EX-10.3






EMPLOYMENT AGREEMENT




This Employment Agreement (the “Agreement”) is made and entered into as of August 29, 2012
(the “Effective Date”), by and between Lawson Products, Inc., an Illinois corporation (the
“Company”) and Ron Knutson (the “Executive”).



1. At Will Employment. The Company hereby employs Executive on an “at will” basis,
and Executive’s employment by the Company may be terminated at any time at the option of the
Company or Executive, as the case may be, on the terms and subject to the conditions set forth in
this Agreement.



2. Position and Duties. Executive will serve as Executive Vice President and Chief
Financial Officer of the Company and of Lawson Products, Inc., a Delaware corporation (“Parent”),
or in such other capacity mutually agreed to between Executive and the Company by written amendment
of this Agreement. Executive’s duties and authorities will consist of all duties and authority
customarily performed and held by persons holding equivalent positions in companies similar in
nature and size to the Company or Parent as such duties and authority are reasonably defined,
modified and delegated from time to time by the Board of Directors of Parent (the “Board”) or the
Chief Executive Officer of Parent (“CEO”). Executive will report to the CEO as to day to day
matters and to the Board as to his fiduciary duties and on other matters as requested by the Board.
Executive hereby acknowledges that he has a fiduciary responsibility and duty of loyalty to the
Company and Parent hereunder. For so long as Executive remains employed, Executive shall, on a
full-time basis, devote his best efforts and his entire business time, energy, attention, knowledge
and skill solely and exclusively to advance the interests, products and goodwill of the Company and
Parent. Executive shall diligently, competently and faithfully perform the duties assigned to him
by the Company and Parent from time to time.



The duties and services to be performed by Executive hereunder shall be substantially rendered
at the Company’s principal offices, except for travel on the Company’s business incident to the
performance of Executive’s duties. Executive will not, without the written consent of the Board or
the CEO, which consent shall not be unreasonably withheld: (i) render service to others for
compensation, or (ii) serve on any board or governing body of another entity. If an outside
activity subsequently creates a conflict with the Company’s business or prospective business,
Executive agrees to cease engaging in such activity at such time. Executive will observe and
adhere to all applicable written Company policies and procedures adopted from time to time, such as
they now exist or hereafter are supplemented, amended, modified or restated.



3. Compensation.



(a) Base Salary. Executive will receive a base salary of $330,000 per annum (the
“Base Salary”), as modified pursuant to the next sentence, payable in accordance with the Company’s
customary payroll practices (including, but not limited to, practices regarding timing and
withholding) as may be in effect from time to time. The Base Salary will be subject to periodic
review by the Compensation Committee of the Board (the “Committee”), and may be increased by the
Committee at any time.



(b) Incentive Plans and Special Bonuses.




	 	(i)	 	Executive will be eligible for additional
performance based compensation based upon Executive’s ability to meet
or exceed the targeted expectations applicable to his position, as the
Committee in its sole discretion determines with input from the
Executive and in accordance with and subject to the terms of the Senior
Executive Officer Annual Incentive Plan, or any other applicable
performance based compensation plan or program.






	 	(ii)	 	If Executive remains actively employed by the
Company through June 30, 2013, Executive will be paid a special bonus
in the amount of $145,600 (the “2013 Special Bonus”), such 2013 Special
Bonus to be paid by July 30, 2013.






	 	(iii)	 	If Executive remains actively employed by the
Company through March 31, 2014, Executive will be paid a special bonus
in the amount of $145,600 (the “2014 Special Bonus”), such 2014 Special
Bonus to be paid by April 30, 2014.





(c) LTIP. Executive will also be eligible to continue to participate (or continue
participation) in the Senior Executive Officer Long-Term Incentive Plan (the “LTIP”) as determined
by the terms of the LTIP and this Agreement, except as provided in Section 10(d).



(d) Equity Awards. Executive will be eligible for stock options, restricted stock,
stock awards, phantom stock units, stock appreciation units, stock performance rights, shareholder
value appreciation rights or other such equity-based compensation opportunities from time to time
during his employment as determined in the sole discretion of the Committee (“Equity Awards”). To
the extent so provided, such equity-based compensation shall be subject to the terms of any
applicable equity-based compensation plan, program and/or agreement.



(e) Benefit Plans. Executive shall receive the following standard benefits; provided,
however, the Company or Parent may modify or terminate such benefits from time to time to the
extent and on such terms as the Company or Parent modifies or terminates such benefits as provided
to other officers:




	 	(i)	 	coverage under the Company’s group health plan
on such terms as provided to other Company officers;






	 	(ii)	 	long-term disability insurance coverage;






	 	(iii)	 	group term life insurance with a death benefit
amount of not less than one year of Executive’s Base Salary, with
additional double indemnity coverage;






	 	(iv)	 	accidental death insurance;






	 	(v)	 	participation in the Company’s 401(k) plan,
profit-sharing retirement plan and executive deferral plan; and






	 	(vi)	 	four weeks’ annual vacation under the terms of
the Company’s vacation policy for officers.





The items in Sections 3(b)(i), 3(c), 3(d) and 3(e)(i)-(vi) referred to above, and any other
benefit plans in which Executive may participate pursuant to such plan’s terms, are collectively
referred to herein as “Benefit Plans”.



4. Termination of Employment.



(a) Termination for Cause. Without limitation of the “at will” basis of Executive’s
employment by the Company, the Company may terminate Executive’s employment for “Cause”, where
“Cause” means any of the following:




	 	(i)	 	violation by Executive of any agreement between
Executive and the Company or any law relating to non-competition, trade
secrets, inventions, non-solicitation or confidentiality;






	 	(ii)	 	material breach or default of any of
Executive’s duties or other obligations or covenants under this
Agreement (except where such breach or default is due to Executive
becoming Disabled (as defined in Section 4(d)) which shall be governed
by Section 4(d)), which has not been cured within 30 days of written
notice thereof to Executive;






	 	(iii)	 	Executive’s gross negligence, dishonesty or
willful misconduct;






	 	(iv)	 	any act or omission by Executive which has a
material adverse effect on the Company’s business, reputation, goodwill
or customer relations;






	 	(v)	 	conviction of or pleading nolo contendere to a
crime by Executive (other than traffic related offenses);






	 	(vi)	 	any act or omission by Executive which, at the
time it occurs, is in material violation of any Company policy, such as
they now exist or hereafter are supplemented, amended, modified or
restated; or






	 	(vii)	 	an act of fraud or embezzlement or the
misappropriation of property by Executive.





For purposes of this Agreement, Executive’s employment shall be deemed not to have been
terminated for Cause unless and until there shall have been delivered to Executive a copy of a
resolution of the Board finding that the termination is for Cause, duly adopted by the Board at a
meeting called and held in accordance with the Company’s bylaws (with Executive to receive notice
of the meeting at the same time as the members of the Board), at which Executive, together with
Executive’s counsel, shall have the right to participate or to present a written response to the
Board’s intention to terminate for Cause. Subject to the preceding sentence, the Company may
terminate Executive’s employment under this Agreement for Cause (as defined above) at any time, and
Executive’s termination for Cause will be effective immediately upon the Company mailing or
transmitting written notice of such termination to Executive.



(b) Termination for Good Reason. Without limitation of the “at will” basis of
Executive’s employment by the Company, Executive may terminate Executive’s employment for “Good
Reason”, where “Good Reason” means any of the following:




	 	(i)	 	a decrease in Executive’s Base Salary;






	 	(ii)	 	a material diminution in Executive’s authority,
duties or responsibilities;






	 	(iii)	 	a material change (with such change not to be
less than 50 miles) in the geographic location at which Executive must
perform Executive’s services; or






	 	(iv)	 	any other action or inaction that constitutes a
material breach by the Company of this Agreement.





Executive is entitled to terminate Executive’s employment for Good Reason only if:




	 	(w)	 	one or more of the conditions constituting Good
Reason occurs without Executive’s written consent;






	 	(x)	 	Executive provides notice to the Company of the
existence of a condition constituting Good Reason within 15 days of the
initial occurrence of such condition;






	 	(y)	 	the Company fails to remedy such condition
constituting Good Reason within 30 days of being provided notice of
such condition by Executive; and






	 	(z)	 	Executive voluntarily terminates Executive’s
employment within 15 days of the expiration of the remedy period
specified in clause (y).





(c) Termination Due to Death. Executive’s employment under this Agreement will
terminate upon the death of Executive.



(d) Termination Due to Disability. Without limitation of the “at will” basis of
Executive’s employment by the Company, if Executive becomes “Disabled” as such is defined under the
Company’s long-term disability insurance policy, the Company may terminate Executive’s employment.
Executive agrees that if Executive becomes “Disabled”, Executive will be unable to perform the
essential functions of Executive’s position and that there would be no reasonable accommodation
which would not constitute an undue hardship to the Company. Executive’s termination due to
Disability will be effective immediately upon Executive’s receipt of written notice of such
termination from the Company. Such written notice shall be deemed received, if mailed first class
through the U. S. Postal System, three (3) business days after mailing such written notice to
Executive.



(e) Termination Without Cause by the Company. In furtherance of the “at will” basis
of Executive’s employment by the Company, the Company may terminate Executive’s employment without
Cause upon written notice to Executive. Executive’s termination without Cause will be effective on
the date of termination specified by the Company in such written notice. Such written notice shall
be deemed received, if mailed first class through the U. S. Postal System, three (3) business days
after mailing such written notice to Executive.



(f) Voluntary Termination by Executive. In furtherance of the “at will” basis of
Executive’s employment by the Company, Executive may voluntarily terminate his employment upon oral
or written notice to the Company. Executive’s voluntary termination shall be effective as of the
time of such oral or written notice.



5. Payments Due Upon Termination.



(a) Payments Due Upon Termination for Cause by the Company, or Voluntary Termination by
Executive. If the Company terminates Executive’s employment for “Cause” pursuant to Section
4(a) above, or Executive terminates his employment voluntarily pursuant to Section 4(f) above, the
Company shall have no obligation to Executive, except:




	 	(i)	 	the Company shall pay Executive no later than
the next regularly scheduled payroll day any accrued and unpaid Base
Salary and any accrued and unused vacation pay through the effective
date of Executive’s termination;






	 	(ii)	 	the Company shall pay Executive any additional
payments, awards, or benefits, if any, which Executive is eligible to
receive pursuant to the terms of any applicable Benefit Plans (but for
the avoidance of doubt, and notwithstanding anything to the contrary in
this Agreement, Executive shall not be entitled to any portion of the
2013 Special Bonus or 2014 Special Bonus that has not been paid prior
to the date of Executive’s termination); and






	 	(iii)	 	Executive shall be entitled to all
post-employment benefits required under applicable law.





The payments set forth in Sections 5(a)(i)-(iii) are collectively referred to herein as “Accrued
Compensation”.



(b) Payments Due Upon Termination Without Cause by the Company or for Good Reason by
Executive. Except as provided in Section 5(c) below, if the Company terminates Executive’s
employment without “Cause” pursuant to Section 4(e) above or if Executive terminates Executive’s
employment for “Good Reason” pursuant to Section 4(b) above, the Company shall have no obligation
to Executive, except:




	 	(i)	 	the Company shall pay Executive any Accrued
Compensation and any 2013 Special Bonus or 2014 Special Bonus that is
payable under Section 3(b) but has not yet been paid;






	 	(ii)	 	the Company shall pay Executive, subject to
Section 5(f), in monthly installments commencing one (1) month after
the effective date of Executive’s termination, at the rate of 100% of
his then current Base Salary for a period of two (2) years (the
“Severance Period”);






	 	(iii)	 	if the date of termination is before March 31,
2014, the Company shall pay Executive within 60 days of Executive’s
termination, subject to Section 5(f), (A) in the event the date of
termination is on or before June 30, 2013, a pro-rated portion of the
2013 Special Bonus equal to the entire amount of the 2013 Special Bonus
multiplied by a fraction, the numerator of which is the number of days
during the one-year period beginning July 1, 2012, and ending June 30,
2013, with respect to which Executive was employed by the Company, and
the denominator of which is 365 or (B) in the event the date of
termination is on or after July 1, 2013 and before March 31, 2014, a
pro-rated portion of the 2014 Special Bonus equal to the entire amount
of the 2014 Special Bonus multiplied by a fraction, the numerator of
which is the number of days during the nine-month period beginning July
1, 2013, and ending March 31, 2014, with respect to which Executive was
employed by the Company, and the denominator of which is 274 (such
pro-rated portion of the 2013 Special Bonus or the 2014 Special Bonus,
as applicable, being referred to herein as the “Pro-Rated Special
Bonus”);






	 	(iv)	 	the Company shall pay Executive, subject to
Section 5(f), in equal monthly installments, commencing one month after
the effective date of Executive’s termination and continuing until the
end of the Severance Period, an amount equal to the bonus Executive
received in the 365 day period prior to the effective date of
Executive’s termination, if any, multiplied by a fraction, the
numerator of which is the number of days from the beginning of the
calendar year in which Executive’s termination occurs through the
effective date of Executive’s termination, and the denominator of which
is 365;






	 	(v)	 	Executive shall continue to be covered under
the Company’s group health plan pursuant to Section 3(e)(i) above,
including any spousal and dependent coverage, at active employee rates,
for two (2) years after the effective date of Executive’s termination,
and, thereafter, Executive shall be eligible to exercise his rights to
COBRA continuation coverage with respect to such group health plan for
Executive, and, where applicable, Executive’s spouse and eligible
dependents, at Executive’s expense; and






	 	(vi)	 	The Company shall provide Executive with
outplacement services, with the cost to the Company of such
outplacement services not to exceed $25,000.





During the Severance Period under this Section 5(b), Executive shall, upon request of the
Company, make himself reasonably available on a limited basis from time to time to consult with the
Company regarding the business affairs of the Company, not more than twenty-four (24) hours in any
calendar quarter, and at times that do not interfere with Executive’s employment time commitments
with any successor employer.



(c) Payments Due Upon Termination Without Cause by the Company or for Good Reason by
Executive After a Change in Control. In lieu of the payments due under Section 5(b) above, in
the event the Company terminates Executive’s employment without “Cause” pursuant to Section 4(e)
above or if Executive terminates Executive’s employment for “Good Reason” pursuant to Section 4(b)
above, but only in each case within 12 months following a Change in Control as defined in Section 6
below, the Company shall have no obligation to Executive, except:




	 	(i)	 	the Company shall pay Executive any Accrued
Compensation and any 2013 Special Bonus or 2014 Special Bonus that is
payable under Section 3(b) but has not yet been paid;






	 	(ii)	 	the Company shall pay Executive an amount equal
to two (2) times Executive’s then current annual Base Salary, and two
(2) times the bonus Executive received in the 365-day period prior to
the effective date of Executive’s termination, if any. Subject to
Section 5(f), such amount shall be paid in a lump sum, to the extent a
Section 409A Change in Control has occurred contemporaneously with the
Change in Control (or anytime in the two calendar years prior to the
effective date of Executive’s termination), no later than 30 days after
the effective date of Executive’s termination, or to the extent a
Section 409A Change in Control has not occurred during such period, it
shall be paid in 24 equal monthly installments commencing one month
after the effective date of Executive’s termination;






	 	(iii)	 	if the date of termination is before March 31,
2014, the Company shall pay Executive within 60 days of Executive’s
termination the Pro-Rated Special Bonus;






	 	(iv)	 	Executive shall continue to be covered under
the Company’s group health plan pursuant to Section 3(e)(i) above,
including any spousal and dependant coverage, at active employee rates,
for two (2) years after the effective date of Executive’s termination,
and, thereafter, Executive shall be eligible to exercise his rights to
COBRA continuation coverage with respect to such group health plan for
Executive, and, where applicable, Executive’s spouse and eligible
dependents, at Executive’s expense;






	 	(v)	 	all of Executive’s outstanding Equity Awards,
if any, shall immediately vest upon the effective date of Executive’s
termination to the extent not already vested, and Executive shall have
at least 90 days to exercise any Equity Award that is subject to being
exercised; and






	 	(vi)	 	The Company shall provide Executive with
outplacement services, with the cost to the Company of such
outplacement services not to exceed $25,000.





(d) Payments Due Upon Termination Due to Death. If Executive’s employment is
terminated due to death pursuant to Section 4(c) above, the Company shall have no obligation to
Executive, except:




	 	(i)	 	the Company shall pay Executive any Accrued
Compensation and any 2013 Special Bonus or 2014 Special Bonus that is
payable under Section 3(b) but has not yet been paid;






	 	(ii)	 	the Company shall pay to the beneficiary(ies)
identified in writing by Executive from time to time an amount equal to
two (2) times Executive’s then current annual Base Salary, in 24 equal
monthly installments commencing one month after the date of Executive’s
death;






	 	(iii)	 	if the date of termination is before March 31,
2014, the Company shall pay the Pro-Rated Special Bonus to the
beneficiary(ies) identified in writing by Executive from time to time
within 60 days of Executive’s death; and






	 	(iv)	 	Executive’s spouse and dependents shall
continue to be covered under the Company’s group health plan pursuant
to Section 3(e)(i) above, at active employee rates for dependent
coverage, for two (2) years after the date of Executive’s death, and,
thereafter, Executive’s spouse and dependents shall be eligible to
exercise their rights to COBRA coverage with respect to such group
health plan at their expense.





(e) Payments Due Upon Termination Due to Disability. If the Company terminates
Executive’s employment due to “Disability” pursuant to Section 4(d) above, the Company shall have
no obligation to Executive, except:




	 	(i)	 	the Company shall pay Executive any Accrued
Compensation and any 2013 Special Bonus or 2014 Special Bonus that is
payable under Section 3(b) but has not yet been paid;






	 	(ii)	 	the Company shall continue to pay Executive,
subject to Section 5(f), in monthly installments commencing one month
after the effective date of termination: (A) for 12 months at the rate
of 100% of his then current Base Salary; and (B) for 24 months
thereafter at the rate of 60% of his then current Base Salary. The
Company will be entitled to receive in payment from Executive or by
taking a credit against the payments to be made under this Section
5(e)(ii) a sum equal to any Company provided long-term disability
insurance benefit paid to or for the benefit of Executive during such
36 month period;






	 	(iii)	 	if the date of termination is before March 31,
2014, the Company shall pay Executive the Pro-Rated Special Bonus
within 60 days of Executive’s termination; and






	 	(iv)	 	Executive shall continue to be covered under
the Company’s group health plan pursuant to Section 3(e)(i) above,
including any spousal and dependent coverage, at active employee rates
for five and one-half (51/2) years after the effective date of
Executive’s termination, and, thereafter, Executive shall be eligible
to exercise his rights to COBRA continuation coverage with respect to
such group health plan for Executive, and, where applicable,
Executive’s spouse and eligible dependents, at Executive’s expense.





(f) Six (6) Month Delay. If, at the time Executive becomes entitled to payments and
benefits under Section 5 of this Agreement (“Severance Payment”), Executive is a Specified Employee
(within the meaning of Code Section 409A and using the identification methodology selected by the
Company from time to time), then, notwithstanding any other provision in Section 5 to the contrary,
the following provision shall apply. No Severance Payment considered by the Company in good faith
to be deferred compensation under Code Section 409A that is payable upon Executive’s separation
from service (as defined and determined under Code Section 409A), and not subject to an exception
or exemption thereunder, shall be paid to Executive until the date that is six (6) months after
Executive’s effective date of termination. Any such Severance Payment that would otherwise have
been paid to Executive during this six-month period shall instead be aggregated and paid to
Executive on or as soon as administratively feasible after the date that is six (6) months after
Executive’s effective date of termination, but not later than 60 days after such date. Any
Severance Payment to which Executive is entitled to be paid after the date that is six (6) months
after Executive’s effective date of termination shall be paid to Executive in accordance with the
terms of Section 5.



(g) Release. Executive shall not be entitled to receive any of the payments or
benefits set forth in Section 5 (excepting any Accrued Compensation), and said payments and
benefits shall be forfeited without further action by the Company, unless Executive (or if
applicable, Executive’s beneficiaries and/or estate) executes a general release substantially in
the form of Exhibit A (the “General Release”) and, on or prior to the 60th day following
the date of termination (or such shorter period as set forth therein), such General Release becomes
effective and irrevocable in accordance with the terms thereof. With respect to any of the
payments or benefits pursuant to this Section 5 that are subject to Code Section 409A, any amounts
that would otherwise be payable during the 60-day period in the absence of the preceding General
Release requirement shall be payable and effective on the 60th day after Executive’s termination of
employment.



6. Certain Definitions.



(a) The term “Lawson Entities” shall mean Parent, any Subsidiary of Parent and any other
entity in which any one or more of them has an ownership interest at any time during Executive’s
employment with the Company and during the Restriction Period whether such entity is in the United
States or elsewhere.



(b) The term “Restriction Period” means the period of time in which Executive is employed by
the Company and a period of two (2) years after the effective date of Executive’s termination.



(c) The term “Lawson Entities’ Products, Systems and Services” means:




	 	(i)	 	the acquisition for and the distribution and
sale of fasteners, parts, hardware, pneumatics, hydraulic and other
flexible hose fittings, tools, safety items and electrical and shop
supplies, automotive and vehicular products, chemical specialties,
maintenance chemicals and other chemical products, welding products and
related items, all as more particularly described in the Lawson
Entities’ sales kits and manuals;






	 	(ii)	 	the sale and distribution and the providing of
systems and services related to the items described in Section
6.1(c)(i);






	 	(iii)	 	the manufacture, sale and distribution of
production and specialized parts and supplies described in Section
6.1(c)(i);






	 	(iv)	 	the provision of just-in-time inventories of
component parts described in Section 6.1(c)(i) to original equipment
manufacturers and of maintenance and repair parts described in Section
6.1(c)(i) to a wide variety of users; and






	 	(v)	 	the provision of in-plant inventory systems and
of electronic vendor-managed, inventory systems to various customers,
related to the items described in Section 6.1(c)(i).





(d) The term “Competitive Products, Systems and Services” shall mean products, systems or
services in existence or under development during Executive’s employment with the Company which are
the same as or substantially similar to or functional equivalents of those of the Lawson Entities
including, without limitation, those which are or may be provided to the Lawson Entities’ customers
on behalf of the Lawson Entities by employees, agents, or sales representatives of the Lawson
Entities.



(e) The term “Confidential Information” shall mean all information, including, but not limited
to, trade secrets disclosed to Executive or known by Executive as a consequence of or through
Executive’s employment by the Company, concerning the products, services, systems, customers and
agents of the Lawson Entities, and specifically including without limitation: computer programs
and software, unpatented inventions, discoveries or improvements; marketing, organizational and
product research and development; marketing techniques; promotional programs; compensation and
incentive programs; customer loyalty programs; inventory systems; business plans; sales forecasts;
personnel information, including but not limited to the identity of employees and agents of the
Lawson Entities, their responsibilities, competence, abilities, and compensation; pricing and
financial information; customer lists and information on customers or their employees, or their
needs and preferences for the Lawson Entities’ Products, Systems and Services; information
concerning planned or pending acquisitions or divestitures; and information concerning purchases of
major equipment or property, and which:




	 	(i)	 	has not been made generally available to the
public; and






	 	(ii)	 	is useful or of value to the current or
anticipated business or research or development activities of the
Lawson Entities, or of any customer or supplier of the Lawson Entities.





Confidential Information shall not include information which:




	 	(x)	 	is in or hereafter enters the public domain
through no fault of Executive;






	 	(y)	 	is obtained by Executive from a third party
having the legal right to use and to disclose the same without
restriction; or






	 	(z)	 	was in the possession of Executive prior to
receipt from the Lawson Entities (as evidenced by Executive’s written
records predating the first date of employment with the Company).





Confidential Information also does not include Executive’s general skills and experience as
defined under the governing law of this Agreement.



(f) The term “Unauthorized Person or Entity” shall mean any individual or entity who or which
has not signed an appropriate secrecy or confidentiality agreement with the Lawson Entities, or is
not a current or target customer with whom Confidential Information is shared in the mutual
interest of that person or entity and the Lawson Entities.



(g) For purposes of this Agreement, a “Change in Control” shall be deemed to have occurred if:




	 	(i)	 	any “person” or “group” of “persons” (as such
terms are used in Sections 13(d) and 14(d) of the Securities Exchange
Act of 1934, as amended, and the rules promulgated thereunder) is or
becomes the beneficial owner, directly or indirectly, of securities
representing voting power, as of the date of determination, of then
outstanding securities representing 40% or more of the combined voting
power of Parent’s then outstanding securities as of such date of
determination; or






	 	(ii)	 	there is a merger, consolidation or
reorganization involving Parent, or any direct or indirect subsidiary
of Parent, unless:






	 	(A)	 	the stockholders
of Parent immediately before such merger, consolidation
or reorganization will own, directly or indirectly,
immediately following such merger, consolidation or
reorganization, at least fifty percent (50%) of the
combined voting power of the outstanding voting
securities of the corporation resulting from such
merger, consolidation or reorganization (the “Surviving
Corporation”) or any parent thereof in substantially the
same proportion as their ownership of the voting
securities of Parent immediately before such merger,
consolidation or reorganization; and






	 	(B)	 	the individuals
who were members of the Board immediately prior to the
execution of the agreement providing for such merger,
consolidation or reorganization constitute a majority of
the members of the board of directors of the Surviving
Corporation (or parent thereof); and






	 	(C)	 	no “person” or
“group” of “persons” as defined above is the beneficial
owner of forty percent (40%) or more of the combined
voting power of the then outstanding voting securities
of the Surviving Corporation (or parent thereof); or






	 	(iii)	 	there is a sale or other disposition of all or
substantially all of the assets of Parent to an entity other than an
entity:






	 	(A)	 	of which at least
fifty percent (50%) of the combined voting power of the
outstanding voting securities are owned, directly or
indirectly, by stockholders of Parent in substantially
the same proportion as their then current ownership of
the voting securities of Parent; and






	 	(B)	 	of which a
majority of the board of directors is comprised of the
individuals who were members of the Board immediately
prior to the execution of the agreement providing for
such sale or disposition; and






	 	(C)	 	of which no
“person” or “group” of “persons” as defined above is the
beneficial owner of forty percent (40%) or more of the
combined voting power of the then outstanding voting
securities of the Surviving Corporation (or parent
thereof); or






	 	(iv)	 	Individuals who, as of the date hereof,
constitute the Board (the “Incumbent Board”), cease for any reason to
constitute at least a majority of the Board; provided, however, that
any individual becoming a director subsequent to the effective date
hereof whose election, or nomination for election by Parent
stockholders, was approved by a vote of at least four-fifths (4/5) of
the directors then comprising the Incumbent Board shall be considered
as though such individual were a member of the Incumbent Board, unless
any such individual’s initial assumption of office occurs as a result
of either an actual or threatened election contest (including, but not
limited to, a consent solicitation).





(h) The term “Code” shall mean the Internal Revenue Code of 1986, as amended.



(i) The term “Code Section 409A” shall mean Section 409A of the Code and all regulations
issued thereunder and applicable guidance thereto.



(j) The term “Subsidiary” means, with respect to any person or entity, any corporation,
association or other entity of which more than 50% of the combined voting power is owned, directly
or indirectly, by such person or entity and one or more other Subsidiaries of such person or
entity.



(k) The term “Section 409A Change in Control” means any “change in control event” within the
meaning of Code Section 409A determined in accordance with the uniform methodology and procedures
adopted by the Company.



7. Protection of Company Assets.



(a) Non-Competition. Executive expressly agrees that, during the Restriction Period,
provided that there shall not have occurred and be continuing any material non-compliance by the
Company with its obligations under this Agreement, he shall not, in the United States, Canada and
Mexico, directly or indirectly, as an owner, officer, director, employee, agent, advisor,
financier, or in any other form or capacity, on behalf of himself or any other person, firm or
other business entity, engage in or be concerned with any Competitive Products, Systems and
Services, or any other duties or pursuits for monetary gain which interfere with or restrict
Executive’s activities on behalf of the Lawson Entities or constitute competition with the business
of the Lawson Entities as conducted or proposed to be conducted during the term of this Agreement
or, with respect to applicable periods following Executive’s termination, as conducted or proposed
to be conducted as of the date of Executive’s termination. The foregoing notwithstanding, nothing
herein contained shall be deemed to prevent Executive from investing his money in the capital stock
or other securities of any corporation whose stock or securities are publicly-owned or are
regularly traded on any public exchange, provided that Executive does not own more than a one
percent (1%) interest therein.



(b) Confidentiality. Executive hereby acknowledges that, during the course of
Executive’s employment, Executive has and will learn or develop Confidential Information in trust
and confidence. Executive agrees to use the Confidential Information solely for the purpose of
performing his duties hereunder and not for his own private use or commercial purposes. Executive
acknowledges that unauthorized disclosure or use of Confidential Information, other than in
discharge of Executive’s duties, will cause the Lawson Entities irreparable harm. Executive shall
maintain Confidential Information in strict confidence at all times and shall not divulge
Confidential Information to any Unauthorized Person or Entity, or use in any manner, or knowingly
allow another to use, any Confidential Information, without the Company’s prior written consent,
during the term of employment or thereafter, for as long as such Confidential Information remains
confidential. Executive further acknowledges that the Lawson Entities operate and compete
internationally and that the Lawson Entities will be harmed by the unauthorized disclosure or use
of Confidential Information regardless of where such disclosure or use occurs, and that therefore
this confidentiality agreement is not limited to any single state or other jurisdiction.



(c) Non-Solicitation. During the Restriction Period, provided that there shall not
have occurred and be continuing any material non-compliance by the Company with its obligations
under this Agreement, Executive shall not, directly or indirectly, for himself or on behalf of any
person, firm or other entity, solicit, induce or encourage any person to leave her/his employment,
agency or office with the Lawson Entities. During the Restriction Period, provided that there
shall not have occurred and be continuing any material non-compliance by the Company with its
obligations under this Agreement, Executive shall not, directly or indirectly, for himself or on
behalf of any person, firm or other entity, hire or retain or participate in hiring or retaining
any person who then is an employee of or agent for the Lawson Entities or any person who has been
an employee of or agent for the Lawson Entities at any time in the 90 days prior to termination of
Executive’s employment, unless the Company is informed and gives its approval in writing prior to
the hiring or retention.



Given Executive’s office and his participation in the development, sales, marketing, servicing
and provision of the Lawson Entities’ Products, Systems and Services, Executive acknowledges that
Executive has and will learn or develop Confidential Information relating to the development,
sales, marketing, servicing or provision of the Lawson Entities’ Products, Systems and Services,
and the Lawson Entities’ customers and prospective customers. Executive further acknowledges that
the Lawson Entities’ relationships with its customers have substantial value to the Lawson
Entities. Therefore, during the Restriction Period, provided that there shall not have occurred
and be continuing any material non-compliance by the Company with its obligations under this
Agreement, Executive shall not, directly or indirectly, for himself or on behalf of any person,
firm or other entity, solicit or sell, attempt to sell, or supervise, participate in, or assist the
sale or solicitation of Competitive Products and Systems to any person, firm or other entity to
which the Lawson Entities sold any of the Lawson Entities’ Products, Systems and Services during
the last two (2) years of Executive’s employment with the Company prior to the effective date of
termination. However, this Section 7(c) shall not prohibit the solicitation of any actual or
potential customer of the Lawson Entities which does not fall within the preceding description.
This Section 7(c) is independent of the obligations of confidentiality under this Agreement and the
non-compete provisions of this Agreement.



(d) Return of Property. All notes, lists, reports, sketches, plans, data contained in
computer hardware or software, memoranda or other documents concerning or related to the Lawson
Entities’ business which are or were created, developed, generated or held by Executive during
employment, whether containing or relating to Confidential Information or not, are the property of
the Lawson Entities and shall be promptly delivered to the Company upon termination of Executive’s
employment for any reason whatsoever. During the course of employment, Executive shall not remove
any of the above property, including but not limited to, Confidential Information, or reproductions
or copies thereof, or any apparatus containing any such property or Confidential Information, from
the Company’s premises without prior written authorization from the Company, other than in the
normal execution of Executive’s duties.



(e) Assignment of Intellectual Property Rights. Executive agrees to assign to the
Company any and all intellectual property rights including patents, trademarks, copyrights and
business plans or systems developed, authored or conceived by Executive, whether alone or jointly,
while employed by and relating to the business of the Lawson Entities. Executive agrees to
cooperate with the Company to perfect ownership rights thereof in the Company. This agreement does
not apply to an invention for which no equipment, supplies, facility or Confidential Information
was used and which was developed entirely on Executive’s own time, unless: (1) the invention
relates to the business of the Lawson Entities or to actual or anticipated research or development
of the Lawson Entities; or (2) the invention results from any work performed by Executive for the
Lawson Entities.



(f) Unfair Trade Practices. During the term of this Agreement and at all times
thereafter, Executive shall not, directly or indirectly, engage in or assist others in engaging in
any unfair trade practices with respect to the Lawson Entities.



(g) Remedies. Executive acknowledges that failure to comply with the terms of this
Section 7 will cause irreparable loss and damage to Company. Therefore, Executive agrees that, in
addition and cumulative to any other remedies at law or equity available to the Company for
Executive’s breach or threatened breach of this Agreement, the Company is entitled to specific
performance or injunctive relief against Executive to prevent such damage or breach, and a
temporary restraining order and preliminary injunction may be granted to the Company for this
purpose immediately at its request upon commencement of any suit, without prior notice and without
posting any bond. The existence of any claim or cause of action Executive may have against the
Company will not constitute a defense thereto. In addition, the Company will be relieved of any
obligation to provide to Executive any and all termination payments and benefits (excepting Accrued
Compensation) which would otherwise accrue, be continued, or become due and payable under this
Agreement following such breach or threatened breach, except that such payments and benefits shall
accrue during the period of alleged threatened breach or alleged breach and shall be due and
payable to Executive immediately upon either (a) a determination by the Company or arbitrator or
court, or (b) agreement of the parties, that Executive was not in breach. Each party agrees that
all remedies expressly provided for in this Agreement are cumulative of any and all other remedies
now existing at law or in equity. In addition to the remedies provided in this Agreement, the
parties will be entitled to avail themselves of all such other remedies as may now or hereafter
exist at law or in equity for compensation, and for the specific enforcement of the covenants
contained in this Agreement. Resort to any remedy provided for in this Section 7 or provided for
by law will not prevent the concurrent or subsequent employment of any other appropriate remedy or
remedies, or preclude a recovery of monetary damages and compensation. Each party agrees that no
party hereto shall be required to post a bond or other security to seek an injunction. In the
event that a court of competent jurisdiction declares that any of the remedies outlined in this
Section 7(g) are unavailable as a matter of law, the remainder of the remedies outlined in this
Section 7(g) shall remain available to the Company.



(h) Enforceability. If any of the provisions of this Section 7 are deemed by a court
or arbitrator having jurisdiction to exceed the time, geographic area or activity limitations the
law permits, the limitations will be reduced to the maximum permissible limitation, and Executive
and the Company authorize a court or arbitrator having jurisdiction to reform the provisions to the
maximum time, geographic area and activity limitations the law permits; provided, however, that
such reductions apply only with respect to the operation of such provision in the particular
jurisdiction in which such adjudication is made.



(i) Sufficiency of Consideration. Executive acknowledges that the consideration that
Executive will receive pursuant to this Agreement serves as sufficient consideration for
Executive’s promises to abide by the restrictive covenants set forth in this Section 7.



8. Governing Law and Disputes.



(a) This Agreement shall be interpreted and enforced in accordance with the laws of the State
of Illinois, without regard to its conflict of law principles.



(b) The Company and Executive agree to attempt to resolve any employment related dispute
between them quickly and fairly, and in good faith. Should such a dispute remain unresolved, the
Company and Executive irrevocably and unconditionally agree to submit to the exclusive jurisdiction
of the courts of the State of Illinois and of the United States located in Chicago, Illinois over
any suit, action or proceeding arising out of or relating to this Agreement. The Company and
Executive irrevocably and unconditionally agree to personal jurisdiction and venue of any such
suit, action or proceeding in the courts of the State of Illinois or of the United States located
in Chicago, Illinois.



9. Cooperation After Termination of Employment. Following the termination of
Executive’s employment by the Company, regardless of the reason for termination, Executive will
reasonably cooperate with the Company and Parent in the prosecution or defense of any claims,
controversies, suits, arbitrations or proceedings involving events occurring prior to the
termination of this Agreement. Executive acknowledges that in light of his position as Executive
Vice President and Chief Financial Officer of the Company and Parent, he is in the possession of
Confidential Information that may be privileged under the attorney-client and/or work product
privileges. Executive agrees to maintain the confidences and privileges of the Company and Parent
and acknowledges that any such confidences and privileges belong solely to the Company and Parent
and can only be waived by the Company or Parent, as applicable, not Executive. In the event
Executive is subpoenaed to testify or otherwise requested to provide information in any matter,
including without limitation, any court action, administrative proceeding or government audit or
investigation, relating to the Company or Parent, Executive agrees that: (a) he will promptly
notify the Company and Parent of any subpoena, summons or other request to testify or to provide
information of any kind no later than three (3) days after receipt of such subpoena, summons or
request and, in any event, prior to the date set for him to provide such testimony or information;
(b) he will cooperate with the Company and Parent with respect to such subpoena, summons or request
for information; (c) he will not voluntarily provide any testimony or information without
permission of the Company unless otherwise required by law; and (d) he will permit the Company to
be represented by an attorney of the Company’s choosing at any such testimony or with respect to
any such information to be provided, and will follow the instructions of the attorney designated by
the Company with respect to whether testimony or information is privileged by the attorney-client
and/or work product privileges of the Company or Parent, unless otherwise required by law. The
parties agree that the Company shall be responsible for all reasonable expenses of Executive
incurred in connection with the fulfillment of Executive’s obligations under this Section 9. The
parties agree and acknowledge that nothing in this Section 9 is meant to preclude Executive from
fully and truthfully cooperating with any government investigation.



10. Miscellaneous.



(a) Superseding Effect. This Agreement supersedes all prior or contemporaneous
negotiations, commitments, agreements, and writings, including without limitation the Change in
Control Agreement dated as of January 29, 2010, and expresses the entire agreement between the
parties with respect to Executive’s employment by the Company; provided, however, that the terms of
any Benefit Plans will remain applicable to the particular Benefit Plan, except as expressly
modified herein. All such other negotiations, commitments, agreements and writings will have no
further force or effect, and the parties to any such other negotiation, commitment, agreement or
writing will have no further rights or obligations thereunder. The parties agree and acknowledge
that the definitions of terms applicable to this Agreement may be different than the definitions of
those same terms in Benefit Plans and may result in seemingly contradictory results. For example,
a change in control under this Agreement may not constitute a change in control under the LTIP.
The parties agree and acknowledge that such seemingly contradictory results are intended, and that
this Agreement shall be governed solely by the terms and definitions set forth herein and that the
Benefit Plans shall be governed solely by the terms and definitions set forth in the Benefit Plans,
except as expressly modified herein.



(b) Amendment and Modification. Except as provided in Section 10(c), neither
Executive nor the Company may modify, amend or waive the terms of this Agreement other than by a
written instrument signed by Executive and the Company. Either party’s waiver of the other party’s
compliance with any specific provision of this Agreement is not a waiver of any other provision of
this Agreement or of any subsequent breach by such party of a provision of this Agreement. No
delay on the part of any party in exercising any right, power or privilege hereunder will operate
as a waiver thereof.



(c) Section 409A. It is also the intention of this Agreement that all income tax
liability on payments made pursuant to this Agreement or any Benefit Plans be deferred until
Executive actually receives such payment to the extent Code Section 409A applies to such payments,
and this Agreement shall be interpreted in a manner consistent with this intent. Therefore, if any
provision of this Agreement or any Benefit Plans is found not to be in compliance with any
applicable requirements of Code Section 409A, that provision will be deemed amended and will be
construed and administered, insofar as possible, so that this Agreement and any Benefit Plans, to
the extent permitted by law and deemed advisable by the Company, do not trigger taxes and other
penalties under Code Section 409A; provided, however, that Executive will not be required to
forfeit any payment otherwise due without his written consent. In the event that, despite the
parties’ intentions, any amount hereunder becomes taxable prior to the date that it would otherwise
be paid, the Company shall pay to the Executive (which payment may be made in whole or in part by
way of direct remittance to appropriate tax authorities) the portion of such amount needed to pay
applicable income and excise taxes and any interest or other penalties on such amounts. Any
remaining portion of such amount shall be paid to Executive at the time otherwise specified in this
Agreement, subject to Section 5(f).



Solely for purposes of determining the time and form of payments due under this Agreement or
otherwise in connection with his termination of employment with the Company and that are subject to
Code Section 409A, Executive shall not be deemed to have incurred a termination of employment
unless and until he shall incur a “separation from service” within the meaning of Code Section
409A. It is intended that each payment or installment of a payment and each benefit provided under
this Agreement shall be treated as a separate “payment” for purposes of Code Section 409A. All
reimbursements and in-kind benefits provided under the Agreement shall be made or provided in
accordance with the requirements of Code Section 409A to the extent that such reimbursements or
in-kind benefits are subject to Code Section 409A, including, where applicable, the requirements
that (i) any reimbursement is for expenses incurred during Executive’s lifetime (or during a
shorter period of time specified in this Agreement), (ii) the amount of expenses eligible for
reimbursement during a calendar year may not affect the expenses eligible for reimbursement in any
other calendar year (except that a plan providing medical or health benefits may impose a generally
applicable limit on the amount that may be reimbursed or paid), (iii) the reimbursement of an
eligible expense will be made on or before the last day of the calendar year following the year in
which the expense is incurred and (iv) the right to reimbursement is not subject to set off or
liquidation or exchange for any other benefit.



Nothing in this Section 10(c) increases the Company’s obligations to Executive under this
Agreement or any Benefit Plans. Executive remains solely liable for any taxes, including but not
limited to any penalties or interest due to Code Section 409A or otherwise, on the payments made
hereunder or under any Benefit Plans. The preceding provisions shall not be construed as a
guarantee by the Company of any particular tax effect for payments made pursuant to this Agreement
or any Benefit Plans.



(d) Parachute Payments. Notwithstanding anything to the contrary herein or in any
Benefit Plan, in the event it shall be determined that any monetary amounts or benefits due or
payable by the Company to Executive (whether paid or payable, or due or distributed) are or will
become subject to any excise tax under Section 4999 of the Code (collectively “Excise Taxes”), then
the amounts or benefits otherwise due or payable to Executive pursuant to this Agreement or any
Benefit Plans shall be reduced to the extent necessary so that no portion of such amounts or
benefits shall be subject to the Excise Taxes, but only if (i) the net amount of such amounts and
benefits, as so reduced (and after the imposition of the total amount of taxes under federal, state
and local law on such amounts and benefits), is greater than (ii) the excess of (A) the net amount
of such amounts and benefits, without reduction (but after imposition of the total amount of taxes
under federal, state and local law) over (B) the amount of Excise Taxes to which Executive would be
subject on such unreduced amounts and benefits.



If it is determined that Excise Taxes will or might be imposed on Executive in the absence of
such reduction, the Company and Executive shall make good faith efforts to seek to identify and
pursue reasonable action to avoid or reduce the amount of Excise Taxes; provided, however, that
this sentence shall not be construed to require Executive to accept any further reduction in the
amount or benefits that would be payable to him in the absence of this sentence. The provisions of
this Section 10(d) shall override and control any inconsistent provision in the LTIP.



All determinations required to be made under this Section 10(d), including whether reduction
is required, the amount of such reduction and the assumptions to be utilized in arriving at such
determination, shall be made in good faith by an independent accounting firm selected by the
Company in accordance with applicable law (the “Accounting Firm”), in consultation with tax counsel
reasonably acceptable to Executive. All fees and expenses of the Accounting Firm shall be borne
solely by the Company. If the Accounting Firm determines that no excise tax under Section 4999 of
the Code is payable by Executive, the Company shall request that the Accounting Firm furnish
Executive with written guidance that failure to report such excise tax on Executive’s applicable
federal income tax return would not result in the imposition of a negligence or similar penalty.



(e) Withholding. The Company will reduce its compensatory payments to Executive
hereunder for withholding and FICA and Medicare taxes and any other withholdings and contributions
required by law.



(f) Severability. If the final determination of an arbitrator or a court of competent
jurisdiction declares, after the expiration of the time within which judicial review (if permitted)
of such determination may be perfected, that any term or provision of this Agreement is invalid or
unenforceable, the remaining terms and provisions will be unimpaired, and the invalid or
unenforceable term or provision will be deemed replaced by a term or provision that is valid and
enforceable and that comes closest to expressing the intention of the invalid or unenforceable term
or provision. Any prohibition or finding of unenforceability as to any provision of this Agreement
in any one jurisdiction will not invalidate or render unenforceable such provision in any other
jurisdiction.



(g) Mitigation. Executive shall not be required to seek employment or otherwise
mitigate Executive’s damages in order to be entitled to the benefits and payments to which
Executive is entitled under this Agreement.



(h) Expenses. Each of the Company and Executive will bear its own expenses in
connection with the negotiation of this Agreement and the resolution of any disputes hereunder.



(i) Binding Agreement; Assignment. The Agreement is binding upon and shall inure to
the benefit of Executive’s heirs, executors, administrators or other legal representatives, upon
the successors of the Company and upon any entity into which the Company merges or consolidates.
The Company shall assign or otherwise transfer this Agreement and all of its rights, duties,
obligations or interests under it or to any successor to all or substantially all of its assets.
Upon such assignment or transfer, any such successor will be deemed to be substituted for the
Company for all purposes. Executive may not assign or delegate the obligations of Executive under
this Agreement.



(j) Interpretation. This Agreement will be interpreted without reference to any rule
or precept of law that states that any ambiguity in a document be construed against the drafter.



(k) Executive Acknowledgment. Executive acknowledges that Executive has read and
understands this Agreement and is entering into this Agreement knowingly and voluntarily.



(l) Continuing Obligations. Notwithstanding the termination of Executive’s employment
hereunder for any reason or anything in this Agreement to the contrary, all post-employment rights
and obligations of the parties, including but not limited to those set forth in Sections 5, 7, 8,
and 9, and any provisions necessary to interpret or enforce those rights and obligations under any
provision of this Agreement, will survive the termination or expiration of this Agreement and
remain in full force and effect for the applicable periods.



(m) Descriptive Headings. The descriptive headings of this Agreement are inserted for
convenience only and do not constitute a part of this Agreement.



(n) Counterparts. This Agreement may be executed in two or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute one and the same
instrument.



(o) Notice. Any notice by any party to the other party must be mailed by registered
or certified mail, postage prepaid, to the address specified below, or to any change of address
indicated by either party upon receipt of written notice of same:




Ron Knutson


At the address on file with the Company




Lawson Products, Inc.


8770 W. Bryn Mawr Avenue


Suite 900


Chicago, IL 60631


Attention: Chief Executive Officer



Notice will be deemed received on the third business day following the day on which it was mailed,
postage prepaid.



[SIGNATURE LINES ON NEXT PAGE]





1






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



EXECUTIVE:



Ron Knutson



LAWSON PRODUCTS, INC.



By:

Thomas Neri

President and Chief Executive Officer




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EXHIBIT A




CONFIDENTIAL GENERAL RELEASE 




In consideration of the payments and other benefits set forth in Section 5 of the At


Will Employment Agreement (hereinafter the “Agreement”) made and entered into by and between Ron
Knutson (hereinafter the “Executive”) and Lawson Products, Inc., an Illinois corporation
(hereinafter the “Employer”), as of August 29, 2012, Executive hereby executes this Confidential
General Release (hereinafter the “Release”):



1. Executive hereby releases Employer, its past and present parents, subsidiaries, affiliates,
predecessors, successors, assigns, related companies, entities or divisions, its or their past and
present employee benefit plans, trustees, fiduciaries and administrators and any and all of its and
their respective past and present officers, directors, partners, insurers, agents, representatives,
attorneys and employees (all collectively included in the term the “Employer” for purposes of this
release), from any and all claims, demands or causes of action which Executive, or Executive’s
heirs, executors, administrators, agents, attorneys, representatives or assigns (all collectively
included in the term “Executive” for purposes of this release), have, had or may have against
Employer, based on any events or circumstances arising or occurring prior to and including the date
of Executive’s execution of this Release to the fullest extent permitted by law, regardless of
whether such claims are now known or are later discovered, including but not limited to any claims
relating to Executive’s employment or termination of employment by Employer, any rights of
continued employment, reinstatement or reemployment by Employer, and any costs or attorneys’ fees
incurred by Executive (collectively, the “Released Claims”); provided, however, Executive is not
waiving, releasing or giving up any rights Executive may have to workers’ compensation benefits, to
vested benefits under any pension or savings plan, to payment of earned and accrued but unused
vacation pay, to continued benefits in accordance with the Consolidated Omnibus Budget
Reconciliation Act of 1985, to unemployment insurance, to any vested Equity Awards, to any vested
awards or benefits under the LTIP or any Benefit Plan, to indemnification (x) provided by Lawson
Products, Inc., a Delaware corporation, pursuant to the Delaware General Corporation Law or its
certificate of incorporation or bylaws or the Indemnification Agreement dated as of , 20       between
Lawson Products, Inc., a Delaware corporation, and Executive, or (y) provided by Employer pursuant
to the Illinois Business Corporation Act or its articles of incorporation or bylaws, in each case
as they exist on the date of Executive’s termination of employment, or to enforce the terms of the
Agreement, or any other right which cannot be waived as a matter of law. In the event any claim or
suit is filed on Executive’s behalf with respect to a Released Claim, Executive waives any and all
rights to receive monetary damages or injunctive relief in favor of Executive.



2. Executive agrees and acknowledges: that this Release is intended to be a general release
that extinguishes all Released Claims by Executive against Employer; that Executive is waiving any
claims arising under Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, the
Americans With Disabilities Act, the Age Discrimination in Employment Act, the Employee Retirement
Income Security Act, the Family and Medical Leave Act, the Rehabilitation Act, the Illinois Human
Rights Act, and all other federal, state and local statutes, ordinances and common law, including
but not limited to any and all claims alleging personal injury, emotional distress or other torts,
to the fullest extent permitted by law; that Executive is waiving all Released Claims against
Employer, known or unknown, arising or occurring prior to and including the date of Executive’s
execution of this Release; that the consideration that Executive will receive in exchange for
Executive’s waiver of the Released Claims exceeds anything of value to which Executive is already
entitled; that Executive has entered into this Release knowingly and voluntarily with full
understanding of its terms and after having had the opportunity to seek and receive advice from
counsel of Executive’s choosing; and that Executive has had a reasonable period of time within
which to consider this Release. Executive represents that Executive has not assigned any claim
against Employer to any person or entity. Executive agrees not to apply for or seek employment
with Employer.



3. Executive agrees to keep the terms of this Release confidential and not to disclose the
terms of this Release to anyone except to Executive’s spouse, attorneys, tax consultants or as
otherwise required by law, and agrees to take all steps necessary to assure confidentiality by
those recipients of this information.



4. Executive hereby agrees and acknowledges that Executive has carefully read this Release,
fully understands what this Release means, and is signing this Release knowingly and voluntarily,
that no other promises or agreements have been made to Executive other than those set forth in the
Agreement or this Release, and that Executive has not relied on any statement by anyone associated
with Employer that is not contained in the Agreement or this Release in deciding to sign this
Release.



5. This Release will be governed by the laws of the State of Illinois and all disputes arising
under this Release must be submitted to a court of competent jurisdiction in Chicago, Illinois.
Capitalized terms used herein and not otherwise defined shall have the meanings ascribed to such
terms in the Agreement.



6. Executive may accept this Release by delivering an executed copy of the Release to:



[NAME]



[ADDRESS]



on or before        [insert a date at least 21 calendar days after Executive’s
receipt of this Agreement].



7. Executive may revoke this Release within seven (7) days after it is executed by Executive
by delivering a written notice of revocation to:



[NAME]



[ADDRESS]



no later than the close of business on the seventh (7th) calendar day after this Release was signed
by Executive. This Release will not become effective or enforceable until the eighth (8th)
calendar day after Executive signs it. If Executive revokes this Release, Employer shall have no
obligation to provide the payments and other benefits set forth Section 5 of the Agreement.



	 
	EXECUTIVE:

	Name:

	 

	Date:

	 








3