Document:

Exhibit
10.52

 

META GROUP,
INC.

 

AMENDED AND
RESTATED EMPLOYMENT, COMPENSATION AND RELEASE AGREEMENT

 

This Amended and Restated
Employment, Compensation and Release Agreement (“Agreement”) is made as of August 23, 2004 by and between META
Group, Inc., a Delaware corporation (the “Company”), Rubin Systems Inc. (“RSI”) and Howard A. Rubin  (“Dr. Rubin”).

 

The Company, RSI and Dr.
Rubin (the “Parties”) have
previously entered into an Asset Purchase Agreement and an Employment and
Management Agreement, each dated as of October 27, 2000 and each as
amended by Amendment No. 1 and Amendment No. 2 thereto, respectively, dated July 31,
2001 and January 30, 2003 (as amended, the “Prior Arrangements”).  The
Parties have also entered into an Employee Noncompetition Agreement dated October 27,
2000, as amended July 31, 2002 (as amended, the “Noncompetition Agreement”) and attached hereto as Exhibit A,
which the Parties intend to remain in effect, as amended hereby, following the
Effective Date of this Agreement (as defined below).

 

The Parties have mutually
agreed, in light of their desire to amend certain aspects of their
relationship, that it is now appropriate to amend and restate all prior
compensatory arrangements in this Agreement and to terminate such prior
arrangements except to the extent specifically provided herein.

 

Accordingly, the Parties
desire to enter into this Agreement to amend and restate in full Dr. Rubin’s
compensatory arrangements with the Company, to specify the terms of Dr. Rubin’s
going forward employment relationship with the Company, and to release each
other from claims or potential claims that may have arisen in connection with
Dr. Rubin’s and the Company’s relationship through the Effective Date of this
Agreement.

 

Therefore, in consideration
of the mutual promises made herein and other valuable consideration, receipt of
which is hereby acknowledged, the Parties agree as follows:

 

1.                                       Employment
Transition.  The Parties agree and acknowledge that:

 

(a)                                  Dr. Rubin shall remain an employee of the Company
effective on the Effective Date of this Agreement, reporting to the Company’s
Senior Vice President, Global Consulting;

 

(b)                                 Effective immediately upon and concurrently
with the Effective Date of this Agreement, and continuing until December 31,
2008 (unless sooner terminated in accordance with Section 1(d) below) (the
“Term”), Dr. Rubin shall be
employed by the Company with the designation “META Fellow”.  Dr. Rubin will be listed as such on the
Company’s external and internal website.

 

(c)                                  Dr. Rubin will devote his full-time business
efforts exclusively to the Company during the Term (it being understood that
Dr. Rubin may continue to devote immaterial amounts of time to business or
political ventures not related to the Company’s business provided such efforts
do not breach the Noncompetition Agreement); and

 

(d)                                 The Company may terminate Dr. Rubin’s
arrangement hereunder (i) in the event of Dr. Rubin’s breach of the
Noncompetition Agreement, or (ii) Dr. Rubin’s violation of a material Company
policy, in each case following written notice and a 30-day cure period.  Dr. Rubin may resign from his role with the
Company hereunder at any time.  In the
event of such termination or resignation, no further amounts shall be payable
under this Agreement, except for amounts previously earned but not paid under
this Agreement and business expense reimbursements under Section 2(e)
below.

 

 

2.                                       Compensation and
Benefits.  Effective for all purposes as of January 1,
2004 (it being acknowledged that on the date of signing this Agreement Dr.
Rubin shall be paid for the first two quarters of the 2004 fiscal year):

 

(a)                                  Initial Payment.  Dr.
Rubin shall engage in retainer consulting work on behalf of the Company under
this Agreement.  Dr. Rubin shall be paid
50% of Dr. Rubin’s billings, less (i) the apportioned base salaries of 
Dr. Rubin’s administrative assistant (apportioned based on number of
people supported by the assistant (e.g., if two people supported, 50%), (ii)
the cost of other internal Company staff/consultants associated with the
execution of such retainer consulting work (based on their hours as captured in
the Company’s project accounting systems, where the hours are valued at the
same direct cost rates that the Company uses for revenue recognition), (iii) the
costs and fees of other external contractors/consultants associated with the
execution of such retainer consulting work (based on their hours as captured in
the Company’s project accounting systems, where the hours are valued at the
same direct cost rates that the Company uses for revenue recognition), and (iv)
nonreimburseable travel and entertainment expenses, external commissions
or royalties for use of external products or external marketing expenses
associated with the execution of such retainer consulting work (the “Compensatory Formula”), provided that
Dr. Rubin shall receive a non-recoverable draw of $20,000 per month against the
Compensatory Formula.  Such payments will
be made no later than the last business day of the month following any
given month for which the Compensatory Formula is being computed.

 

(b)                                 Earn-Out Payment.  Dr.
Rubin’s prior earn-out arrangements with the Company (including those under all
Prior Arrangements) are hereby terminated and shall comprise in their entirety
the following:

 

(i)                                     Subject to the other provisions of this Section 2(b),
Dr. Rubin’s total Earn-Out potential during the Term of this Agreement
(assuming this Agreement remains in effect for its full Term to December 31,
2008) is $2,300,000, targeted at up to $460,000 per year.

 

(ii)                                  The above amount shall be comprised of (A) up
to $230,000 per year earned, if at all, pursuant to Section 2(b)(iv)
below, and (B) up to $230,000 per year earned, if at all, pursuant to the
Annual Bonus described in Section 2(b)(iii) below.

 

(iii)                               Subject to Section 2(b)(v), Dr. Rubin
will be eligible to potentially receive an annual bonus payment of up to
$230,000 determined by the Compensation Committee of the Board based on Company
performance and/or other criteria that the Compensation Committee will
establish (the “Annual Bonus”).  The Annual Bonus shall be payable, if at all,
in accordance with the Company’s customary bonus practices as established or
modified from time to time.  Dr. Rubin
acknowledges and agrees that no Annual Bonus is guaranteed, and remains subject
in all respects to Compensation Committee approval; provided that Dr. Rubin
shall not be treated differently in the administration of the Annual Bonus
practices from other senior executives of the Company participating in the
Global Executive Bonus Plan portion of the 2004 Bonus Plan (it being
acknowledged that Dr. Rubin’s failure to achieve his MBO targets, or the
Company’s failure to reach its performance targets, or the failure of the
Company to fund the Annual Bonus program in part or in full can adversely
affect Dr. Rubin’s Annual Bonus payment, if any).

 

(iv)                              Subject to Section 2(b)(v), Dr. Rubin
will receive a percentage of WWB Business (WWB benchmark, WWB publication and
WWB guru consulting) revenue, up to $230,000 per year for the years set forth
below, as follows:

 

	
  Fiscal
  2004

  	
  -

  	
  10%

  
	
   

  	
   

  	
   

  
	
  Fiscal
  2005

  	
  -

  	
  8%

  
	
   

  	
   

  	
   

  
	
  Fiscal
  2006

  	
  -

  	
  7%

  
	
   

  	
   

  	
   

  
	
  Fiscal
  2007

  	
  -

  	
  5%

  
	
   

  	
   

  	
   

  
	
  Fiscal
  2008

  	
  -

  	
  4%

  

 

2

 

Such amounts will be paid
quarterly, promptly after financial statements for each quarter are prepared
and reviewed by the Company’s auditors, and no amounts in excess of $230,000
per year can be earned, accrued or carried over into future periods.

 

As used herein, the term “WWB
Business” refers to a branded retainer service with written deliverables and
access to a database (the WW Benchmark database) for customer self-analysis, a
publication, and guru consulting associated with the above WWB Business
retainer service; provided that revenues associated with alternative
uses of the data in the WW Benchmark database by the Company or its customers
(by citation or otherwise, e.g.,
IT360) not part of the branded retainer service offering do not count as WWB
Business revenue for purposes of this Agreement.

 

(v)                                 Dr. Rubin shall not be eligible for any
earn-out amounts in a given fiscal year if Dr. Rubin’s retainer consulting
revenue for such fiscal year is less than $1,000,000 (pro rated for partial
fiscal years); provided that if Dr. Rubin dies or is disabled, he (or
his estate) remains entitled to the portion of earn-out provided in Section 2(b)(iv)
and a portion of any Annual Bonus awarded pursuant to Section 2(b)(iii),
pro-rated for the period of the year that Dr. Rubin worked.

 

(vi)                              If the Company materially modifies the
structure of the WWB Business, the parties will negotiate in good faith
regarding a revised Earn-Out structure for the amounts contemplated by Section 2(b)(iv).

 

(c)                                  Benefits.  Dr.
Rubin shall continue to be eligible to participate in any Company employee
benefit plans offered from time to time to Company employees similarly
positioned within the Company.

 

(d)                                 Stock Options and
Other Equity Awards.  As of May 10, 2004, Dr. Rubin holds the
following options to purchase  shares of
Company Common Stock (collectively the “Options”):

 

(i)                                     An option to purchase 15,000 shares of Common
Stock granted under the Company’s Director Stock Option Plan on January 29,
1999, all of which are vested and exercisable (the “First Option”);

 

(ii)                                  An option to purchase 100,000 shares of
Common Stock granted under the Company’s 1995 Stock Plan on October 27,
2000, of which 63,000 shares are vested and exercisable (the “Second Option”); and

 

(iii)                               An option to purchase 7,500 shares of Common
Stock granted under the Company’s Director Stock Option Plan on January 28,
2000, all of which are vested and exercisable (the “Third Option”).

 

The
Company is not required to grant Dr. Rubin any additional options or other
equity awards.  Each of the Options shall
continue to be governed by the terms of the Company plan under which it was
issued and any individual option agreement between Dr. Rubin and the Company
that relates to such Option (each such agreement, referred to respectively, an “Option Agreement”); except that the
Second Option Agreement is hereby amended to provide that the remaining
unvested options under the Second Option shall vest in 46 equal monthly
increments on the last day of each month from January 2004 to October 2007.  The date of the Company’s Annual Meeting of
Stockholders shall be the director resignation date for all purposes under the
First Option Agreement and the Third Option Agreement.  Following the Effective Date of this
Agreement, Dr. Rubin will have the period specified in the applicable Option
Agreement to exercise any then-vested Options.

 

Other than as set forth
above in this Section 2(d), Dr. Rubin has no right, title, claim or
interest against the Company, or any subsidiary, affiliate or successor of the
Company, in or to any options or other rights to purchase capital stock of the
Company.

 

3

 

(e)                                  Expense
Reimbursement.  The Company will pay or reimburse Dr. Rubin
for all reasonable business expenses incurred or paid by Dr. Rubin on or prior
to the end of the Term in the performance of his duties and responsibilities
hereunder, subject to any reasonable expense policy set by the Company (and as
modified from time to time by the Company), and such reasonable substantiation
and documentation requirements as may be specified by the Company from time to
time.

 

(f)                                    All Compensation.  This Section 2
sets forth all compensation and other payment arrangements between the Company
and Dr. Rubin (and his affiliates and assigns), and all Prior Arrangements in
this regard are hereby terminated, superseded and of no further force or effect
effective as of January 1, 2004.

 

3.                                       Release of Claims.  Dr.
Rubin, on his own behalf and on behalf of any and all who might claim through
him (including specifically but without limitation RSI), agrees that the
foregoing consideration represents settlement in full of all outstanding
obligations owed to him and those might claim through him by the Company, its
officers, managers, supervisors, agents and employees, any Related Corporation
and any other subsidiaries, affiliates or successors of the Company
(collectively, the “Company Releasees”).  Dr. Rubin, on his own behalf and on behalf of
any and all who might claim through him, hereby fully and forever releases the
Company Releasees from, and agrees not to sue concerning, any claim, duty,
obligation or cause of action relating to any matters of any kind, whether
presently known or unknown, suspected or unsuspected, matured or unmatured,
that he or they may possess arising from any omissions, acts, facts or
circumstances that have occurred up until and including the Effective Date (as
defined in Section 15 below) including, without limitation:

 

(a)                                  any and all claims relating to or arising
from Dr. Rubin’s employment relationship with the Company;

 

(b)                                 any and all claims
relating to, or arising from, the Prior Arrangements, including, without
limitation, any claims for fraud, misrepresentation, breach of covenant, breach
of fiduciary or other duty, breach of duty under applicable state corporate or
other law, and securities fraud under any state or federal law;

 

(c)                                  any and all claims relating to, or arising
from, Dr. Rubin’s right to purchase, or actual purchase of, or holding of,
shares of capital stock of the Company, including, without limitation, any
claims for fraud, misrepresentation, breach of fiduciary duty, breach of duty
under applicable state corporate law, and securities fraud under any state or
federal law;

 

(d)                                 any and all claims under the law of any
jurisdiction including, but not limited to, wrongful discharge of employment;
constructive discharge from employment; termination in violation of public
policy; discrimination; breach of contract, both express and implied; breach of
a covenant of good faith and fair dealing, both express and implied; promissory
estoppel; negligent or intentional infliction of emotional distress; negligent
or intentional misrepresentation; negligent or intentional interference with
contract or prospective economic advantage; unfair business practices;
defamation; libel; slander; negligence; personal injury; assault; battery;
invasion of privacy; false imprisonment; and conversion;

 

(e)                                  any and all claims for violation of any
federal, state or municipal statute, including, but not limited to, Title VII
of the Civil Rights Act of 1964, the Civil Rights Act of 1991, the Age
Discrimination in Employment Act of 1967, the Americans with Disabilities Act
of 1990, the Fair Labor Standards Act, the Employee Retirement Income Security
Act of 1974, the Worker Adjustment and Retraining Notification Act, the Older
Workers Benefit Protection Act, or the Family and Medical Leave Act;

 

(f)                                    any and all claims
for violation of any federal, state or municipal statute;

 

(g)                                 any and all claims for violation of the
federal, or any state, constitution;

 

(h)                                 any and all claims arising out of any other
laws and regulations, including those relating to employment or employment
discrimination; and

 

(i)                                     any and all claims for attorneys’ fees and
costs;

 

4

 

provided, however,
that this release does not extend to any rights, benefits or claims under this
Agreement or to claims of indemnification under the Certificate of
Incorporation or By-laws of the Company or any insurance policies maintained by
the Company.

 

Dr.
Rubin agrees that the release set forth in this Section shall be and
remain in effect in all respects as a complete general release as to the
matters released.

 

Dr. Rubin further agrees that he is not aware of any
claim against the Company Releasees other than the claims or potential claims
that are released under this Section 3. 
He expressly agrees to waive, to the extent permissible, any and all
rights and benefits conferred upon him by any statute, common law principle, or
other provision negating the validity or enforceability of waivers of claims
that exist but are unknown to us at the time of the waiver.

 

3A.                             Release of Claims.  The
Company, on its own behalf and on behalf of any and all that might claim
through it, hereby fully and forever releases RSI, Dr. Rubin, his heirs,
executors, administrators, successors and assigns (collectively, the “Rubin Releasees”) from, and agrees not
to sue concerning, any claim, duty, obligation or cause of action relating to
any matters of any kind, whether presently known or unknown, suspected or
unsuspected, matured or unmatured, that it may possess arising from any
omissions, acts, facts or circumstances that have occurred up until and
including the Effective Date (as defined in Section 15 below) including,
without limitation:

 

(a)                                  any and all claims
relating to or arising from Dr. Rubin’s employment relationship with the
Company;

 

(b)                                 any and all claims
relating to, or arising from, the Prior Arrangements, including, without
limitation, any claims for fraud, misrepresentation, breach of covenant, breach
of fiduciary or other duty, breach of duty under applicable state corporate or
other law, and securities fraud under any state or federal law;

 

(c)                                  any and all claims under
the law of any jurisdiction including, but not limited to, breach of contract,
both express and implied; breach of a covenant of good faith and fair dealing,
both express and implied; promissory estoppel; negligent or intentional
misrepresentation; negligent or intentional interference with contract or
prospective economic advantage; unfair business practices; defamation; libel;
slander; negligence; personal injury; assault; battery; invasion of privacy;
false imprisonment; and conversion;

 

(d)                                 any and all claims for
violation of any federal, state or municipal statute;

 

(e)                                  any and all claims
for violation of the federal, or any state, constitution;

 

(f)                                    any and all claims
arising out of any other laws and regulations; and

 

(g)                                 any and all claims for
attorneys’ fees and costs;

 

provided, however,
that this release does not extend to any rights, benefits or claims under this
Agreement.

 

The
Company agrees that the release set forth in this Section shall be and
remain in effect in all respects as a complete general release as to the
matters released.

 

The Company further agrees that it is not
aware of any claim against Dr. Rubin other than the claims or potential claims
that are released under this Section 3A. 
The Company expressly agrees to waive, to the extent permissible, any
and all rights and benefits conferred upon it by any statute, common law
principle, or other provision negating the validity or enforceability of
waivers of claims that exist but are unknown at the time of the waiver.

 

4.                                       Dr. Rubin Covenants.

 

(a)                                  Noncompetition
Agreement.  In consideration of the benefits provided
hereunder, Dr. Rubin acknowledges and agrees that his obligations to the
Company under the Noncompetition Agreement survive

 

5

 

the
termination of his relationship with the Company under this Agreement; provided
that, and the Company agrees that, the noncompetition and no solicitation
covenants in such Noncompetition Agreement shall survive only for a period of
one year following the end of the Term.

 

(b)                                 Nondisparagement.  In
consideration of the benefits provided hereunder, Dr. Rubin agrees that he will not, either
directly or indirectly, hereafter make any disparaging, defamatory, libelous or
slanderous comments of any type or nature whatsoever about the Company, the
Company Releasees or the Company’s business to anyone, and will not engage in
any action that would constitute tortious interference with the contracts,
relationships and prospective economic advantage of the Company or any of the
other Company Releasees.

 

(c)                                  Contract Approval.  Dr.
Rubin’s work under this Agreement shall be pursuant to customer contracts and
product/service release protocols that are approved as to form and content by
the Company’s normal processes; such approval not to be unreasonably withheld
or delayed.

 

4A.                             Company Covenant.  In
consideration of the benefits provided the Company hereunder, the Company
agrees that it will not, either directly or indirectly, hereafter make any
disparaging, defamatory, libelous or slanderous comments of any type or nature
whatsoever about Dr. Rubin, the Rubin Releasees or Dr. Rubin’s business to
anyone, and will not engage in any action that would constitute tortious
interference with the contracts, relationships and prospective economic
advantage of Dr. Rubin.

 

5.                                       Acknowledgment of
Waiver of Claims under ADEA.  Dr. Rubin acknowledges that he is waiving and
releasing any rights he may have under the Age Discrimination in Employment Act
of 1967 (“ADEA”) and that this waiver and release is knowing and
voluntary.  The Parties agree that this
waiver and release does not apply to any rights or claims that may arise under
ADEA after the Effective Date of this Agreement.  Dr. Rubin acknowledges that the consideration
given for his release under this Agreement is in addition to anything of value
to which he was already entitled.  He
further acknowledges that he has been advised by this writing that (a) he
should consult with an attorney prior to executing this Agreement; (b)
he has at least twenty-one (21) days from the date he receives this Agreement
within which to consider this Agreement; (c) he has at least seven (7) days
following the execution of this Agreement by the parties to revoke the
Agreement; and (d) this Agreement shall not be effective until that 7-day
revocation period has expired.  Any
revocation should be in writing and delivered to Vanessa Bottazzi at the
Company by close of business on the seventh day from the date that Dr. Rubin
signs this Agreement.  Dr. Rubin
understands that, although he has twenty-one (21) days to consider the
Agreement, he may accept the terms of the Agreement at any time within those
twenty-one (21) days.

 

6.                                       No Other Payments
Due; Release of Assumed Liabilities.  The Parties agree that the
Company has paid Dr. Rubin all salary owed him through the Effective Date, and
that the Company has paid him all bonuses, accrued vacation and other sums as
are due to him as of such date.  Dr.
Rubin, RSI and the Company also agree that those liabilities specified in Annex
I to Amendment No. 2 of the Prior Arrangements, are released by the Company and
that the Company has no further liability or obligation therefore effective as
of the Effective Date of this Agreement.

 

7.                                       Material Breach of
Agreement.  The Parties agree and acknowledge that upon material breach by Dr.
Rubin of this Agreement, including the covenants contained in Section 4
above, the Company would sustain irreparable harm, and, therefore, Dr. Rubin
acknowledges and agrees that in addition to any other remedies that the Company
may have under this Agreement or otherwise, the Company will be entitled to
obtain equitable relief, including specific performance and injunctive relief,
restraining him from committing or continuing any such material breach or
directing him to perform his obligations pursuant to this Agreement.  In addition to any equitable relief to which
the Company may be entitled, Dr. Rubin acknowledges and agrees that any such
material breach by him will terminate any and all obligations that the Company
would otherwise have to provide any further benefits under this Agreement,
effective upon the date on which Dr. Rubin first takes an action constituting a
material breach of this Agreement, and further that the Company will be
entitled to recover the full amount of any payments under this Agreement made
to him after the date of such material breach, plus costs including attorneys
fees incurred in connection with instituting any actions to enforce this Section 7.

 

8.                                       Filing of Agreement.  The
Parties acknowledge and agree that this Agreement may be filed by the Company
with the Securities Exchange Commission (the “SEC”).

 

6

 

9.                                       Authority.  The
Company and RSI each separately represent and warrant that each has the
authority to act on behalf of themselves and to bind themselves and all who may
claim through them to the terms and conditions of this Agreement.  Dr. Rubin represents and warrants that he has
the capacity to act on his own behalf and on behalf of all who might claim
through him to bind them to the terms and conditions of this Agreement.  Each Party warrants and represents that there
are no liens or claims of lien or assignments in law or equity or otherwise of
or against any of the claims or causes of action released herein.

 

10.                                 No Representations.  No
Party has relied upon any representations or statements made by any other Party
hereto which are not specifically set forth in this Agreement.

 

11.                                 Severability.  In
the event that any provision hereof becomes or is declared by a court or other
tribunal of competent jurisdiction to be illegal, unenforceable or void, this
Agreement shall continue in full force and effect without said provision.

 

12.                                 Entire Agreement.  This
Agreement represents the entire agreement and understanding between the
Company, RSI and Dr. Rubin concerning the matters provided in this Agreement
after the Effective Date of this Agreement. 
This Agreement supersedes and replaces any and all prior agreements and
understandings concerning Dr. Rubin’s relationship with the Company, the
continuation of that relationship, and his compensation by the Company, and the
matters provided in this Agreement, and the Parties expressly agree that all
prior arrangements on these subjects are void and terminated upon the Effective
Date of this Agreement.  Notwithstanding
the above, the Noncompetition Agreement and the Option Agreements remain in
place and effective pursuant to their respective terms except to the extent
expressly modified by this Agreement.

 

13.                                 No Oral
Modification.  This Agreement may only be amended in writing
signed by Dr. Rubin, RSI and the Company.

 

14.                                 Governing Law.  This
Agreement shall be governed by the laws of the State of Connecticut, without
regard to its conflicts of law provisions.

 

15.                                 Effective Date. This Agreement is effective on the eighth
(8th) day after it has been signed by both Parties. (the “Effective Date”).

 

16.                                 Counterparts.  This
Agreement may be executed in counterparts, and each counterpart shall have the
same force and effect as an original and shall constitute an effective, binding
agreement on the part of each of the undersigned.

 

17.                                 Assignment. 
Neither RSI nor Dr. Rubin will not assign this Agreement or any interest
herein.  The Company may assign this
Agreement to a corporation controlling, controlled by or under common control
with the Company, including a successor to the Company, without the consent of
Dr. Rubin.

 

18.                                 Severability.  In
the event that any nonmaterial provision of this Agreement is determined to be
legally invalid, the affected provision will be stricken from the Agreement and
the remaining terms of the Agreement will be enforced so as to give effect to
the intention of the Parties to the maximum extent practicable.  In the event that any material provision of
this Agreement is determined to be legally invalid by a court of competent
jurisdiction, the parties hereto, upon returning the consideration exchanged
pursuant to this Agreement, may discontinue performance under this Agreement.

 

19.           Notices.  All notices or other communications required
or permitted hereunder shall be in writing and shall be faxed, mailed or
delivered to each party as follows:  (i)
if to Dr. Rubin or RSI, at their respective addresses or facsimile numbers
furnished to the Company in writing, or (ii) if to the Company, at its
principal executive offices, to the attention of Hank Satterthwaite or his
successor, or at such other address or facsimile number as the Company shall
have furnished to Dr. Rubin in writing. 
All such notices and communications will be deemed effectively given the
earlier of (i) when received, (ii) when delivered personally, (iii) one
business day after being delivered by facsimile (with receipt of appropriate confirmation),
(iv) one business day after being deposited

 

7

 

with
an overnight courier service of recognized standing or (v) four days after
being deposited in the U.S. mail, first class with postage prepaid.

 

20.                                 Consent to
Jurisdiction.  Dr. Rubin and RSI hereby irrevocably submit
to the exclusive jurisdiction of the state or federal courts of the State of
Connecticut for the purpose of any claim or action arising out of or based upon
this Agreement, Dr. Rubin’s employment with the Company and/or termination
thereof, or relating to the subject matter covered in this Agreement, and
agrees not to commence any such claim or action other than in the above-named
courts.  The prevailing party in any
litigation under this Agreement shall be entitled to recover its costs and
expenses, including reasonable attorneys’ fees, from the non-prevailing party.

 

21.                                 Voluntary Execution
of Agreement.  This Agreement is executed voluntarily and
without any duress or undue influence on the part or behalf of the Parties
hereto, with the full intent of releasing all claims.  The Parties acknowledge that:

 

(a)                                  they have read this Agreement;

 

(b)                                 they have been represented in the
preparation, negotiation, and execution of this Agreement by legal counsel of
their own choice or that they have voluntarily declined to seek such counsel;
provided that both Parties acknowledge and agree that Heller Ehrman White &
McAuliffe LLP solely represents the Company in connection with this Agreement,
and generally, and does not represent Dr. Rubin individually in any capacity;

 

(c)                                  they understand the terms and consequences of
this Agreement and of the releases it contains; and

 

(d)                                 they are fully aware of the legal and binding
effect of this Agreement.

 

The Parties have executed
this Amended and Restated Employment, Compensation and Release Agreement on the
respective dates set forth below.

 

	
   

  	
  META Group, Inc.

  
	
   

  	
   

  
	
  Dated as of 

  	
  August 23

  	
   

  	
   

  	
  , 2004

  	
  By:

  	
  /s/ Henry B.
  Satterthwaite

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
  Senior Vice
  President, Global Consulting

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Howard A. Rubin, an
  individual

  
	
   

  	
   

  
	
  Dated as of 

  	
  August 23

  	
   

  	
   

  	
  , 2004

  	
  /s/ Howard
  A. Rubin

  	
   

  
	
   

  	
  Howard A. Rubin

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Rubin Systems Inc.

  
	
   

  	
   

  
	
  Dated as of 

  	
  August 23

  	
   

  	
   

  	
  , 2004

  	
  By:

  	
  /s/ Howard A. Rubin

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
  President,
  CEO

  	
   

  
											

 

8

 

Exhibit
A

 

Noncompetition
Agreement

 

(Previously filed as Exhibit A
to Exhibit F to Exhibit 10.24 of the Company's Form 10-K for the year ended December
31, 2000, and the amendment filed as Exhibit 10.12 to the Company’s Form 10-Q
for the quarter ended September 30, 2002).

 

9Exhibit 10.52

EMPLOYMENT AND
NON-COMPETITION AGREEMENT

 

 

THIS EMPLOYMENT AND
NON-COMPETITION AGREEMENT (this “Agreement”) is effective September 13, 2004,
by and between Stephen L. Tooker (“Employee”) and United Industries
Corporation, a Delaware corporation (together with its subsidiaries and
successors, the “Company”).  The Company
and Employee are sometimes collectively referred to herein as the “Parties” and
individually as a “Party.”

 

WHEREAS, the
Company and Employee desire to enter into an Employment Agreement to govern the
terms and conditions of Employee’s employment with the Company.

 

NOW, THEREFORE, in
consideration of the mutual covenants and agreements set forth herein, the
Parties agree as follows:

 

1.     Employment. 
Employee shall serve in the position of President of the United States Home and Garden Division of the
Company.  Employee shall have such responsibilities, duties and authorities, and shall
render such services or act with such title or in such other capacity for the
Company and its affiliates, as the Company’s Chief Executive Officer (“CEO”),
its Board of Directors (the “Board”) or such other person designated by the CEO
or the Board at an intermediate level below the CEO to whom other presidents of
divisions of the Corporation directly report, such as a chief operating officer
(“Designee”), shall from time to time reasonably direct.  Employee shall devote Employee’s best
efforts, energies and abilities and Employee’s full business time, skill and attention (except as described below and
except for permitted vacation periods and reasonable periods of illness or
other incapacity) to the business and affairs of the Company.  Employee shall perform the duties and carry
out the responsibilities assigned to Employee, to the best of Employee’s
ability, in a diligent, trustworthy and businesslike manner for the purpose of
advancing the business of the Company. 
It is understood and agreed that Employee may be required to devote a
considerable amount of time to travel in connection with the performance of his
duties and responsibilities or at the direction of the Company.

 

2.     Base Compensation, Incentive and Signing
Bonus.

 

(a)           The
Company shall pay Employee a base salary at a rate of three hundred twenty-five
thousand dollars ($325,000) per annum (the “Base Salary”), payable monthly pro
rata in accordance with the Company’s regular payroll practices less
withholding as required by applicable law.  Increases to the Base Salary
shall be considered by the Company on an annual basis in a manner consistent
with the Company’s compensation policies then in force.

(b)           Commencing in 2005, Employee shall be
eligible to receive an annual incentive bonus with a target of sixty percent
(60%) of his Base Salary (the “Target Bonus”) (subject to a maximum of seventy-five  percent (75%) of his Base Salary and a
minimum of thirty percent (30%) of his Base Salary; such minimum shall be
payable only if at least 90% of the target goals and objectives are achieved).  Payment of any annual incentive bonus
provided for herein by the 

 

 

 

Company to Employee shall
be pursuant to and in accordance with the Company’s incentive bonus plan then
in effect and shall be subject to the following terms and conditions:

(i)                                     The Employee’s actual incentive bonus
earnings will be conditional upon successful attainment of certain goals and
objectives as established and determined by the Company’s CEO or his designee
and communicated to the Employee.

(ii)                                  Within ninety (90) days after the
conclusion of any fiscal year (the “Bonus Assessment Date”), the CEO or his
designee, as applicable, will assess the achievement of the previous fiscal
year’s goals and objectives and will calculate any earned incentive bonus
amounts for Employee for that previous fiscal year.  Any incentive bonus earned by Employee for
the previous fiscal year will be paid out to Employee after the relevant Bonus
Assessment Date in compliance with the Company’s usual procedures.

(iii)                               If the Employee’s employment with the
Company ceases for any reason whatsoever prior to the conclusion of a fiscal
year, the Employee will not be eligible to receive any incentive bonus in
respect of that fiscal year except as otherwise provided in Sections 8(e) and
8(f) of this Agreement.

(c)           On the thirtieth (30th)
day following Employee’s first day of employment, Employee shall receive a
bonus of Fifty Thousand Dollars ($50,000.00), less withholding as required by
law (“Signing Bonus”).  In the event
Employee voluntarily terminates his employment pursuant to Section 8(a) hereof
(without “Good reason”, as defined therein) or is terminated for Cause pursuant
to Section 8(c) hereof before completing one (1) year of consecutive service
with Company Employee shall repay the full amount of the Signing Bonus to
Company.

3.     Term.  The Employee’s
term of employment pursuant to this Agreement shall commence on the date hereof
and shall remain in effect unless
terminated pursuant to Paragraph 8.

 

4.     Benefits, Options, Taxes and Withholding.

(a)           In addition to the Base Salary
payable to Employee hereunder, Employee shall be entitled to such benefits as
are, from time to time, afforded to other employees of the Company, which
benefits may be revised, removed or altered by the Company.  By way of example, such benefits generally
include:

(i)                                     hospitalization, disability,
life, health and dental insurance in amounts consistent with Company policy for
its other senior executive employees, as reasonably determined by the Company;

(ii)                                  Employee shall be eligible to
receive an automobile allowance at an initial allowance rate of Thirteen
Thousand Eight Hundred Dollars ($13,800) per annum, payable monthly pro rata;
and

 

 

2

 

(iii)                               other benefit arrangements, to
the extent made generally available by the Company to its other senior
executive employees.

(b)           In addition to the Base Salary
payable to Employee hereunder, Employee shall be entitled to the following:

(i)                                     four (4) weeks paid vacation
each year, consistent with Company policy for its other senior executive employees
and provided that unused vacation time shall not be carried over to subsequent
years; and

(ii)                                  reimbursement for reasonable,
ordinary and necessary out-of-pocket business expenses incurred by Employee in
the performance of his duties, subject to the Company’s policies in effect from
time to time with respect to travel, entertainment and other expenses,
including without limitation, requirements with respect to reporting and
documentation of such expenses.

(c)           Equity Incentive Compensation.  Employee shall be granted, on or before
December 30, 2004,  options to purchase
shares 300,000 shares (150,000 Class A Shares and 150,000 Class B Shares) of
the Company’s common stock at a fair market value of Six Dollars ($6.00) per
share, vesting (subject to the Company’s Repurchase Option as described in the
Stock Option Agreement) ratably over a three (3) year period commencing on the
effective date of this Agreement.

(d)           Taxes
and Withholding.  All compensation payable to Employee
hereunder is stated in gross amount and shall be subject to all applicable
withholding taxes, other normal payroll and any other amounts required by law
to be withheld.

5.     Confidential Information.   Employee
recognizes that Employee’s position with the Company requires considerable responsibility
and trust, and, acknowledges that he will be involved with the
development and implementation, and will have total access to, information
relating to marketing strategies, customer lists, customer preferences, and
other trade secrets and other confidential and proprietary information of the
Company and its subsidiaries, including without limitation marketing,
information systems and records, business plans and strategies, and customer
data and information, and that all such information and the information,
observations and data relating to the Company and its subsidiaries which
Employee shall obtain during the course of Employee’s employment with the
Company and its subsidiaries and its performance under this Agreement (whether
or not such information is or was developed by Employee) (collectively, “Confidential
Information”) are the property of the Company and its subsidiaries; and (ii)
the Company has a legitimate business interest in protecting the foregoing,
which constitute trade secrets, valuable confidential business information even
if not qualifying as a trade secret, substantial relationships with prospective
and existing customers, sources of business and relationships and customer
goodwill associated with their ongoing business.

For purposes of this
Section 5, the term “Confidential Information” 
does not include information which: (i) was known to Employee prior to
his employment with the Company and was not acquired from the Company on a
confidential basis; (ii) is or becomes publicly available 

 

3

 

other than through a breach of this Agreement; or
(iii) is at any time provided to Employee by a third party who did not acquire
the information from the Company on a confidential basis.

(a)           Therefore, Employee agrees that
during Employee’s employment with the Company and following the cessation for
any reason whatsoever of Employee’s employment:

(i)                                     Employee shall not use for Employee’s own
purposes or disclose to any third party any Confidential Information without
the prior written consent of the Company’s CEO or his designee, unless and to
the extent that the aforementioned matters become generally known to and
available for use by the public other than as a result of Employee’s or Company
management’s acts or omissions.  Employee
further agrees to take all appropriate steps to protect such Confidential
Information against disclosure, misuse, espionage, loss and theft.

(ii)                                  In the event Employee is required by law
to disclose any such Confidential Information, Employee shall promptly notify
the Company’s CEO or his designee in writing, which notification shall include
the nature of the legal requirement and the extent of the required disclosure,
and shall cooperate with the Company, at the Company’s reasonable expense, to
preserve the confidentiality of such information consistent with applicable
law.

(iii)                               Upon cessation of Employee’s employment
for any reason whatsoever, or at any other time the Company may request,
Employee shall deliver to the Company all memoranda, notes, plans, records,
reports, computer tapes, printouts and software and other documentation (and
copies thereof) relating to the business of the Company and its subsidiaries
which Employee may then possess or have under Employee’s control.

(iv)                              Employee acknowledges that all
inventions, innovations, improvements, developments, methods, designs,
analyses, drawings, reports and all similar or related information (whether
patentable or not) which relate to the Company and its subsidiaries or the
actual or anticipated business, research and development or existing or future
products or services of the Company and its subsidiaries and which are
conceived, developed or made by Employee during Employee’s employment and at
the direction of the Company (the “Work Product”) belong to the Company.  Employee shall promptly disclose such Work
Product to the CEO or his designee and perform all actions reasonably requested
by the CEO or his designee (whether during or after the Employment Period) to
establish and confirm such ownership (including, without limitation,
assignments, powers of attorney and other instruments).

(v)                                 If Employee develops any Work Product
that is protected by copyright, Employee hereby waives unconditionally any “moral
rights” Employee may have in such Work Product.

(b)           By reason of the foregoing, Employee
agrees that in the event of an alleged or threatened breach by Employee of any
of the provisions of this Paragraph 5, the Company or its successors or assigns
may, in addition to all other rights and remedies existing in its favor, apply 

 

4

 

to any court of competent
jurisdiction for specific performance and/or injunctive or other relief in
order to enforce or prevent any violations of the provisions hereof.

(c)           Employee agrees that the covenants
made in this Paragraph 5 shall be construed as an agreement independent of any
other provision of this Agreement and shall survive any order of a court of
competent jurisdiction terminating any other provision of this Agreement.

6.     Non-Competition. 
Employee acknowledges that Employee is familiar with the trade secrets
and other Confidential Information of the Company and its subsidiaries.  Employee further acknowledges that Employee’s
services have been of special, unique and extraordinary value to the Company
and its subsidiaries, that Employee has been substantially responsible for the
growth and development of the Company and its subsidiaries and the creation and
preservation of the Company and its subsidiaries’ goodwill.  Employee acknowledges and agrees that the
Company would be irreparably damaged if Employee were to provide services to
any person or entity competing with the Company in violation of this Paragraph
6 and that such competition by Employee, person or entity would result in a
significant loss of goodwill by the Company. 
Employee further acknowledges and agrees that the covenants and
agreements set forth in this Paragraph 6 were a material inducement to the
Company to enter into this Agreement and to perform its obligations hereunder,
and that the Company would not obtain the benefit of the bargain set forth in
this Agreement as specifically negotiated by the Parties if Employee breached
the provisions of this Paragraph 6. 
Therefore, in further consideration for the payment of the compensation
to be paid to Employee hereunder, and in order to protect the value of the
Company’s and its subsidiaries’ businesses (including the goodwill inherent
therein as of the date hereof), Employee agrees that:

(a)           Subject to Paragraph 6(c) below,
during Employee’s employment with the Company and for a twelve (12) month
period following the cessation for any reason whatsoever of Employee’s
employment (the “Non-Competition Period”), Employee shall not have any
affiliation (as defined below) with any corporation, partnership or other
business entity, enterprise or other person or entity (other than the Company
and its subsidiaries) having any location within the United States and Canada that
engages in the business (the “Business”) of manufacturing, distributing,
marketing and/or selling lawn and garden controls, insecticides, pesticides,
insect repellent, fertilizer, plant food, cat litter, soils, seed for consumer,
home or professional use, or raw materials for fertilizer products sold to or
into the consumer market (the “Products”), or any other business in which the
Company is engaged or has active plans in which to engage as of the date of the
Employee’s termination of employment; provided  that nothing
contained herein shall be construed to prohibit the Employee from purchasing up
to an aggregate of 5% of any class of the outstanding voting securities of any
other entity whose securities are listed on a United States national securities exchange or traded in the NASDAQ
national market system.  For
purposes of this Paragraph 6(a), the term “affiliation” shall mean any direct
or indirect interest in such entity, enterprise or other person or entity,
whether as an officer, director, employee, investor, partner, shareholder, sole
proprietor, trustee, consultant, agent, representative, broker, finder,
promoter, affiliate or otherwise.

(b)           Subject to Paragraph 6(c) below,
during the Non-Competition Period, Employee shall not,

 

5

 

(i)                                     contact, approach or solicit for the
purpose of offering employment to or hiring (whether as an employee,
consultant, agent, independent contractor or otherwise) any person employed by
the Company or any subsidiary of the Company at any time during the
Non-Competition Period, without the prior written consent of the Company;

(ii)                                  call-on or solicit any customer of the
Company or any of its subsidiaries with respect to the manufacturing,
distributing, marketing and/or selling the Products for consumer use;

(iii)                               solicit or attempt to induce any customer
or other business relation of the Company or any of its subsidiaries into any
business relationship which would be likely to materially harm the Company or
any of its subsidiaries, or,

(iv)                              induce or attempt to induce any customer,
supplier, licensee or other business relation of the Company or any of its
subsidiaries to cease doing business or materially diminish their relationship
with any such person or entity or in any way intentionally interfere with the
relationship between any such customer, supplier, licensee or business relation
and the Company or any its subsidiaries.

(c)           Employee’s employment with the Company has special, unique and extraordinary value
to the Company and the Company would be irreparably damaged if Employee were to
provide services to any person or entity in violation of the provisions of this
Agreement.  In the event of an
alleged or threatened breach by the Employee of any of the provisions of this
Paragraph 6, the Company or its successors or assigns may, in addition to all
other rights and remedies existing in its favor, apply to any court of
competent jurisdiction for specific performance and/or injunctive or other
relief in order to enforce or prevent any violations of the provisions hereof
(including the extension of the Non-Competition Period by a period equal to the
length of the violation of this Paragraph 6). 
In the event of an alleged breach or violation by Employee of any of the
provisions of this Paragraph 6, the Non-Competition Period described above
shall be extended beyond the period otherwise stated herein until such alleged
breach or violation has been duly cured. 
Employee agrees that the restrictions set forth in this Paragraph 6,
including any such extension period, are reasonable.

(d)           Employee acknowledges and agrees that
the Company is engaged in the Business throughout the United States and Canada,
and that the covenants contained in this Agreement are necessary to the protection
of the Company’s legitimate interests in its trade secrets, customer base, and
good will. Employee further acknowledges and agrees that the non-competition
covenants contained in this Agreement will not prevent Employee from gainful
employment and earning a livelihood in other, non-competing activities and
industries. If, at the time of enforcement of any of the provisions of this
Paragraph 6, a court holds that the restrictions stated therein are
unreasonable under the circumstances then existing, the Parties hereto agree
that the maximum period, scope or geographical area reasonable under such
circumstances shall be automatically substituted for the stated period, scope
or area.

(e)           Employee agrees that the covenants
made in Paragraph 6(a) and (b) shall be construed as an agreement independent
of any other provision of this Agreement and shall 

 

6

 

survive any order of a
court of competent jurisdiction terminating any other provision of this
Agreement.

(f)            During Employee’s employment with
the Company and following the cessation for any reason whatsoever of Employee’s
employment, Employee, on behalf of himself, herself and Employee’s agents,
covenants and agrees to refrain from making any disparaging or knowingly false
remarks to third parties concerning the Employer, broadly distributing e-mails
to or otherwise communicating with employees of the Company with respect to the
Company’s business or publishing any materials regarding the Company or the
Company’s business or related to the Company’s present or past relationship or
association with Employee without the prior consent of the CEO of the Company.
During Employee’s employment with the Company and following the cessation for
any reason whatsoever of Employee’s employment, Employer, on behalf of itself
and Employer’s agents, covenants and agrees to refrain from making any
disparaging or knowingly false remarks to third parties concerning Employee.

7.     Other Remedies. 
The existence of any claim or cause of action by Employee against the
Company or any of its subsidiaries, whether based on this Agreement or
otherwise, will not constitute a defense to any application or motion for
specific performance and/or injunctive or other relief brought against Employee
by the Company or its successors or assigns in relation to the covenants and
restrictions set out in Paragraphs 5 and 6 of this Agreement.  Notwithstanding any other provision of this
Agreement, in the event of a material breach by the Employee of any provision
of this Agreement which is not cured by Employee within 30 days after notice to
him of such breach, in addition to any and all other rights and remedies
available to the Company, the Company  shall be entitled, without
further notice to Employee, to cease making any further payments to Employee
that would otherwise be owing under any other provision of this Agreement.

8.     Termination of Employment.

(a)           By Employee.

(i)                                     Employee may at any time terminate
Employee’s employment hereunder for voluntary reasons or may at any time
terminate this Agreement for “Good Reason” as defined herein by giving the
Company sixty (60) days prior written notice of Employee’s intended voluntary
resignation date (“Resignation Date”) or the effective date of the termination of
this Agreement his Good Reason  (“Good
Reason Termination Date”).  If employee
intends to terminate this Agreement for Good Reason, the reasons shall be
stated in his written notice of resignation

(ii)                                  The Company reserves the right to waive
any voluntary resignation notice period or Good Reason Termination Date in
excess of thirty (30) days, in which case the Resignation Date or Good Reason
Termination Date will be the date that the reduced resignation notice or Good
Reason termination period expires.  The
Company also reserves the right to require Employee to immediately return all
company property at any point during the resignation notice period, and to
require Employee to refrain from attending at the workplace during the
remainder of the resignation notice period. At the Resignation Date, the
Company shall have no 

 

7

 

                                                further obligation to Employee and
Employee shall have no further rights or obligations hereunder, except for
Employee’s obligations under Paragraphs 5 and 6 which shall survive such
termination of employment pursuant to Paragraph 16, and except for the Company’s
obligations under Paragraphs 2 and 4 hereof for unpaid salary, bonus payments,
and such benefits or unreimbursed expenses that have accrued but have not been
paid as of the Resignation Date and
except for the Company’s obligations under Paragraphs 8(e) or 8(f) in the case
of a termination for Good Reason.

(iii)                               For purposes of
this Agreement, “Good Reason” shall mean the occurrence of any of the following
events:  (A) a substantial diminution or other substantive
adverse change, not consented to by Employee in writing, in the nature or scope
of Employee’s responsibilities, authorities, powers, functions or duties; (B)
any removal, during the Employment Term, from Employee of his title of
President of the United States Home and
Garden Division of the Company (or equivalent title); (C) any reduction, not consented to by
Employee, in Employee’s Base Salary then in effect, or any reduction of
Employee’s Aggregate Annual Target Cash Compensation, which is defined to mean,
for purposes of this Section 8(a)(iii), the sum of Employee’s Base Salary then
in effect and Target Bonus then in effect; (D) a breach by the Company
of any of its other material obligations under this Agreement and the failure
of the Company to cure such breach within thirty (30) days after written notice
thereof by Employee; (E) the
relocation, not consented to by Employee, of the Company’s office at which
Employee is principally employed to a location more than fifty (50) miles from
such office, or the requirement by the Company that Employee be based at an
office other than the Company’s office at such location on an extended basis,
except for required travel on Company business to an extent substantially
consistent with Employee’s business travel obligations; (F) the failure
of the Company to obtain the agreement from any successor to the Company to
expressly assume and agree in writing 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, as required by Paragraph 10; and (G) the
failure of the Company to grant Employee the options as set forth in Section
4(c) of this Agreement on or before December 30, 2004.

(b)           On Account of Death or Disability.  Upon termination of the Employee’s employment
on account of the Employee’s death or disability, the Company shall have no
further obligation to Employee and Employee shall have no further rights or
obligations hereunder, except for the Company’s obligations under Paragraphs 2
and 4 hereof for unpaid salary, bonus payments, and such benefits or
unreimbursed expenses that have accrued but have not been paid as of the
effective date of termination, and (in the case of termination on account of
disability) except for Employee’s obligations under Paragraphs 5 and 6 which
shall survive such termination of employment pursuant to Paragraph 16.  For purposes of this Paragraph 8(b), “disability”
means physical or mental incapacity or disability which prevents the Employee
from performing the essential duties of the Employee’s position, with no
reasonable prospect of timely recovery, as determined by the Company in the
exercise of its reasonable discretion on the basis of medical evidence
satisfactory to the Company.

 

8

 

(c)           By the Company for Cause.  The Company shall have the right at any time
to terminate Employee’s employment immediately for Cause (as hereinafter
defined).  In the event Employee’s
employment hereunder is terminated for Cause, the Company shall have no further
obligation to Employee hereunder, except for the Company’s obligations under
Paragraphs 2 and 4 hereof for unpaid salary, bonus payments, and such benefits
or unreimbursed expenses that have accrued but have not been paid as of the
effective date of termination.   For
purposes of this Agreement, the term “Cause” shall include, but is not
limited to, any of the following reasons:

(i)                                     If Employee shall breach or violate any
of the provisions of Paragraphs 5 or 6 of this Agreement;

(ii)                                  If Employee shall fail to comply with any
other material term or condition of this Agreement or shall engage in any
misconduct or failure to perform or act which materially and adversely affects
the business or affairs of the Company or any of its subsidiaries or divisions,
and has failed to reasonably remedy same within twenty (20) days of the written
notice by the Company to Employee of same;

(iii)                               If Employee shall commit (A) an
indictable criminal offence (whether or not a conviction is registered and
whether or not the offence is against the Company, but excluding minor traffic
offenses) which, in the exercise of the Company’s reasonable judgment,
negatively affects Executive’s ability to perform his job duties and
responsibilities, or (B) an act of dishonesty, willful mismanagement, fraud or
embezzlement against the Company or any of its subsidiaries or divisions;

(iv)                              If Employee shall have failed or refused
to carry out the reasonable and lawful instructions of the CEO or his Designee
(other than as a result of illness or disability) concerning duties or actions
consistent with Employee’s position and has failed to reasonably remedy same within
twenty  (20) days of the written notice
by the Company to Employee of same.

In the event
Employee’s employment hereunder is terminated for Cause, Employee’s obligations
under Paragraphs 5 and 6 hereof shall survive such termination of employment
pursuant to Paragraph 16.

 

(d)           By the Company Without Cause.  The Company shall have the right at any time
to terminate Employee’s employment without Cause during the term hereof by
providing Employee with sixty (60) days written notice of the Company’s intent
to terminate this Agreement.  Employee’s
obligations under Paragraph 5 and 6 shall survive the termination of this
Agreement in accordance with Paragraph 16.

(e)           Payments Upon Certain Terminations.  In the event Employee’s employment hereunder
is terminated without Cause or by the
Employee for Good Reason, the Company shall have no further obligation
to make any payments to Employee hereunder except for unpaid salary, bonus or
unreimbursed expenses that have accrued but have not been paid as of the date of
termination, plus, as and for severance benefits (the “Severance Benefits”):

 

9

 

(i)                                     the Company shall continue to pay to
Employee, on a monthly basis, the Base Salary as set forth in
Paragraph 2(a) hereof in effect at the time of termination less
withholding as required by law, for twelve (12) months following the date of
termination;

(ii)                                  the Employee shall receive a pro rata
portion of the incentive bonus in respect of that year that the Employee would
have received had his employment not terminated based upon the EBITDA of the
Company and/or the Home and Garden Division of the Company, as may be
applicable to Employee’s incentive bonus, at the time of Employee’s termination
of employment without Cause or Employee’s termination of this Agreement with
Good Reason, as the case may be.  Payment of any sum owed to
Employee hereunder shall be paid on or before the 30th day following
such termination of employment.   As used
herein, “EBITDA” is defined to mean net income from continuing
operations before interest expense, income taxes, depreciation and
amortization, excluding any non-recurring or extraordinary items, as determined
in accordance with generally accepted accounting principles (“GAAP”),
consistently applied, as reasonably determined by the Company.

(iii)                               the Company shall continue to provide to
Employee group health plan benefits to the extent authorized by and consistent
with 29 U.S.C. § 1161 et seq. (commonly known as “COBRA”), with the cost of the
regular premium for such benefits shared in the same relative proportion by the
Company and Employee as in effect on the date of termination for the same
period as any payments made pursuant to clause (i) above;

provided that (x) prior to the Company’s commencing such
Severance Benefits, Employee and the Company shall sign a mutual general
release reasonably acceptable to the Company, and (y) the Employee is not in
breach of the provisions of Paragraphs 5 and 6 hereof.  Notwithstanding the foregoing, nothing in
this Paragraph 8(e) shall be construed to affect Employee’s right to receive
COBRA continuation entirely at Employee’s own cost to the extent that Employee
may continue to be entitled to COBRA continuation after Employee’s right to
cost sharing under Paragraph 8(e)(ii) ceases. 
Notwithstanding anything else herein to the contrary, the Company’s
obligations pursuant to this Paragraph 8 shall terminate immediately if
Employee engages in conduct which is in violation of Paragraph 5 or 6 hereof.

(f)            Payments Upon a “Sale” of the
Company.       During the term of the
Agreement, if a “Sale” of the Company shall occur, as the term Sale is defined
below, and if Employee’s employment with the Company is (x) terminated by the
Company for any reason other than for Cause or (y) terminated by the Employee
for Good Reason during the twelve (12) month period following such Sale, then
in lieu of the severance provisions set forth in the Agreement, the Company
shall have no further obligation to make any payments to Employee hereunder
except for unpaid salary, bonus or unreimbursed expenses that have accrued but
have not been paid as of the date of termination, plus, as and for severance
benefits (the “Severance Benefits”):

(i)                                   the Employee shall receive a pro rata
portion of the incentive bonus in respect of that year that the Employee would
have received had his employment not 

 

10

 

                                                terminated based upon the EBITDA of the
Company and/or the Home and Garden Division of the Company, as may be
applicable to Employee’s incentive bonus, at the time of Employee’s termination
of employment without Cause or Employee’s termination of this Agreement with
Good Reason, as the case may be. Payment of any sum owed to Employee hereunder
shall be paid on or before the 30th day following such termination
of employment. As used herein, “EBITDA” is defined to mean net income
from continuing operations before interest expense, income taxes, depreciation
and amortization, excluding any non-recurring or extraordinary items, as
determined in accordance with generally accepted accounting principles (“GAAP”),
consistently applied, as reasonably determined by the Company;

 

(ii)                                  the Company shall continue to pay to
Employee, on a monthly basis, the Base Salary as set forth in
Paragraph 2(a) hereof in effect at the time of termination less
withholding as required by law, for twenty-four (24) months following the date
of termination;

 

(iii)                               the Company shall provide to Employee group health
plan benefits to the extent authorized by and consistent with 29 U.S.C. § 1161
et seq. (commonly known as “COBRA”), with the cost of the regular premium for
such benefits shared in the same relative proportion by the Company and
Employee as in effect on the date of termination for eighteen (18) months
following such date of termination, and provided further, that if the Employee’s
coverage remains in effect at the end of such 18-month period, Employee shall
further continue to receive group health benefits for an additional six (6)
months thereafter, for a maximum of 24 months, with the cost of the regular
premium for such benefits shared in the same relative proportion by the Company
and Employee as in effect on the date of termination; and

 

provided that (x) prior to the Company’s
commencing such Severance Benefits, Employee and the Company shall sign a
mutual general release reasonably acceptable to the Company, and (y) the
Employee is not in breach of the provisions of Paragraphs 5 and 6 hereof, and further
provided that, any provision of Employee’s current Noncompetition and
Nonsolicitation covenants in Section 6 to the contrary notwithstanding,
Employee agrees that he shall continuously abide by such covenants for
twenty-four (24) months from the date his employment terminates by reason of
such Sale.

 

For purposes hereof, the
term “Sale” shall mean:

 

(i)                                     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 

 

11

 

                                                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;

 

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

 

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

 

(iv)                              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.

 

(g)           Resignation from Office.  In the event the Employee’s employment
terminates for any reason, then Employee shall forthwith resign in writing from
any office or directorship held with the Company or with any of its
subsidiaries.

(h)           Public Statement of Termination.  In the event the Employee’s employment
terminates for any reason, the Company and Employee shall agree upon a public
statement pertaining to the Employee’s termination of employment, and the terms
of said statement shall not be subject to subsequent modification by either
party unless required by law; provided, however, that in the event the Company
and the Employee are unable in good faith to agree on such a statement, the
Company may make public statements as are necessary to comply with the law.

9.     Relocation Expenses. 
Reimbursement of certain out-of-pocket expenses Employee may incur in
relocating to St. Louis will be provided by the Company in accordance with the “Executive-Homeowner”
portion of the Company’s Relocation Policy attached hereto as Exhibit A,
provided that Employee executes the
Relocation Expense Reimbursement Agreement attached thereto.

10.   Successors and Assigns.  This Agreement shall be binding upon and
inure to the benefit of the Company and its affiliates, successors and assigns
and shall be binding upon and inure to the benefit of Employee and Employee’s
legal representatives and assigns; provided that in no event shall Employee’s
obligations to perform future services for the Company be delegated or
transferred by Employee without the prior written consent of the Company (which
consent may be withheld in its sole discretion).  The Company shall assign or transfer its
rights hereunder to any of its affiliates or to a successor corporation in the
event of merger, reorganization, consolidation or transfer or sale of all or
substantially all of the assets of the Company; provided, however, no such
assignment or transfer shall relieve the Company of its obligations hereunder.

 

12

 

11.   Modification of Waiver.  No amendment,
modification or waiver of this Agreement shall be binding or effective for any
purpose unless it is made in a writing signed by the Party (with the approval
of the CEO or his designee in the case of the Company) against who enforcement
of such amendment, modification or waiver is sought.  No course of dealing between the Parties to
this Agreement shall be deemed to affect or to modify, amend or discharge any
provision or term of this Agreement.  No
delay on the part of the Company or Employee in the exercise of any of their
respective rights or remedies shall operate as a waiver thereof, and no single
or partial exercise by the Company or Employee of any such right or remedy
shall preclude other or further exercises thereof.  A waiver of right or remedy on anyone
occasion shall not be construed as a bar to or waiver of any such right or
remedy on any other occasion.

12.   Governing Law.  All issues and questions concerning the
construction, validity, enforcement and interpretation of this Agreement and
the exhibits and schedules hereto shall be governed by, and construed in
accordance with, the laws of the State of Missouri, without giving effect to
any choice of law or conflict of law rules or provisions (whether of the State
of Missouri or any other jurisdiction) that would cause the application of the
laws of any jurisdiction other than the State of Missouri. The Parties agree
that any legal proceeding arising out of or relating to this Agreement will be
instituted in the Circuit Court of St. Louis County, Missouri, or the United
States District Court for the Eastern District of Missouri, and no other, and
each of the Parties further consents to the personal and exclusive jurisdiction
of either such court, and hereby waives any objection to the laying of venue of
any such proceeding and any claim or defense of inconvenient forum.

13.   Severability.  Whenever possible each provision and term of
this Agreement shall be interpreted in such manner as to be effective and valid
under applicable law, but if any provision or term of this Agreement shall be
held to be prohibited by or invalid under such applicable law, then such provision
or term shall be ineffective only to the extent of such prohibition or
invalidity, without invalidating or affecting in any manner whatsoever the
remainder of such provision or term or the remaining provisions or terms of
this Agreement; provided that if a court having competent jurisdiction shall
find that the covenant contained in Paragraph 6(a) or (b) hereof is not
reasonable, such court shall have the power to reduce the duration and/or
geographic area and/or scope of such covenant, and the covenant shall be
enforceable in this reduced form.

14.   No Strict Construction.  The language used in this Agreement shall be
deemed to be the language chosen by the Parties hereto to express their mutual
intent, and no rule of strict construction shall be applied against any Party.

15.   Representations.

(a)           Employee represents and warrants to
the Company that (i) Employee’s execution, delivery and performance of Employee’s
obligations this Agreement does not and shall not conflict with, or result in
the breach of or violation of, any other agreement, instrument, order, judgment
or decree to which Employee is a party or by which Employee is bound, (ii)
Employee is not a party to or bound by any employment agreement, noncompete
agreement or confidentiality agreement with any other person or entity, except
for confidentiality agreements 

 

13

 

with the Dial Corporation
and the Procter & Gamble Company, and (iii) upon the execution and delivery
of this Agreement by the Company, this Agreement shall be Employee’s valid and
binding obligation, enforceable in accordance with its terms.  Employee hereby acknowledges and represents
that Employee has consulted with independent legal counsel regarding Employee’s
rights and obligations under this Agreement and that he fully understands the
terms and conditions contained herein.

(b)           The Company represents and warrants
to Employee that (i) the Company’s execution, delivery and performance of
Company’s obligations under this Agreement does not and shall not conflict
with, or result in the breach of or violation of, any other agreement,
instrument, order, judgment or decree to which the Company is a party or by
which the Company is bound, and (ii) upon the execution and delivery of this
Agreement, this Agreement shall be the Company’s valid and binding obligation,
enforceable in accordance with its terms.

16.   Survival.  The provisions of Paragraphs 2(b)(iii), 5, 6,
8(e), (f), (g) and (h), 10,12 and 16 through 20 of this Agreement shall survive
shall survive the cessation of Employee’s employment with the Company under any
circumstances whatever, however and whenever occurring or effected, and shall
be enforceable by the Company or Employee, as applicable, in a court of
competent jurisdiction.

17.   Notice.  Any notice required or permitted hereunder
shall be given in writing and shall be deemed effectively given upon personal
delivery or upon deposit in the United States Post Office mail, postage
prepaid, certified mail, return receipt requested, addressed to the other Party
hereto at Employee’s or its address shown below:

If to the Company:

 

United Industries
Corporation

2150 Schuetz Road

St. Louis, MO
63146

ATTN:  General Counsel

 

If to Employee:

 

Stephen L. Tooker

334 Scenic Cove
Lane

St. Charles, MO
63303

 

or at such other address
as such Party may designate by ten days advance written notice to the other
party.

 

18.   Captions.  The captions used in this Agreement are for
convenience of reference only and do not constitute a part of this Agreement
and shall not be deemed to limit, characterize or in any way affect any
provision of this Agreement, and all provisions of this Agreement shall be
enforced and construed as if no caption had been used in this Agreement.

 

14

 

19.           Entire Agreement:  This Agreement constitutes the entire
agreement between the Parties and set out all the covenants, promises,
warranties, representations, conditions, understandings and agreements between
the Parties pertaining to the subject matter of this Agreement and supersedes
all prior employment agreements, understandings, negotiations and discussions,
whether oral or written. There are no covenants, promises, warranties,
representations, conditions, understandings or other agreements, oral or
written, express, implied or collateral between the Parties in connection with
the subject matter of this Agreement except as specifically set forth in this
Agreement.

20.           Counterparts.  This Agreement may be executed in counterparts,
any one of which need not contain the signatures of more than one party, but
all such counterparts taken together shall constitute one and the same
instrument.

 

Remainder
of page intentionally left blank

 

15

 

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

 

	
   

  	
  UNITED INDUSTRIES CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Its:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  STEPHEN L. TOOKER

  

 

16

 

Relocation Program - Executive - Homeowner

 

ADMINISTRATION

 

Purpose

This policy is designed
to assist transferring employees and approved new hires with their Spectrum
Brands’ requested relocation. Assistance provided is in the form of services
and financial support. The intent of this assistance is to support the
employee, new hire and family during the move process and reduce the cost
impact of the relocation. It is not the intent of Spectrum Brands to assist in
upgrading housing or lifestyle. All assistance is provided at the discretion of
Spectrum Brands’ Human Resources department and is subject to change at any
time.

 

Executive Relocation Program

This policy guideline
applies to executive level employee homeowners (origin location) who are
relocated from and to locations within the United States.

 

General

Appropriate approval of
the relocation by the employee’s management must be received prior to any
actions or expenditures taking place related to the relocation.

 

Employees are responsible
for keeping accurate expense records, completing relocation expense reports and
providing clear, readable receipts. The Director of Human Resources is
responsible for interpretation of this policy and must approve any exceptions.

 

Eligibility

Eligibility for
relocation assistance is based on the following requirements:

 

•                  The change in commuting distance
between the origin work location and the destination work location is 50 miles
or more based on the shortest common route. 
The employee must meet the IRS 50 mile test.

•                  The relocation and all assistance
occurs within 12 months from the transfer or hire date.

 

Policy Coverage

Current Executive level
employees and approved new hires who are homeowners. Homeowner refers to
employees who own a home at the origin location. Loss on Sale, expense
reimbursement and other assistance is provided for the primary residence only.
The home must be a single (fee simple or condominium) with normal acreage for a
household and cannot have any commercial value or activities.

 

17

 

POLICY
PROVISIONS

 

 

Introduction

You’re about to make a
major change. Relocating to a new area can be very exciting. There are many new
opportunities and experiences ahead, and a new assignment awaits you. It is
also common to feel apprehensive and perhaps sad about leaving family and
friends behind. Moving and changing jobs surface many emotions and is typically
a stressful time for the whole family.

 

Spectrum Brands offers a
complete relocation program including professional assistance and financial
support. Our objective is to reduce the burden to you and your family. You are
strongly encouraged to use this assistance regardless of how many times you
have moved. The world is constantly changing, including real estate markets,
the national and local economies, laws, practices, trends and tastes. Keeping
up with all of the things that impact relocation is impossible. Use this
assistance to make educated decisions about your home and your future
lifestyle.

 

Executive Relocation has
been engaged by Spectrum Brands to administer this policy, related expense
reimbursements and provide various services related to your relocation. They
are experts in corporate relocation and will act as your advocate with the
various real estate, household goods movers and other service providers. The
Executive Relocation Client Service Manager (CSM) will serve as your single
point of coordination for all services.

 

You are encouraged to
read this document carefully and thoroughly. It provides information about
reimbursements, services and procedures, as well as some insight about
relocating. This policy governs all relocation. It is incumbent upon you to
follow the policy.

 

Homefinding Trip 

In order for you and your
spouse to choose a community and a home, you may make two trips to visit the
new location for a maximum of four days each. The employee and spouse or
another adult household member who will relocate to the destination location
may take the trip. You will be reimbursed for coach airfare, hotel, phone,
rental car and meals. Should you use your personal automobile for the trip
mileage (at rate in Spectrum Brands’ travel policy) or rental car costs and
expenses as per Spectrum Brands’ standard travel policies will be reimbursed.
Child or elder care costs will be reimbursed up to a maximum of $50 per day.
Expense reports should be submitted to the Executive Relocation CSM for
reimbursement.

 

Homefinding Assistance 

If you are considering
the purchase of a home, the Executive Relocation CSM will provide homefinding
assistance to help locate qualified real estate agent(s) offering the desired
type of agency representation. The CSM will interview you and/or spouse prior
to the homefinding trip to assure agent(s) are selected for the area(s) of interest
and are prepared to guide you during the trip. This assistance helps assure the
homefinding trip is properly focused and successful

 

18

 

Rental Assistance 

If you choose to rent a
home or apartment (if you decide not to purchase or to delay your purchase)
your CSM will provide assistance locating communities and rentals that meet
your needs. You will be guided in what information is needed for lease
applications and in identifying and clearing any credit issues.

 

Mortgage Assistance 

The CSM can help you
identify national mortgage lenders and assist you with understanding the myriad
of options available. These lenders may also provide direct billing of your
approved reimbursable closing costs to Executive Relocation. Your assigned real
estate agent can also be very helpful.

 

Temporary Living 

You may be required to
report to work at the new location prior to relocating your family and personal
belongings. Temporary living costs, in the destination location will be
reimbursed for up to 60-days. Temporary living will be reimbursed for your
family not to exceed employee’s temporary living if necessary. The Executive
Relocation CSM can provide you with assistance in finding temporary housing at
the destination location.

 

The Home Sale Program 

 

Home
Marketing Management

Employees often
experience the challenge of selling their home while starting a new job at the
destination location. As selling a home is something most people participate in
only a few times throughout a lifetime, doing it well is difficult under the
best circumstances. Since your home is typically your largest asset, Spectrum
Brands provides a service to assist you in completing this process
satisfactorily. The goal of the Home Marketing program is to obtain the highest
price for the home in the time frame associated with a relocation. The services
include: identifying and choosing the most experienced real estate agent for
relocation situations in your area; completing two professional and accurate
market analysis’ on your home; developing an aggressive marketing strategy;
advice on offers from potential buyers; and managing the agent throughout the
entire process. The Executive Relocation CSM will provide this service and act
as your advocate.

 

Buyer
Value Option

The following describes
in detail the Buyer Value Option Program. The program benefits you in many
ways, which are listed below. In order to use this program you must follow the
process and meet the requirements described. If your home does not qualify for
the program you may receive direct reimbursements for the cost of the sale and
receive tax assistance as described below. If you qualify for the program, but
do not wish to use the program or comply with the requirements, you may be reimbursed
for the direct expenses of your home sale without tax assistance.

 

Benefits
of Program

•                  The cost of your home sale that is
paid by Spectrum Brands is excluded from your income

•                  Your sale will be guaranteed upon
satisfactory completion of the process

•                  You will not have to attend the
closing of your home sale

 

19

 

Definition of Home

Your home qualifies for
this program if it meets all of the following: within the 50 United States of
America; a single or two-family residence or condominium; it is your primary
residence; is owned by you, the employee, or your spouse, significant other or
other family member residing with you and moving to the new location or
combination thereof; is used entirely for residential purposes; the property
size and layout is typical for residential living; has a clear and transferable
title; and is deemed salable by Executive Relocation Group Associates, Inc. in
its ordinary course of doing business.

 

Upon receipt of an offer
for your home, contact the Executive Relocation CSM immediately. Do not sign any documents. Executive Relocation will,
after determining that the offer is bona fide and the buyer is qualified, and
with the approval of Spectrum Brands, make an offer to you in an amount equal
to the third party offer adjusted for any seller concessions. Executive
Relocation will acquire the home and take over the resale to the third party.

 

Home Purchase Closing Costs

You will be reimbursed
for the following home purchase closing costs as provided as long as you
purchased within one year of your transfer or hire date (previous homeowners
only):

	
  •

  	
  Appraisal fee if
  required

  	
  •

  	
  Loan assumption fee up
  to one percent of mortgage or Loan origination fee & loan discount fee up
  to one percent of the mortgage amount

  
	
  •

  	
  Credit report

  
	
  •

  	
  Closing, escrow or
  attorney fees where required

  	
  •

  	
  Lender inspection fee

  
	
  •

  	
  Notary

  	
  •

  	
  Termite inspection if
  needed but not repairs

  
	
  •

  	
  Title search

  	
  •

  	
  Roof, structural,
  plumbing, electrical, soil, radon, septic, wataer inspections if needed, but
  not repairs, costs not to exceed $400

  
	
  •

  	
  Transfer fees

  
	
  •

  	
  Recording fees

  	
   

  	
   

  
	
  •

  	
  VA funding fee

  
	
  •

  	
  Survey if required of
  buyer

  	
   

  	
   

  
	
  •

  	
  Title insurance

  
	
  •

  	
  EPA lien endorsement if
  required

  

 

 

The following home
purchase closing costs WILL NOT be
reimbursed:

	
  •

  	
  Warranties or service
  contracts from inspection firms or others

  
	
  •

  	
  Discount points, loan
  assumption or origination fees in excess to those listed above

  
	
  •

  	
  Repairs or fix up of
  the property

  
	
  •

  	
  Pro-rations of
  mortgage, taxes, insurance, association fees, assessments or utilities

  
	
  •

  	
  Typical sellers closing
  costs

  

 

Shipment Of Household Goods &
Autos 

The Executive Relocation
CSM will arrange for your personal belongings and household goods to be shipped
to the destination location aboard a qualified household goods carrier.
Spectrum Brands will be billed directly for these services. The van line will
pack, load, unload and provide some unpacking of your goods. Storage-in-transit
for up to 60-days is available. The van line should be notified in advance if
storage-in-transit is planned. One point of origin, delivery to a storage
facility, loading from that storage facility and one point of final destination
will be 

 

20

 

covered.  If you have items picked-up or delivered to a
second site, you must pay for this additional service. Simple disconnection and
re-hookup for plumbing for washers and refrigerators will be covered. The van
line will arrange for this service.

 

Insurance (or valuation)
will be provided at replacement cost for the item up to $75,000 for the entire
shipment. Details to the definition of replacement cost is available from the
van line. Claims must be submitted within 90-days of the date of delivery.

 

Two registered,
road-worthy vehicles can be shipped on a qualified car carrier arranged by the
van line, if move is over 250 miles. Besides autos, only non-motorized vehicles
that can easily be shipped in the van will be covered. Recreational vehicles
such as large or motorized boats, motorcycles, jet skis, snowmobiles, ATVs or
similar vehicles and antique vehicles are not covered. You should consider
driving to the new location and moving this type of vehicle in a trailer.

 

Building materials,
firewood and any hazardous materials cannot be included in the shipment.
Plants, food and other perishables, expensive belongings (jewelry) or extensive
hobby collections, and those items of sentimental value will not be loaded on
the van.

 

Final Moving Trip 

Coach airfare or mileage
for two cars and meals will be reimbursed at a rate of $.31 per mile. The
mileage for Trailer/Boat/Camper/U-Haul will be reimbursed at a rate of $.04 per
mile.  Travel by car must be by the most
direct route. If you plan to take vacation time during the move trip, the
additional expense will be your responsibility. You are expected to travel at
least 350 miles per day. Spectrum Brands will also reimburse hotel costs for
two nights in the destination location. Meals, parking, road tolls, laundry and
other reasonable expenses are included.

 

Relocation Allowance 

You will receive a
lump sum allowance equal to your gross monthly salary.  This allowance does not require expense
reporting nor receipts. The purpose is to assist you with the cost of other items
not covered in this policy. Tax Assistance will not apply. Some expenses this
allowance is typically used for include:

 

•                  Carpet Cleaning

•                  Drivers License fee

•                  Car registration

•                  Utility hook-ups and deposits

 

NOTE: 
This allowance is not grossed-up and will be taxed.

 

21

 

Expense Management and Tax
Assistance 

Certain reimbursements,
paid to you or to a third party on your behalf and associated with your
relocation are taxable as income to you as determined by the Internal Revenue
Service (IRS).  A listing of these
expenses can be found in Publication 521 and can be found at the IRS web-site:

 

                                                www.irs.ustreas.gov

 

The company recognizes
the impact this may have on your personal finances and has calculated a sum to
assist with the additional tax burden. 
This sum, or gross up, will be calculated based on Spectrum Brands’
income, marital status and number of dependents you will be allowed when filing
your tax returns.  Income from sources
other than the Company, such as spousal income, prior employer, investments and
stock options, will not be included in this calculation.  A detailed package of this information will
be sent to you in January of each year following the year in which you received
reimbursements, recapping this information to assist in filing your tax
returns.

 

This calculation will be
reviewed from time to time and may change to reflect Federal and State tax law
changes.  Consult your CSM for further
information on this gross up benefit.

 

22

 

Spectrum Brands

Employee Relocation
Policy

Executive

 

Homefinding Trip

•                   Employee and spouse, 4 days each - 2
trips, Coach airfare, 8 nights   
lodging, car rental (compact/mid-size)

•                  Meals and incidentals: Spectrum
Brands Travel Policy

•                  Child care: $50/day

 

Temporary Living

•                  Employee & family - 60 days,
lodging, meals, incidentals, car rental (see homefinding trip)

 

Home Marketing

•                  Consulting service to greatly
increase chance of selling home

 

Buyer Value Option (BVO)

•                  After successful sell of the home,
complete buyer value option procedures in order for selling disposition
expenses to have tax favorable treatment

 

Home Purchase Closing Costs

•                  Normal closing costs, loan
origination fees and discount points totaling up to 1%, home inspections - $400

 

Household Goods

•                  Shipment - Pack, load, transport,
unpack, replacement value insurance, appliance service

•                  Autos - 2cars, if move is over 250
miles

•                  Storage - 60 days, 1 load and unload
into storage

 

Relocation Allowance

•                  Equal to your gross monthly salary

 

Final Moving Trip

•                  Coach airfare, 2 days lodging

•                  Meals and incidentals: Spectrum
Brands Travel Policy

•                  Drive 350miles/day, 1 car

 

Tax Assistance

•                    Tax
protect, temporary living, homefinding trip, and home purchase.

 

23

 

PLEASE COMPLETE AND RETURN JUST
THIS PAGE:

FAX TO:

Matt Karr

314-253-5940

 

RELOCATION
EXPENSE REIMBURSEMENT AGREEMENT — 

PROGRAM
4: EXECUTIVE

 

In consideration of my
employment, continued employment, compensation adjustment, and/or other good
and valuable consideration received from Spectrum Brands, or any division,
subsidiary, or affiliate thereof (hereinafter collectively called “Employer”),                                                         (“Employee”) agrees that as of                                         , 20           (“Effective Date”):

 

1.               Employee is being relocated to [                                                                              
location] as part of Employee’s duties.

 

2.               On and after the Effective Date Employer
(i) has paid or will pay sums of money to third party providers in order to
relocate Employee and/or (ii) has reimbursed or will reimburse Employee for
expenses incurred directly by Employee and/or (iii) paid a relocation allowance
to Employee, all in connection with Employee’s relocation.  All sums described in this paragraph are
hereinafter referred to collectively as “Relocation Benefits.”

 

3.        Employee acknowledges having received, prior to the Effective Date, a
copy of Employer’s Relocation Guidelines (“Program”), the provisions of which
are incorporated herein by this reference. 
The Program describes those items which are proper Relocation Benefits
thereunder, including by way of illustration but not necessarily limited to
certain expenses Employee may incur in the sale of Employee’s former primary
residence and purchase of a new primary residence.

 

4.        The date on which Employee voluntarily terminates employment with
Employer, or the date on which Employee is terminated by Employer for Cause,
shall be referred to in this Agreement as Employee’s “Termination Date”.
Employee agrees to reimburse Employer for Relocation Benefits Employee has
received prior to Employee’s Termination Date. The extent of Employee’s
reimbursement obligation is based on the length of service rendered by Employee
after the Effective Date through the Termination Date, as follows:

(i)            Employee shall reimburse Employer
for one hundred percent (100%) of all Relocation Benefits received by Employee
if the period from the Effective Date to the Termination Date is 365 days or
less;

(ii)          Employee has no obligation to reimburse
Employer if Employee’s Termination Date is more than 366 days after the
Effective Date.

If Employee’s employment is (x) terminated by the Employer for any reason other
than for Cause (as defined in Employee’s Employment Agreement), or (y)
terminated by the Employee for Good Reason(as defined in Employee’s Employment
Agreement), the Employee has no
obligation to reimburse Employer for Relocation Benefits received.

 

5.        Employee
hereby agrees that Employer may offset from any sums owed Employee on or after
the Termination Date such Relocation Benefits reimbursement amounts as Employee
may be obligated to pay to Employer under Section 4.  Should the funds offset be insufficient to
satisfy Employee’s obligation to reimburse Employer for Relocation Benefits to
the extent required by this Agreement, Employee shall remit to Employer the
remaining sums owed therefor within thirty (30) days after the Termination
Date.

 

6.        This
Agreement shall be governed by Missouri law.

 

	
  Employee Signature:

  	
   

  	
   

  	
  Title:

  	
  President, United
  States Home and Garden Division

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Employee Name
  (Printed): Stephen L. Tooker

  	
   

  	
  Date:

  	
   

  

 

24

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