address as either
party may have furnished to the other in writing in accordance herewith, except that notice of
change of address shall be effective only upon receipt.
	 
	16.	 	Miscellaneous. No provision of this Agreement may be modified, waived or discharged
unless such waiver, modification or discharge is agreed to in writing and signed by you and
such officer as may be specifically designated by the Board. No waiver by either party hereto
at any time of any breach by the other party hereto of, or compliance with, any condition or
provision of this Agreement to be performed by such other party shall be deemed a waiver of
similar or dissimilar provisions or conditions at the same or at any prior or subsequent time.
No agreements or representations, oral or otherwise, express or implied, with respect to the
subject matter hereof have been made by either party which are not expressly set forth in this
Agreement. The validity, interpretation, construction and performance of this Agreement shall
be governed by the laws of the State of Delaware without regard to its conflicts of law
principles. All references to sections of the Exchange Act or the Code shall be deemed also
to refer to any successor provisions to such sections. Any payments provided for hereunder
shall

23

 

	 	 	be paid net of any applicable withholding required under federal, state or local law. The
obligations of the Company under Sections 9 and 10 and your obligations under Section 11,
12 and 13 shall survive the expiration of the term of this Agreement.
	 
	17.	 	Validity. The invalidity or unenforceability of any provision of this Agreement
shall not affect the validity or enforceability of any other provision of this Agreement,
which shall remain in full force and effect.
	 
	18.	 	Counterparts. This Agreement may be executed in several counterparts, each of which
shall be deemed to be an original but all of which together will constitute one and the same
instrument.
	 
	19.	 	Arbitration. Any dispute or controversy arising under or in connection with this
Agreement shall be settled exclusively by arbitration, conducted before a panel of three
arbitrators in New York, New York, in accordance with the rules of the American Arbitration
Association then in effect. Judgment may be entered on the arbitrator’s award in any court
having jurisdiction; provided, however, that you shall be entitled to seek specific
performance of your right to be paid until the Date of Termination during the pendency of any
dispute or controversy arising under or in connection with the Agreement.
	 
	20.	 	Code Section 409A. It is intended that any amounts payable under this Agreement and
the Company’s and your exercise of authority or discretion hereunder shall comply with the
provisions of Section 409A of the Internal Revenue Code and the treasury regulations relating
thereto so as not to subject you to the payment of interest and tax penalty which may be
imposed under Section 409A. In furtherance of this intent, to the extent that any regulations
or other guidance issued under Section 409A after the date of this Agreement would result in
you being subject to the payment of such interest or tax penalty, the Company and you agree to
amend this Agreement in order to bring this Agreement into compliance with Section 409A in a
manner that has the least adverse effect on the Executive.
	 
	21.	 	Entire Agreement. This Agreement sets forth the entire agreement of the parties
hereto in respect of the subject matter contained herein and supersedes all prior agreements,
promises, covenants, arrangements, communications, representations or warranties, whether oral
or written, by any officer, employee or representative of any party hereto; including, without
limitation, the Letter Agreement between you and UST, dated September 13, 2004, and any
addendums, amendments or modifications thereof; and any prior agreement of the parties hereto
in respect of the subject matter contained herein is hereby terminated and cancelled.
Notwithstanding the foregoing, nothing contained herein shall be deemed to be a termination or
cancellation of your right to indemnification by UST as an officer

24

 

	 	 	pursuant to: (a) applicable state law, with all exclusions and exceptions provided by such
law to remain in full force and effect; (b) any indemnification agreement entered into
between you and UST which shall remain in full force and effect; (c) any applicable
director and officer insurance arrangements; and (d) in accordance with Article VIII of
UST’s By-Laws.

          If this letter sets forth our agreement on the subject matter hereof, kindly sign and return
to the Company the enclosed copy of this letter, which will then constitute our agreement on this
subject.

UST Inc.

	 	 	 	 	 
	By:
	 	/s/ Peter J. Neff	 	 
	 

	 	 

Name: Peter J. Neff
	 	 
	 

	 	Title: Chairman, Compensation Committee	 	 

Agreed to
this 7th day

of December, 2006.

	 	 	 
	/s/ Murray
S. Kessler
 

	 	 
	Murray S. Kessler
	 	 

25

 

RELEASE AGREEMENT

     THIS RELEASE, entered into this [          ] day of [                    ] by
[Name], residing at [                    ] hereinafter referred to as the “Employee”).

W I T N E S S E T H:

     WHEREAS, the Employee, and UST Inc., a Delaware corporation (“UST”), having
its principal office in Greenwich, Connecticut, entered into a letter agreement (the
“Agreement”) dated as of                                         , 2006, pursuant to Section 3(h) of
which Employee and covenanted, to execute a general release of any and all claims he may
have or may believe he has against UST, its affiliates and/or their respective officers,
directors, employees, agents and representatives; and

     WHEREAS, the employment of the Employee was terminated as of [          ];

     NOW, THEREFORE, in consideration of the benefits to be provided to the Employee pursuant to
the Agreement, it is agreed as follows:

1. The Employee voluntarily, knowingly and willingly releases and forever discharges UST,
its parents, subsidiaries and affiliates, together with their respective past and present
officers, directors, partners, shareholders, employees and agents, and each of their
predecessors, successors and assigns, from any and all charges, complaints, claims,
promises, agreements, controversies, causes of action and demands of any nature whatsoever
which against them the Employee or his executors, administrators, successors or assigns
ever had, now have or hereafter can, shall or may have by reason of any matter, cause or
thing whatsoever arising prior to the time the Employee signs this agreement.

2. The release being provided by the Employee in this agreement includes, but is not
limited to, any rights or claims relating in any way to the Employee’s employment
relationship with UST, its parents, subsidiaries and affiliates, or the termination
thereof, or under any statute, including the federal Age Discrimination in Employment Act
(“the ADEA”), Title VII of the Civil Rights Act, the Americans with Disabilities Act, or
any other federal, state or local law or judicial decision. Notwithstanding the foregoing,
Employee does not hereby release any rights to vested benefits under the terms of any
employee benefit plans maintained by UST pursuant to the Employee Retirement Income
Security Act (“ERISA”). Furthermore, nothing contained herein shall be deemed a waiver of
the Employee’s right to indemnification by UST as a corporate officer/director pursuant to:
(a) applicable state law, with all exclusions and exceptions provided by such law to remain
in full force and effect; (b) any indemnification agreement entered into

26

 

between the Employee and UST; (c) any applicable director and officer insurance
arrangements; and (d) in accordance with Article VIII of UST’s By-Laws.

3. By signing this release agreement, the Employee represents that he has not and will not
in the future commence any action or proceeding arising out of the matters released hereby,
and that he will not seek or be entitled to any award of legal or equitable relief in any
action or proceeding that may be commenced on his behalf. This paragraph will not preclude
the Employee from filing an administrative charge of discrimination, provided Employee does
not seek any relief for himself/herself in connection with such proceeding. This paragraph
likewise does not prohibit the Employee from filing a lawsuit under the ADEA, but the
waiver and release in paragraph 2 will remain valid and enforceable to bar any such claim.

4. By signing this release agreement, the Employee agrees to cooperate fully with UST and
its affiliates concerning reasonable requests for information about the business of UST or
any of its affiliates or your involvement and participation therein; the defense or
prosecution of any claims or actions now in existence or which may be brought in the future
against or on behalf of UST or any of its affiliates which relate to events or occurrences
that transpire while the Employee was employed by UST and its affiliates; and in connection
with any investigation or review by any federal, state or local regulatory,
quasi-regulatory or self-governing authority (including, without limitation, the Securities
and Exchange Commission) as any such investigation or review relates to events or
occurrences that transpired while the Employee was so employed. The Employee’s full
cooperation shall include, but not be limited to, being available to meet and speak with
officers or employees of UST or any of its affiliates and/or their counsel at reasonable
times and locations, executing accurate and truthful documents and taking such other
actions as may reasonably be requested by UST or any of its affiliates and/or their counsel
to effectuate the foregoing. UST agrees to reimburse you for any reasonable, out-of-pocket
travel, hotel and meal expenses incurred in connection with the Employee’s performance of
obligations pursuant to this paragraph 4 for which the Employee has obtained prior approval
from UST.

5. The Employee acknowledges that UST has hereby advised him to consult with an attorney
prior to signing this release agreement. The Employee represents that he has had the
opportunity to review this agreement and, specifically, the release in paragraph 1, with an
attorney of his choice. The Employee also agrees that he has entered into this agreement
freely and voluntarily.

6. The Employee acknowledges that he has been given at least twenty-one days to consider
the terms of this release agreement. Furthermore, once he has signed this release
agreement, the Employee shall have seven additional days from

27

 

the date of signing this release agreement to revoke his consent hereto. The release
agreement will not become effective until seven days after the date the Employee has signed
it, which will be the effective date of this release agreement.

     IN WITNESS WHEREOF, the Employee has executed this release agreement as of the date
first set forth above.

	 	 	 	 	 
	 

	 	 
 

	 	 
	 

	 	Name	 	 

	 	 	 
	 
 

	 	 
	WITNESS
	 	 

28EX-10.2

 

Exhibit 10.2

UST INC.

2005 LONG-TERM INCENTIVE PLAN

NOTICE OF GRANT OF RESTRICTED STOCK

     This Notice is to certify that the Participant named below has been granted the number of
shares of Restricted Stock set forth below under the UST Inc. 2005 Long-Term Incentive Plan (the
“Plan”) and the terms and conditions set forth in this Notice and attached Restricted Stock
Agreement (the “Agreement”). This Notice is subject to and incorporates by reference the terms and
conditions of the Agreement. Please refer to the Agreement and the Plan document for an
explanation of the terms and conditions of this grant and a full description of your rights and
obligations. If the Agreement is not signed and returned to the Company, on or before the date on
which the Restricted Stock vests, the Restricted Stock granted hereunder shall be forfeited. Please
sign and date the Agreement and return it promptly in the enclosed envelope.

	 	 	 
	Name of Participant:
	 	Daniel W. Butler
	 
	 	 
	Number of Restricted Shares:
	 	25,000
	 
	 	 
	Per Share Value on Grant Date:
	 	$56.82
	 
	 	 
	Grant Date:
	 	December 6, 2006
	 
	 	 
	Vesting Conditions:	 	25,000 shares shall vest January 1, 2012
provided and solely to
the extent that the
Company has achieved, in any three (3) of
the five (5) year periods ending on
12/31/07, 12/31/08, 12/31/09, 12/31/10, and
12/31/11 respectively, both: (A) positive
annual Earnings Per Share (EPS) from
continuing operations; and (B) a dividend
payout ratio of at least 50% of EPS from
continuing operations.
	 
	 	 
	Additional Terms:
	 	See the Restricted Stock Agreement.

 

 

UST INC.

2005 LONG-TERM INCENTIVE PLAN

RESTRICTED STOCK AGREEMENT

               RESTRICTED STOCK AGREEMENT, made as of the date set forth on the Notice of Grant of Restricted
Stock, by and between UST Inc., a Delaware corporation (“UST” or with its subsidiaries “the
Company”), pursuant to the 2005 Long-Term Incentive Plan (the “Plan”) and the employee of the
Company named on the Notice of Grant of Restricted Stock (the “Employee”);

               WHEREAS, the Company desires, by affording the Employee the opportunity to acquire or enlarge
the Employee’s ownership of shares of UST’s common stock, $.50 par value (“Common Stock”), and
providing the Employee with a direct proprietary interest in UST’s success, to carry out the
purpose of the Plan; and

               WHEREAS, the Committee administering the Plan has granted (as of the effective date of grant
specified in the Notice of Grant of Restricted Stock) to the Employee the shares of Restricted
Stock as set forth in the Notice of Grant of Restricted Stock which is incorporated herein by
reference.

               NOW, THEREFORE, in consideration of the mutual covenants hereinafter set forth and for other
good and valuable consideration, the parties hereto have agreed and do hereby agree as follows:

	1.	 	Grant of Award. Pursuant to Section 7 of the Plan, the Company grants to the
Employee, subject to the terms and conditions of the Plan and subject further to the terms and
conditions set forth herein and in the Notice of Grant of Restricted Stock, the number of
shares of Restricted Stock as shown on the Notice of Grant of Restricted Stock. The
Participant’s grant and record of Restricted Stock share ownership shall be kept on the books
of the Company until the restrictions on transfer have lapsed. At the Employee’s request,
vested shares may be evidenced by stock certificates.
	 
	2.	 	Vesting. The shares of Restricted Stock granted to the Employee shall vest in
accordance with the performance criteria and vesting schedule set forth in the Notice of Grant
of Restricted Stock. Such vesting schedule indicates the performance criteria used to
determine the number of shares which shall vest and the date upon which the Employee shall be
entitled to receive shares of freely transferable Common Stock equal to the number of vested
shares of Restricted Stock as determined pursuant to the Notice of Grant of Restricted Stock,
provided that, as of the vesting date, the Employee has not incurred a termination of
employment with the Company. There shall be no proportionate or partial vesting in the periods
between the vesting date(s), if any, specified in the Notice of Grant of Restricted Stock and
all vesting shall occur only on such vesting date(s), except as set forth in Sections 7 and 8
below.

1

 

	 	 	Other than as set forth in Sections 7 and 8 below and as provided in the Plan, no vesting
shall occur after the termination of the Employee’s employment with the Company for any
reason.
	 
	3.	 	Rights as a Stockholder. The Employee shall have all of the rights of a stockholder
with respect to the number of shares of Restricted Stock specified in the Notice of Grant of
Restricted Stock, including the right to vote on all matters with respect to which the
stockholders of UST have the right to vote and the right to receive dividends thereon.
Dividends shall be paid on the Employee’s shares of Restricted Stock at the same time as they
are paid to shareholders generally.
	 
	4.	 	Restrictions on Transfer. Shares of Restricted Stock may not be transferred or
otherwise disposed of by the Employee, including by way of sale, assignment, transfer, pledge,
hypothecation or otherwise, except as permitted by the Committee, or by will or the laws of
descent and distribution.
	 
	5.	 	Approvals. The delivery of any shares of Common Stock hereunder is subject to
approval of any government agency which may, in the opinion of counsel, be required in
connection with the authorization, issuance or sale of Common Stock. No Common Stock shall be
issued upon the lapse of restrictions relating to the shares of Restricted Stock prior to
compliance with such requirements and with UST’s listing agreement with the New York Stock
Exchange (or other national exchange upon which UST’s shares may then be listed).
	 
	6.	 	Invalid Transfers. No purported sale, assignment, mortgage, hypothecation, transfer,
pledge, encumbrance, gift, transfer in trust (voting or other) or other disposition of, or
creation of a security interest in or lien on, any of the shares of Restricted Stock by any
holder thereof in violation of the provisions of this Restricted Stock Agreement shall be
valid, and the Company will not transfer any of said shares of Restricted Stock on its books
nor will any of said shares of Restricted Stock be entitled to vote, nor will any dividends be
paid thereon, unless and until there has been full compliance with said provisions to the
satisfaction of the Company. The foregoing restrictions are in addition to and not in lieu of
any other remedies, legal or equitable, available to enforce said provisions.
	 
	7.	 	Change in Control. Subject to the provisions of the next sentence of this Section 7,
upon the occurrence of a Change in Control, the shares of Restricted Stock shall no longer be
subject to the performance criteria described in the Notice of Grant of Restricted Stock and
shall vest on the vesting date set forth in the Notice of Grant of Restricted Stock in the
event that the Employee has not incurred a termination of employment with the Company prior to
such vesting date, provided, however, that if the Employee’s employment with
the Company is terminated by the Company without Cause or by the Employee for Good Reason
following the Change in Control, the restrictions that apply to the shares of Restricted Stock
shall immediately lapse and the shares of Restricted Stock shall immediately vest on the date
of such termination. Notwithstanding the foregoing,

2

 

	 	 	upon a Change in Control in which UST is not the surviving corporation (or survives only as
a subsidiary of another corporation) or other Change in Control described in clause (iii)
or (iv) of the definition of a “Change in Control” set forth in the Plan, the shares of
Restricted Stock shall be immediately vested in full, regardless of whether the performance
criteria set forth in the Notice of Grant of Restricted Stock have been attained, and shall
be treated in accordance with the provisions of Section 11(c) of the Plan.
	 
	8.	 	 Effect of Termination of Service. 

	 	(a)	 	If the Employee’s service with the Company is terminated by reason of his/her
death or Disability, or for any other reason if the Committee so determines, the
shares of Restricted Stock shall become fully vested as of the date of such
termination of service.
	 
	 	(b)	 	If the Employee’s service with the Company is terminated due to his/her
Retirement, then the shares of Restricted Stock will remain outstanding and will vest
on the vesting date specified in the Notice of Grant of Restricted Stock in the event
that the performance conditions specified in the Notice of Grant of Restricted Stock
are ultimately attained; if such performance conditions are not ultimately attained,
then on the vesting date the Employee shall forfeit the shares of Restricted Stock.
	 
	 	(c)	 	If the Employee’s employment with the Company is terminated by the Company
other than for Cause or by the Employee for Good Reason, the Employee shall become
vested as of the date of termination with respect to a pro rata portion of the shares
of Restricted Stock granted pursuant to the Notice of Grant of Restricted Stock
regardless of whether performance conditions have been attained. For this purpose,
the pro rata portion shall be the number of shares granted thereby multiplied by a
fraction, the numerator of which is the number of full months which have elapsed from
the Grant Date specified in the Notice of Grant of Restricted Stock through the date
of such termination, and the denominator of which is 60. If the resulting number is
not a whole number of shares, the number calculated shall be rounded up or down (as
appropriate) to the nearest whole number of shares.
	 
	 	(d)	 	Subject to the provisions of Section 7, if the Employee’s employment with the
Company is terminated for any reason other than by reason of his death, Disability,
Retirement, a Company-initiated termination other than for Cause or an
Employee-initiated termination for Good Reason, and the Employee is not eligible for
Retirement, and if the Committee does not determine otherwise, the number of shares of
Restricted Stock that have not theretofore become vested shall be forfeited.

3

 

	 	(e)	 	For purposes of this Agreement, the term “Disability” shall mean a
“disability,” as defined in the Company’s Long-Term Disability Plan or, if such plan
is not applicable to the Employee, as defined by the State or federal disability
program which applies to the Employee. For purposes of this Agreement, the terms
“Cause” and “Good Reason” shall have the meanings set forth in the Employment
Agreement by and between the Company and the Employee in effect on the date of this
Restricted Stock Agreement or any successor agreement thereto.

	9.	 	Non-Competition.

	 	(a)	 	     In consideration of the grant of Restricted Stock made pursuant to this
Agreement, during the term of the Employee’s employment with the Company and for a
period of one (1) year after that employment is terminated, by the Company or the
Employee, for any reason other than the cessation of business by the Company pursuant
to a filing for bankruptcy protection or liquidation initiated by the Company, the
Employee will not, without the Company’s prior written approval, directly or
indirectly:

	 	(i)	 	recruit, solicit or knowingly induce, or attempt to induce,
any employee or consultant of the Company to terminate his/her employment or
consulting relationship with, or otherwise cease his/her relationship with,
the Company; or
	 
	 	(ii)	 	solicit, divert or take away, or attempt to divert or to take
away, the business or patronage of any of the clients, customers or accounts,
or prospective clients, customers or accounts, of the Company. For purposes of
this Agreement, a prospective client, customer or account is any individual or
entity whose business is solicited by the Company, proposed to be solicited by
the Company, or who approaches the Company with respect to possibly becoming a
client, customer, or account during the period of the Employee’s employment
with the Company; or
	 
	 	(iii)	 	engage (whether for compensation or without compensation),
directly or indirectly, as an individual proprietor, partner, officer,
employee, director, independent contractor, consultant or in any other
capacity whatsoever, in any business currently involved in, or actually
contemplating involvement in, the manufacture or distribution of smokeless
tobacco or tobacco seed, wines or distilled spirits, whether or not the same
is pursued for gain, profit or other pecuniary advantage. The foregoing shall
not, however, be construed as preventing the Employee from making investments
in any other business, provided, however, that

4

 

	 	 	 	such investments do not require his/her services in the operation of the
affairs of the businesses in which such investments are made.

	 	(b)	 	If any restriction set forth in this Section 9 is found by any court of
competent jurisdiction to be unenforceable because it extends for too long a period of
time or over too great a range of activities or in too broad a geographic area, it
shall be interpreted to extend only over the maximum period of time, range of
activities or geographic areas to which it may be enforceable.
	 
	 	(c)	 	The restrictions contained in this Section 9 are necessary for the protection
of the business and goodwill of the Company and are considered by the Employee to be
reasonable for this purpose. The Employee agrees that any breach of this Section 9
will cause the Company substantial and irrevocable damage and, therefore, in the event
of any such breach, in addition to such other remedies which may be available, the
Company will have the right to seek specific performance and injunctive relief,
attorney’s fees, costs and disbursements to enforce its rights hereunder.

	10.	 	Finding of Cause; Violation of Non-Competition Covenant. If (a) the employment of
the Employee is terminated for Cause or (b) after the Employee’s termination of employment
with the Company other than for Cause, the Company discovers the occurrence of an act or
failure to act by the Employee, while in the employ of the Company, that would have enabled
the Company to terminate the Employee’s employment for Cause had the Company known of such act
or failure to act at the time of its occurrence, or (c) subsequent to his termination of
employment, the Employee violates the restrictions set forth in Section 9 of this Agreement,
and, in each case, such act is discovered by the Company within three (3) years of its
occurrence, then, unless otherwise determined by the Committee,

	 	(i)	 	any shares of Restricted Stock granted pursuant to the Notice
of Grant of Restricted Stock which have not yet become vested shall thereupon
be forfeited and shall be returned to UST; and
	 
	 	(ii)	 	the Employee (or, in the event of the Employee’s death
following the commission of such act, his beneficiaries or estate) shall (A)
return to UST all shares of Restricted Stock that became vested during the 180
day period prior to and including the date of the termination of the
Employee’s employment (the “Acquired Shares”) and (B) to the extent such
Acquired Shares granted pursuant to the Notice of Grant of Restricted Stock
have previously been sold or otherwise disposed of by the Employee, other than
by reason of death (or if applicable, by his beneficiaries or estate), repay
to UST the Fair Market Value of such shares on the date of such sale or other
disposition.

5

 

	 	(iii)	 	for purpose of clause (ii)(B) above, (A) the amount of
repayment described therein shall not be affected by whether the Employee (or,
if applicable, his/her beneficiaries or estate) actually received such Fair
Market Value with respect to such sale or other disposition, and (B)
repayment may, without limitation, be affected, at the discretion of UST, by
means of offset against any amount owed by the Company to the Employee (or, if
applicable, his/her beneficiaries or estate).

	11.	 	Taxes. UST will distribute vested shares of Common Stock net of the minimum number
of whole shares of Common Stock the fair market value of which is sufficient to meet the
minimum amount of federal, state and local taxes required to be withheld under applicable tax
laws. Such withholding shall occur at the time required by law or regulation, even if the
shares of Restricted Stock withheld to meet such liability are not otherwise considered vested
under this Agreement. The Employee shall be precluded from making any election pursuant to
Section 83(b) of the Internal Revenue Code. The Employee understands that he/she (and not the
Company) shall be responsible for any tax liability that may arise as a result of the
transactions contemplated by this Restricted Stock Agreement. This Restricted Stock Agreement
shall be interpreted and applied so that the Employee’s Restricted Stock will not be subject
to Internal Revenue Code Section 409A. If notwithstanding the preceding sentence, the
Employee’s Restricted Stock becomes subject to Section 409A, then the specified time of
payment of the Restricted Stock for purposes of Section 409A shall be the calendar year in
which the short-term deferral period expires with respect to the Restricted Stock (but payment
may be made by such later time as may be permitted by Section 409A under the circumstances).
	 
	12.	 	Compliance with Law and Regulations; Legend. The award and any obligation of the
Company hereunder shall be subject to all applicable federal, state and local laws, rules and
regulations and to such approvals by any government or regulatory agency as may be required.
UST may require, as a condition of the issuance and delivery of certificates evidencing
Restricted Stock pursuant to the terms hereof, that the certificates bear such legends as set
forth immediately below, in addition to any other legends required under federal and state
securities laws or as otherwise determined by the Committee.
	 
	 	 	The transferability of this certificate and the shares of stock represented hereby are
subject to the restrictions, terms and conditions (including forfeiture provisions and
restrictions against transfer) contained in the UST Inc. 2005 Long-Term Incentive Plan and
an Agreement entered into between the registered owner of such shares and UST. A copy of
the Plan and Agreement is on file in the office of the Secretary of UST, 100 West Putnam
Avenue, Greenwich, Connecticut 06830.

6

 

	 	 	Such legend shall not be removed until such shares vest pursuant to the terms hereof.
	 
	13.	 	Incorporation of Plan. This Agreement is made under the provisions of the Plan
(which is incorporated herein by reference) and shall be interpreted in a manner consistent
with it. To the extent that this Agreement is silent with respect to, or in any way
inconsistent with, the terms of the Plan, the provisions of the Plan, as determined by the
Committee, shall govern and this Restricted Stock Agreement shall be deemed to be modified
accordingly. Unless otherwise defined herein or otherwise required by the context, all terms
used herein shall have the meaning ascribed to them in the Plan.
	 
	14.	 	Notices. Any notices required or permitted hereunder shall be addressed to UST, at
100 West Putnam Avenue, Greenwich, Connecticut 06830, or to the Employee at the address then
on record with UST, as the case may be, and deposited, postage prepaid, in the United States
mail. Either party may, by notice to the other given in the manner aforesaid, change his/her
or its address for future notices.
	 
	15.	 	Successor. This Agreement shall bind and inure to the benefit of UST, its successors
and assigns, and the Employee and his or her personal representatives and beneficiaries.
	 
	16.	 	Governing Law. This Agreement shall be governed by and construed in accordance with
the laws of the State of Delaware. The Committee shall have final authority to interpret and
construe the Plan and this Agreement and to make any and all determinations under them, and
its decision shall be binding and conclusive upon the Employee and his/her legal
representative in respect of any questions arising under the Plan or this Agreement.
	 
	17.	 	Amendment. This Agreement may be amended or modified by UST at any time; provided
that notice is provided to the Employee in accordance with Section 14; and provided further
that no amendment or modification that is adverse to the rights of the Employee as provided by
this Agreement shall be effective unless set forth in a writing signed by the parties hereto
(except that an amendment or modification that is made to comply with Internal Revenue Code
section 409A, or to preserve an exemption from section 409A, shall be effective upon adoption
by UST unless expressly rejected by the Employee in writing).
	 
	18.	 	Binding Agreement. By signing below, the Employee acknowledges that he or she has
read this Agreement and the Notice of Grant of Restricted Stock and agrees to the terms and
conditions specified therein and in the Plan. This Agreement shall be binding upon the
Employee and his or her personal representatives and beneficiaries without any need for
additional action by the Employee, and any attempt by the Employee and his or her personal

7

 

	 	 	representatives and beneficiaries to exercise any rights under this Agreement shall be
conclusive evidence of such person’s acceptance thereof.

IN WITNESS WHEREOF, UST has caused this Agreement to be duly executed by its officer thereunder
duly authorized and the Employee has hereunto set his hand, all as of the day and year set forth
above.

UST INC.

	 	 	 	 	 
	 
 

	 	 	 	 
	Name: Vincent A. Gierer, Jr.
	 	 	 	 
	Title: Chairman of the Board and Chief Executive Officer	 	 

	 	 	 	 	 	 	 
	 
 

	 	 
	 	 
 

	 	 
	Employee Signature

	 	 	 	Date	 	 

8

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