Document:

ex1028trousdaleconsultin

                                                                  EXHIBIT 10.28                              CONSULTING AGREEMENT          THIS AGREEMENT (“Agreement”) is made and entered into as of January 29, 2019 by and   between BlueLinx Corporation (“Company”), and D. Wayne Trousdale (“Consultant”).                                  W I T N E S S E T H:          WHEREAS, Company and Consultant are party to that certain Employment Agreement, dated  April 19, 2018, and amended as of June 1, 2018 (the “Employment Agreement”); and          WHEREAS, Consultant has indicated his intent to resign his employment with Company, effective  April 19, 2019;          WHEREAS,   Company, BlueLinx Holdings Inc. (“BHI”), and each of their respective   wholly-owned subsidiaries and affiliates (collectively, the “Company Group”) are engaged in the business   of, among other things, the distribution, marketing, sourcing, supplying, and selling of wood, metal, and   vinyl and other building products in domestic and international markets, and light manufacturing,   fabrication, treating and painting of wood and other building materials (collectively, the  “Company Business”); and          WHEREAS,  Consultant possesses significant knowledge and information with respect to the   Company Business and other value-added services; and          WHEREAS, in light of Consultant’s significant knowledge with respect to the Company Business,   Company desires to engage Consultant as a consultant beginning on April 19, 2019 (the “Services   Start Date”).          NOW, THEREFORE, for and in consideration of the premises and the mutual covenants and   agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of   which are hereby acknowledged, Company and Consultant agree as follows:          1.    Engagement as Consultant.  Subject to the terms and conditions of this Agreement,   Company hereby engages Consultant to provide assistance, advice, and consultation, for up to three days  per month (pro-rated for any partial month) to the Company’s Chief Executive Officer and his designee(s)  relating to such matters as may be requested from time to time by the Company’s Chief Executive Officer  or his designee(s) (collectively, the “Consulting Services”). Consultant hereby accepts such engagement   from Company. In performing his obligations hereunder, Consultant shall report to Company’s Chief  Executive Officer or his designee(s), as determined from time to time. Consultant’s obligation to perform   the Consulting Services shall begin on the Services Start Date.          2.    Compensation.                (a)   Compensation.  In connection with his resignation of employment from BHI and  Company in accordance with Section 3 hereof, and under and pursuant to this Agreement, Consultant shall  be entitled to, and only to, the following compensation:                      (i)   Company shall pay Consultant any accrued but unpaid Base Salary (as   such term is defined in the Employment Agreement), and any properly reimbursable expenses that have   been incurred but are unpaid, in each case as of the Services Start Date, which amounts shall be paid in a   lump sum in cash on or before May 19, 2019. 

 

                   (ii) During the Consulting Term (as defined below), Company shall pay  Consultant as follows: (A) for the period from Services Start Date to, but not including, the first anniversary  of the Services Start Date, an amount equal to $1,312,750, to be paid in twelve (12) equal installments on  or before the 19th of each calendar month, with the first such installment being due and payable on or before  May 19, 2019; and (B) for the period from and including the first anniversary of the Services Start Date to  and including the last day of the Consulting Term, an amount equal to $400,000, to be paid in twenty-four  (24) equal installments on or before the 19th of each calendar month, with the first such installment being   due and payable on or before May 19, 2020.                      (iii) BHI and Company shall take such steps as are necessary to cause   Consultant’s time-based and performance-based restricted stock units, entitling Consultant to receive 5,420   shares of BHI common stock, to be vested in full as of April 19, 2019, subject to Consultant’s agreement   not to sell such shares for a period of six (6) months thereafter.                (b)  Expenses.  Company shall reimburse Consultant for, or pay directly, all reasonable  direct business expenses actually incurred by Consultant in performing his duties under this Agreement;  provided, that Consultant obtains approval of such expenses from Company’s Chief Executive Officer in  advance and incurs and accounts for such expenses in accordance with all of Company’s policies and  directives as in effect from time to time.               (c)   Time of Payment.  If any day on which a payment is due and payable under this  Section 2 is not a business day, then the payment shall be due and payable on the next succeeding business  day.          3.    Resignation.  Consultant hereby irrevocably resigns as Vice Chairman, Operating   Companies, of BHI and Company, and as a member of the board of directors, board of managers or   equivalent body (and any committees thereof on which he serves), and as an officer, of each and every other   subsidiary of BHI (including, without limitation, Cedar Creek Corp., Cedar Creek, LLC, Astro Buildings   Inc., and Lake States Lumber, Inc.) on which he may now serve, with effect as of April 19, 2019. This   Section 3 constitutes a “Notice of Termination” under Section 5(c) of the Employment Agreement, and  Consultant understands that this resignation will constitute a “Voluntary Resignation” under  Section 5(b)(vi) of the Employment Agreement. Notwithstanding the provisions of Section 8(h) of the  Employment Agreement, April 19, 2019 will constitute the “Date of Termination” under the Employment  Agreement, and Consultant further understands that as a result of his resignation, following the Date of  Termination, he will no longer be eligible to receive compensation or benefits under the Employment  Agreement, and he acknowledges and agrees that he has no other right to compensation or benefits from  the Company Group except as expressly provided for in Section 2 hereof. Consultant acknowledges that  he is aware that, in accordance with the terms of the Employment Agreement, his obligations under  Section 7 of the Employment Agreement will continue beyond the Date of Termination.          4.    Restrictive Covenants.                (a)   Confidential Information.                      (i)   Consultant shall hold in a fiduciary capacity for the benefit of Company   all Confidential Information and Trade Secrets. During the period beginning on the Services Start Date and   ending on the fifth (5th) anniversary thereof (the “Restricted Period”), Consultant shall not, without the   prior written consent of Company, or as may otherwise be required by law or legal process, use,   communicate, or divulge Confidential Information other than as necessary to perform his duties for   Company. If the Confidential Information is deemed a trade secret under Georgia law, then the period for   nondisclosure shall continue for the applicable period under Georgia Trade Secret laws in effect at the end                                          2 

 

of the Restricted Period. In addition, except as necessary to perform his duties for Company, during the  Restricted Period and thereafter for the applicable period under the Georgia Trade Secret laws in effect at  the end of the Restricted Period, Consultant will not, directly or indirectly, transmit or disclose any Trade   Secrets to any person or entity, and will not, directly or indirectly, make use of any Trade Secrets, for   himself or any other person or entity, without the express written consent of Company. This provision will   apply for so long as a particular Trade Secret retains its status as a trade secret under applicable law. The   protection afforded to Trade Secrets and/or Confidential Information by this Agreement is not intended by   the parties hereto to limit, and is intended to be in addition to, any protection provided to any such   information under any applicable federal, state, or local law. Pursuant to the Defend Trade Secrets Act of   2016, Consultant understands that: (A) an individual may not be held criminally or civilly liable under any   federal or state trade secret law for the disclosure of a trade secret that: (1) is made (a) in confidence to a   federal, state, or local government official, either directly or indirectly, or to an attorney; and (b) solely for   the purpose of reporting or investigating a suspected violation of law; or (2) is made in a complaint or other   document that is filed under seal in a lawsuit or other proceeding; and (B) further, an individual who files   a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the   employer’s trade secrets to the attorney and use the trade secret information in the court proceeding if the   individual: (1) files any document containing the trade secret under seal; and (2) does not disclose the trade   secret, except pursuant to court order.                      (ii) “Confidential Information” means knowledge or data relating to the   Company Group that is not generally known to persons not employed or otherwise engaged by the   Company Group, is not generally disclosed by the Company Group, and is the subject of reasonable efforts   to keep it confidential. Confidential Information includes, but is not limited to, information regarding   product or service cost or pricing, information regarding personnel allocation or organizational structure,   information regarding the business operations or financial performance of the Company Group, sales and   marketing plans, and strategic initiatives (independent or collaborative), information regarding existing or   proposed methods of operation, current and future development and expansion or contraction plans,   sale/acquisition plans, and non-public information concerning the legal or financial affairs of the Company   Group. Confidential Information does not include information that has become generally available to the  public by the act of one who has the right to disclose such information without violating any right or  privilege of the Company Group. This definition is not intended to limit any definition of confidential  information or any equivalent term under applicable federal, state or local law.                      (iii) “Trade Secrets” means all secret, proprietary or confidential information   regarding the Company Group or that meets the definition of “trade secrets” within the meaning set forth   in O.C.G.A. § 10-1-761.                      (iv)  This Section 4(a) is not intended to restrict or limit any of the protected  rights contained in Section 14 of this Agreement in any way.               (b)   Non-Solicitation of Protected Customers.                      (i)   Consultant understands and agrees that the relationship between the   Company Group and each of its Protected Customers constitutes a valuable asset of the Company Group   and may not be converted to Consultant’s own use. Consultant hereby agrees that, during the Restricted   Period, Consultant shall not, directly or indirectly, on Consultant’s own behalf or as a principal, owner,   partner, shareholder, joint venturer, investor, member, trustee, director, officer, manager, employee, agent,   representative, or consultant (a “Principal or Representative”) of any other individual or any corporation,   partnership, joint venture, limited liability company, association or other entity, or enterprise (a “Person”),   solicit, divert, take away, or attempt to solicit, divert, or take away a Protected Customer with which   Consultant had contact while employed with Company or while engaged with Company hereunder for the                                          3 

 

purpose of marketing, selling, or providing to the Protected Customer any goods or services substantially   similar to the goods or services provided by the Company Group.                      (ii) “Protected Customer” means any then-existing customer to whom the   Company Group sold its products or services at any time during Consultant’s employment with Company   or while engaged with Company hereunder, and with respect to whom Consultant either (A) had business   dealings on behalf of the Company Group; or (B) supervised or coordinated the dealings between the   Company Group and the customer.                (c)   Non-Solicitation of Vendors.  Consultant understands and agrees that the  relationship between the Company Group and each of its vendors constitutes a valuable asset of the  Company Group and may not be converted to Consultant’s own use. Consultant hereby agrees that, during  the Restricted Period, Consultant shall not, directly or indirectly, on Consultant’s own behalf or as a  Principal or Representative of any other Person, solicit, divert, take away, or attempt to solicit, divert, or  take away or induce, any existing or prospective vendor of any member of the Company Group to reduce,  terminate, or otherwise negatively alter its relationship with any member of the Company Group.               (d)   Non-Solicitation of Employees.  Consultant understands and agrees that the  relationship between the Company Group and each of its employees constitutes a valuable asset of the  Company Group and may not be converted to Consultant’s own use. Consultant hereby agrees that, during  the Restricted Period, Consultant shall not, directly or indirectly, on Consultant’s own behalf or as a  Principal or Representative of any other Person, solicit or induce, or attempt to solicit or induce, any  employee of the Company Group to terminate his or her employment with the Company Group or, for a  period of no more than six (6) months after the employee is no longer employed by any member of the  Company Group, to enter into employment with any other Person that is in competition with the Company  Group.               (e)   Non-Competition.                     (i)   During the Restricted Period, Consultant shall not render services  substantially the same as the Consulting Services or the services rendered by Consultant to the Company  Group during his employment with the Company Group to any Person that engages in or owns, invests in  any material respect, operates, manages, or controls any venture or enterprise which substantially engages  or proposes to substantially engage in Competitive Services in the continental United States of America.  Notwithstanding the foregoing, nothing in this Agreement shall be deemed to prohibit the ownership by  Consultant of not more than five percent (5%) of any class of securities of any corporation having a class  of securities registered pursuant to the Securities Exchange Act of 1934, as amended.                      (ii) “Competitive Services” means selling, marketing, manufacturing or   distributing products and/or services that are substantially similar to any of those sold, marketed,   distributed, furnished or supplied by the Company during the Consulting Term.                (f)   Remedies; Specific Performance.                      (i)   The parties acknowledge and agree that Consultant’s breach of any of the   restrictions set forth in this Section 4 will result in irreparable and continuing damage to the Company   Group for which there may be no adequate remedy at law. The parties further agree and acknowledge that   Company, and each member of the Company Group, as applicable, shall be entitled to equitable relief,   including specific performance and injunctive relief, as a remedy for any such breach and shall not be   required to post bond in connection with obtaining such relief. Such equitable remedies shall be in addition                                          4 

 

to any and all remedies, including damages, available to Company, or any member of the Company Group,  as applicable, for such breaches by Consultant.                      (ii) Without limiting any other available remedies, and except as otherwise  required by law, if Consultant commits a Material Breach of any of the restrictions set forth in this Section 4   and fails to remedy or cure such Material Breach within fifteen (15) business days after his receipt of written   notice thereof from Company, Consultant shall not be entitled to any further payments set forth in Section 2   hereof, and shall be obligated to promptly repay to Company the amount of any payments previously made   pursuant to Section 2 hereof. “Material Breach” means an intentional act or omission by Consultant that   constitutes substantial non-performance of Consultant’s applicable obligations and causes material damage  to Company.                (g)   Communication of Section 4 Obligations.  During the Consulting Term and for   two (2) years thereafter, Consultant will communicate his obligations under this Section 4 to any Person   with which Consultant accepts employment or is considering an offer of employment.                (h)   No Limitation.  Company’s rights under this Section 4 are in addition to, and not  in lieu of, all other rights Company may have at law or in equity to protect its confidential information,  trade secrets, and other proprietary interests.                (i)   Company Breach.  Subject to and without waiver of Consultant’s other rights and   remedies, if Company breaches its obligations to Consultant under Section 2, and such breach is not cured   within thirty (30) days following Company’s receipt of written notice thereof from Consultant, the  covenants set forth in this Section 4 shall have no further force or effect.          5.    Term; Early Termination.                (a)   The term of this Agreement (the “Consulting Term”) shall commence on the date   hereof and continue until the third anniversary of the Services Start Date, unless earlier terminated in   accordance with the terms hereof.                (b)  Company shall have the right to terminate this Agreement at any time on written  notice to Consultant if Consultant has committed a Material Breach of any of the restrictions set forth in  Section 4 hereof or Section 7 of the Employment Agreement and failed to remedy or cure such Material  Breach within fifteen (15) business days after his receipt of written notice thereof from Company.          6.    Independent Contractor.  Consultant’s relationship to Company hereunder shall be that   of an independent contractor and nothing in this Agreement shall be construed to constitute or create a   partnership, joint venture, employment or agency relationship, or any other relationship other than an   independent contractor relationship between Consultant and Company. Consultant shall not be the agent of   Company and shall have no authority to act on behalf of or to bind Company in any manner. As an  independent contractor, Consultant is responsible for paying all required state and federal taxes and making  contributions to government-sponsored benefit programs. Company will issue Consultant an Internal  Revenue Service Form 1099 with respect to fees due for Consulting Services hereunder. Consultant agrees  to report such income as required by federal and state laws. Consultant agrees to accept exclusive liability  for complying with all applicable federal and state laws governing the payment of taxes by self-employed  individuals.          7.    Survival.  Sections 3, 4, and 6 through 16 of this Agreement shall survive the termination   of Consultant’s engagement for any reason whatsoever or the expiration of the Consulting Term, and shall   remain in full force and effect after such termination in accordance with their respective terms.                                          5 

 

       8.    Amendment and Waiver.  The provisions of this Agreement may be amended or waived   only with the prior written consent of Company and Consultant, and no course of conduct or failure or delay   in enforcing the provisions of this Agreement is to affect the validity, binding effect or enforceability of   this Agreement.          9.    Severability.  Whenever possible, each provision of this Agreement is to be interpreted in   such manner as to be effective and valid under applicable law, but if any provision of this Agreement is   held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any   jurisdiction, that invalidity, illegality or unenforceability is not to affect any other provision or any other   jurisdiction, and this Agreement is to be reformed, construed and enforced in the jurisdiction as if the   invalid, illegal or unenforceable provision had never been contained herein.          10.   Notices.  Any notice provided for in this Agreement is to be in writing and is to be either   personally delivered, sent by reputable overnight carrier or mailed by first class mail, return receipt   requested, to the recipient at the address indicated as follows:         If to Company:                       If to Consultant:                                               Bluelinx Corporation                 D. Wayne Trousdale        Attn: General Counsel                ______________________________        1950 Spectrum Circle                 ______________________________        Suite 300                            (_____) _____-__________        Marietta, Georgia 30067        Facsimile: (770) 953-7008   or any other address or to the attention of any other person as the recipient party shall have specified by  prior written notice to the sending party. Any notice under this Agreement is to be deemed to have been  given when so delivered, sent or mailed.          11.   Choice of Law.  This Agreement is to be governed by the internal law, and not the laws of   conflicts, of the State of Georgia.          12.   Successors and Assigns.  This Agreement is to bind and inure to the benefit of and be   enforceable by Consultant, Company and their respective heirs, executors, personal representatives,  successors, and assigns, except that neither party may assign any rights or delegate any obligations   hereunder without the prior written consent of the other party. Consultant hereby consents to the assignment  by Company of all of its rights and obligations under this Agreement to any successor to Company by  merger or consolidation or purchase of all or substantially all of Company’s assets; provided, that the  transferee or successor assumes Company’s liabilities under this Agreement.          13.   Headings.  The headings as to the contents of particular Sections are inserted only for   convenience and shall not be construed as a part of this Agreement or as a limitation on or enlargement of   the scope of any of the terms or provisions of this Agreement.          14.   Protected Rights.  Consultant understands that nothing contained in this Agreement limits   Consultant’s ability to file a charge or complaint with the Equal Employment Opportunity Commission,   the National Labor Relations Board, the Occupational Safety and Health Administration, the Securities and   Exchange Commission or any other federal, state or local governmental agency or commission   (“Government Agencies”).  Consultant further understands that this Agreement does not limit   Consultant’s ability to communicate with any Government Agencies or otherwise participate in any   investigation or proceeding that may be conducted by any Government Agencies, nor does this Agreement                                          6 

 

impact or limit Consultant’s eligibility to receive an award for information provided to any Government  Agencies.          15.   Counterparts.  This Agreement may be executed in separate counterparts, each of which   is to be deemed to be an original and all of which taken together are to constitute one and the same   agreement.          16.   Entire Agreement.  This Agreement supersedes all prior discussions and agreements   between the parties with respect to the subject matter hereof and contains the sole and entire agreement   between the parties with respect to the matters covered hereby; provided that this Agreement shall not   supersede the terms of the Employment Agreement that survive the termination of Consultant’s   employment thereunder.                               [signatures on following page]                                                                      7 

 

      IN WITNESS WHEREOF, Company and Consultant have caused this Agreement to be executed  as of the date first above written.      COMPANY:    BLUELINX CORPORATION         By:  /s/ Mitchell B. Lewis         Mitchell B. Lewis     President and Chief Executive Officer      CONSULTANT:         /s/ D. Wayne Trousdale          D. Wayne Trousdale                                           8ex1034revisedformofexecu

                                                                    EXHIBIT 10.34                                                                                                              BLUELINX CORPORATION                  EXECUTIVE RESTRICTIVE COVENANT AGREEMENT          This Restrictive Covenant Agreement (this “Agreement”) is entered into as of   [__________] (the “Effective Date”) between BLUELINX CORPORATION, a Georgia   corporation (the “Company”), and [__________] (“Executive”).                                     RECITALS:          WHEREAS, the Company or a subsidiary of the Company in the Company Group has   retained Executive as its [______________________________], in return for which the Company   or such member of the Company Group will provide certain compensation and benefits to   Executive; and         WHEREAS, the Company (on behalf of itself and the members of the Company Group)   and Executive mutually desire to set forth Executive’s responsibilities regarding the Company   Group’s Confidential Information and the Company Group’s customers and employees, among   other items.          NOW, THEREFORE, in consideration of the mutual covenants contained herein and other   good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,  the parties hereto agree as follows:    1.    Certain Definitions.  Certain words or phrases with initial capital letters not otherwise   defined herein are to have the meanings set forth in Exhibit A hereto.    2.    Confidential Information and Trade Secrets.          a.    Executive shall hold in a fiduciary capacity for the benefit of the Company Group   all Confidential Information and Trade Secrets.  During his employment and for a period of two   (2) years following the termination of Executive’s employment for any reason, Executive shall  not, without the prior written consent of the Company or BHI or as may otherwise be required by  law or legal process, use, communicate or divulge Confidential Information other than as necessary  to perform his duties for the Company; provided, however, that if the Confidential Information is   deemed a trade secret under Georgia law, then the period for nondisclosure shall continue for the   applicable period under Georgia Trade Secret laws in effect at the time of Executive’s termination.    In addition, except as necessary to perform his duties for the Company, during Executive’s   employment and thereafter for the applicable period under the Georgia Trade Secret laws in effect   at the time of Executive’s termination, Executive will not, directly or indirectly, transmit or   disclose any Trade Secrets to any person or entity, and will not, directly or indirectly, make use of   any Trade Secrets, for himself or herself or any other person or entity, without the express written   consent of the Company.  This provision will apply for so long as a particular Trade Secret retains   its status as a trade secret under applicable law.  The protection afforded to Trade Secrets and/or   Confidential Information by this Agreement is not intended by the parties hereto to limit, and is   intended to be in addition to, any protection provided to any such information under any applicable   federal, state or local law.     LEGAL02/31512178v1   20562422v4  

 

                                                                                         b.    All files, records, documents, drawings, specifications, data, computer programs,   customer or vendor lists, specific customer or vendor information, marketing techniques, business   strategies, contract terms, pricing terms, discounts and management compensation of the   Company, BHI or any other member of the Company Group, whether prepared by Executive or   otherwise coming into Executive’s possession, shall remain the exclusive property of the   Company, BHI or such member of the Company Group, and Executive shall not remove any such   items from the premises of the Company, BHI or such member of the Company Group, except in   furtherance of Executive’s duties.          c.    It is understood that while employed by the Company or any member of the   Company Group, Executive will promptly disclose to the Company in writing, and assign to the   Company or member of the Company Group by whom Executive is employed, Executive’s interest   in any invention, improvement, copyrightable material or discovery made or conceived by   Executive, either alone or jointly with others, which arises out of Executive’s employment   (“Executive Invention”).  At the Company’s request and expense, Executive will reasonably assist   the Company, BHI or any of their respective subsidiaries and affiliates during the period of   Executive’s employment by the Company and thereafter in connection with any controversy or   legal proceeding relating to an Executive Invention and in obtaining domestic and foreign patent   or other protection covering an Executive Invention.  As a matter of record, Executive hereby   states that he or she has provided below a list of all unpatented inventions in which Executive owns   all or partial interest.  Executive agrees not to assert any right against the Company or BHI with   respect to any invention which is not patented or which is not listed.          d.    As requested by the Company and at the Company’s expense, from time to time   and upon the termination of Executive’s employment with the Company or member of the  Company Group (as applicable) for any reason, Executive will promptly deliver to the Company,  BHI or any of their respective subsidiaries and affiliates all copies and embodiments, in whatever  form, of all Confidential Information in Executive’s possession or within his or her control  (including, but not limited to, memoranda, records, notes, plans, photographs, manuals, notebooks,  documentation, program listings, flow charts, magnetic media, disks, diskettes, tapes and all other  materials containing any Confidential Information) irrespective of the location or form of such  material.  If requested by the Company, Executive will provide the Company with written  confirmation that all such materials have been delivered to the Company as provided herein.         e.    Executive acknowledges that the Company has informed him that the federal Defend  Trade Secrets Act (“DTSA”) offers employees immunity from civil or criminal liability for the  disclosure of trade secrets to government officials or to an attorney for the purpose of reporting or  investigating a violation of the law or if the disclosure is made under seal in a lawsuit.      3.    Non-Solicitation of Customers and Vendors.  During Executive’s employment and for a   period of two (2) years following the termination of Executive’s employment for any reason,   Executive shall not, directly or indirectly, on Executive’s own behalf or as a Principal or   Representative for another Person, solicit, divert, take away or induce or attempt to solicit, divert,   take away or induce, (i) any customer of any member of the Company Group with which Executive   had Material Contact for the purpose of marketing, selling or providing to any such party any   goods or services similar to the goods and services offered by the Company Group, or (ii) any   existing or prospective vendor of any member of the Company Group to reduce, terminate or                                         - 2 - 

 

                                                                                   otherwise negatively alter its relationship with any member of the Company Group.  Material   Contact means the contact between Executive and each customer or potential customer:  (A) with  whom or which Executive dealt on behalf of any member of the Company Group; (B) whose   dealings with any member of the Company Group were coordinated or supervised by Executive;   (C) about whom Executive obtained confidential information in the ordinary course of business as   a result of Executive’s association with the Company Group; or (D) who receives products or   services authorized by any member of the Company Group, the sale or provision of which results  or resulted in compensation, commissions, or earnings for Executive within two (2) years prior to   the termination of Executive’s employment.    4.    Non-Solicitation of Employees. Executive understands and agrees that the relationship   between the Company Group and each of its employees constitutes a valuable asset of the   Company Group and may not be converted to Executive’s own use.  Executive hereby agrees that,   during his employment and for the two (2) years following the termination of Executive’s   employment for any reason, Executive shall not, directly or indirectly, on Executive’s own behalf   or as a Principal or Representative of any other Person, solicit or induce, or attempt to solicit or   induce, any employee to terminate his employment with the Company Group or to enter into   employment with any other Person that is in competition with the Company Group.    5.    Non-Competition. During Executive’s employment and for a period of two (2) years   following the termination of Executive’s employment, Executive shall not render services   substantially the same as the services rendered by Executive to the Company Group to any Person   that engages in or owns, invests in, operates, manages or controls any venture or enterprise which   engages or proposes to engage in the building products distribution business in the Restricted   Territory.  Notwithstanding the foregoing, nothing in this Agreement shall be deemed to prohibit   the ownership by Executive of not more than five percent (5%) of any class of securities of any   corporation having a class of securities registered pursuant to the Securities Exchange Act of 1934,   as amended.    6.    Remedies; Specific Performance.  The parties acknowledge and agree that Executive’s   breach or threatened breach of any of the restrictions set forth in this Agreement will result in   irreparable and continuing damage to the Company Group for which there may be no adequate   remedy at law.  The parties further agree and acknowledge that the Company, and each member   of the Company Group, as applicable, shall be entitled to equitable relief, including specific   performance and injunctive relief, as a remedy for any such breach or threatened or attempted   breach and shall not be required to post bond in connection with obtaining such relief.  Such   equitable remedies shall be in addition to any and all remedies, including damages, available to   the Company, or any member of the Company Group, as applicable, for such breaches or   threatened or attempted breaches by Executive.    7.    Communication of Contents of Agreement.  During Executive’s employment and for two   (2) years thereafter, Executive will communicate his obligations under this Agreement to any  person, firm, association, partnership, corporation or other entity which Executive intends to be  employed by, associated with, or represent.                                          - 3 - 

 

                                                                                 8.    Company’s Rights.  The Company’s rights under this Agreement are in addition to, and  not in lieu of, all other rights the Company may have at law or in equity to protect its confidential  information, trade secrets and other proprietary interests.   9.    No Employment Agreement. Nothing in this Agreement shall be construed to constitute or  be evidence of an agreement or understanding, express or implied, on the part of the Company to  employ Executive on any terms or for any specific period of time.   10.   Successors and Assigns.  This Agreement is to bind and inure to the benefit of and be  enforceable by Executive, the Company and their respective heirs, executors, personal  representatives, successors and assigns, except that neither party may assign any rights or delegate  any obligations hereunder without the prior written consent of the other party.  Executive hereby  consents to the assignment by the Company of all of its rights and obligations under this Agreement  to any successor to the Company by merger or consolidation or purchase of all or substantially all  of the Company’s assets, provided that the transferee or successor assumes the Company’s  liabilities under this Agreement by agreement in form and substance reasonably satisfactory to  Executive.   11.   Choice of Law.  This Agreement is to be governed by the internal law, and not the laws of  conflicts, of the State of Georgia.  The exclusive forum for any action to enforce this Agreement,  as well as any action relating to or arising out of this Agreement, shall be the state or federal courts  of the state of Georgia.  Executive and the Company consent to the personal jurisdiction of the  state and/or federal courts located in Georgia and waive (i) any objection to jurisdiction or venue,  or (ii) any defense claiming lack of jurisdiction or improper venue, in any action brought in such  Georgia courts.   12.   Severability.  Whenever possible, each provision of this Agreement is to be interpreted in  such manner as to be effective and valid under applicable law, but if any provision of this  Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law  or rule in any jurisdiction, that invalidity, illegality or unenforceability is not to affect any other  provision or any other jurisdiction, and this Agreement is to be reformed, construed and enforced  in the jurisdiction as if the invalid, illegal or unenforceable provision had never been contained  herein.   13.   Notices.  Any notice provided for in this Agreement is to be in writing and is to be either  personally delivered, sent by reputable overnight carrier or mailed by first class mail, return receipt  requested, to the recipient at the address indicated as follows:      Notices to Executive:      To the address listed in the personnel records of the Company.      Notices to the Company:      BlueLinx Corporation     1950 Spectrum Circle     Suite 300                                        - 4 - 

 

                                                                                      Atlanta, Georgia 30067      Attention: Legal Department      Facsimile: (770) 953-7008    or any other address or to the attention of any other person as the recipient party shall have   specified by prior written notice to the sending party.  Any notice under this Agreement is to be   deemed to have been given when so delivered, sent or mailed.    14.   Amendment and Waiver.  The provisions of this Agreement may be amended or waived   only with the prior written consent of the Company and Executive, and no course of conduct or   failure or delay in enforcing the provisions of this Agreement is to affect the validity, binding   effect or enforceability of this Agreement.     15.   Complete Agreement.  This Agreement embodies the complete agreement and   understanding between the parties with respect to the subject matter hereof and effective as of its   date supersedes and preempts any prior understandings, agreements or representations by or   between the parties, written or oral, that may have related to the subject matter hereof in any way,   including, but not limited to, any prior agreements with respect to Executive’s employment or   termination of employment with the Company.    16.   Protected Rights.  Executive understands that nothing contained in this Agreement limits   Executive’s ability to file a charge or complaint with the Equal Employment Opportunity   Commission, the National Labor Relations Board, the Occupational Safety and Health   Administration, the Securities and Exchange Commission, the state Division of Human Rights, a   local commission on human rights, or any other federal, state or local governmental agency or   commission (“Government Agencies”). Executive further understands that this Agreement does  not limit Executive’s ability to communicate with any Government Agencies (including law  enforcement), or any attorney retained by Executive, or otherwise participate in any investigation  or proceeding that may be conducted by any Government Agencies, nor does this Agreement  impact or limit Executive’s eligibility to receive an award for information provided to any  Government Agencies.    17.   Counterparts.  This Agreement may be executed in separate counterparts, each of which   are to be deemed to be an original and both of which taken together are to constitute one and the   same agreement.          The parties are signing this Agreement as of the Effective Date.                                           BLUELINX CORPORATION                                                                                                                              By:  ___________________________________                                             Name:  ______________________________                                             Title:  _______________________________                                                                                       - 5 - 

 

                                                                                                                          EXECUTIVE                                                                                                                              _______________________________________       LIST OF UNPATENTED INVENTIONS   Executive represents that he or she has no such inventions by initialing below next to the word  “NONE.”   NONE:  _________                                                   - 6 - 

 

                                                                                                                       EXHIBIT A                                       DEFINITIONS                (a)   “BHI” means BlueLinx Holdings Inc.                (b)   “Company Group” means the Company, BHI, or any of their respective   subsidiaries and affiliates.                (c)   “Confidential Information” means knowledge or data relating to the   Company Group that is not generally known to persons not employed or otherwise engaged by the   Company Group, is not generally disclosed by the Company Group, and is the subject of   reasonable efforts to keep it confidential. Confidential Information includes, but is not limited to,   information regarding product or service cost or pricing, information regarding personnel   allocation or organizational structure, information regarding the business operations or financial  performance of the Company Group, sales and marketing plans, and strategic initiatives  (independent or collaborative), information regarding existing or proposed methods of operation,  current and future development and expansion or contraction plans, sale/acquisition plans and non- public information concerning the legal or financial affairs of the Company Group.  Confidential  Information does not include information that has become generally available to the public by the  act of one who has the right to disclose such information without violating any right or privilege  of the Company Group.  This definition is not intended to limit any definition of confidential  information or any equivalent term under applicable federal, state or local law, including but not  limited to O.C.G.A. § 13-8-51(3).                (d)   “Person” means:  any individual or any corporation, partnership, joint   venture, limited liability company, association or other entity or enterprise.                (e)   “Principal or Representative” means a principal, owner, partner,   shareholder, joint venturer, investor, member, trustee, director, officer, manager, employee, agent,   representative or consultant.                (f)   “Restricted Territory” means the United States of America.                (g)   “Trade Secrets” means all secret, proprietary or confidential information   regarding the Company, BHI or any of their respective subsidiaries and affiliates or that meets the   definition of “trade secrets” within the meaning set forth in O.C.G.A. § 10-1-761.                                          - 7 -

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