Document:

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                          UNITED INDUSTRIES CORPORATION

October 25, 1999

Mr. Robert L. Caulk
8551 Chaucer Place
Cincinnati OH 45249

RE:  Revised Offer of Employment

Dear Bob:

This letter shall supercede our October 4, 1999 offer letter. The purpose of
this letter is to summarize the specifics of our offer to you, which offer has
been revised to reflect recent discussions between the parties and their
respective counsel:

1. POSITION:  You will be the President and Chief Executive Officer of United
Industries  Corporation  ("UIC").  You will also become a member of the UIC
Board of Directors immediately upon your starting work with us.

2. REPORTING STRUCTURE:  You will report to UIC's Board of Directors.

3. START DATE: Bearing in mind that we have our next Board meeting on Wednesday,
October 27th, we request that you start no later than Monday October 25th.
Please let us know what start date you can confirm for us as soon as possible.

4. BASE SALARY: Your base salary will be at the annualized rate of $400,000.00,
payable in equal monthly increments. Subsequent increases in base salary shall
be as determined by the Compensation Committee of the Board.

5. INCENTIVE COMPENSATION: You will be a participant in an incentive
compensation plan (description of the plan, which was faxed to you on October
13th, is attached as "Item 5 Exhibit"), with payment based on UIC's attainment
of certain financial and operational targets. Notwithstanding the provisions of
the plan attached as Item 5 Exhibit, you will be eligible to receive a target
bonus of thirty percent (30%) of your base salary if UIC achieves at least 90%
of Target EBITDA, sixty percent (60%) of your base salary if UIC achieves at
least 100% of Target EBITDA, and 90% of base salary if UIC achieves 110% of
Target EBITDA. Your participation for fiscal 1999 (same as calendar 1999) will
reflect an appropriate partial year proration from your start date through
year-end. Notwithstanding the provisions of the above referenced incentive
compensation plan, UIC agrees to guarantee that with respect to the year 2000
you will be paid incentive compensation of no less than 50% of the maximum
incentive compensation payable under the plan (i.e., 1/2 of 60% of base salary
for the year 2000).

6. SIGNING BONUS: You will be paid a $50,000 signing bonus within five (5)
business days after your start date. This payment shows our good faith effort to
compensate you for the bonus you anticipate forfeiting upon your resigning from
Clopay.

7. STOCK OPTIONS: Per the terms of UIC's 1999 Stock Option Plan, you will be
granted stock options to purchase 800,000 shares of UIC stock when you sign the
"United Industries Corporation Stock Option

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MR. ROBERT L. CAULK
OCTOBER 25, 1999

Agreement" which will be substantially in the form attached as "Item 7 Exhibit",
except that the definition of Cause in Section 4.3(a)(i) thereof shall be
revised to be as set forth in "Item 10 Exhibit" to Section 10 ("Severance") of
this letter.

8. STOCK PURCHASE: Per the terms of UIC's 1999 Stock Purchase Plan, you will be
given the opportunity to purchase up to $500,000 of UIC stock at the current
price of $5.00 per share upon your signing the "United Industries Corporation
Executive Stock Purchase Agreement" which will be substantially in the form
attached as "Item 8-A Exhibit". The Company will loan you up to fifty percent
(50%) (the principal amount of $250,000) of the purchase price of UIC stock you
may purchase in accordance with this Section 8. The loan will be at UIC's
borrowing rate and will be evidenced by a promissory note (the "Note")
substantially in the form attached to this letter as "Item 8-B Exhibit". The
loan will be with recourse, secured by a pledge to the Company of all UIC stock
you purchase under this Section, and as evidence of the security for the loan
you will enter into a Pledge Agreement substantially in the form attached to
this letter as "Item 8-C Exhibit".

Notwithstanding the provisions of Section 2 ("Repurchase Option") of the
Executive Stock Purchase Agreement (Item 8-A Exhibit), if you cease employment
at UIC, UIC agrees upon its receipt of your written request to repurchase UIC
stock (at Fair Market Value as defined in the referenced Plan) which you may
have purchased pursuant to the Executive Stock Purchase Agreement, unless you
are terminated for Cause, as defined in "Item 10 Exhibit" attached.

9. CHANGE OF CONTROL: In the event there is a Sale of UIC (as defined in Section
4.1 of the Stock Option Agreement referenced in Item 7 above), vesting of your
options will be accelerated as provided in the Stock Option Agreement. Please
refer to the Stock Option Agreement for further details.

10. SEVERANCE: If you are terminated by UIC (a) without Cause, or (b) because of
Constructive Termination (as defined in "Item 10 Exhibit" attached), or (c)
within 90 days of a Change of Control (as defined in Section 4.1 of the Stock
Option Agreement referenced in Item 7 above), you will receive severance pay
equal to (i) three (3) years' base salary less amounts of base salary UIC will
have paid to you from your starting date through date of termination, but in any
event no less than one (1) year's base salary, plus (ii) incentive compensation
earned but unpaid as of the date of termination (prorated for the period of time
during the applicable bonus year that you worked from January 1st to date of
termination). As you will be paid on a monthly basis during your employment at
UIC, your severance payments will be paid out to you monthly, in that number of
installments equal to 36 less the number of months you were paid your base
salary through date of termination (but in any event no less than 12
installments). However, you will not receive such severance payments if you are
terminated for Cause, as defined in "Item 10 Exhibit" attached.

11. RELOCATION EXPENSES: You will receive the benefits and reimbursement for
expenses as set forth in "Item 11 Exhibit, Relocation Reimbursement" attached.
UIC will also arrange to provide you with a no-interest bridge loan of up to
$250,000 for up to one (1) year to assist you in the sale of your Cincinnati
Ohio residence. If you resign or are terminated for Cause (as defined in Item 10
Exhibit) before completing twelve (12) months with the Company, you must repay
to UIC the full amount of your relocation expenses previously paid by UIC.

12.  VACATIONS:  You will be entitled to four weeks of paid vacation per year.

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MR. ROBERT L. CAULK
OCTOBER 25, 1999

13. OTHER BENEFITS (INCLUDING UIC'S EXECUTIVE DEFERRED COMPENSATION PLAN):
Unless otherwise specified in this letter, your benefits will consist of
whatever benefit programs may be in effect from time to time for UIC executives,
subject to eligibility requirements as specified in the applicable benefit
plans. Benefit programs may be increased, decreased, changed or discontinued at
any time. Details of UIC's benefit programs are explained in the "Benefits
Basics" brochure included as "Item 13 Exhibit". UIC will waive the one-year
service requirement for Short Term Disability insurance (page 10 of Item 13
Exhibit), and you will be covered immediately as of the date you start work at
UIC.

Also included in the Item 13 Exhibit is a copy of the UIC Executive Deferred
Compensation Plan. The current Plan does not provide for UIC common stock as one
of the various investment options available to Plan participants. However, UIC
will use its best efforts to obtain the consent of the Plan trustee (Commerce
Bank in St. Louis) to amend the Plan to permit participants to elect to have UIC
common stock purchased with the amount of deferred compensation as may be
designated by Plan participants. In your case, such designation may include any
bonus payouts you may receive with respect to fiscal 1999 and fiscal 2000.

14. NONCOMPETITION, CONFIDENTIALITY, AND OTHER OBLIGATIONS TO UIC: Attached to
this letter is "Item 14 Exhibit" which states your obligations regarding (a)
business ethics, (b) confidentiality, (c) protection of intellectual property
interests, (d) nonsolicitation and noncompetition, and (e) termination. You
agree that you will devote your full time and attention to the business and
affairs of the Company.

15. NO BREACH OF EXISTING COVENANTS: By signing this letter, you are confirming
to UIC that you are not subject to any noncompetition covenants or other legal
obligations which prevent you from joining our team.

16. ARBITRATION OF UIC STOCK VALUATION: Notwithstanding any provision to the
contrary in the UIC 1999 Stock Option Plan or the UIC 1999 Stock Purchase Plan,
UIC agrees to submit to arbitration any disputes between you and UIC regarding
the fair market value of UIC common stock. The arbitration shall be conducted in
St. Louis MO in accordance with the rules of the American Arbitration
Association.

If this letter is acceptable to you, please sign and return the enclosed copy of
this letter to my attention at UIC's office in St. Louis, with a copy to Matthew
M. McCarthy, UIC's Vice President, General Counsel and Secretary, also at UIC's
office. I look forward to hearing promptly of your acceptance of our offer.

Sincerely yours,

David A. Jones, Chairman of the Board

Accepted this __ day of October, 1999:
                                            ---------------------------------
                                                     Robert L. Caulk

cc (w/encls):     Irv Berliner, Esq.
                  Matthew M. McCarthy, Esq. -- UIC
attachments

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                          UNITED INDUSTRIES CORPORATION
                             STOCK OPTION AGREEMENT

                  THIS STOCK OPTION AGREEMENT (the "Agreement") is entered into
as of ________, 1999, by and between UNITED INDUSTRIES CORPORATION, a Delaware
corporation (the "Company"), and Robert L. Caulk ("Optionee") pursuant to the
United Industries Corporation 1999 Stock Option Plan (the "Plan"). The Company
and Optionee are referred to collectively herein as the "Parties." Capitalized
terms used but not defined herein shall have the meaning set forth in the Plan.

                  THE PARTIES AGREE AS FOLLOWS:

         1.           Grant of Options and Effective Date.

                  1.1 Grant. The Company hereby grants to Optionee pursuant to
                  the Plan an option (the "Option") to purchase all or any part
                  of an aggregate of 400,000 shares (the "Class A Shares") of
                  the Company's Class A Voting Common Stock, par value $0.01 per
                  share, and 400,000 shares (the "Class B Shares" and, together
                  with the Class A Shares (the"Shares") of the Company's Class B
                  Non-Voting Common Stock, par value $0.01 per share
                  (collectively, "Common Stock"), on the terms and conditions
                  set forth herein and in the Plan as in effect on the Grant
                  Date (as defined below), the terms of which are incorporated
                  herein by reference.

                  1.2 Grant Date.  The Grant Date of this Option is _______,
                  1999 (the "Grant Date").

         2.       Exercise  Price.  The exercise  price for the Shares of
Common Stock  covered by this Option shall be $5.00 per share
(the "Exercise Price").

         3. Adjustment and Termination of Options. Subject to the restrictions,
and under the circumstances described, in the Plan and this Agreement, the
Company shall adjust the number and kind of Shares and the Exercise Price
thereof, and this Option shall be terminated in certain circumstances, in
accordance with the provisions of the Plan.

         4.       Exercise of Options.

                  4.1 When Exercisable.

                           (a) Rate of Exercise for 5-Year Options. Optionee's
                  right to exercise this Option as to 266,666 of the Shares
                  (133,333 Class A Shares and 133,333 Class B Shares) subject
                  thereto (the "5 Year Options") shall vest ratably over the
                  five (5) year

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                  period commencing on the Grant Date in accordance with the
                  following schedule if (but only if) Optionee is employed by
                  the Company or any of its Subsidiaries as of each such date:

                                              Cumulative Shares of
                           Date               5 Year Option Vested
                           ----               --------------------
     1st Anniversary of Grant Date                  26,666
     2nd Anniversary of Grant Date                  53,333
     3rd Anniversary of Grant Date                  80,000
     4th Anniversary of Grant Date                 106,666
     5th Anniversary of Grant Date                 133,333

Notwithstanding any provision to the contrary in this Section 4.1(a), but
subject to the other restrictions in the Plan and this Agreement, in the event
of a Sale (as defined below) prior to the fifth anniversary of the Grant Date,
the 5 Year Options shall become vested and immediately exercisable.

                  (b)      Rate of Exercise on TARSAP Options.

                           (i) Optionee shall not be vested with the right to
                  exercise this Option with respect to 533,334 of the Shares
                  (266,667 Class A Shares and 266,667 Class B Shares) (the
                  "TARSAP Shares") subject thereto (the "TARSAP Options") until
                  ten (10) years after the Grant Date, at which time Optionee
                  shall acquire the vested right to exercise the TARSAP Options
                  and purchase one hundred percent (100%) of the TARSAP Shares
                  if (but only if) Optionee is an employee of the Company or any
                  of its Subsidiaries as of such date.

                           (ii) Acceleration of TARSAP Options. Notwithstanding
                  the foregoing, if on and after the publication of each written
                  determination by the Board of Directors of the Company (the
                  "Board") or a committee thereof which is authorized to do so
                  that the Company has met at least ninety percent (90%) of its
                  objective for EBITDA (as defined below) (100% of the Company's
                  objective referred to herein as the "Performance Goals") with
                  respect to any fiscal year commencing with the fiscal year
                  ending December 31, 1999 and continuing for each of the four
                  fiscal years thereafter (which Performance Goals are set forth
                  on Annex I attached hereto), then (subject to the other
                  restrictions in the Plan and this Agreement), Optionee shall
                  acquire the vested right to exercise the TARSAP Options to
                  purchase ten percent (10%) of the TARSAP Shares, and for each
                  additional one percent (1%) achievement over ninety percent
                  (90%) of the Performance Goals for any such fiscal year, as so
                  determined, Optionee shall acquire the

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                  vested right to exercise the TARSAP Options to purchase an
                  additional one percent (1%) of the TARSAP Shares, but no more
                  than twenty percent (20%) of the TARSAP Shares in respect of
                  each full fiscal year. Additionally, on and after publication
                  of a written determination by the Board or a committee thereof
                  which is authorized to do so that the Company has met at least
                  eighty seven and one-half percent (87.5 %) of its Performance
                  Goals for the fiscal year ending December 31, 2003 and at
                  least ninety percent (90%) of its cumulative Performance Goals
                  for the five fiscal years ending December 31, 2003 ("Five Year
                  Performance Goals"), then subject to the other restrictions in
                  the Plan and this Agreement, (i) Optionee shall acquire the
                  vested right to exercise the TARSAP Options to purchase fifty
                  percent (50%) of the TARSAP Shares as to which Optionee had
                  not otherwise acquired the vested right to exercise, and (ii)
                  for each additional one percent (1%) achievement over ninety
                  percent (90%) of the Five Year Performance Goals, as so
                  determined, Optionee shall acquire the vested right to
                  exercise this TARSAP Option to purchase an additional five
                  percent (5%) of the TARSAP Shares as to which Optionee has not
                  otherwise acquired the vested right to exercise (such
                  additional exercise rights pursuant to clauses (i) and (ii)
                  above are referred to herein as the "Additional Exercise
                  Rights"). Such determinations shall be made by the Board or
                  such committee within ten (10) days after receipt of audited
                  financial statements for each fiscal year. The Board's or
                  committee's determination as to whether the Company has met
                  such objectives shall be final and not subject to dispute. In
                  addition, the Board or a committee thereof shall have complete
                  discretion to modify such objectives from time to time for any
                  year or years to reflect business combinations or
                  dispositions, fiscal year changes, purchases or sales of
                  assets or any other circumstances the Board or committee
                  thereof deems relevant. For purposes hereof, "EBITDA" shall
                  mean earnings before interest, taxes, depreciation and
                  amortization, excluding any non-recurring or extraordinary
                  items, as determined in accordance with generally accepted
                  accounting principles, consistently applied.

                           (iii) Acceleration Upon Sale. Notwithstanding any
                  provision to the contrary in this Section 4.1(b), but subject
                  to the other restrictions in the Plan and this Agreement, in
                  the event of a Sale (as defined below) prior to December 31,
                  2003, the TARSAP Options shall become vested and immediately
                  exercisable to the extent set forth below. On and after
                  publication of a written determination by the Board or a
                  committee thereof which is authorized to do so that the
                  Company has met at least eighty seven and one-half percent
                  (87.5 %) of its Performance Goals for the last twelve (12)
                  full months and at least ninety percent (90%) of its
                  cumulative Performance Goals for the completed fiscal years
                  (if any) and the Interim Period (as defined below) (based on
                  months elapsed), the Board or such committee shall treat the
                  percentage of cumulative Performance Goals achieved through
                  the completed fiscal years (if any) and Interim Period as the
                  percentage of Five Year Performance Goals achieved and on that
                  basis

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                  shall determine the Additional Exercise Rights with respect to
                  all TARSAP Options as to which Optionee had not otherwise
                  acquired the vested right to exercise consistent with the
                  method set forth in the second sentence of Section 4.1(b)(ii)
                  above. The percentage of Five Year Performance Goals for such
                  period shall be computed by dividing (i) the sum of EBITDA
                  achieved for the completed fiscal years (if any) and the
                  Interim Period by (ii) the annual Performance Goals for the
                  completed fiscal years (if any) and the monthly Performance
                  Goals for the Interim Period. For purposes hereof, the term
                  "Interim Period" shall mean the period beginning on the first
                  day of the then current fiscal year and ending on the last
                  full month of that uncompleted fiscal year.

                  For purposes hereof, the term "Sale" shall mean:

                                    (w) the acquisition by any individual,
                           entity or group (within the meaning of Section
                           13(d)(3) or 14(d)(2) of the Exchange Act) (a
                           "Person") of beneficial ownership (within the meaning
                           of Rule 13d-3 promulgated under the Exchange Act) of
                           voting securities of (a) the Company or (b) the
                           surviving entity in any reorganization, merger or
                           consolidation (each an "Acquisition") involving the
                           Company (any such entity referred to herein as the
                           "Corporation") where such Acquisition causes such
                           Person to own more than fifty percent (50%) of the
                           combined voting power of the then outstanding voting
                           securities of the Corporation entitled to vote
                           generally in the election of directors, other than
                           acquisitions by the Thomas H. Lee Company or its
                           affiliates;

                                    (x) approval by the  shareholders  of the
                           Company of a complete  liquidation  or dissolution of
                           the Company;

                                    (y) the  acquisition by a third party not
                           affiliated  with the Company of all or  substantially
                           all of the Company's assets; or

                                    (z) individuals who constitute the Board on
                           the date of the Company's initial public sale of
                           equity securities registered under the Securities Act
                           (the "Incumbent Board") cease for any reason to
                           constitute at least a majority of the Board
                           thereafter. Any person becoming a director subsequent
                           to such date whose, election, or nomination for
                           election, is, at any time, approved by a vote of at
                           least a majority of the directors comprising the
                           Incumbent Board shall be considered a member of the
                           Incumbent Board.

                  The accelerated vesting provided in this Section 4.1(b)(iii)
shall take effect immediately prior to but contingent upon the Sale giving rise
to such accelerated vesting. The phrase "immediately prior to the Sale" shall be
understood to mean sufficiently in advance of a Sale to permit the Optionee

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to take all steps reasonably necessary to permit the Optionee to become a
shareholder of the Company as of the consummation of such Sale with respect to
the TARSAP Shares subject to the accelerated vesting provided in this Section
4.1(b)(iii). The Board or committee thereof may in good faith shorten the
Interim Period or make approximations of EBITDA during the Interim Period in
order to comply with the preceding sentence.

                           (c) Partial Exercise. Subject to the other
                  restrictions in the Plan and this Agreement, the Options may
                  be exercised for all or a part of the Shares with respect to
                  which each Option is exercisable under Section 4.1(a) and (b)
                  above.

                  4.2  Method of Exercise; Stockholders Agreement. Subject to
         Section 4.1 and the other restrictions in the Plan and this Agreement,
         Options are exercisable from time to time by Optionee, who shall
         complete, execute and deliver to the Company a Form of Exercise and
         Stock Transfer Power substantially in the form attached hereto or in
         such other form as the Company may require. Except as otherwise
         permitted by Section 6(d) of the Plan, such notice shall be accompanied
         by payment in full for the Shares to be purchased. Payment of the
         Exercise Price may be made: (i) in cash, (ii) in shares of Common Stock
         which either (A) were purchased by Optionee in other than a
         compensatory transaction, (B) have been held by Optionee free and clear
         for at least six (6) months prior to the use thereof to pay part or all
         of the Exercise Price or (C) otherwise are considered "mature" shares
         for purposes of generally accepted accounting principles, as determined
         by the Company's outside auditors, or (iii) so long as the Common Stock
         is publicly traded, by delivery to the Committee of irrevocable
         instructions to a stockbroker to deliver promptly to the Company an
         amount of sale or loan proceeds sufficient to pay a portion of the
         Exercise Price subject to this clause (iii), or a combination of the
         methods specified in clauses (i), (ii) and (iii), or in the sole
         discretion of the Committee, through a cashless exercise procedure.
         Optionee shall also execute and deliver to the Company a copy of the
         Company's Stockholders Agreement, dated as of January 20, 1999, in the
         form in effect at the time of exercise (as amended and modified from
         time to time, the "Stockholders Agreement"), if Optionee has not
         previously done so. Upon due exercise of any Option and (if required)
         execution and delivery of the Stockholders Agreement, subject to the
         terms and conditions in this Agreement, the Company shall issue in the
         name of Optionee and deliver to Optionee a certificate for the Shares
         in respect of which such Option shall have been exercised, but no
         Shares will be issued until arrangements satisfactory to Company have
         been made for appropriate income tax withholding, if any, pursuant to
         Section 12 hereof.

                  4.3  Exercise After Termination of Employment; Termination
                       of Options.

                           (a) Definitions. The following definitions shall be
                  applied to the capitalized terms used in this Section 4.3 and
                  in Section 4.4 below for all purposes, unless otherwise
                  clearly indicated:

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                                    (i) "Cause" for termination by the Company
                           of Optionee's employment with the Company means (a)
                           misappropriation of the Company's property, interests
                           or opportunities; (b) violation of reasonable
                           directions of the Company to Optionee which
                           directions are consistent with Optionee's duties and
                           responsibilities; (c) misconduct which causes damage
                           to the Company or its finances or to its business
                           relationships or reputation in the industry or the
                           community; (d) breach or nonperformance by Optionee
                           of his obligations provided for in this Agreement or
                           in other material agreement between Optionee and the
                           Company (including, without limitation, any
                           employment or noncompetition agreement) or reasonably
                           implied by his position; (e) the habitual drug
                           addiction or habitual intoxication of Optionee which
                           negatively impacts his job performance or Optionee's
                           failure of a Company-required drug test; or (f)
                           failure of Optionee to reasonably cooperate with an
                           examining physician as may be required by any
                           agreement between Optionee and the Company.

                                    (ii) "Fair Market Value" of each Share means
                           the fair value of such share determined in good faith
                           by the Board, based on the assumption of an
                           arms-length transaction between a willing buyer and a
                           willing seller, taking into account all reasonable
                           and customary factors relevant to value including,
                           without limitation, the fact that there may be no
                           public market for the Company's securities, but not
                           including any minority discount; provided that the
                           "Fair Market Value" of each Share shall not be less
                           than the Original Cost of such Share.

                                    (iii) "Original Cost" for each Share shall
                           be equal to $5.00 (as proportionately adjusted for
                           all subsequent stock splits, stock dividends and
                           other recapitalizations).

                                    (iv) "Public Offering" means the sale in an
                           underwritten public offering registered under the
                           Securities Act of shares of any class of the
                           Company's Common Stock.

                                    (v) "Termination Date" means the date on
                           which Optionee's employment with the Company
                           terminates, whether pursuant to an employment
                           agreement between Optionee and the Company or
                           otherwise.

                           (b) Termination by Optionee. Upon any termination of
                  employment by Optionee, the Options may, to the extent
                  exercisable and not terminated pursuant to

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                  Section 4.3(e), be exercised only within thirty (30) days
                  after the date of such employment termination. This Section
                  4.3(b) shall not, however, extend the term of the Options
                  beyond that specified in Section 4.3(e). For purposes of this
                  Section 4.3(b), the extent to which the Options are
                  exercisable shall be determined as of the date of termination
                  of employment.

                           (c) Termination by Virtue of Death or Disability or
                  Without Cause. Upon any termination of employment of Optionee
                  by virtue of Optionee's death or Disability or upon any
                  termination of employment by the Company without Cause, the
                  Options may, to the extent exercisable and not terminated
                  pursuant to Section 4.3(e), be exercised only within twelve
                  (12) months after the date of such termination. This Section
                  4.3 (c) shall not extend the term of the Options beyond that
                  specified in Section 4.3(e). For purposes of this Section
                  4.3(c), the extent to which the Options are exercisable shall
                  be determined as of the date of termination of employment.

                           (d)      Termination for Cause.  The Option shall
                  terminate  immediately  upon termination by the Company of
                  the employment of Optionee for Cause.

                           (e) Other Termination. The Options shall not be
                  exercisable after the earliest of (i) a Sale (provided that
                  Optionee has at least five (5) business days prior to the Sale
                  to exercise the Options or the Options are treated as
                  exercised in connection with such Sale) or (ii) October 25,
                  2009.

                  4.4      Repurchase Option.

                           (a) Right of Repurchase. In the event Optionee ceases
                  to be employed by the Company and its Subsidiaries for any
                  reason (the " Termination"), the Shares (whether held by
                  Optionee or one or more of Optionee's transferees) shall be
                  subject to repurchase by the Company pursuant to the terms and
                  conditions set forth in this Section 4.4 (the " Repurchase
                  Option").

                           (b) Purchase Price. Any repurchase of Shares pursuant
                  to the Repurchase Option shall be at the " Repurchase Price"
                  described in this Section 4.4(b) determined as of the
                  Termination Date. If Optionee's employment is terminated by
                  Optionee prior to the fifth anniversary hereof or by the
                  Company for Cause, the Repurchase Price for all of the Shares
                  shall be the lower of (i) the Fair Market Value therefor and
                  (ii) the Original Cost therefor. If Optionee's employment is
                  terminated for any other reason (including, without
                  limitation, as a result of Optionee's retirement in good
                  standing from the Company at or after age 65 in accordance
                  with the Company's retirement policies as in effect at that
                  time), the Repurchase Price for all Shares shall be the Fair

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                  Market Value therefor.

                           (c) Repurchase by the Company. The Company may elect
                  to purchase all or any portion of the Shares at the Repurchase
                  Price by delivering written notice (the " Repurchase Notice")
                  to Optionee (i) within 120 days after the Termination Date,
                  and (ii) for Shares acquired by Optionee after the Termination
                  Date pursuant to Section 4.3 above, then within 120 days after
                  the issuance of such Shares. The Repurchase Notice shall set
                  forth the number of Shares to be acquired from Optionee and/or
                  his or her transferees (if any), the aggregate consideration
                  to be paid for such securities, and the time and place for the
                  closing of the transaction (the " Repurchase Closing"). The
                  Company may, in its sole discretion, assign its rights
                  pursuant to this Section 4.4 to the holders of its capital
                  stock (other than Optionee and any other stockholder whose
                  Shares are being repurchased) pro rata on the basis of the
                  number of Shares owned (with subsequent re-offer in the event
                  of under subscription); provided that any such assignees shall
                  comply with the terms of this Section 4.4.

                           (d) Repurchase Closing. The closing of the purchase
                  of the Shares pursuant to the Repurchase Option shall take
                  place on the date designated by the Company in the Repurchase
                  Notice which date shall not be more than 60 days nor less than
                  10 days after the delivery of such notice. Subject to Section
                  4.4(e), the Company shall pay for the Shares to be purchased
                  pursuant to the Repurchase Option by delivery of a check or
                  wire transfer of funds. The Company shall be entitled to
                  receive customary representations and warranties regarding
                  good title to such securities, free and clear of any liens or
                  encumbrances, power and authority, due execution, and
                  enforceability.

                           (e) Certain Restrictions. Notwithstanding anything to
                  the contrary contained in this Agreement, all repurchases of
                  Shares by the Company shall be subject to applicable
                  restrictions contained in the Delaware General Corporation Law
                  and in the Company's and its Subsidiaries' debt and equity
                  financing agreements. If any such restrictions prohibit the
                  repurchase of Shares hereunder which the Company is otherwise
                  entitled or required to make, the time periods provided in
                  this Section 4.4 shall be suspended, and the Company shall
                  make such repurchases as soon as it is permitted to do so
                  under such restrictions with interest at an annual rate of 7%.
                  In addition, the Company may pay the Repurchase Price for such
                  Shares by offsetting any bona fide debts owed by Optionee to
                  the Company.

                           (f) Termination of Repurchase Option. The Repurchase
                  Option set forth in this Section 4.4 shall continue with
                  respect to all Shares following any Transfer thereof; provided
                  that such Repurchase Option shall terminate effective
                  immediately after the consummation of a Sale of the Company or
                  a Public Offering of the Company's equity

                                       8
<PAGE>

                  securities in which the Company receives net proceeds of at
                  least $100 million; and provided further that, with respect to
                  each Share, the Repurchase Option with respect to such Share
                  shall terminate immediately upon the Transfer of such Share
                  pursuant to a Public Sale.

         5.       Non-transferability  of Options.  The Options shall not be
transferable or assignable except upon Optionee's death by will or the laws of
descent and distribution and shall be exercisable, during Optionee's lifetime,
only by Optionee.

         6.       Purchase for Investment; Other Representations of Optionee;
                  Legends.

                  6.1 Investment Intent. As provided in the Plan, in the event
         that the offering of Shares with respect to which the Options are being
         exercised is not registered under the Securities Act, but an exemption
         is available that requires an investment representation or other
         representation, Optionee, if electing to purchase Shares, will be
         required to represent that such Shares are being acquired for
         investment and not with a view to distribution thereof, and to make
         such other reasonable and customary representations regarding matters
         relevant to compliance with applicable securities laws as are deemed
         necessary by counsel to the Company. Stock certificates evidencing such
         unregistered Shares that are acquired upon exercise of the Options
         shall bear restrictive legends in substantially the following form and
         such other restrictive legends as are required or advisable under the
         provisions of any applicable laws or are provided for in the
         Stockholders Agreement or any other agreement to which Optionee is a
         party:

                      THE SHARES REPRESENTED BY THIS STOCK CERTIFICATE HAVE
         NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
         "SECURITIES ACT"), NOR UNDER ANY STATE SECURITIES LAWS AND SHALL NOT BE
         TRANSFERRED AT ANY TIME IN THE ABSENCE OF (I) AN EFFECTIVE REGISTRATION
         STATEMENT UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS
         WITH RESPECT TO SUCH SHARES AT SUCH TIME, OR (II) AN OPINION OF COUNSEL
         SATISFACTORY TO THE COMPANY AND ITS COUNSEL, TO THE EFFECT THAT SUCH
         TRANSFER AT SUCH TIME WILL NOT VIOLATE THE SECURITIES ACT OR ANY
         APPLICABLE STATE SECURITIES LAWS.

                  6.2      Other Representations.  Optionee hereby represents
         and warrants to the Company as follows:

                           (a)     Access to Information. Because of Optionee's
                  business relationship with the Company and with the management
                  of the Company, Optionee has had access to all

                                       9
<PAGE>

                  material and relevant information concerning the Company,
                  thereby enabling Optionee to make an informed investment
                  decision with respect to his investment in the Company, and
                  all pertinent data and information requested by Optionee from
                  the Company or its representatives concerning the business and
                  financial condition of the Company and the terms and
                  conditions of this Agreement have been furnished. Optionee
                  acknowledges that Optionee has had the opportunity to ask
                  questions of and receive answers from and to obtain additional
                  information from the Company and its representatives
                  concerning the present and proposed business and financial
                  condition of the Company.

                           (b)      Financial  Sophistication.  Optionee has
                  such  knowledge  and  experience in financial and business
                  matters that Optionee is capable of evaluating the merits and
                  risks of investing in the Shares.

                           (c)      Understanding the Investment Risks.
                  Optionee understands that:

                                    (i)     An investment in the Shares
                           represents a highly  speculative  investment,  and
                           there can be no assurance as to the success of the
                           Company in its business; and

                                    (ii) There is at present no market for the
                           Shares and there can be no assurance that a market
                           will develop in the future.

                           (d)      Understanding of the Nature of the Shares.
                  Optionee understands and agrees that:

                                    (i) There can be no assurance that the
                           Shares will be registered under the Securities Act or
                           any state securities laws and if they are not so
                           registered, they will only be issued and sold in
                           reliance upon certain exemptions contained in the
                           Securities Act and applicable state securities laws,
                           and the representations and warranties of Optionee
                           contained herein, which will have to be renewed as to
                           the Shares at the times of exercise of the Options,
                           are essential to any claim of exemption by the
                           Company under the Securities Act and such state laws;

                                    (ii) If the Shares are not so registered,
                           the Shares will be "restricted securities" as that
                           term is defined in Rule 144 promulgated under the
                           Securities Act;

                                    (iii) The Option cannot be exercised and the
                           Shares will not be sold to Optionee and Optionee
                           cannot resell or transfer the Shares without
                           registration

                                       10
<PAGE>

                           under the Securities Act and applicable
                           state securities laws unless the Company receives an
                           opinion of counsel acceptable to it (as to both
                           counsel and the opinion) that such registration is
                           not necessary, the cost of such opinion to be borne
                           by the Company;

                                    (iv)  Only the Company can register  the
                           Shares under the  Securities  Act and  applicable
                           state securities laws;

                                    (v)   The Company has not made any
                           representations to Optionee that the Company will
                           register the Shares under the Securities Act or any
                           applicable state securities laws, or with respect to
                           compliance with any exemption therefrom;

                                    (vi)  Optionee is aware of the conditions
                           for Optionee's obtaining an exemption for the resale
                           of the Shares under the Securities Act and any
                           applicable state securities laws; and

                                    (vii) The Company may, from time to time,
                           make stop transfer notations in its transfer records
                           to ensure compliance with the Securities Act and any
                           applicable state securities laws, and any additional
                           restrictions imposed by state securities
                           administrators.

                          (e)     Investment Intent. Optionee acknowledges that:

                                    (i)     Optionee  is  acquiring  the Option
                           for  Optionee's  own  account  and not on behalf of
                           any other person;

                                    (ii) Optionee is acquiring the option for
                           investment and not with a view to distribution or
                           with the intent to divide Optionee's participation
                           with others or resell or otherwise distribute the
                           Options or the Shares;

                                    (iii) Neither Optionee nor anyone acting on
                           Optionee's behalf has paid or will pay a commission
                           or other remuneration to any person in connection
                           with the acquisition of the Options or the Shares;
                           and

                                    (iv) At the time of exercise of any Option,
                           Optionee will have to make all the representations
                           and warranties contained in this Section 6 with
                           respect to the Shares to be issued and other
                           representations concerning investment intent as a
                           condition of the issuance of the Shares by the
                           Company.

                                       11
<PAGE>

         7.       Restriction on Issuance of Shares. The Company shall not be
obligated to sell or issue any Shares pursuant to this Agreement if such
issuance would result in the violation of any laws, including the Securities Act
or any applicable state securities laws. The Company agrees to use its
reasonable best efforts to qualify for available exemptions under the Securities
Act or any applicable state securities laws which will enable it to issue Shares
hereunder in compliance with applicable law.

         8.       Rights as a Shareholder. Optionee shall have no rights as a
shareholder with respect to any Shares covered by the Options until the date of
exercise and payment of the Exercise Price in accordance with the terms of this
Agreement. Subject to Section 3 hereof, no adjustment shall be made for
dividends or other rights for which the record date is prior to the date such
stock certificate is issued.

         9.       No Employment Rights. This Agreement shall not confer upon
Optionee any right with respect to the continuance as an employee of the Company
or any Subsidiary, nor shall it interfere in any way with the right of the
Company or any Subsidiary to terminate such employment at any time.

         10.      GOVERNING LAW. ALL ISSUES AND QUESTIONS CONCERNING THE
CONSTRUCTION, VALIDITY, ENFORCEMENT AND INTERPRETATION OF THIS AGREEMENT SHALL
BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF
DELAWARE, WITHOUT GIVING EFFECT TO ANY CHOICE OF LAW OR CONFLICT OF LAW RULES OR
PROVISIONS (WHETHER OF THE STATE OF DELAWARE OR ANY OTHER JURISDICTION) THAT
WOULD CAUSE THE APPLICATION OF THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE
OF DELAWARE.

         11.      Notices. All notices and other communications under this
Agreement shall be in writing, and shall be deemed to have been duly given on
the date of delivery if delivered personally or when received if mailed to the
party to whom notice is to be given, by certified mail, return receipt
requested, postage prepaid, or by reputable overnight courier service (charges
prepaid), or transmitted by facsimile with answer-back confirmation to the
following address, or any other address specified, by notice duly given:

                  To Optionee at:           Robert L. Caulk
                                            8825 Page Boulevard
                                            St. Louis MO 63114

                  To the Company at:        United Industries Corporation
                                            8825 Page Boulevard
                                            St. Louis, MO 63114
                                            Attention: General Counsel
                                            Telecopy: (314) 253-5947

         12.      Withholdings. Except to the extent prohibited by applicable
law, Optionee may satisfy

                                       12
<PAGE>

any required withholding obligation upon the exercise of an Option hereunder by
either of the following methods, or by a combination of such methods: (a)
tendering a cash payment or (b) delivering to the Company previously acquired
Shares, or having the Company withhold Shares otherwise deliverable upon the
exercise of an Option, in either case having an aggregate Fair Market Value,
determined as of the date the withholding obligation arises, less than or equal
to the amount of the total withholding obligation.

         13.      Pro Rata Exercise. The Shares of Common Stock covered by this
Option shall only be exercised, if at all, ratably among the Class A Shares and
Class B Shares, based on the aggregate number of Class A Shares and Class B
Shares subject to the Options granted hereunder.

         14.      Registration of Shares. At any time after UIC Holdings,
L.L.C., together with its affiliates, holds less than 25% of the Common Stock
held by such entities as of the date hereof, Optionee shall have the right to
cause the Company to register all of the Shares on a Form S-8, along with a Form
S-3 reoffer prospectus, under the Securities Act of 1933, as amended from time
to time, or any successor form thereto, and the Company shall use its reasonable
best efforts to comply with such request in a timely manner.

         15.      Rule 701 Offering. THE GRANT OF THE OPTION HEREUNDER (AND THE
PURCHASE AND SALE OF SHARES UPON ANY EXERCISE OF THE OPTION PURSUANT TO THE
TERMS HEREOF) IS MADE PURSUANT TO AN EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT OF 1933, AS AMENDED, PROVIDED BY RULE 701,
PROMULGATED BY THE SECURITIES AND EXCHANGE COMMISSION.

                                    * * * * *

                                       13
<PAGE>

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

                          UNITED INDUSTRIES CORPORATION

                          By:
                          Name:  Matthew M. McCarthy
                          Title: Vice President, General Counsel & Secretary

                          OPTIONEE:

                          Robert L. Caulk

                                       14
<PAGE>

                                     ANNEX I

The Performance Goal with respect to each fiscal year from 1999 through 2003 are
as determined by the Board of Directors.

             Fiscal Year                         Performance Goal
             -----------                         ----------------
                1999                             $
                2000
                2001
                2002
                2003
               Aggregate                         $
                                                 =

                          UNITED INDUSTRIES CORPORATION
                    FORM OF EXERCISE AND STOCK TRANSFER POWER

United Industries Corporation
8825 Page Boulevard
St. Louis, MO 63114

Ladies and Gentlemen:

                  Reference is made to the Stock Option Agreement between United
Industries Corporation (the "Company") and me (the "Option Agreement"), whereby
on ________________, 1999, I was granted an option to purchase all or any part
of an aggregate of 400,000 shares (the "Class A Shares") of the Company's Class
A Voting Common Stock, par value $0.01 per share and 400,000 shares (the "Class
B Shares" and, together with the Class A Shares (the "Shares") of the Company's
Class B Non-Voting Common Stock, par value $0.01 per share (collectively,
"Common Stock"), at $5.00 per share. I hereby exercise my right to purchase
Shares (on a pro rata basis among the Class A Shares and the Class B Shares)
(the "Exercised Shares") of Common Stock at said price and deliver to you
herewith the full purchase price of such Exercised Shares, as follows:

         p        Cash or check in the amount $               ;
<PAGE>

         p        Previously owned shares of Common Stock having a Fair Market
                  Value (as defined in the Option Agreement) equal to $_______
                  as of the date hereof, and otherwise in accordance with
                  Section 4.2 of the Option Agreement; and/or

         p        If the Common Stock is publicly traded, by delivery to the
                  Company of the attached copy of irrevocable broker
                  instructions to deliver promptly to the Company $_______ of
                  loan proceeds, or $_________ of proceeds of the sale of
                  Exercised Shares of Common Stock deliverable upon exercise of
                  the option represented by the Option Agreement.

                  I understand that no Exercised Shares will be issued until
arrangements satisfactory to the Company have been made for appropriate income
tax withholding, if any, and I have executed the Company's Stockholders
Agreement (the "Stockholders Agreement").

                          PAGE 1A - STOCK EXERCISE FORM
                  In the event that the Exercised Shares have not been
registered under the Securities Act of 1933, as amended from time to time, upon
the date hereof, I hereby represent and warrant to the Company as follows:

1.       Because of my business relationship with the Company and with the
         management of the Company, I have had access to all material and
         relevant information concerning the Company, thereby enabling me to
         make an informed investment decision with respect to my investment in
         the Company, and all pertinent data and information requested by me
         from the Company or its representatives concerning the business and
         financial condition of the Company and the terms and conditions of the
         Option Agreement have been furnished. I acknowledge that I have had the
         opportunity to ask questions of and receive answers from and to obtain
         additional information from the Company and its representatives
         concerning the present and proposed business and financial condition of
         the Company.

2.       I have such knowledge and experience in financial and business matters
         that I am capable of evaluating the merits and risks of investing in
         the Exercised Shares.

3.       I understand that:

         (a)      An investment in the Exercised Shares represents a highly
                  speculative investment,  and there can be no assurance as
                  to the success of the company in its business; and

         (b)      There is at present no market for the  Exercised  Shares and
                  there can be no assurance  that a market will develop in
                  the future.
<PAGE>

4.       I understand and agree that:

         (a)      There can be no assurance that the Exercised Shares will be
                  registered under the Securities Act of 1933, as amended (the
                  "Securities Act"), or any state securities laws and if they
                  are not so registered, they will only be issued and sold in
                  reliance upon certain exemptions contained in the Securities
                  Act and applicable state securities laws, and my
                  representations and warranties contained herein are essential
                  to any claim of exemption by the Company under the Securities
                  Act and such state laws;

         (b)      If the Exercised Shares are not so registered, the Exercised
                  Shares will be "restricted securities" as that term is defined
                  in Rule 144 promulgated under the Securities Act;

                          PAGE 2A - STOCK EXERCISE FORM

         (c)      I cannot resell or transfer the Exercised Shares without
                  registration under the Securities Act and applicable state
                  securities laws unless the Company receives an opinion of
                  counsel acceptable to it (as to both counsel and the opinion)
                  that such registration is not necessary, the cost of such
                  opinion to be borne by the Company;

         (d)      Only the Company can register the Exercised Shares under the
                  Securities Act and applicable state securities laws;

         (e)      The Company has not made any representations to me that the
                  Company will register the Exercised Shares under the
                  Securities Act or any applicable state securities laws, or
                  with respect to compliance with any exemption therefrom;

         (f)      I am aware of the conditions  for obtaining an exemption for
                  the resale of the Exercised  Shares under the Securities
                  Act and any applicable state securities laws;

         (g)      The Company may, from time to time, make stop transfer
                  notations in its transfer records to ensure compliance with
                  the Securities Act, and any applicable state securities laws,
                  and any additional restrictions imposed by state securities
                  administrators; and

         (h)      I understand that stock certificates evidencing the Exercised
                  Shares shall bear restrictive legends as more particularly
                  described in the Option Agreement and the Stockholders
                  Agreement.
<PAGE>

5.       I acknowledge that:

         (a)      I am acquiring the Exercised Shares for my own account and not
                  on behalf of any other person;

         (b)      I am acquiring the Exercised Shares for investment and not
                  with a view to distribution or with the intent to divide my
                  participation with others or resell or otherwise distribute
                  the Exercised Shares; and

         (c)      Neither I nor anyone acting on my behalf has paid or will pay
                  a commission or other remuneration to any person in connection
                  with the acquisition of the Exercised Shares.

                          PAGE 3A - STOCK EXERCISE FORM

6.       I acknowledge and understand that an investment in the Shares involves
         a high degree of risk and my entire investment could be lost, and that
         these risks include, but are not limited to, the following:

         (a)      The manufacture and sale of the Company's products is highly
                  competitive, and the Company competes with a number of other
                  companies, some of which may be larger and better capitalized.
                  In response to such competition, the Company may be required
                  to lower selling prices to maintain or increase market share,
                  and such measures could adversely affect the Company's gross
                  margins and operating results.

         (b)      The Company may be a party to administrative actions and
                  lawsuits, including product liability claims involving its
                  products. An adverse final judgment in any such proceeding or
                  related actions could have a material adverse effect on the
                  Company's financial condition.

         (c)      UIC  Holdings,  L.L.C.,  owns in excess of 90% of the voting
                  shares of the Company.  Accordingly,  the UIC Holdings, L.L.C.
                  may elect the Company's directors and amend the Company's
                  certificate of incorporation,  effect a merger, sale of assets
                  or other business  acquisition or disposition,  and otherwise
                  control the outcome of many actions requiring stockholder
                  approval.

         (d)      The Company is highly leveraged and is capitalized with a
                  significant amount of senior and subordinated debt. The rights
                  of the holders of the Common Stock are junior to the rights
                  held by the senior lenders and the holders of subordinated
                  debt
<PAGE>

                  of the Company. Any proceeds on a sale of the Company or
                  on liquidation, dissolution or winding up of the Company would
                  first be used to pay outstanding debt incurred by the Company.
                  There is no guarantee that the Company can repay its
                  obligations to those with rights senior to the holders of
                  Common Stock or that any money will be available for
                  distribution to holders of Common Stock.

         (e)      Upon termination of employment, the Company has the right (but
                  not the obligation) to purchase all or a portion of the
                  Exercised Shares. As a result, I could be required to hold the
                  Exercised Shares for a period of time after the termination of
                  my employment with the Company.

         (f)      The financial  performance of the Company is largely
                  dependent on the  capabilities  of its senior  management. The
                  retention of the key members of

                                 PAGE 4A - STOCK EXERCISE FORM

                  management is critical to the success of the Company. Loss of
                  key personnel could lead to poor execution of operating
                  strategies, lost sales and could adversely impact the
                  Company's operating results.

                                     Signature
                                                    Robert L. Caulk

                                     Address:       8825 Page Blvd.
                                                    St. Louis MO 63114

                                     Social Security No.: xxx-xx-xxxx
<PAGE>

                          PAGE 5A - STOCK EXERCISE FORM

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