Document:

Exhibit 10.37

 

		
        3000 John Deere Road, Toano, VA 23168

        Phone: (757) 259-4280.● Fax (757) 259-7293

        www.lumberliquidators.com

 

November 9, 2015

 

John M. Presley

c/o Lumber Liquidators Holdings, Inc.

3000 John Deere Road

Toano, Virginia 23168

 

Dear John:

 

Lumber Liquidators
Holdings, Inc. (the “Company”) has designated you to be a recipient of a non-statutory stock option to purchase shares
of the common stock of the Company, par value $.001 per share (“Stock”), subject to the service-based vesting restrictions
and other terms set forth in this Award Agreement and in the Lumber Liquidators Holdings, Inc. 2011 Equity Compensation Plan (the
“Plan”).

 

The grant of this stock
option is made pursuant to the Plan. The Plan is administered by the Compensation Committee (the “Committee”) of the
Company’s Board of Directors (the “Board”). The terms of the Plan are incorporated into this Award Agreement
and in the case of any conflict between the Plan and this Award Agreement, the terms of the Plan shall control. A copy of the Plan
will be provided to you upon request.

 

1. Grant. In
consideration of your agreements contained in this Award Agreement, the Company hereby grants to you a non-statutory option (“NSO”)
to purchase from the Company 150,000 shares of common stock of the Company (the “Company Stock”) at $16.13 per
share. The exercise price of the NSO is equal to the higher of the closing price of the Company Stock on the New York Stock Exchange
on November 3, 2015 or November 9, 2015 (November 9, 2015, the “Grant Date”).

 

2. Vesting.
The grant of the NSO is subject to the following terms and conditions:

 

(a) Subject
to Section 2(b), below, the shares covered by the NSO shall vest, and shall be exercisable, on the following Vesting Dates, if
the service conditions described in Section 2(c) are met on the applicable Vesting Date:

 

	 	 	Number of Shares That May Be Exercised
	Vesting Date	 	 (Vested Portion of NSO)
	November 9, 2016	 	50,000
	November 9, 2017	 	50,000
	November 9, 2018	 	50,000

 

     

     

    

  

(b) Thirty-three percent
(33%) of the shares covered by the NSO that have not previously vested or expired shall vest upon a Change in Control of the Company
(as defined in the Plan), and any portion of the NSO that remains unvested shall immediately expire upon such Change in Control.

 

(c)  You must
be employed by the Company as its Chief Executive Officer or serving on the Board on the relevant date for any shares to vest under
Section 2(a) or Section 2(b).  In the event you remain a member of the Board but are no longer employed by the Company as
its Chief Executive Officer, seventy-five percent (75%) of the shares covered by the NSO which have not vested as of the date you
ceased serving as the Company's Chief Executive Officer shall immediately expire.  Such percentage shall be applied to each
tranche of shares that have not vested as of such date.  

 

3. Exercise.

 

(a) Except
as otherwise stated in this Award Agreement and in the Plan, the NSO may be exercised, in whole or in part, from the Vesting Date
described above until the earliest of (i) ten years and one day following the Grant Date, or (ii) the end of the applicable
period set forth in subsection (b) below. Any portion of the NSO that is not exercised prior to its expiration shall be forfeited.

 

(b) Except
as otherwise stated in this section, the NSO may be exercised only while you are employed by the Company as its Chief Executive
Officer or serving on the Board. The exercisability of the NSO after you have ceased to be employed by the Company as its Chief
Executive Officer and ceased to serve on the Board is subject to the following terms and conditions:

 

(i) If your employment
by the Company as its Chief Executive Officer is terminated by you or the Company for any reason, and your service on the Board
terminates for any reason, in either case other than due to your death or Disability, you may exercise any or all of the NSO that
is then fully vested and exercisable within three months after the later of the date (x) your employment by the Company as its
Chief Executive Officer terminates and (y) your Board service terminates.

 

(ii) If you become Disabled
while employed by the Company as its Chief Executive Officer or while serving on the Board, you may exercise any or all of the
NSO that is then fully vested and exercisable within one year after the later of the date (x) your employment by the Company as
its Chief Executive Officer terminates due to Disability or (y) your Board service terminates due to Disability.

 

(iii) If you die while
you are employed by the Company as its Chief Executive Officer or while serving on the Board, the person to whom your rights under
the NSO shall have passed by will or by the laws of distribution may exercise any or all of the NSO that is then fully vested and
exercisable within one year after your death.

 

     

     

    

  

4. Payment Under
NSO. You may exercise the NSO in whole or in part, but only with respect to whole shares of Company Stock. You may make payment
of the NSO price in cash, in shares of Company Stock that you already own, or in any combination thereof. If you deliver shares
of Company Stock to make any such payment, the shares shall be valued at the Fair Market Value (as defined in the Plan) thereof
on the date you exercise the NSO.

 

5. Transferability
of NSO. The NSO is not transferable by you (other than by will or by the laws of descent and distribution) and, except as otherwise
stated in this Award Agreement, may be exercised during your lifetime only by you.

 

6. Fractional Shares.
A fractional share of Company Stock will not be issued and any fractional shares may be disregarded by the Company.

 

7. Adjustments.
If the number of outstanding shares of Company Stock is increased or decreased as a result of a stock dividend, stock split or
combination of shares, recapitalization, merger in which the Company is the surviving corporation, or other change in the Company’s
capitalization without the receipt of consideration by the Company, the number and kind of shares with respect to which you have
an unexercised NSO and the exercise price shall be proportionately adjusted by the Committee, whose determination shall be binding.

 

8. Exercise.
To exercise the NSO, you must deliver to the Corporate Secretary of the Company written notice stating the number of shares you
have elected to purchase and arrange for payment to the Company as described in Section 4 above. Notwithstanding the provisions
of Section 9, such notice may be sent to the Corporate Secretary via e-mail.

 

9. Notice. Any
notice to be given to the Company under the terms of this Award Agreement shall be addressed to the Corporate Secretary at Lumber
Liquidators Holdings, Inc., 3000 John Deere Road, Toano, Virginia 23168. Any notice to be given to you shall be addressed to you
at the address set forth above or your last known address at the time notice is sent. Notices shall be deemed to have been duly
given if mailed first class, postage prepaid, addressed as above.

 

10. Forfeiture and
Repayment Provision. If the Committee determines, in its sole discretion, that you have, at any time, willfully engaged in
conduct that is harmful to the Company (or any Related Company), the Committee may declare that all or a portion of the NSO is
immediately forfeited. If the Committee determines, in its sole discretion, that you have willfully engaged in conduct that is
harmful to the Company (or any Related Company), you shall repay to the Company all or any shares of Common Stock acquired through
the exercise of the NSO or all or any of the amount realized as a result of the sale of Common Stock acquired through the exercise
of the NSO, to the extent required by the Committee. Repayment or forfeiture required under this Section shall be enforced by the
Board or its delegate, in the manner the Board or its delegate determines to be appropriate. Your acceptance of the award reflected
in this Award Agreement constitutes acceptance of the forfeiture and repayment provisions of this Section.

 

11. Applicable Withholding
Taxes. By your acceptance of this Award Agreement, you agree to pay to the Company the amount that must be withheld under federal,
state and local income and employment tax laws or to make arrangements satisfactory to the Company for the payment of such taxes.

 

     

     

    

  

12. Applicable Securities
Laws. You may be required to execute a customary written indication of your investment intent and such other agreements the
Company deems necessary or appropriate to comply with applicable securities laws. The Company may delay delivery of the shares
purchased pursuant to the exercise of the NSO until you have executed such indication or agreements.

 

13. Acceptance of
NSO. This Award Agreement deals only with the NSO you have been granted and not its exercise. Your acceptance of the NSO, which
shall be deemed to take place when you sign this Award Agreement, places no obligation or commitment on you to exercise the NSO.
By signing this Award Agreement, you indicate your acceptance of the NSO and your agreement to the terms and conditions set forth
in this Award Agreement, which, together with the terms of the Plan, shall become the Company’s Stock Option Agreement with
you. You also hereby acknowledge that a copy of the Plan has been made available and agree to all of the terms and conditions of
the Plan, as it may be amended from time to time. Unless the Company otherwise agrees in writing, the NSO reflected in this Award
Agreement will not be exercisable as a Stock Option Agreement if you do not accept this Award Agreement within thirty days of the
Grant Date.

 

14. Clawback.
If, as a result of material non-compliance with any financial information required to be reported under securities laws, the Company
is required to prepare a restatement of its financial statements, then you will, with the approval of the Committee, forfeit or
repay the proceeds of all or a portion of the NSO under this Agreement if it was awarded within the three fiscal year-period preceding
the date of such restatement. The forfeited or repayment amount shall equal the difference between the NSO reflected in this Agreement
and the amount, if any, that would have been granted based on the restated financial statements. The Committee shall determine
and approve the amount of su8ch forfeited or repayment amount. Repayment required under this Section shall be enforced by the Board
or its delegate, in the manner the Board or its delegate determines to be appropriate. Further, to the extent this NSO is subject
to recovery under any law, government regulation or stock exchange listing requirement, it will be subject to such deductions and
clawback as may be required to be made pursuant to such law, government regulation or stock exchange listing requirement (or any
policy adopted by the Company pursuant to any such law, government regulation or stock exchange listing requirement). This Section 14
is intended to comply with Section 954 of Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 and all regulations
and rulemaking thereunder and should be interpreted accordingly. Your acceptance of the NSO reflected in this Agreement constitutes
acceptance of the repayment provisions described in this Section.

 

[SIGNATURE PAGE FOLLOWS]

 

     

     

    

  

IN WITNESS WHEREOF, the Company has caused
this Stock Option Agreement to be signed, as of this 10th day of November 2015.

 

	 	LUMBER LIQUIDATORS HOLDINGS, INC.
	 	 
	 	By:	/s/ E. Livingston B. Haskell

	 	Name:	E. Livingston B. Haskell

	 	Its:	Secretary

 

	Agreed and Accepted:	 	 
	 	 	 
	/s/ John M. Presley	 	 
	John M. Presley	 	 
	 	 	 
	November 11, 2015	 	 
	[Date]Exhibit 10.38

 

 

 

 

September
7, 2011

 

Revision
1

 

Mr.
Carl R. Daniels

1715
Pearl Way

Oxnard,
CA 93035

 

Dear
Carl:

 

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

 

		•	Title: Senior Vice President, Supply Chain

 

		•	Reports to: Rob Lynch ~ President & COO

 

		•	Estimated Start Date: October 31, 2011

 

		•	Annual Base Salary: $285,000 and a one time sign on bonus of $25,000 to be paid after 30 days of
continuous employment. 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. You will receive more information about direct deposit during new
hire orientation.

 

		•	Overtime Exemption Status: Exempt

 

		•	Relocation: Please refer to the attached Corporate Relocation Policy for Managers and the Relocation Expense Agreement for
information regarding relocation benefits offered to you.

 

     

     

    

  

		•	Incentive Plan: You will be eligible to receive a yearly bonus in an amount up to 50% of your base
salary consistent with the applicable Annual Bonus Plan. Historically, a portion of an individual’s bonus has been based
upon Lumber Liquidators’ performance as a company and the remainder on goals and accomplishments specific to the individual’s
position. The awarding (or decision not to award) a bonus and the amount thereof is a decision left to the sole discretion of Lumber
Liquidators. Any employee bonus plan is subject to amendment, modification or termination. The amount of any bonus awarded would
be prorated based on your date of hire in 2011.

 

		•	Stock Options: A recommendation will be made to the Compensation Committee of Lumber Liquidators’ Board of Directors
that you receive Lumber Liquidators non-qualified stock options with a cumulative value of $300,000 using the Black-Scholes-Merton
method as of the date of award. If approved by the Compensation Committee, any option award will be granted under, subject to and
governed by the 2007 Equity Compensation Plan, and shall be evidenced by a stock option grant agreement. The agreement will specify,
among other things, the vesting schedule, consequences of termination of employment and other applicable terms and conditions.
The timing and amount of any such award to you is subject to the discretion of the Compensation Committee and the Boiard of Directors.
The Compensation Committee will meet on November 17, 2011.

 

		•	Performance Review and Merit Increase: You will be eligible to participate in Lumber Liquidators’ annual performance
review and merit program. Performance reviews are conducted in the first quarter, and merit increases, if given are typically applied
by the end of April. Your 2012 merit increase, if given, would be prorated for your date of hire in 2011. Your direct supervisor
will discuss the details of this program with you.

 

		•	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 on your first day of employment, you will receive more information regarding
these plans. If you did not previously receive our 2011/2012 benefits guide, you will be given one during orientation.

 

		•	Paid Time Off (PTO): You will be entitled to 160 hours annually of Paid Time Off (PTO) per terms and conditions of the PTO
policy. PTO for 2011 will be prorated based on your date of hire.

 

		•	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 the satisfactory results of a drug screening test, background verification, and your
execution of the Confidentiality, Non-Solicitation and Non-Competition Agreement and your ability to show that you are
eligible to work in the United States. You must complete the pre-employment drug screen within 48 hours of the verbal
acceptance of this offer. You must bring a photo identification card with you to drug testing.

 

On
your first day of employment, please arrive at 8:30 am and call Shonda Brayboy at extension 7642 from the courtesy phone in the
lobby to inform her of your arrival. You will attend a brief new hire orientation. During orientation you will tour the warehouse,
so please wear flat, closed toe shoes on your first day. At orientation 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. They will be collected
during orientation. If you have any questions regarding completion of these forms, you may ask those during orientation.

 

Please
acknowledge your acceptance of this offer by signing and returning the original of this letter to me no later than your first day
of employment. A copy of the letter is enclosed for your records. If you wish to return this document via fax, the Human Resources
fax number is 757-259-4286. The original must still be returned. Lumber Liquidators’ mailing address is 3000 John Deere Road,
Toano, VA 23168. You may also bring the letter with you on your first day of employment if you’re unable to ensure delivery
to me prior to your first day. If you have questions regarding any of the above, please feel free to contact me at 757-566-7486.

 

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.

 

Carl,
we are pleased and excited that you will be joining the Lumber Liquidators team! We look forward to working with you to further
our success. Please let me know if I can do anything now or in the future to help you.

 

Welcome
aboard!

 

     

     

    

 

Sincerely,

 

/s/ Kelli
Carter

Kelli Carter

Senior Recruiter

 

ACKNOWLEDGEMENT
and AGREEMENT: As indicated by my signature below on this letter, I acknowledge its receipt and my understanding of its contents.
I agree, that should I terminate employment with Lumber Liquidators; any monies owed for personal expenses will be deducted from
my final paycheck.

 

	Signature:	/s/ Carl R. Daniels	 	Date:	9/8/2011
	 	Mr. Carl R. Daniels	 	 

 

Cc:     Jean
Matherne - SVP, Human Resources

 

	Attachments:	Form VA-4 Virginia State Tax Withholding
	 	Form 1-9
	 	New Hire Announcement Form
	 	Confidentiality, Non-Solicitation and Non-Competition Agreement
	 	Annual Bonus Plan Document Executive Management
	 	Relocation Expense Agreement
	 	Relocation Reimbursement Form
	 	Corporate Relocation Policy

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