Document:

LAWSON PRODUCTS, INC.

                                     FORM OF
                   RESTRICTED STOCK AWARD AND ACKNOWLEDGEMENT
                   ------------------------------------------

         THIS RESTRICTED STOCK AWARD ("Award") is granted this _____ day of
________, ____, by Lawson Products, Inc., a Delaware corporation (the "Company")
to ___________ (the "Director").

         WHEREAS, the Company is of the opinion that its interests will be
advanced by granting the Director a proprietary interest in it, thus providing
the Director with a more direct stake in its welfare and creating a closer
relationship between the Director's interests and those of the Company.

         NOW, THEREFORE, in consideration of services rendered to the Company by
the Director and the services and other conditions required hereunder, the
Company hereby grants this Award to the Director on the terms expressed herein.

         1. Stock Award. The Company hereby grants to Director an award of
______ shares of common stock of the Company (the "Award Shares"), subject to
the nontransferability provision set forth in Section 3, and the other terms and
conditions set forth herein. The Director hereby acknowledges and agrees to such
restriction and the other terms and conditions set forth herein.

         2. Vesting. The Award Shares shall be fully vested on the date of
grant.

         3. Restriction. The Director shall not sell, assign, transfer, convey,
pledge, hypothecate, encumber, donate or otherwise dispose of any of the Award
Shares under any conditions (and any attempted disposition shall be void and of
no force or effect whatsoever). Upon the earlier of (a) termination of the
Director's status as a member of the Board of Directors of the Company or (b)
after the third anniversary of the date hereof, such restriction shall lapse.

         4. Voting; Dividends. The Director shall have all of the rights and
status of a stockholder of the Company in respect of the Award Shares, including
the right to vote such shares and to receive dividends or other distributions
thereon.

         5. Adjustments and Certain Distributions. In the event that, prior to
the termination of the restriction hereunder on the Award Shares, the Company
shall change the number of issued shares of common stock without receipt of
consideration therefore (by stock split, stock dividend or similar action), all
stock received by Director in respect of the Award Shares that are then subject
to restriction hereunder shall also be held subject to such restriction.

         6. Applicable Plan. These Award Shares are granted under and are
subject to the terms and conditions of the Lawson Products, Inc. 1999 Incentive
Stock Plan, as amended (the "Plan"). Any capitalized terms not defined herein
shall be subject to the definitions set forth in the Plan.

         7. Prospectus. This document constitutes part of a prospectus covering
securities that have been registered under the Securities Act of 1933, as

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amended. Copies of all documents incorporated by reference into the registration
statement shall be furnished by the Company upon written or oral request.

         IN WITNESS WHEREOF, the Company has caused this Award to be granted on
the date first above written.

                                                     LAWSON PRODUCTS, INC.

                                                     By:
                                                        ------------------------

ACKNOWLEDGED AND ACCEPTED:

---------------------------------------------------------, -------

         Re:      Stock Performance Rights

Dear ______:

         I am pleased to inform you that the Compensation Committee of the Board
of Directors of Lawson Products, Inc. (the "Company") has awarded to you a Stock
Performance Right ("SPR") under the Company's Amended Stock Performance Plan
("Plan") in recognition of your valued service to the Company and as an
inducement for your continued contribution to the profitability and success of
the Company. A complete copy of the Plan is available through the Secretary of
the Company.

         The SPR will entitle you to a cash payment equal to the appreciation in
the fair market value of ________ shares of the Company's Common Stock over a
period of time. The fair market value of the Company's Common Stock is now
$______, (fair market value is the closing price for the Company's Common Stock,
as reported on NASDAQ, for the relevant date).

         Your SPR will vest in five equal annual installments on the first,
second, third, fourth and fifth anniversaries of the date of its grant, provided
that you remain employed by, a member of the Board of Directors of, or a
consultant to, Lawson, as the case may be.

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         The SPR will be fully vested in the event of (a) your death or
disability, or, if you are an employee of Lawson, your normal retirement, (b)
your retirement from the Board of Directors of Lawson, if you are a director, or
(c) upon a change of control (as defined in the Plan).

         You may exercise your SPR, to the extent it is then vested, and receive
the appreciation in fair market value of the underlying Common Stock in cash at
any time on or before ten years from the date hereof, provided you are still
employed by, a member of the Board of Directors of, or a consultant to, the
Company, as the case may be. The notice of your exercise must be in writing and
delivered to the Secretary of the Company and will be effective (and the amount
of the appreciation to be paid will be fixed) upon receipt.

         Any amount earned during the appreciation period will be paid to you
within 30 days of the date of your exercise, subject to withholding, if
applicable.

         Your SPR does not entitle you to receive dividends, vote or exercise
any of the other rights of a holder of Common Stock of the Company.

         In the event of a stock dividend, stock split, or other change in the
Company's Common Stock by reason of recapitalization, reorganization or like
transaction, the Company will make an appropriate adjustment in the number and
value of your SPR shares. However, no adjustment will be made if the number of
shares of outstanding Common Stock is changed as a result of a purchase of
shares by the Company for their fair value or as a result of the issuance of
additional shares of Common Stock for their fair value. For these purposes the
determination of the Company's Board of Directors that shares are acquired or
issued for their fair value will be final and conclusive.

         If you die or become permanently disabled, or if you are an employee of
Lawson and you retire prior to exercise, or if you are a director of Lawson and
you retire from the Board of Directors, your SPR will become fully vested but

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must be exercised during the one-year period from the date of death, disability
or retirement. Unless you or your beneficiary elect to exercise the SPR and
receive payment earlier, you or your beneficiary will be deemed to exercise the
SPR on the last day of the one-year period and receive payment of the
appreciation, if any, measured to that date. You may designate one or more
beneficiaries by writing filed with the Secretary of the Company. Beneficiaries
may be named contingently or successively and may share in different proportions
if so designated.

         If you are an employee of Lawson and your employment is terminated for
any reason other than death, disability or retirement, or if you are a
consultant to Lawson and your consultancy terminates for any reason other than
death or disability, your SPR will be deemed to be exercised on the date of
termination, but only to the extent then vested by its terms, and you will be
entitled to the appreciation in fair market value, if any, of the underlying
Common Stock measured to such date.

         If you are an employee of or a consultant to Lawson, nothing in this
SPR shall confer on you any right to continue in the employ of or remain a
consultant to the Company or to interfere with the right of the Company to
terminate your relationship at any time.

         The Company's obligation with respect to this right will not be funded
or secured in any manner, nor will your right to receive payments be assignable
or transferable, voluntarily or involuntarily, except as expressly provided
herein.

         The Company shall be entitled to withhold the amount of any tax
attributable to any amount payable hereunder, if applicable.

         This SPR will be construed in accordance with and governed by the laws
of the State of Delaware.

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         If you have any questions with respect to this SPR, please feel free to
call me.

                                                     Very truly yours,

                                                     ------------------------Dear:

Re:  Performance Share Award

I am pleased to advise you that, on _______________, ____, the Compensation
Committee of the Board of Directors granted you a Performance Share Award under
the Company's amended and restated 1995 Incentive Stock Plan (the "1995 Plan")
with a target of ____ shares.

Up to 150 percent of the target shares may be earned, depending on the total
shareholder return ("TSR") of the Company during the three-year period
commencing ________ and ending _________________, as compared with the TSR for
the S&P Small Cap 600 Index. If the Thomas Industries TSR ranks in the 45th
percentile in relation to the Small Cap Index, then 100 percent of your target
shares will be earned. If the Thomas TSR ranks in the 85th percentile or
greater, then 150 percent of your target shares will be earned. If the Thomas
TSR ranks greater than the 45th percentile, but less than the 85th percentile,
then the percentage of target shares that you will earn will be determined by
multiplying 1 1/4 % of the target times each percentile in excess of 45 and
adding that product to 100 percent of your target. For example, if the Thomas
TSR ranks at the 65th percentile of the Small Cap Index, an award of 125 percent
of the target would be earned [(20 x 1 1/4 %) + 100%]. If the Thomas TSR is
below the 45th percentile of the Small Cap Index, no shares will be earned under
the award. For these purposes, TSR shall be determined by adding the TSR at the
end of each of the three performance years and dividing by three.

Dividend Equivalents

If the Company pays a dividend with respect to its common stock at any time
during the three-year performance period, the number of target shares then
credited to you will be increased by a number of shares equal to (a) the cash
dividend you would have received had you actually owned the target shares then
credited to you, divided by (b) the fair market value of a share of common stock
on the dividend payment date.

Death, Disability, or Retirement

In the event of your death, disability, or retirement (at age 55 with at least
20 years of service) during the performance period, you or your beneficiary will
receive, at the end of the performance period, the number of shares that would
have been earned during the performance period multiplied by a fraction, the
numerator of which is the number of days during the performance period prior to
your death, disability, or retirement and the denominator of which is 1,095. In
the event of any other termination of employment during the performance period,
the performance share award shall be forfeited in its entirety.

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Stock Dividends or Splits

In the event of a stock dividend, stock split, or other transaction in which the
Company changes the number of its shares of common stock during the performance
period without new consideration to the Company, the number of target shares
credited to you will be changed in proportion to the change in the Company's
shares. The number of target shares credited to you may also be subject to other
adjustments in accordance with Section 11 of the 1995 Plan in the event of an
extraordinary dividend or other distribution or the occurrence of any other
unusual or extraordinary corporate transaction involving the Company's Common
Stock or assets, as set forth in Section 11 of the 1995 Plan.

Change in Control

If there is a change in control of the Company during the performance period,
the performance goals established hereunder shall be deemed satisfied; and 100
percent of the target shares then credited to you will be delivered to you as
soon as possible after the change in control. For these purposes and for
purposes of distribution of deferred shares (see below), a "change in control"
is defined in Exhibit A attached to this Award.

Merger or Consolidation

In the case of any merger, consolidation, or combination of the Company with or
into another corporation, as defined in Section 10(c) of the 1995 Plan, other
than a transaction that constitutes a change in control, the target shares
credited to you will be converted into the Acquisition Consideration as defined
in Section 10(c) of the 1995 Plan.

Election to Defer

You may elect to defer receipt of any shares earned during the performance
period until the date of your retirement by delivering written notice of
deferral to the Committee on or before ________________. The form of election is
attached as Exhibit B. If you elect deferral, the shares earned during the
performance period will be transferred into the Thomas Industries Inc. Deferred
Share Trust, a rabbi trust with National City Bank as Trustee. The transfer of
shares into the Trust will be made at the end of the performance period after
approval is given by the Compensation Committee.

Cash dividends paid to the Trust will automatically be reinvested in Thomas
stock through the Thomas Industries Dividend Reinvestment Plan. National City
will maintain a separate sub- account within the Trust for each individual's
deferred share balance. Quarterly statements will be issued to you providing
details of account activity during the period.

The deferred shares will be delivered to you or your beneficiary in accordance
with your election on Exhibit B. Taxable ordinary income will be recognized on
the Trust distribution date equal to the number of shares received times the
closing market value on that date. You will be required to pay federal, state,
and local withholding taxes prior to distribution. These taxes may be paid
either through the issuance of a check to the Trustee or by instructing the
Trustee to sell the appropriate number of shares to cover withholding costs. The
Trustee will issue a Form W-2 to you for the year payment is made, which will
reflect your compensation and tax withholdings related to the share
distribution.

                                       2

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Under the Internal Revenue Code, deferred compensation is subject to FICA tax in
the year in which compensation is earned. As a result, FICA tax will be payable
based on the market value of performance shares on the date approved by the
Compensation Committee. FICA taxes will need to be withheld from your pay in
that same year.

Beneficiary

You may designate from time to time the person or persons who will succeed to
your rights hereunder in the event of your death. Such designation shall be in
the form made available to you from time to time and will be effective only upon
its filing with the Company's Secretary. In the absence of an effective
designation, any earned shares will be delivered to your estate.

Unfunded Obligation

The Company's obligation with respect to this Award shall not be secured or
funded in any manner, and any amounts payable or shares deliverable pursuant to
the terms of this Award shall be paid or delivered from the general assets of
the Company.

Non-Assignability

You will have no right to anticipate any payment or delivery to be made
hereunder or to alienate, dispose of, or encumber any of your rights under this
Award. The Company will not recognize any assignment or alienation of this
Award, either in whole or in part; nor shall your interest hereunder be subject
to attachment, garnishment, or execution following judgment or other legal
process.

Governing Law

The validity and interpretation of this Award shall be determined in accordance
with the laws of the State of Kentucky without regard to its conflict of law
principles.

Please contact me if you have any questions with respect to this award.

Very truly yours,

Timothy C. Brown
Chairman, President and CEO

jms

Enc.

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                                                                       Exhibit A
                                                                       ---------

         A change of control of the Company shall be deemed to occur upon the
happening of any of the following:

          a.   Any "person" (as that term is used in Sections 13(d) and 14(d) of
               the Securities Exchange Act of 1934, but excluding the Company,
               its affiliates, and any qualified or non-qualified plan
               maintained by the Company or its affiliates) becomes the
               "beneficial owner" (as defined in Rule 13d-3 promulgated under
               such Act), directly or indirectly, of securities of the Company
               representing 30 percent or more of the combined voting power of
               the Company's then outstanding securities unless the Board of
               Directors determines that such event does not constitute a change
               of control;

          b.   During any period of two consecutive years, individuals who at
               the beginning of any such period constitute the directors of the
               Company cease for any reason to constitute at least a majority
               thereof, unless the election, or the nomination for election, by
               the Company's shareholders of each new director of the Company
               was approved by a vote of at least two-thirds of such directors
               of the Company then still in office who were directors of the
               Company at the beginning of any such period;

          c.   Shareholder approval of a combination of the Company (by merger,
               share exchange, consolidation, or otherwise) with another
               corporation and, as a result of such combination, less than 75
               percent of the outstanding securities of the surviving or
               resulting corporation are owned in the aggregate by the former
               shareholders of the Company; or

          d.   The Company sells, leases, or otherwise transfers all or
              substantially all of its properties or assets to another person or
              entity.

         For purposes of accelerating the distribution of any deferred shares, a
change in control must comply with the above definition and must also comply
with guidance issued by the Internal Revenue Service pursuant to Section 409A of
the Internal Revenue Code.

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                                                                       Exhibit B
                                                                       ---------

                             PERFORMANCE SHARE AWARD
                                DEFERRAL ELECTION

I hereby elect to have the following portion of the performance shares earned by
me during the three-year period ending ____________________, if any, deferred in
accordance with the following terms:

     A.   Portion to be Deferred (Choose one)

               ________________ Percent or fraction of shares to be deferred; OR

               ________________ Number of shares deferred;

               Note that any shares not deferred will be delivered at the end of
the performance period.

     B.   Manner of Delivery of Deferred Shares (Choose one)

               ________________ In a single delivery on the first business day
                                pf the calendar year following the year of
                                retirement; OR

               ________________ Number of annual installments (not more
                                than five) commencing on the first
                                business day of the calendar year
                                following the year of retirement and
                                continuing on each respective
                                anniversary of that date
               Notes:

               (1)    "Retirement" is defined as your termination of employment
                      from the Company at age 55 with at least 20 years of
                      service. If you terminate employment prior to retirement
                      for any other reason, your deferred shares will be paid to
                      you as soon as possible after the six-month anniversary of
                      your termination regardless of your election above (or, if
                      you die during that six month period, as soon as possible
                      after your death).

               (2)    Distributions of deferred shares will be distributed
                      immediately upon a change in control as defined in Exhibit
                      A to the Agreement, provided such distribution is
                      permitted by guidance issued by the Internal Revenue
                      Service pursuant to Section 409A of the Internal Revenue
                      Code.

               (3)    If, at your termination of employment or retirement, you
                      are a "key employee" (as defined in the Internal Revenue
                      Code), the Internal Revenue Code requires that
                      distributions be delayed until at least six months after
                      your termination of employment. As a result, if you retire
                      or terminate employment late in a given year (for example,
                      in November or December), your deferred shares will not be
                      distributed on the next first business day of the next
                      calendar year, but instead will be distributed as soon as
                      practicable after six months have elapsed from your
                      termination of employment (or, if you die during that six
                      month period, as soon as possible after your death).

<PAGE>

I understand that my execution and delivery of this election will not in any way
entitle me to any performance shares and that such shares will be earned only if
the Company achieves the performance criteria established with respect to the
performance share award.

-------------------------                    ---------------------------------
Date Signed                                  Signature

NOTE:      This election must be executed and delivered to the Chief Financial
            Officer of the Company on or before June 30, 2007.

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