Exhibit 10.1 


 





		 	3000
    John Deere Road, Toano, VA  23168
 Phone:
    (757) 259-4280.● Fax:  (757) 259-7293
 www.lumberliquidators.com
	 	 







 


March 17, 2017


 


 


 


VIA EMAIL (______________)


 


Mr. Timothy J. Mulvaney


 


____________________


 


____________________


 


Re: Offer Letter


 


Dear Tim:


 


This letter confirms our offer of employment
to you with Lumber Liquidators Holdings, Inc. or one of its subsidiaries (individually and collectively, as applicable, “Lumber
Liquidators" or the "Company"). The details of our offer are as follows:


 


		·	Title: Senior Vice President, Chief
Accounting Officer



		·	Location: Toano/Richmond, Virginia



		·	Reports to: Chief Financial Officer



		·	Start Date: June 5, 2017 (unless
changed upon mutual agreement between you and Marty Agard)



		·	Annual Base Salary: $250,000. Lumber
Liquidators currently processes payroll on a weekly basis.  This is subject to change. We strongly encourage employees to
receive their pay via direct deposit.



		·	Incentive Plan: You will be eligible
to participate in the Annual Bonus Plan for Executive Management (the “Bonus Plan”). Your 100% target payout under
the Bonus Plan will be equal to 40% of your annual base salary, with the opportunity to earn a maximum of 150% of your target payout
based on Lumber Liquidators' performance against certain financial objectives. For 2017, any earned bonus payout will be pro-rated
for your date of hire in 2017. Notwithstanding the foregoing, the awarding (or decision not to award) a payment under the Bonus
Plan and the amount thereof, is a decision left to the sole discretion of Lumber Liquidators. Further, the Bonus Plan is subject
to amendment, modification and/or termination by Lumber Liquidators in its sole and absolute discretion. To the extent there is
any conflict between this Offer Letter and the language of the Bonus Plan, the Bonus Plan shall control.



		·	Equity: Lumber Liquidators will
recommend to the Compensation Committee of its Board of Directors that you receive an award of equity with a total cumulative value
of $100,000. The Company will recommend that 50% of such award be options and 50% be restricted stock. The valuation of the options
will be made using the Black-Scholes-Merton method as of the date of award and the valuation of the restricted stock will be made
using the fair market value of the shares on the grant date. If approved by the Compensation Committee, any award will be granted
under, subject to and governed by the Lumber Liquidators Holdings, Inc. Amended and Restated 2011 Equity Compensation Plan, and
shall be evidenced by a grant agreement. The agreement will specify, among other things, the vesting schedule, consequences of
termination of employment and other applicable terms and conditions. The vesting schedule of the options will be as follows: beginning
on the first anniversary of the grant date, 25% of the grant will vest on anniversary of the grant date for a period of four (4)
years. While it is expected that the Compensation Committee will next award equity three (3) business days after the Company publicly
announces its financial results for Q3-2017, the timing and amount of any such award to you is subject to your actual start date
of employment and to the absolute discretion of the Compensation Committee and the Board of Directors. As an employee, you will
be subject to the expectations and restrictions of Lumber Liquidators' Insider Trading Policy, a copy of which is provided at the
time of hire and is available upon request to Human Resources.



 






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		·	Severance Benefit: If your employment
with Lumber Liquidators is terminated by the Company without "Cause" (as defined in the applicable agreement) within
eighteen (18) months of your actual hire date and provided you have executed (i) a severance benefit agreement propounded by and
acceptable to the Company within 30 days of your actual hire date, and (ii) a General Release and Waiver as provided in such agreement,
the Company will pay you severance in the form of salary continuation in the amount equivalent to your base salary in effect as
of your termination date for fifty-two (52) weeks, subject to standard payroll deductions and withholdings. The Company will also
pay, for a period up to fifty-two (52) weeks, a portion of the COBRA premium cost such that Employee’s premium payment does
not exceed what Employee would otherwise have paid if Employee were employed. 



		·	Performance Review and Merit Increase: Your
performance will be reviewed periodically with you by your supervisor, but no less than annually. Merit increases are discretionary
based on performance and business considerations.



		·	Benefits Eligibility: You will
be eligible to participate in benefit plans offered through Lumber Liquidators per the terms and conditions of those plans. During
your orientation, you will be given more information regarding these plans and a copy of our benefits summary in effect at your
time of hire. Following your first day of employment, you will also be able to access the full Benefits Guide in effect on our
Company intranet.



		·	Paid Time Off (PTO):  Per
the terms and conditions of the Lumber Liquidators Paid Time Off (“PTO”) Policy, you will be eligible to accrue up
to a maximum of 160 hours of PTO annually and thereafter until your service milestones result in a higher annual accrual amount.
Your 2017 accrual will be pro-rated based on your actual date of hire in 2017.



		·	Holidays: Lumber Liquidators observes
six scheduled holidays each year. Those holidays currently are New Year’s Day, Memorial Day, Independence Day, Labor Day,
Thanksgiving Day, and Christmas Day. The holiday schedule is established in advance of each year and is subject to change.



 


This offer of employment is contingent
on (1) satisfactory results of a drug screening test, (2) executive background verification, (3) your executing the Confidentiality,
Non-Solicitation and Non-Competition Agreement, and (4) your ability to show that you are eligible to work in the United States.


 


On your first day of employment, you will
be required to provide your social security card for payroll purposes, and proof of identity and employment eligibility in order
to complete an Employment Eligibility Verification (I-9) form. A list of acceptable documents is enclosed. Please note that, if
you do not have one document from List A, you must bring one document from List B and one document from List C.


 


Please ensure that you bring the proper
documentation with you on your first day of employment. Your subsequent failure to provide the necessary documentation as required
by federal law may result in the termination of your employment. Please note that your name for payroll purposes must match exactly
with your social security records. To expedite the orientation process, please complete the attached forms and bring these with
you on your first day.


 






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Please acknowledge your acceptance of this
offer by signing and returning a copy of this letter and the Incorporated Documents, all in their entirety, no later than March
28, 2017 to me via email to ____________, or via confidential fax to ______________. By signing this offer, you are, among
other things, representing to Lumber Liquidators that there are no legal or equitable agreements or restrictions that would prevent,
limit, impair or otherwise compromise your ability to comply with the terms of this offer and perform on behalf of Lumber Liquidators.


 


Please note that your employment with Lumber
Liquidators is at-will and neither this document nor any other oral or written representations may be considered a contract of
employment for any specific length of time. You retain the option, as does Lumber Liquidators, of ending your employment with Lumber
Liquidators at any time, with or without notice and with or without cause.


 


If you have questions regarding any of
the above, please feel free to contact me by telephone at ___________ (office) or _____________ (mobile), or by email.


 


We look forward to you joining the Lumber
Liquidators team and working with you to further our success.


 


Sincerely,


 


/s/ Sandra C. Whitehouse


 


Sandra C. Whitehouse


Chief Human Resources Officer


 





 


ACKNOWLEDGEMENT and AGREEMENT: As indicated
by my signature below on this letter, I acknowledge its receipt and my understanding and acceptance of its contents. I agree that
should I terminate employment with Lumber Liquidators or if my employment is terminated for cause, any monies owed for reimbursement
of expenses or other sums under this offer letter will be deducted from my final paychecks. 





 





	Signature:	/s/
    Timothy J. Mulvaney             	Date:
          3/22/17                        
	                 	Timothy J. Mulvaney	 







 


Cc: Marty Agard, Chief Financial Officer


 





	Attachments: 	Confidentiality, Non-Solicitation and Non-Competition Agreement
	                       	Annual
Bonus Plan for Executive Management
	                      	 Severance
Benefit Agreement  







  



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