Document:

EX-4.1

 Exhibit 4.1 

John B. Sanfilippo & Son, Inc. 

2014 Omnibus Incentive Plan 

 Contents 
  

 
  

					
	 Article 1. Establishment, Purpose and Duration
	  	 	1	  
	 Article 2. Definitions
	  	 	1	  
	 Article 3. Administration
	  	 	8	  
	 Article 4. Shares Subject to This Plan and Maximum Awards
	  	 	10	  
	 Article 5. Eligibility and Participation
	  	 	11	  
	 Article 6. Stock Options
	  	 	12	  
	 Article 7. Stock Appreciation Rights
	  	 	15	  
	 Article 8. Restricted Stock
	  	 	16	  
	 Article 9. Restricted Stock Units
	  	 	18	  
	 Article 10. Performance Shares
	  	 	19	  
	 Article 11. Performance Units
	  	 	19	  
	 Article 12. Other Stock-Based Awards and Cash-Based Awards
	  	 	20	  
	 Article 13. Effect of Termination of Employment
	  	 	20	  
	 Article 14. Transferability of Awards and Shares
	  	 	21	  
	 Article 15. Performance-Based Compensation and Compliance with Code Section 162(m)
	  	 	22	  
	 Article 16. Nonemployee Director Awards
	  	 	24	  
	 Article 17. Effect of a Change in Control
	  	 	25	  
	 Article 18. Dividends and Dividend Equivalents
	  	 	26	  
	 Article 19. Beneficiary Designation
	  	 	26	  
	 Article 20. Rights of Participants
	  	 	26	  
	 Article 21. Amendment and Termination
	  	 	27	  
	 Article 22. General Provisions
	  	 	28	  

  

 John B. Sanfilippo & Son, Inc. 

2014 Omnibus Incentive Plan 
 Article 1.
Establishment, Purpose and Duration 
 1.1 Establishment. John B. Sanfilippo & Son, Inc., a Delaware corporation,
establishes an incentive compensation plan to be known as John B. Sanfilippo & Son, Inc. 2014 Omnibus Incentive Plan, as set forth in this document. This Plan permits the grant of Nonqualified Stock Options, Incentive Stock Options, Stock
Appreciation Rights, Restricted Stock, Restricted Stock Units, Performance Shares, Performance Units, Cash-Based Awards and Other Stock-Based Awards. This Plan shall become effective upon stockholder approval (the “Effective Date”)
and shall remain in effect as provided in Section 1.3. This Plan and each Award granted hereunder are conditioned on and shall be of no force or effect until the Plan is approved by the stockholders of the Company. 

1.2 Purpose of this Plan. The purpose of the Plan is to foster and promote the long-term financial success of the Company by
(a) motivating superior performance by means of performance-related incentives, (b) encouraging and providing for the acquisition of an ownership interest in the Company by Participants, and (c) enabling the Company to attract and
retain qualified and competent persons as employees of the Company and to serve as members of the Board upon whose judgment, interest, and performance are required for the successful operations of the Company. 

1.3 Duration of this Plan. Unless sooner terminated as provided herein, this Plan shall terminate ten (10) years from the
Effective Date. After this Plan is terminated, no Awards may be granted but Awards previously granted shall remain outstanding in accordance with their applicable terms and conditions and this Plan’s terms and conditions. 

Article 2. Definitions 
 Whenever used in
this Plan, the following terms shall have the meanings set forth below, and when the meaning is intended, the initial letter of the word shall be capitalized. 

2.1 “Annual Award Limit” or “Annual Award Limits” have the meaning set forth in Section 4.3. 

2.2 “Award” means, individually or collectively, a grant under this Plan of Nonqualified Stock Options, Incentive Stock
Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Performance Shares, Performance Units, Cash-Based Awards or Other Stock-Based Awards, in each case subject to the terms of this Plan. 

2.3 “Award Agreement” means either (i) a written or electronic agreement entered into by the Company and a Participant
setting forth the terms and provisions applicable to an Award granted under this Plan, including any amendment or modification thereof, or (ii) a written or electronic statement issued by the Company to a Participant describing the terms and
provisions of such Award, including any amendment or modification thereof. The Committee may provide for the use of electronic, Internet or other non-paper Award Agreements, and the use of electronic, Internet or other non-paper means for the
acceptance thereof and actions thereunder by a Participant. 

  
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 2.4 “Beneficial Owner” or “Beneficial Ownership” shall have the
meaning ascribed to such term in Rule 13d-3 of the General Rules and Regulations under the Exchange Act. 
 2.5 “Board”
or “Board of Directors” means the Board of Directors of the Company. 
 2.6 “Cash-Based Award”
means an Award, denominated in cash, granted to a Participant as described in Article 12. 
 2.7 “Cause” means, in
the judgment of the Committee: 
 (a) the breach by the Participant of any employment agreement, employment arrangement or any other
agreement with the Company or a Subsidiary; 
 (b) the Participant engaging in a business that competes with the Company or a Subsidiary;

 (c) the Participant disclosing business secrets, trade secrets or confidential information of the Company or a Subsidiary to any party;

 (d) dishonesty, misconduct, fraud or disloyalty by the Participant; 

(e) misappropriation of corporate funds; 

(f) failure to substantially perform his or her duties as an Employee or Director (for reasons other than physical or mental illness); or 

(g) such other conduct by the Participant of an insubordinate or criminal nature as to have rendered the continued employment or association
of the Participant incompatible with the best interests of the Company and its Subsidiaries. 
 2.8 A “Change in Control”
means, except as may otherwise be provided in an Award Agreement, the first date on which one of the following events occurs: 
 (a) the
consummation of a merger or consolidation of the Company with or into another entity or any other corporate reorganization, if more than 50% of the combined voting power of the continuing or surviving entity’s securities outstanding immediately
after such merger, consolidation or other reorganization is owned by persons who were not stockholders of the Company immediately prior to such merger, consolidation or other reorganization; 

(b) the sale, transfer or other disposition of all or substantially all of the Company’s assets other than a sale or disposition by the
Company of all or substantially all of the Company’s assets to an entity, where more than 50% of the combined voting power of such entity’s securities outstanding immediately after such sale or disposition is owned by persons who were not
stockholders of the Company immediately prior to such sale or disposition; 

  
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 (c) a change in the composition of the Board, as a result of which fewer than one-half of the
Directors following such change in composition of the Board are Directors who either (i) had been Directors of the Company on the date 12 months prior to the date of the event that may constitute a Change in Control (the “Original
Directors”) or (ii) were elected, or nominated for election, to the Board with the affirmative votes of at least a majority of the aggregate of (A) the Original Directors who were still in office at the time of the election or
nomination and (B) the directors whose election or nomination was previously approved pursuant to this Clause (ii); or 
 (d) any
transaction as a result of which any “person” or “group” (as such terms are used in Section 13(d) and 14(d) of the Exchange Act), other than one or more Permitted Holders, or any group that is controlled by Permitted
Holders, is or becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act) (during the 12 month period ending on the date of the most recent acquisition of voting securities), directly or indirectly, of the
voting securities of the Company representing at least 30% of the total voting power of the Company (with respect to all matters other than the election of directors) represented by the Company’s then outstanding voting securities. For purposes
of this Clause (d), the term “transaction” shall include any conversion of the Class A Stock, whether or not such conversion occurs in connection with a sale, transfer or other disposition of such Class A Stock. 

For purposes of this definition: (i) the term “person” shall exclude: (A) a trustee or other fiduciary holding securities
under an employee benefit plan of the Company or a Subsidiary; and (B) a corporation owned directly or indirectly by the stockholders of the Company in substantially the same proportions as their ownership of the Common Stock (it being
understood that for purposes of subsequently determining whether a Change in Control has occurred, all references to the “Company” in the definition of Change in Control shall be deemed to be references to the Company and/or such
corporation, as applicable); (ii) the term “group” shall exclude any group controlled by any person identified in clause (i)(A) above and (iii) the term “control” shall mean the possession, directly or indirectly, of
the power to direct or cause the direction of the management or policies of a person, whether through the ownership of voting securities, by contract, or otherwise, and the terms “controlling” and “controlled” have meanings
correlative thereto. 
 Notwithstanding the foregoing, for purposes of any Award subject to Section 409A of the Code, a Change in
Control shall not occur unless such transaction or series of related transactions, constitutes a change in ownership of the Company, a change in effective control of the Company, a change in ownership of a substantial portion of the Company’s
assets, each under Section 409A of the Code or otherwise constitutes a change on control within the meaning of Section 409A of the Code; provided, however, if the Company treats an event as a Change in Control that does not
meet the requirements of Section 409A of the Code, such Award shall be deemed vested in accordance with Article 17 and paid when it would otherwise have been paid but for the Change in Control. 

2.9 “Class A Stock” means the Class A common Stock, $.01 par value per share, of the Company. 

2.10 “Code” means the U.S. Internal Revenue Code of 1986, as amended from time to time. For purposes of this Plan, references
to sections of the Code shall be deemed to include references to any applicable regulations thereunder and any successor or similar provision. 

  
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 2.11 “Commission” means the Securities and Exchange Commission. 

2.12 “Committee” means the Compensation Committee of the Board or a subcommittee thereof or any other committee designated by
the Board to administer this Plan. The members of the Committee shall be appointed from time to time by and shall serve at the discretion of the Board. If the Committee does not exist or cannot function for any reason, the Board may take any action
under the Plan that would otherwise be the responsibility of the Committee. The Committee shall be constituted to comply with the requirements of Rule 16b-3 promulgated by the Commission under the Exchange Act, or such rule or any successor rule
thereto which is in effect from time to time, Section 162(m) of the Code and any applicable listing or governance requirements of any securities exchange on which the Company’s Shares are listed. 

2.13 “Company” means John B. Sanfilippo & Son, Inc., and any successor thereto as provided in Section 22.21.

 2.14 “Covered Employee” means a Participant who, as of the date of vesting and/or payout of an Award, as applicable, is
a “covered employee” as defined in Code Section 162(m). 
 2.15 “Director” means any individual who is a
member of the Board of Directors of the Company. 
 2.16 “Disability” means a mental or physical condition which, in the
opinion of the Committee, renders a Participant unable or incompetent to carry out the job responsibilities which such Participant held or tasks to which such Participant was assigned at the time the disability was incurred and which is expected to
be permanent or for an indefinite period. With respect to any Award that constitutes deferred compensation under Code Section 409A and is subject to Code Section 409A, the Committee may not find that a Disability exists with respect to the
applicable Participant unless, in the Committee’s opinion, such Participant is also “disabled” within the meaning of Code Section 409A. 

2.17 “Dividend Equivalent” has the meaning set forth in Section 18. 

2.18 “Effective Date” has the meaning set forth in Section 1.1. 

2.19 “Employee” means any individual performing services for the Company or a Subsidiary and designated as an employee of the
Company or the Subsidiary on its payroll records. An Employee shall not include any individual during any period he or she is classified or treated by the Company or Subsidiary as an independent contractor, a consultant or an employee of an
employment, consulting or temporary agency or any other entity other than the Company or Subsidiary, without regard to whether such individual is subsequently determined to have been, or is subsequently retroactively reclassified, as a common-law
employee of the Company or Subsidiary during such period. An individual shall not cease to be an Employee in the case of (i) any leave of absence approved by the Company or (ii) transfers between locations of the Company or between the
Company or any Subsidiaries. For purposes of Incentive Stock Options, no such leave may exceed 90 days, unless reemployment upon expiration of such leave is guaranteed by statute or contract. If reemployment upon expiration of a leave of absence
approved by the Company is not so guaranteed, then three months following the 91st day of such leave, any Incentive Stock Option held by a Participant shall cease to be treated as an Incentive Stock Option and shall be treated for tax purposes as a
Nonqualified Stock Option. Neither service as a Director nor payment of a director’s fee by the Company shall be sufficient to constitute “employment” by the Company. 

  
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 2.20 “Exchange Act” means the Securities Exchange Act of 1934, as amended from
time to time, or any successor act thereto. 
 2.21 “Fair Market Value” or “FMV” means, as applied to a specific
date, the price of a Share that is based on the opening, closing, actual, high, low or average selling prices of a Share reported on any established stock exchange or national market system including without limitation the New York Stock Exchange
and the National Market System of the National Association of Securities Dealers, Inc. Automated Quotation System on the applicable date, the preceding trading day, the next succeeding trading day, or an average of trading days, as determined by the
Committee in its discretion. Unless otherwise specified in an Award Agreement, Fair Market Value shall be deemed to be equal to the closing price of a Share on the NASDAQ Global Market, or if no sales of Shares shall have occurred on such exchange
on the applicable date the closing price of the Shares on such exchange on the next preceding date on which there were such sales. Notwithstanding the foregoing, if Shares are not traded on any established stock exchange or national market system,
the Fair Market Value means the price of a Share as established by the Committee acting in good faith based on a reasonable valuation method that is consistent with the requirements of Section 409A of the Code and the regulations thereunder.

 2.22 “Family Member” means Jasper B. Sanfilippo, Sr. (“Jasper”), Mathias A. Valentine,
(“Mathias”), a spouse of Jasper, a spouse of Mathias, any lineal descendant of Jasper or any lineal descendant of Mathias. 

2.23 “Grant Date” means the date an Award is granted to a Participant pursuant to the Plan by the Committee (or such later
date as specified in advance by the Committee) or, in the case of an Award granted to a Nonemployee Director, the date on which such Award is approved by the Board (or such later date as specified in advance by the Board). 

2.24 “Grant Price” means the price established at the time of grant of an SAR pursuant to Article 7. 

2.25 “Incentive Stock Option” or “ISO” means an Award granted pursuant to Article 6 that is designated as an
Incentive Stock Option and that is intended to meet the requirements of Code Section 422 or any successor provision. 
 2.26
“Insider” shall mean an individual who is, on the relevant date, an officer (as defined in Rule 16a-1(f) (or any successor provision) promulgated by the Commission under the Exchange Act) or Director of the Company, or a more than 10%
Beneficial Owner of any class of the Company’s equity securities that is registered pursuant to Section 12 of the Exchange Act, as determined by the Board in accordance with Section 16 of the Exchange Act. 

2.27 “Nonemployee Director” means a Director who is not an Employee. 

2.28 “Nonqualified Stock Option” means an Award granted pursuant to Article 6 that is not intended to meet the requirements
of Code Section 422, or that otherwise does not meet such requirements. 

  
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 2.29 “Option” means an Award granted to a Participant pursuant to
Article 6, which Award may be an Incentive Stock Option or a Nonqualified Stock Option. 
 2.30 “Option Price”
means the price at which a Share may be purchased by a Participant pursuant to an Option. 
 2.31 “Other Stock-Based Award”
means an equity-based or equity-related Award not otherwise described by the terms of this Plan that is granted pursuant to Article 12. 

2.32 “Participant” means any eligible individual as set forth in Article 5 to whom an Award is granted. 

2.33 “Performance-Based Compensation” means compensation under an Award that is intended to satisfy the requirements of Code
Section 162(m) for certain performance-based compensation paid to Covered Employees. Notwithstanding the foregoing, nothing in this Plan shall be construed to mean that an Award that does not satisfy the requirements for performance-based
compensation under Code Section 162(m) does not constitute performance-based compensation for other purposes, including Code Section 409A. 

2.34 “Performance Measures” means measures, as described in Section 15.2, upon which performance goals are based and
that are approved by the Company’s stockholders pursuant to this Plan in order to qualify Awards as Performance-Based Compensation. 

2.35 “Performance Period” means the period of time during which pre-established performance goals must be met in order to
determine the degree of payout and/or vesting with respect to an Award; provided, however, that a Performance Period may not be less than twelve months in duration. 

2.36 “Performance Share” means an Award granted pursuant to Article 10. 

2.37 “Performance Unit” means an Award granted pursuant to Article 11. 

2.38 “Period of Restriction” means the period when Restricted Stock or Restricted Stock Units are subject to a substantial
risk of forfeiture (based on the passage of time, the achievement of performance goals or upon the occurrence of other events as determined by the Committee, in its discretion) as provided in Articles 8 and 9. 

2.39 “Permitted Holder” means: 

(a) a Family Member; 
 (b) a
legal representative of a deceased or disabled Family Member’s estate, provided that such legal representative is a Family Member; 

(c) a trustee of any trust of which all the beneficiaries (and any donees and appointees of any powers of appointment held thereunder) are
Family Members and the trustee of which is a Family Member; 

  
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 (d) a custodian under the Uniform Gifts to Minors Act or Uniform Transfers to Minors Act for the
exclusive benefit of a Family Member, provided that such custodian is a Family Member; 
 (e) any corporation, partnership or other entity,
provided that at least 75% of the equity interests in such entity (by vote and by value) are owned, either directly or indirectly, in the aggregate by Family Members; 

(f) any bank or other financial institution, solely as a bona fide pledgee of shares of Class A Stock by the owner thereof as collateral
security for indebtedness due to the pledgee; or 
 (g) any employee benefit plan, or trust or account held thereunder, or any savings or
retirement account (including an individual retirement account), held for the exclusive benefit of a Family Member. 
 2.40
“Person” shall have the meaning ascribed to such term in Section 3(a)(9) of the Exchange Act and used in Sections 13(d) and 14(d) thereof, including a “group” as defined in Section 13(d) thereof. 

2.41 “Plan” means John B. Sanfilippo & Son, Inc. 2014 Omnibus Incentive Plan, as the same may be amended from time
to time. 
 2.42 “Prior Plan” means the John B. Sanfilippo & Son, Inc. 2008 Equity Incentive Plan, as
amended. 
 2.43 “Restricted Stock” means an Award granted pursuant to Article 8. 

2.44 “Restricted Stock Unit” means an Award granted pursuant to Article 9. 

2.45 “Retirement” means (a) for an Employee a Termination of Service, other than for Cause, to the extent the
Employee has (i) attained age 60 and completed 5 years of service with the Company or any Subsidiary or (ii) attained age 55 and completed 10 years of service with the Company or any Subsidiary and (b) for a Nonemployee Director
Termination of Service on or after the attainment of age 60. 
 2.46 “Share” means a share of common stock par, value $.01
per share, of the Company. 
 2.47 “Stock Appreciation Right” or “SAR” means an Award granted pursuant to
Article 7. 
 2.48 “Subsidiary” means any corporation or other entity, whether domestic or foreign, in which the
Company has or obtains, directly or indirectly, an interest of more than 50% of the total combined voting power of all classes of stock. 

2.49 “Termination of Service” means the following: 

(a) for an Employee, the date on which the Employee is no longer an Employee; 

  
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 (b) for a Nonemployee Director, the date on which the Nonemployee Director is no longer a member
of the Board; 
 (c) for a Third-Party Service Provider, the date on which such individual no longer provides substantial services on a
regular basis. 
 With respect to any payment of an Award subject to Code Section 409A, a Termination of Service shall mean a “separation from
service” within the meaning of Code Section 409A, meaning the termination of the Participant’s employment with the Company and the Subsidiaries, regardless of the reason for the termination of employment. 

2.50 “Third-Party Service Provider” means any consultant, agent, advisor or independent contractor who renders bona fide
services to the Company or a Subsidiary that (a) are not in connection with the offer and sale of the Company’s securities in a capital raising transaction, (b) do not directly or indirectly promote or maintain a market for the
Company’s securities, and (c) are provided by a natural person who has contracted directly with the Company or Subsidiary to render such services. 

Article 3. Administration 
 3.1
General. The Committee shall be responsible for administering this Plan, subject to this Article 3 and the other provisions of this Plan. The Committee may employ attorneys, consultants, accountants, agents and other individuals, any of whom may
be an Employee, and the Committee, the Company, and its officers and Directors shall be entitled to rely upon the advice, opinions or valuations of any such individuals. All actions taken and all interpretations and determinations made by the
Committee shall be final and binding upon the Participants, the Company or Subsidiary, and all other interested individuals. 
 3.2
Authority of the Committee. Subject to any express limitations set forth in the Plan, the Committee shall have full and exclusive discretionary power and authority to take such actions as it deems necessary and advisable with respect to the
administration of the Plan including, but not limited to, the following: 
 (a) To determine from time to time which of the persons eligible
under the Plan shall be granted Awards, when and how each Award shall be granted, what type or combination of types of Awards shall be granted, the provisions of each Award granted (which need not be identical), including the time or times when a
person shall be permitted to receive Shares pursuant to an Award and the number of Shares subject to an Award; 
 (b) To construe and
interpret the Plan and Awards granted under it, and to establish, amend, and revoke rules and regulations for its administration. 
 (c) To
correct any defect, omission or inconsistency in the Plan or in an Award Agreement, in a manner and to the extent it shall deem necessary or expedient to make the Plan fully effective; 

(d) To approve forms of Award Agreements for use under the Plan; 

  
 8 

 (e) To determine Fair Market Value of a Share in accordance with Section 2.21 of the Plan;

 (f) To amend the Plan or any Award Agreement as provided in the Plan; 

(g) To adopt sub-plans and/or special provisions applicable to stock awards regulated by the laws of a jurisdiction other than and outside of
the United States. Such sub-plans and/or special provisions may take precedence over other provisions of the Plan, but unless otherwise superseded by the terms of such sub-plans and/or special provisions, the provisions of the Plan shall govern;

 (h) To authorize any person to execute on behalf of the Company any instrument required to effect the grant of an Award previously
granted by the Board; 
 (i) To determine whether Awards will be settled in shares of common stock, cash or in any combination thereof; 

(j) To determine whether Awards will provide for Dividend Equivalents; 

(k) To establish a program whereby Participants designated by the Committee may reduce compensation otherwise payable in cash in exchange for
Awards under the Plan; 
 (l) To authorize a program permitting eligible Participants to surrender outstanding Awards in exchange for newly
granted Awards subject to any applicable stockholder approval requirements set forth in Section 21.1 of the Plan; 
 (m) To impose such
restrictions, conditions or limitations as it determines appropriate as to the timing and manner of any resales by a Participant or other subsequent transfers by a Participant of any Shares, including, without limitation, restrictions under an
insider trading policy and restrictions as to the use of a specified brokerage firm for such resales or other transfers; 
 (n) To provide,
either at the time an Award is granted or by subsequent action, that an Award shall contain as a term thereof, a right, either in tandem with the other rights under the Award or as an alternative thereto, of the Participant to receive, without
payment to the Company, a number of Shares, cash or a combination thereof, the amount of which is determined by reference to the value of Shares; and 

(o) To waive any restrictions, conditions or limitations imposed on an Award at the time the Award is granted or at any time thereto including
but not limited to forfeiture, vesting and treatment of Awards upon a Termination of Service. 
 3.3 Delegation. To the extent
permitted by law, the Committee may delegate to one or more of its members or to one or more officers of the Company or any Subsidiary or to one or more agents or advisors such administrative duties or powers as it may deem advisable, and the
Committee or any individuals to whom it has delegated duties or powers as aforesaid may employ one or more individuals to render advice with respect to any responsibility the Committee or such individuals may have under this Plan. To the extent
permitted by applicable law, the Committee may, by resolution, authorize one or more officers of the Company to do one or both of the following on the same basis as can the Committee: (a) designate Employees to be recipients of Awards; and
(b) determine the size of any such Awards; provided, however, (i) the Committee shall not delegate such responsibilities to any such officer for Awards granted to either an Employee who is considered Covered Employee or an
officer (as defined in Rule 16a-1(f) of the Exchange Act); (ii) the resolution providing such authorization sets forth the total number of Awards such officer(s) may grant; and (iii) the officer(s) shall report periodically to the
Committee regarding the nature and scope of the Awards granted pursuant to the authority delegated. 

  
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 Article 4. Shares Subject to This Plan and Maximum Awards 

4.1 Number of Shares Authorized and Available for Awards. Subject to adjustment as provided under Section 4.4, the total number of
Shares that are available for Awards shall be 1,000,000 Shares, which shall include any Shares that are available for Awards under the Prior Plan as of the Effective Date. Such Shares may be authorized and unissued Shares, treasury Shares, or Shares
purchased by the Company in the open market, or any combination of the foregoing, as may be determined from time to time by the Board or by the Committee. Any of the authorized Shares may be used for any type of Award under the Plan, and any or all
of the Shares may be allocated to Incentive Stock Options. 
 4.2 Share Usage. The Committee shall determine the appropriate method
for determining the number of Shares available for grant under the Plan, subject to the following: 
 (a) Any Shares related to an Award
granted under the Prior Plan or this Plan that on or after the Effective Date terminates by expiration, forfeiture, cancellation or otherwise without the issuance of the Shares, are settled in cash in lieu of Shares, or are exchanged with the
Committee’s permission, prior to the issuance of Shares, for Awards not involving Shares shall be available again for grant under this Plan. 

(b) Any Shares tendered (by either actual delivery or attestation) on or after the Effective Date (i) to pay the Option Price of an
Option granted under the Prior Plan or this Plan or (ii) to satisfy tax withholding obligations associated with an Award granted under the Prior Plan or this Plan, shall not become available again for grant under this Plan. 

(c) Any Shares that were subject to an SAR granted under the Prior Plan or this Plan that were not issued upon the exercise of such SAR on or
after the Effective Date shall not become available again for grant under this Plan. 
 4.3 Annual Award Limits. Subject to
adjustment as set forth in Section 4.4 (each of (a)-(c) an “Annual Award Limit” and collectively the “Annual Award Limits”): 

(a) the maximum aggregate number of Shares for which Options or SARs may be granted to any Participant in any calendar year shall be 500,000
Shares (for avoidance of the doubt, this limit applies separately to each type of award); 
 (b) the maximum aggregate number of Shares that
may be paid to any Participant in any calendar year under an Award of Restricted Stock, Restricted Stock Units, Performance Shares or Other Stock-Based Awards, in each case that are Performance-Based Compensation, shall be 250,000 Shares determined
as of the date of payout (for avoidance of the doubt, this limit applies separately to each type of award); and 

  
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 (c) the maximum aggregate amount that may be paid to any Participant in any calendar year under
an Award of Performance Units, Cash-Based Awards or any other Award that is payable in cash, in each case that are Performance-Based Compensation, shall be $5,000,000 determined as of the date of payout. 

4.4 Adjustments. All Awards shall be subject to the following provisions: 

(a) In the event of any corporate event or transaction (including, but not limited to, a change in the Shares of the Company or the
capitalization of the Company) such as a merger, consolidation, reorganization, recapitalization, separation, partial or complete liquidation, stock dividend, stock split, reverse stock split, split up, spin-off, or other distribution of stock or
property of the Company, combination of Shares, exchange of Shares, dividend in kind, or other like change in capital structure, number of outstanding Shares or distribution (other than normal cash dividends) to stockholders of the Company, or any
similar corporate event or transaction (each, a “Corporate Transaction”), the Committee, in order to prevent dilution or enlargement of Participants’ rights under this Plan, shall substitute or adjust, as applicable, the number
and kind of Shares that may be issued under this Plan or under particular forms of Award Agreements, the number and kind of Shares subject to outstanding Awards, the Option Price or exercise price applicable to outstanding Awards, the Annual Award
Limits, and other value determinations applicable to outstanding Awards. The Committee, in its discretion, shall determine the methodology or manner of making such substitution or adjustment. 

(b) In addition to the adjustments permitted under paragraph (a) above, the Committee, in its sole discretion, may make such other
adjustments or modifications in the terms of any Awards that it deems appropriate to reflect any Corporate Transaction, including, but not limited to, modifications of performance goals and changes in the length of Performance Periods, subject to
the limitations set forth in Section 15.4. In addition, adjustments may include, without limitation, (i) the cancellation of outstanding Awards in exchange for payments of cash, property or a combination thereof having an aggregate value
equal to the value of such Awards, (ii) the substitution of other property (including, without limitation, other securities and securities of entities other than the Company that agree to such substitution) for the Shares available under this
Plan or the Shares covered by outstanding Awards, and (iii) in connection with any sale of a Subsidiary, arranging for the assumption, or replacement with new awards, of Awards held by Participants employed by the affected Subsidiary by the
Subsidiary or an entity that controls the Subsidiary following the sale of such Subsidiary. 
 (c) The determination of the Committee as to
the foregoing adjustments set forth in this Section 4.4, if any, shall be conclusive and binding on Participants under this Plan. 
 Article 5.
Eligibility and Participation 
 5.1 Eligibility to Receive Awards. Individuals eligible to participate in this Plan include all
Employees, Nonemployee Directors and Third-Party Service Providers. 
 5.2 Participation in the Plan. Subject to the provisions of
this Plan, the Committee may, from time to time, select from all individuals eligible to participate in the Plan, those individuals to whom Awards shall be granted and shall determine, in its sole discretion, the nature of any and all terms
permissible by law and the amount of each Award. 

  
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 5.3 Award Agreements. The Committee shall have the exclusive authority to determine the
terms of an Award Agreement evidencing an Award granted under this Plan, subject to the provisions herein. The terms of an Award Agreement need not be uniform among all Participants or among similar types of Awards. 

Article 6. Stock Options 
 6.1 Grant of
Options. Options may be granted to Participants in such number, and upon such terms, and at any time and from time to time as shall be determined by the Committee, in its sole discretion. Each grant of an Option shall be evidenced by an
Award Agreement which shall specify whether the Option is in the form of a Nonqualified Stock Option or an Incentive Stock Option. 
 6.2
Option Price. The Option Price for each grant of an Option shall be determined by the Committee in its sole discretion and shall be specified in the Award Agreement evidencing such Option; provided, however, the Option Price must
be at least equal to 100% of the FMV of a Share as of the Option’s Grant Date, subject to adjustment as provided for under Section 4.4. 

6.3 Term of Option. The term of an Option granted to a Participant shall be determined by the Committee, in its sole discretion;
provided, however, no Option shall be exercisable later than the tenth anniversary of its Grant Date. 
 6.4 Exercise
Requirements. Except as otherwise provided by the Committee and set forth in the Award Agreement, each Option shall become exercisable in equal installments of 25% of the total number of Shares subject to such Option on each of the first,
second, third and fourth anniversaries of the Option’s Grant Date; provided, however, that the Participant remains an Employee (or a Nonemployee Director or continues to provide services as a consultant, as applicable) on a
regular and continuous basis through each such anniversary of the Option’s Grant Date. 
 6.5 Exercise of Option. An Option
shall be exercisable at such times and be subject to such restrictions and conditions as the Committee shall in each instance approve, which terms and restrictions need not be the same for each grant or for each Participant. In the event a
Participant incurs a Termination of Service, the Participant may exercise any then outstanding and exercisable Options in accordance with the following provisions: 

(a) If the Participant’s Termination of Service is due to death, any unexercised Options to the extent exercisable on the date of the
Participant’s death, may be exercised, in whole or in part, at any time within one (1) year after the date of death by the Participant’s personal representative or by the person to whom the Options are transferred by will or the
applicable laws of descent and distribution. 
 (b) If the Participant’s Termination of Service is due to Disability or Retirement, any
unexercised Option, to the extent exercisable at the date of such Disability or Retirement, may be exercised, in whole or in part, at any time within three (3) years after the date of such Disability or Retirement; provided that, if the
Participant dies after such Disability or Retirement and before the expiration of such three (3) year period, unexercised Options held by such deceased Participant may be exercised by his or her personal representative or by the person to whom
the Option is transferred by will or the applicable laws of descent and distribution within one (1) year after the Participant’s date of death. 

  
 12 

 (c) If the Participant’s Termination of Service for any reason other than by death,
Retirement, Disability, or Cause, any unexercised Option, to the extent exercisable on the date of such Termination of Service, may be exercised, in whole or in part, at any time within ninety (90) days from the date of such Termination of
Service. 
 Notwithstanding any provision to the contrary in this Section 6.5 of the Plan, in no event shall the exercise period of an Option extend
beyond the term of the Option as determined in accordance with Section 6.3 of the Plan. 
 6.6 Payment of Option Price. An
Option shall be exercised by the delivery of a notice of exercise to the Company or an agent designated by the Company in a form specified or accepted by the Committee, or by complying with any alternative procedures that may be authorized by the
Committee, setting forth the number of Shares with respect to which the Option is to be exercised, accompanied by full payment for the Shares. A condition of the issuance of the Shares as to which an Option shall be exercised shall be the payment of
the Option Price. The Option Price of any exercised Option shall be payable to the Company in accordance with one of the following methods: 

(a) In cash or its equivalent; 

(b) By tendering (either by actual delivery or attestation) previously acquired Shares having an aggregate Fair Market Value at the time of
exercise equal to the Option Price; 
 (c) By a cashless (broker-assisted) exercise; 

(d) By any combination of (a), (b) and (c); or 

(e) Any other method approved or accepted by the Committee in its sole discretion. 

Unless otherwise determined by the Committee, all payments under all of the methods indicated above shall be paid in United States dollars or Shares, as
applicable. 
 6.7 Special Rules Regarding ISOs. Notwithstanding any provision of the Plan to the contrary, an Option granted in the
form of an ISO to a Participant shall be subject to the following rules: 
 (a) Special ISO definitions: 

(i) “Parent Corporation” shall mean as of any applicable date a corporation in respect of the Company that is a parent
corporation within the meaning of Code Section 424(e). 

  
 13 

 (ii) “ISO Subsidiary” shall mean as of any applicable date any corporation in
respect of the Company that is a subsidiary corporation within the meaning of Code Section 424(f). 
 (iii) A “10%
Owner” is an individual who owns stock possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or its Parent Corporation or any ISO Subsidiary. 

(b) Eligible employees. An ISO may be granted solely to eligible Employees of the Company, Parent Corporation, or ISO Subsidiary. 

(c) Specified as an ISO. An Award Agreement evidencing the grant of an ISO shall specify that such grant is intended to be an ISO. 

(d) Option price. The Option Price for each grant of an ISO shall be determined by the Committee in its sole discretion and shall be
specified in the Award Agreement; provided, however, the Option Price must be at least equal to 100% of the Fair Market Value of a Share as of the ISO’s Grant Date (in the case of 10% owners, the Option Price may not be not less
than 110% of such Fair Market Value), subject to adjustment provided for under Section 4.4. 
 (e) Right to exercise. Any ISO
granted to a Participant shall be exercisable during his or her lifetime solely by such Participant. 
 (f) Exercise period. The
period during which a Participant may exercise an ISO shall not exceed ten years (five years in the case of a Participant who is a 10% owner) from the date on which the ISO was granted. 

(g) Termination of Service. In the event a Participant has a Termination of Service due to death or Disability, the Participant (or, in
the case of death, the person(s) to whom the Option is transferred by will or the laws of descent and distribution) shall have the right to exercise the Participant’s ISO award during the period specified in the applicable Award Agreement
solely to the extent the Participant had the right to exercise the ISO on the date of his death or Disability; as applicable, provided, however, that such period may not exceed one year from the date of such Termination of Service or
if shorter, the remaining term of the ISO. In the event a Participant has a Termination of Service for reasons other than death or Disability, the Participant shall have the right to exercise the Participant’s ISO during the period specified in
the applicable Award Agreement solely to the extent the Participant had the right to exercise the ISO on the date of such Termination of Service; provided, however, that such period may not exceed three months from the date of such
Termination of Service or if shorter, the remaining term of the ISO. 
 (h) Dollar limitation. To the extent that the aggregate Fair
Market Value of (a) the Shares with respect to which Options designated as Incentive Stock Options plus (b) the shares of stock of the Company, Parent Corporation and any ISO Subsidiary with respect to which other Incentive Stock Options
are exercisable for the first time by a holder of such Incentive Stock Options during any calendar year under all plans of the Company and ISO Subsidiary exceeds $100,000, such Options shall be treated as Nonqualified Stock Options. For purposes of
the preceding sentence, (a) Options shall be taken into account in the order in which they were granted, and (b) the Fair Market Value of the Shares shall be determined as of the time the Option or other incentive stock option is granted.

  
 14 

 (i) Duration of plan. No ISO may be granted more than ten years after the earlier of
(a) adoption of this Plan by the Board and (b) the Effective Date. 
 (j) Notification of disqualifying disposition. If any
Participant shall make any disposition of Shares issued pursuant to the exercise of an ISO, such Participant shall notify the Company of such disposition within 30 days thereof. The Company shall use such information to determine whether a
disqualifying disposition as described in Code section 421(b) has occurred. 
 (k) Transferability. No ISO may be sold, transferred,
pledged, assigned or otherwise alienated or hypothecated, other than by will or by the laws of descent and distribution; provided, however, that at the discretion of the Committee, an ISO may be transferred to a grantor trust under
which Participant making the transfer is the sole beneficiary. 
 Article 7. Stock Appreciation Rights 

7.1 Grant of SARs. SARs may be granted to Participants in such number, and upon such terms, and at any time and from time to time as
shall be determined by the Committee, in its sole discretion. Each grant of SARs shall be evidenced by an Award Agreement. 
 7.2 Grant
Price. The Grant Price for each grant of an SAR shall be determined by the Committee and shall be specified in the Award Agreement evidencing the SAR; provided, however, the Grant Price must be at least equal to 100% of the FMV of
a Share as of the Grant Date, subject to adjustment as provided for under Section 4.4. 
 7.3 Term of SAR. The term of an SAR
granted to a Participant shall be determined by the Committee, in its sole discretion; provided, however, no SAR shall be exercisable later than the tenth anniversary date of its Grant Date. 

7.4 Exercise Requirements. Except as otherwise provided by the Committee and set forth in the Award Agreement, each SAR shall
become exercisable in equal installments of 25% of the total number of Shares subject to the SAR on each of the first, second, third and fourth anniversaries of the SAR’s Grant Date; provided, however, that the Participant remains
an Employee (or a Nonemployee Director or continues to provide services as a consultant, as applicable) on a regular and continuous basis through each such anniversary of the SAR’s Grant Date. 

7.5 Exercise of SAR. An SAR shall be exercisable at such times and be subject to such restrictions and conditions as the Committee
shall in each instance approve, which terms and restrictions need not be the same for each grant or for each Participant. In the event a Participant incurs a Termination of Service, the Participant may exercise any then outstanding and exercisable
SARs in accordance with the following provisions: 
 (a) If the Participant’s Termination of Service is due to death, any unexercised
SARs to the extent exercisable on the date of the Participant’s death, may be exercised, in whole or in part, at any time within one (1) year after the date of death by the Participant’s personal representative or by the person to
whom the SARs are transferred by will or the applicable laws of descent and distribution. 

  
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 (b) If the Participant’s Termination of Service is due to Disability or Retirement, any
unexercised SAR, to the extent exercisable at the date of such Disability or Retirement, may be exercised, in whole or in part, at any time within three (3) years after the date of such Disability or Retirement; provided that, if the
Participant dies after such Disability or Retirement and before the expiration of such three (3) year period, unexercised SARs held by such deceased Participant may be exercised by his or her personal representative or by the person to whom the
SAR is transferred by will or the applicable laws of descent and distribution within one (1) year after the Participant’s date of death. 

(c) If the Participant’s Termination of Service for any reason other than by death, Retirement, Disability, or Cause, any unexercised
SAR, to the extent exercisable on the date of such Termination of Service, may be exercised, in whole or in part, at any time within ninety (90) days from the date of such Termination of Service. 

Notwithstanding any provision to the contrary in this Section 7.5 of the Plan, in no event shall the exercise period of an SAR extend beyond the term of
the SAR as determined in accordance with Section 7.3 of the Plan. 
 7.6 Notice of Exercise. An SAR shall be exercised by the
delivery of a notice of exercise to the Company or an agent designated by the Company in a form specified or accepted by the Committee, or by complying with any alternative procedures that may be authorized by the Committee, setting forth the number
of Shares with respect to which the SAR is to be exercised. 
 7.7 Settlement of SARs. Upon the exercise of an SAR, pursuant to a
notice of exercise properly completed and submitted to the Company in accordance with Section 7.6, a Participant shall be entitled to receive payment from the Company in an amount equal to the product of (a) and (b) below: 

(a) The excess of the Fair Market Value of a Share on the date of exercise over the Grant Price. 

(b) The number of Shares with respect to which the SAR is exercised. 

Payment shall be made in cash, Shares or a combination thereof as provided for under the applicable Award Agreement. 

Article 8. Restricted Stock 
 8.1 Grant
of Restricted Stock. Restricted Stock may be granted to Participants in such number, and upon such terms, and at any time and from time to time as shall be determined by the Committee, in its sole discretion. Each grant of Restricted Stock shall
be evidenced by an Award Agreement. 

  
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 8.2 Nature of Restrictions. Each grant of Restricted Stock shall be subject to a Period of
Restriction that shall lapse upon the satisfaction of such conditions and restrictions as are determined by the Committee in its sole discretion and set forth in an applicable Award Agreement. Such conditions or restrictions may include, without
limitation, one or more of the following: 
 (a) A requirement that a Participant pay a stipulated purchase price for each Share of
Restricted Stock; 
 (b) Restrictions based upon the achievement of specific performance goals; 

(c) Time-based restrictions on vesting following the attainment of the performance goals; 

(d) Time-based restrictions; or 

(e) Restrictions under applicable laws and restrictions under the requirements of any stock exchange or market on which such Shares are listed
or traded. 
 8.3 Vesting Requirements. Except as otherwise provided by the Committee and set forth in the Award Agreement, each
Award of Restricted Stock shall become fully vested and nonforfeitable on the third anniversary of the Award’s Grant Date; provided, however, that the Participant remains an Employee (or a Nonemployee Director or continues to
provide services as a consultant, as applicable) on a regular and continuous basis through such anniversary of the Grant Date); further, provided, however, that such Awards may vest earlier in accordance with Section 4.4
herein and the Committee, in its discretion, may provide for a vesting period to lapse in pro rata or graded installments over such three-year period. 

8.4 Issuance of Shares. To the extent deemed appropriate by the Committee, the Company may retain the certificates representing Shares
of Restricted Stock in the Company’s possession until such time as all conditions or restrictions applicable to such Shares have been satisfied or lapse. Shares of Restricted Stock covered by each Restricted Stock grant shall become freely
transferable by the Participant after all conditions and restrictions applicable to such Shares have been satisfied or lapsed (including satisfaction of any applicable tax withholding obligations). 

8.5 Certificate Legend. In addition to any legends placed on certificates pursuant to Section 8.2, each certificate representing
Shares of Restricted Stock granted pursuant to this Plan may bear a legend such as the following or as otherwise determined by the Committee in its sole discretion: The sale or transfer of Shares of stock represented by this certificate,
whether voluntary, involuntary or by operation of law, is subject to certain restrictions on transfer as set forth in the John B. Sanfilippo & Son, Inc. 2014 Omnibus Incentive Plan, and in the associated Award Agreement. A copy of this Plan
and such Award Agreement may be obtained from John B. Sanfilippo & Son, Inc. 
 8.6 Voting Rights. As set forth in a
Participant’s applicable Award Agreement, the Committee shall determine the extent to which a Participant holding Shares of Restricted Stock shall be granted the right to exercise full voting rights with respect to those Shares. 

  
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 Article 9. Restricted Stock Units 

9.1 Grant of Restricted Stock Units. Restricted Stock Units may be granted to Participants in such number, and upon such terms, and at
any time and from time to time as shall be determined by the Committee, in its sole discretion. A grant of a Restricted Stock Unit or Restricted Stock Units shall not represent the grant of Shares but shall represent a promise to deliver a
corresponding number of Shares or the value of each Share based upon the completion of service, performance conditions, or such other terms and conditions as specified in the applicable Award Agreement over the Period of Restriction. Each grant of
Restricted Stock Units shall be evidenced by an Award Agreement. 
 9.2 Nature of Restrictions. Each grant of Restricted Stock Units
shall be subject to a Period of Restriction that shall lapse upon the satisfaction of such conditions and restrictions as are determined by the Committee in its sole discretion and set forth in an applicable Award Agreement. Such conditions or
restrictions may include, without limitation, one or more of the following: 
 (a) A requirement that a Participant pay a stipulated
purchase price for each Restricted Stock Unit; 
 (b) Restrictions based upon the achievement of specific performance goals; 

(c) Time-based restrictions on vesting following the attainment of the performance goals; 

(d) Time-based restrictions; and/or 

(e) Restrictions under applicable laws or under the requirements of any stock exchange on which Shares are listed or traded. 

9.3 Voting Rights. A Participant shall have no voting rights with respect to any Restricted Stock Units granted hereunder or the Shares
corresponding to any Restricted Stock Units granted hereunder. 
 9.4 Vesting Requirements. Except as otherwise provided by the
Committee and set forth in the Award Agreement, each Award of Restricted Stock Units shall become fully vested and nonforfeitable on the third anniversary of the Award’s Grant Date; provided, however, that the Participant remains
an Employee (or a Nonemployee Director or continues to provide services as a consultant, as applicable) on a regular and continuous basis through such anniversary of the Grant Date); further, provided, however, such Awards may
vest earlier in accordance with Section 4.4 herein and the Committee, in its discretion, may provide for a vesting period to lapse in pro rata or graded installments over such three-year period. 

9.5 Settlement and Payment of Restricted Stock Units. Unless otherwise elected by the Participant as permitted under the Award
Agreement, or otherwise provided for in the Award Agreement, Restricted Stock Units shall be settled upon the date such Restricted Stock Units vest. Such settlement shall be made in Shares unless otherwise specified in the Award Agreement. 

  
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 Article 10. Performance Shares 

10.1 Grant of Performance Shares. Performance Shares may be granted to Participants in such number, and upon such terms and at any time
and from time to time as shall be determined by the Committee, in its sole discretion. Each grant of Performance Shares shall be evidenced by an Award Agreement. 

10.2 Value of Performance Shares. Each Performance Share shall have an initial value equal to the Fair Market Value of a Share on the
Grant Date. The Committee shall set performance goals in its discretion that, depending on the extent to which they are met over the specified Performance Period, shall determine the number of Performance Shares that shall be paid to a Participant.

 10.3 Earning of Performance Shares. After the applicable Performance Period has ended, the number of Performance Shares earned by
the Participant over the Performance Period shall be determined as a function of the extent to which the applicable corresponding performance goals have been achieved. This determination shall be made solely by the Committee. 

10.4 Form and Timing of Payment of Performance Shares. The Committee shall pay at the close of the applicable Performance Period, or as
soon as practicable thereafter, any earned Performance Shares in the form of Shares unless otherwise specified in a Participant’s applicable Award Agreement. Any Shares paid to a Participant under this Section 10.4 may be subject to any
restrictions deemed appropriate by the Committee. 
 Article 11. Performance Units 

11.1 Grant of Performance Units. Subject to the terms and provisions of this Plan, Performance Units may be granted to a Participant in
such number, and upon such terms and at any time and from time to time as shall be determined by the Committee, in its sole discretion. Each grant of Performance Units shall be evidenced by an Award Agreement. 

11.2 Value of Performance Units. Each Performance Unit shall have an initial notional value equal to a dollar amount determined by the
Committee, in its sole discretion. The Committee shall set performance goals in its discretion that, depending on the extent to which they are met over the specified Performance Period, will determine the number of Performance Units that shall be
settled and paid to the Participant. 
 11.3 Earning of Performance Units. After the applicable Performance Period has ended, the
number of Performance Units earned by the Participant over the Performance Period shall be determined as a function of the extent to which the applicable corresponding performance goals have been achieved. This determination shall be made
solely by the Committee. 
 11.4 Form and Timing of Payment of Performance Units. The Committee shall pay at the close of the
applicable Performance Period, or as soon as practicable thereafter, any earned Performance Units in the form of cash or in Shares or in a combination thereof, as specified in a Participant’s applicable Award Agreement. Any Shares paid to a
Participant under this Section 11.4 may be subject to any restrictions deemed appropriate by the Committee. 

  
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 Article 12. Other Stock-Based Awards and Cash-Based Awards 

12.1 Grant of Other Stock-Based Awards and Cash-Based Awards.  

(a) The Committee may grant Other Stock-Based Awards not otherwise described by the terms of this Plan to a Participant in such amounts and
subject to such terms and conditions, as the Committee shall determine, in its sole discretion. Such Awards may involve the transfer of actual Shares to Participants, or payment in cash or otherwise of amounts based on the value of Shares. 

(b) The Committee may grant Cash-Based Awards not otherwise described by the terms of this Plan to a Participant in such amounts and upon such
terms as the Committee shall determine, in its sole discretion. 
 (c) Each grant of Other Stock-Based Awards and Cash-Based Awards shall be
evidenced by an Award Agreement. 
 12.2 Value of Other Stock-Based Awards and Cash-Based Awards.  

(a) Each Other Stock-Based Award shall be expressed in terms of Shares or units based on Shares, as determined by the Committee, in its sole
discretion. 
 (b) Each Cash-Based Award shall specify a payment amount or payment range as determined by the Committee, in its sole
discretion. If the Committee exercises its discretion to establish performance goals, the value of Cash-Based Awards that shall be paid to the Participant will depend on the extent to which such performance goals are met. 

12.3 Payment of Other Stock-Based Awards and Cash-Based Awards. Payment, if any, with respect to Cash-Based Awards and Other
Stock-Based Awards shall be made in accordance with the terms of the applicable Award Agreement, in cash, Shares or a combination of both as determined by the Committee in its sole discretion. 

Article 13. Effect of Termination of Service 
 Unless
otherwise provided in an Award Agreement, or determined in the discretion of the Committee, the impact of a Participant’s Termination of Service on a Participant’s then outstanding Awards shall be determined in accordance with following
provisions. 
 (a) A Participant’s Termination of Service is due to death or Disability, such Termination of Service will affect the
Participant’s then-outstanding Awards in the following manner: 
 (i) the Participant’s then-outstanding Options and SARs that
are not exercisable and as to which such ability to exercise depends solely on the satisfaction of a service obligation by the Participant to the Company or any Subsidiary shall immediately become fully exercisable over the exercise period specified
in Sections 6.5 and 7.5 of the Plan, respectively; and 
 (ii) the Participant’s then-outstanding Awards, other than Options and SARs,
that are not vested and as to which vesting depends solely on the satisfaction of a service obligation by the Participant to the Company or any Subsidiary shall become fully vested and shall be settled in Shares unless otherwise provided for under
the applicable Award Agreement as soon as practicable following such Termination of Service but no later than sixty days thereafter. 

  
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 (b) A Participant’s Termination of Service is due to Retirement, such Termination of Service
will affect the Participant’s then-outstanding Awards as set forth in this Section 13(b), provided, however, that the Participant must notify an officer of the Company at least 365 days before their date of Retirement to be
eligible for the conditions set forth in this Section 13(b). In the event that the Participant fails to notify an officer of the Company at least 365 days before their date of Retirement, the Committee shall have the discretion to determine the
treatment of the Participant’s Awards. 
 (i) The Participant’s then-outstanding Options and SARs that are not exercisable and as
to which such ability to exercise depends solely on the satisfaction of a service obligation by the Participant to the Company or any Subsidiary shall immediately become fully exercisable over the exercise period specified in Sections 6.5 and 7.5 of
the Plan, respectively; and 
 (ii) the Participant’s then-outstanding Awards, other than Options and SARs, that are not vested and as
to which vesting depends solely on the satisfaction of a service obligation by the Participant to the Company or any Subsidiary shall become fully vested and shall be settled in cash, Shares or a combination thereof as provided for under the
applicable Award Agreement as soon as practicable following such Termination of Service but no later than sixty days thereafter. 
 (c) If a
Participant’s Termination of Service is due to voluntary or involuntary Termination of Service, except in the case of Retirement, then the Participant’s then-outstanding Awards that are not exercisable or vested shall be immediately
forfeited. 
 (d) In the case of an Award that is not exercisable or vested upon a Participant’s Termination of Service due to death,
Disability or Retirement and as to which the ability to exercise or vesting depends upon the satisfaction of one or more performance conditions (other than a service obligation) shall immediately vest and all performance conditions shall be deemed
satisfied as if target performance was achieved, notwithstanding that the applicable performance cycle, retention cycle or restriction conditions shall not have been completed or met, and shall be settled pro rata, based on the proportion of the
applicable performance period during which the Participant was employed, in cash, Shares or a combination thereof as provided for under the applicable Award Agreement as soon as practicable but no later than sixty days after such Termination of
Service due to death, Disability or Retirement. 
 Article 14. Transferability of Awards and Shares 

14.1 Transferability of Awards. Except as provided in Section 14.2, during a Participant’s lifetime, Options shall be
exercisable only by the Participant. Awards shall not be transferable other than by will or the laws of descent and distribution or, subject to the consent of the Committee, pursuant to a domestic relations order entered into by a court of competent
jurisdiction; no Awards shall be subject, in whole or in part, to attachment, execution or levy of any kind; and any purported transfer in violation of this Section 14.1 shall be null and void. The Committee may establish such procedures as it
deems appropriate for a Participant to designate a beneficiary to whom any amounts payable or Shares deliverable in the event of, or following, the Participant’s death may be provided. 

  
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 14.2 Committee Action. The Committee may, in its discretion, determine that
notwithstanding Section 14.1, any or all Awards shall be transferable, without compensation to the transferor, to and exercisable by such transferees, and subject to such terms and conditions, as the Committee may deem appropriate;
provided, however, no Award may be transferred for value without stockholder approval. 
 14.3 Restrictions on Share
Transferability. The Committee may impose such restrictions on any Shares acquired by a Participant under the Plan as it may deem advisable, including, without limitation, minimum holding period requirements, restrictions under applicable
federal securities laws, under the requirements of any stock exchange or market upon which such Shares are then listed or traded or under any blue sky or state securities laws applicable to such Shares. 

Article 15. Performance-Based Compensation and Compliance with Code Section 162(m) 

15.1 Compliance with Section 162(m). The provisions of the Plan are intended to ensure that all Options and SARs granted hereunder
to any Participant who is or may be a Covered Employee at the time of exercise of such Option or SAR qualify for exemption from the limitation on deductibility imposed by Section 162(m) of the Code that is set forth in Section 162(m)(4)(c)
of the Code and that such Options and SARs shall therefore be considered Performance-Based Compensation and this Plan shall be interpreted and operated consistent with that intention. The Committee may designate any Award (other than an Option or
SAR) as Performance-Based Compensation upon grant, in each case based upon a determination that (i) the Participant is or may be a Covered Employee with respect to such Award, and (ii) the Committee wishes such award to qualify for
exemption from the limitation on deductibility imposed by Section 162(m) of the Code that is set forth in Section 162(m)(4)(c). The Committee shall have the sole authority to specify which Awards are to be granted in compliance with
Section 162(m) and treated as Performance-Based Compensation. 
 15.2 Performance Measures. The performance measures upon which
the payment or vesting of an Award to a Covered Employee that is intended to qualify as Performance-Based Compensation shall be limited to the following Performance Measures: 

(a) Book value; 
 (b) Cash flow
(including, funds from operations); 
 (c) Customer Satisfaction; 

(d) Earnings (either in aggregate or on a per-share basis); 

(e) Earnings before or after either, or any combination of, interest, taxes, depreciation, or amortization (EBITDA); 

(f) Economic value added; 

  
 22 

 (g) Expenses/costs; 

(h) Gross or net income 
 (i)
Gross or net operating margins; 
 (j) Gross or net profits 

(k) Gross or net revenues; 
 (l)
Margins; 
 (m) Market share; 

(n) Net income; 
 (o) Operating
income; 
 (p) Operational performance measures; 

(q) Pre-tax Income; 
 (r)
Productivity ratios; 
 (s) Profitability ratios; 

(t) Return measures (including return on assets, return on equity, return on investment, return on capital, return on invested capital, gross
profit return on investment, gross margin return on investment); 
 (u) Share price (including growth in share price and total stockholder
return); 
 (v) Stockholder value added which is equal to (i) the net operating profit after tax minus (ii) capital charge; where
the capital charge is equal to invested capital multiplied by the weighted average cost of capital; 
 (w) Strategic business objectives
(including objective project milestones); 
 (x) Transactions relating to acquisitions or divestitures; or 

(y) Working capital. 
 Any Performance
Measure(s) may, as the Committee, in its sole discretion deems appropriate, (i) relate to the performance of the Company or any Subsidiary as a whole or any business unit or division of the Company or any Subsidiary or any combination thereof,
(ii) be compared to the performance of a group of comparator companies, or published or special index, (iii) be based on change in the Performance Measure over a specified period of time and such change may be measured based on an
arithmetic change over the specified period (e.g., cumulative change or average change), or percentage change over the specified period (e.g., cumulative percentage change, average percentage change or compounded percentage change), (iv) relate
to or be compared to one or more other Performance Measures, or (v) any combination of the foregoing. The Committee also has the authority to provide for accelerated vesting of any Award based on the achievement of performance goals pursuant to
the Performance Measures specified in this Article 15. 

  
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 15.3 Evaluation of Performance. The Committee may provide in any Award intended to qualify
as Performance-Based Compensation that any evaluation of performance may include or exclude the impact, if any, on reported financial results of any of the following events that occurs during a Performance Period: (a) asset write-downs,
(b) litigation or claim judgments or settlements, (c) changes in tax laws, accounting principles or other laws or provisions, (d) reorganization or restructuring programs, (e) acquisitions or divestitures, (f) foreign
exchange gains and losses, (g) gains and losses that are treated as extraordinary items under Financial Accounting Standard No. 145 (Accounting Standards Codification 225), (h) foreign exchange gains and losses or
(i) reorganization or restructuring program. To the extent such inclusions or exclusions affect Awards to Covered Employees; they shall be prescribed in a form that meets the requirements of Code Section 162(m) for deductibility. 

15.4 Adjustment of Performance-Based Compensation. Awards that are intended to qualify as Performance-Based Compensation may not be
adjusted upward. The Committee shall retain the discretion to adjust such Awards downward, either on a formula or discretionary basis or any combination, as the Committee determines, in its sole discretion. 

15.5 Committee Discretion. In the event that applicable tax or securities laws change to permit Committee discretion to alter the
governing Performance Measures or permit flexibility with respect to the terms of any Award or Awards to be treated as Performance-Based Compensation without obtaining stockholder approval of such changes, the Committee shall have sole discretion to
make such changes without obtaining stockholder approval. In addition, in the event that the Committee determines that it is advisable to grant Awards that shall not qualify as Performance-Based Compensation, the Committee may make such grants
without satisfying the requirements of Code Section 162(m) and base vesting on Performance Measures other than those set forth in Section 15.2. 

Article 16. Nonemployee Director Awards 

16.1 Awards to Nonemployee Directors. The Board or Committee shall determine and approve all Awards to Nonemployee Directors. The terms
and conditions of any grant of any Award to a Nonemployee Director shall be set forth in an Award Agreement. 
 16.2 Awards in Lieu of
Fees. The Board or Committee may permit a Nonemployee Director the opportunity to receive an Award in lieu of payment of all or a portion of future director fees (including but not limited to cash retainer fees and meeting fees) or other type of
Awards pursuant to such terms and conditions as the Board or Committee may prescribe and set forth in an applicable sub-plan or Award Agreement. 

16.3 Annual Award Limits. The maximum aggregate number of Shares for which Awards may be granted to any Nonemployee Director in any
calendar year shall be 100,000. 

  
 24 

 Article 17. Effect of a Change in Control 

17.1 Certain Rules. Except as otherwise determined by the Committee, any spin-off of a division or subsidiary of the Company to its
stockholders will not constitute a Change in Control of the Company. 
 17.2 Discretionary Treatment; Default Provisions. The
Committee shall determine the treatment of outstanding Awards prior to a Change in Control, except that to the extent the Committee takes no action (and except as otherwise expressly provided for in an Award Agreement or as required to comply with
Code Section 409A): 
 (a) all Options and Stock Appreciation Rights then outstanding shall become immediately and fully exercisable,
notwithstanding any provision therein for the exercise in installments; 
 (b) all restrictions and conditions of all Restricted Stock then
outstanding shall be deemed satisfied as of the date of the Change in Control; and 
 (c) all Restricted Stock Units, Dividend Equivalents
and any Award subject to performance goals, including Performance Stock or Performance Stock Units, shall become vested and deemed earned or satisfied at target, notwithstanding that the applicable performance cycle, retention cycle or restriction
conditions shall not have been completed or met, and shall be settled pro rata, based on the proportion of the applicable performance period during which the Participant was employed, in cash, Shares or a combination thereof as provided for under
the applicable Award Agreement or otherwise settled within 30 days of the Change in Control (except to the extent that payment must be made pursuant to its original schedule in order to comply with Code Section 409A). 

17.3 Potential Treatment. Without limitation, except as expressly provided for in an Agreement, the Committee may elect prior to a
Change in Control, that in the event of a Change in Control, that all or any portion of an Award, with no requirement of uniform treatment: 

(a) Shall be assumed or an equivalent award be substituted by the successor corporation in any Change in Control transaction, or a parent or
subsidiary of such successor corporation; 
 (b) Shall be cancelled or forfeited and settled in cash (except where such action would cause
an excise tax to be payable pursuant to Code Section 409A); or 
 (c) With respect to any unexercised portion of an Option or Stock
Appreciation Right, shall be cancelled following the time permitted to exercise said Award. 
 17.4 409A Limitation. Following a
Change in Control, no action shall be taken under the Plan that will cause any Award that has previously been determined to be (or is determined to be) subject to Code Section 409A to fail to comply in any respect with Code Section 409A
without the written consent of the Participant. 

  
 25 

 Article 18. Dividends and Dividend Equivalents 

With respect to an Award of Restricted Stock, the Committee may grant or limit the right of a Participant to receive dividends declared on
Shares that are subject to such Award granted to the Participant, with such dividends credited to the Participant as of the applicable dividend payment dates that occur during a period determined by the Committee; provided, however,
that in the case of an Award of Restricted Stock as to which vesting depends upon the satisfaction of one or more performance conditions or solely upon the satisfaction of a service condition, such dividends shall be subject to the same performance
conditions or service conditions, as applicable, as the underlying Award. Dividends shall be converted to and paid in cash or additional Shares or Awards by such formula and at such time and subject to such limitations as may be determined by the
Committee. 
 Except for Options, SARs and Restricted Stock, the Committee may grant dividend equivalent payments (“Dividend
Equivalents”) to a Participant based on the dividends declared on Shares that are subject to any Award granted to the Participant, with such Dividend Equivalents credited to the Participant as of the applicable dividend payment dates that
occur during a period determined by the Committee; provided, however, that in the case of an Award as to which vesting depends upon the satisfaction of one or more performance conditions or solely upon the satisfaction of a service
condition, such Dividend Equivalents shall be subject to the same performance conditions or service conditions, as applicable, as the underlying Award. Dividend Equivalents shall be converted to and paid in cash or additional Shares or Awards by
such formula and at such time and subject to such limitations as may be determined by the Committee. 
 Article 19. Beneficiary Designation 

Each Participant under this Plan may, from time to time, name any beneficiary or beneficiaries (who may be named contingently or successively)
to whom any benefit under this Plan is to be paid in case of his death before he receives any or all of such benefit. Each such designation shall revoke all prior designations by the same Participant, shall be in a form prescribed by the
Committee, and will be effective only when filed by the Participant in writing with the Company during the Participant’s lifetime. In the absence of any such beneficiary designation, benefits remaining unpaid or rights remaining unexercised at
the Participant’s death shall be paid to or exercised by the Participant’s executor, administrator or legal representative. 
 Article 20.
Rights of Participants 
 20.1 Employment. Nothing in this Plan or an Award Agreement shall (a) interfere with or limit in
any way the right of the Company or any Subsidiary to terminate any Participant’s employment with the Company or any Subsidiary at any time or for any reason not prohibited by law or (b) confer upon any Participant any right to continue
his employment or service as a Director or Third-Party Service Provider for any specified period of time. Neither an Award nor any benefits arising under this Plan shall constitute an employment contract with the Company or any Subsidiary and,
accordingly, subject to Articles 3 and 21, this Plan and the benefits hereunder may be amended or terminated at any time in the sole and exclusive discretion of the Board or Committee without giving rise to any liability on the part of the Company,
any Subsidiary, the Committee or the Board. 

  
 26 

 20.2 Participation. No individual shall have the right to be selected to receive an Award
under this Plan, or, having been so selected, to be selected to receive a future Award. 
 20.3 Rights as a Stockholder. Except as
otherwise provided herein, a Participant shall have none of the rights of a stockholder with respect to Shares covered by any Award until the Participant becomes the record holder of such Shares. 

Article 21. Amendment and Termination 

21.1 Amendment and Termination of the Plan and Awards.  

(a) Subject to subparagraphs (b) and (c) of this Section 21.1 and Section 21.3 of the Plan, the Board may at any time amend
or terminate the Plan or amend or terminate any outstanding Award. 
 (b) Except as provided for in Section 4.4, the terms of an
outstanding Award may not be amended, without prior stockholder approval, to: 
 (i) reduce the Option Price of an outstanding Option or to
reduce the Grant Price of an outstanding SAR, 
 (ii) cancel an outstanding Option or SAR in exchange for other Options or SARs with an
Option Price or Grant Price, as applicable, that is less than the Option Price of the cancelled Option or the Grant Price of the cancelled SAR, as applicable, or 

(iii) cancel an outstanding Option with an Option Price that is less than the Fair Market Value of a Share on the date of cancellation or
cancel an outstanding SAR with a Grant Price that is less than the Fair Market Value of a Share on the date of cancellation in exchange for cash or another Award. 

(c) Notwithstanding the foregoing, no amendment of this Plan shall be made without stockholder approval if stockholder approval is required
pursuant to rules promulgated by any stock exchange or quotation system on which Shares are listed or quoted or by applicable U.S. state corporate laws or regulations, applicable U.S. federal laws or regulations and the applicable laws of any
foreign country or jurisdiction where Awards are, or will be, granted under the Plan. 
 21.2 Adjustment of Awards Upon the Occurrence of
Certain Unusual or Nonrecurring Events. Subject to Section 15.4, the Committee may make adjustments in the terms and conditions of, and the criteria included in, Awards in recognition of unusual or nonrecurring events (including, without
limitation, the events described in Section 4.4) affecting the Company or the financial statements of the Company or of changes in applicable laws, regulations, or accounting principles, whenever the Committee determines that such adjustments
are appropriate in order to prevent unintended dilution or enlargement of the benefits or potential benefits intended to be made available under this Plan. The determination of the Committee as to the foregoing adjustments, if any, shall be
conclusive and binding on Participants under this Plan. By accepting an Award under this Plan, a Participant agrees to any adjustment to the Award made pursuant to this Section 21.2 without further consideration or action. 

  
 27 

 21.3 Awards Previously Granted. Notwithstanding any other provision of this Plan to the
contrary, other than Sections 21.2, 21.4 and 21.5, no termination or amendment of this Plan or an Award Agreement shall adversely affect in any material way any Award previously granted under this Plan, without the written consent of the
Participant holding such Award. 
 21.4 Amendment to Conform to Law. Notwithstanding any other provision of this Plan to the
contrary, the Committee may amend the Plan or an Award Agreement, to take effect retroactively or otherwise, as deemed necessary or advisable for the purpose of conforming the Plan or an Award Agreement to any law relating to plans of this or
similar nature, and to the administrative regulations and rulings promulgated thereunder. By accepting an Award under this Plan, a Participant agrees to any amendment made pursuant to this Section 21.4 to the Plan and any Award without further
consideration or action. 
 21.5 Deferred Compensation. Unless otherwise indicated in the applicable Award Agreement, it is not
intended that any Award under this Plan, in form and/or operation, will constitute “deferred compensation” within the meaning of Code Section 409A and therefore, it is intended that each Award will not be subject to the requirements
applicable to deferred compensation under section 409A of the Code and the regulations thereunder. If a Participant is a “specified employee” as defined under Code Section 409A and the Participant’s Award is to be settled on
account of the Participant’s separation from service (for reasons other than death) and such Award constitutes “deferred compensation” as defined under Code Section 409A, then any portion of the Participant’s Award that
would otherwise be settled during the six-month period commencing on the Participant’s separation from service shall be settled as soon as practicable following the conclusion of the six-month period (or following the Participant’s death
if it occurs during such six-month period). 
 Article 22. General Provisions 

22.1 Forfeiture Events.  

(a) In addition to the forfeiture events specified in Section 22.1(b), the Committee may specify in an Award Agreement that the
Participant’s rights, payments and benefits with respect to an Award shall be subject to reduction, cancellation, forfeiture or recoupment upon the occurrence of certain specified events, in addition to any otherwise applicable treatment of an
Award. 
 (b) A Participant’s Termination of Service for Cause shall result in the forfeiture of the Participant’s outstanding and
unexercisable Options and SARs and any outstanding and unvested Restricted Stock, Restricted Stock Units, Performance Shares, Performance Units, Cash-Based Awards and Other Stock-Based Awards granted to the Participant as of the date immediately
preceding the Participant’s Termination of Service. 
 22.2 Tax Withholding.  

(a) Minimum Tax Withholding. The Company shall have the power and the right to deduct or withhold, or require a Participant to remit to the
Company, the minimum statutory amount to satisfy applicable federal, state and local tax withholding requirements, domestic or foreign, with respect to any taxable event arising as a result of this Plan but in no event shall such deduction or
withholding or remittance exceed the minimum statutory withholding requirements. 

  
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 (b) Share Withholding. With respect to withholding required upon the exercise of Options or SARS,
upon the lapse of restrictions on Restricted Stock, upon the settlement of Restricted Stock Units, or upon the achievement of performance goals related to Performance Shares, or any other taxable event arising as a result of an Award granted
hereunder (collectively referred to as “Share Payment”), a Participant may elect, subject to the approval of the Committee, to satisfy the withholding requirement, in whole or in part, by having the Company withhold from the Share
Payment the number of Shares having a Fair Market Value on the date of the withholding is to be determined equal to the minimum statutory withholding requirement but in no event shall such withholding exceed the minimum statutory withholding
requirement. All such elections shall be irrevocable, made in writing, and signed by the Participant, and shall be subject to any restrictions or limitations that the Committee, in its sole discretion, deems appropriate. 

22.3 Legend. The certificates for Shares may include any legend that the Committee deems appropriate to reflect any restrictions on
transfer of such Shares. 
 22.4 Gender and Number. Except where otherwise indicated by the context, any masculine term used herein
also shall include the feminine, the plural shall include the singular, and the singular shall include the plural. 
 22.5
Severability. In the event any provision of this Plan shall be held illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining parts of this Plan, and this Plan shall be construed and enforced as if the
illegal or invalid provision had not been included. 
 22.6 Requirements of Law. The granting of Awards and the issuance of Shares
under this Plan shall be subject to all applicable laws, rules and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required. 

22.7 Delivery of Title. The Company shall have no obligation to issue or deliver evidence of title for Shares issued under this Plan
prior to: 
 (a) Obtaining any approvals from governmental agencies that the Company determines are necessary or advisable; and 

(b) Completion of any registration or other qualification of the Shares under any applicable national or foreign law or ruling of any
governmental body that the Company determines to be necessary or advisable. 
 22.8 Inability to Obtain Authority. The inability of
the Company to obtain authority from any regulatory body having jurisdiction, which authority is deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any Shares hereunder, shall relieve the Company of any liability
in respect of the failure to issue or sell such Shares as to which such requisite authority shall not have been obtained. 
 22.9
Investment Representations. The Committee may require any individual receiving Shares pursuant to an Award under this Plan to represent and warrant in writing that the individual is acquiring the Shares for investment and without any present
intention to sell or distribute such Shares. 

  
 29 

 22.10 Employees Based Outside of the United States. Notwithstanding any provision of this
Plan to the contrary, in order to comply with the laws in other countries in which the Company or any Subsidiaries operate or have Employees, Directors or Third-Party Service Providers, the Committee, in its sole discretion, shall have the power and
authority to: 
 (a) Determine which Subsidiaries shall be covered by this Plan; 

(b) Determine which Employees, Directors or Third-Party Service Providers outside the United States are eligible to participate in this Plan;

 (c) Modify the terms and conditions of any Award granted to Employees, Directors or Third-Party Service Providers outside the United
States to comply with applicable foreign laws; 
 (d) Establish sub-plans and modify exercise procedures and other terms and procedures, to
the extent such actions may be necessary or advisable. Any sub-plans and modifications to Plan terms and procedures established under this Section 22.10 by the Committee shall be attached to this Plan document as appendices; and 

(e) Take any action, before or after an Award is made, that it deems advisable to obtain approval or comply with any necessary local
government regulatory exemptions or approvals. 
 Notwithstanding the above, the Committee may not take any actions hereunder, and no Awards shall be
granted, that would violate applicable law. 
 22.11 Uncertificated Shares. To the extent that this Plan provides for issuance of
certificates to reflect the transfer of Shares, the transfer of such Shares may be effected on a noncertificated basis, to the extent not prohibited by applicable law or the rules of any stock exchange. 

22.12 Unfunded Plan. Participants shall have no right, title or interest whatsoever in or to any investments that the Company or any
Subsidiaries may make to aid it in meeting its obligations under this Plan. Nothing contained in this Plan, and no action taken pursuant to its provisions, shall create or be construed to create a trust of any kind, or a fiduciary relationship
between the Company and any Participant, beneficiary, legal representative or any other individual. To the extent that any individual acquires a right to receive payments from the Company or any Subsidiary under this Plan, such right shall be no
greater than the right of an unsecured general creditor of the Company or the Subsidiary, as the case may be. All payments to be made hereunder shall be paid from the general funds of the Company, or the Subsidiary, as the case may be, and no
special or separate fund shall be established, and no segregation of assets shall be made to assure payment of such amounts except as expressly set forth in this Plan. 

22.13 No Fractional Shares. No fractional Shares shall be issued or delivered pursuant to this Plan or any Award. The Committee shall
determine whether cash, Awards or other property shall be issued or paid in lieu of fractional Shares or whether such fractional Shares or any rights thereto shall be forfeited or otherwise eliminated. 

  
 30 

 22.14 Retirement and Welfare Plans. Neither Awards made under this Plan nor Shares or cash
paid pursuant to such Awards may be included as “compensation” for purposes of computing the benefits payable to any Participant under the Company’s or any Subsidiary’s retirement plans (both qualified and nonqualified) or
welfare benefit plans unless such other plan expressly provides that such compensation shall be taken into account in computing a Participant’s benefit. 

22.15 Nonexclusivity of this Plan. The adoption of this Plan shall not be construed as creating any limitations on the power of the
Board or Committee to adopt such other compensation arrangements as it may deem desirable for any Participant. 
 22.16 No Constraint on
Corporate Action. Nothing in this Plan shall be construed to: (i) limit, impair, or otherwise affect the Company’s or a Subsidiary’s right or power to make adjustments, reclassifications, reorganizations or changes of its capital
or business structure, or to merge or consolidate, or dissolve, liquidate, sell or transfer all or any part of its business or assets; or, (ii) limit the right or power of the Company or a Subsidiary to take any action that such entity deems to
be necessary or appropriate. 
 22.17 Governing Law. The Plan and each Award Agreement shall be governed by the laws of the state of
Delaware excluding any conflicts or choice of law rule or principle that might otherwise refer construction or interpretation of this Plan to the substantive law of another jurisdiction. 

22.18 Delivery and Execution of Electronic Documents. To the extent permitted by applicable law, the Company may (i) deliver by
email or other electronic means (including posting on a website maintained by the Company or by a third party under contract with the Company) all documents relating to the Plan or any Award thereunder (including without limitation, prospectuses
required by the Commission) and all other documents that the Company is required to deliver to its security holders (including without limitation, annual reports and proxy statements) and (ii) permit Participant’s to electronically execute
applicable Plan documents (including, but not limited to, Award Agreements) in a manner prescribed to the Committee. 
 22.19 No
Representations or Warranties Regarding Tax Effect. Notwithstanding any provision of the Plan to the contrary, the Company, Subsidiaries, the Board and the Committee neither represent nor warrant the tax treatment under any federal, state, local
or foreign laws and regulations thereunder (individually and collectively referred to as the “Tax Laws”) of any Award granted or any amounts paid to any Participant under the Plan including, but not limited to, when and to what
extent such Awards or amounts may be subject to tax, penalties and interest under the Tax Laws. 

  
 31 

 22.20 Indemnification. Subject to requirements of the laws of the state of Delaware, each
individual who is or shall have been a member of the Board, or a Committee appointed by the Board, or an officer of the Company to whom authority was delegated in accordance with Article 3, shall be indemnified and held harmless by the Company
against and from any loss, cost, liability, or expense that may be imposed upon or reasonably incurred by him or her in connection with or resulting from any claim, action, suit or proceeding to which he or she may be a party or in which he or she
may be involved by reason of any action taken or failure to act under this Plan and against and from any and all amounts paid by him or her in settlement thereof, with the Company’s approval, or paid by him or her in satisfaction of any
judgment in any such action, suit, or proceeding against him or her, provided he or she shall give the Company an opportunity, at its own expense, to handle and defend the same before he or she undertakes to handle and defend it on his/her own
behalf, unless such loss, cost, liability or expense is a result of his/her own willful misconduct or except as expressly provided by statute. The foregoing right of indemnification shall not be exclusive of any other rights of indemnification to
which such individuals may be entitled under the Company’s Articles of Incorporation or Bylaws, as a matter of law or otherwise, or any power that the Company may have to indemnify them or hold them harmless. 

22.21 Successors. All obligations of the Company under this Plan with respect to Awards granted hereunder shall be binding on any
successor to the Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the business and/or assets of the Company 

  
 32EmploymentAgreementHamblet

EMPLOYMENT AGREEMENT
This EMPLOYMENT AGREEMENT (this “Agreement”) is entered into as of October 9, 2014 (the “Effective Date”) between LISA M. HAMBLET (“Executive”) and STOCK BUILDING SUPPLY HOLDINGS, INC., a Delaware corporation (the “Company”).
RECITALS
WHEREAS, Executive is currently employed by the Company as its Executive Vice President for eBusiness, and is a party to that certain Severance Agreement dated December 16, 2013 with the Company (the “Prior Agreement”); and
WHEREAS, Executive and the Company desire to amend and restate the Prior Agreement in order to reflect certain modifications to the terms thereof and to set forth the terms and conditions of Executive’s ongoing employment with the Company.
NOW, THEREFORE, in consideration of the promises and mutual covenants contained herein, and for other good and valuable consideration, including Executive’s agreement to sign a Separation Agreement and General Release as provided in SECTION 6.10 below in the event of a termination of Executive’s employment with the Company, the Company and Executive hereby agree as follows:
TERMS AND CONDITIONS
SECTION 1
EMPLOYMENT
1.1    Employment.  The Company hereby employs Executive and Executive hereby accepts such employment by the Company for the period and upon the terms and conditions contained in this Agreement.
1.2    Position and Duties.  Executive shall serve the Company as its Executive Vice President for eBusiness.  Executive shall have all of the powers and duties in such capacity that are customary to the powers and duties of those of an Executive Vice President serving in a similar role in a company within the industry in which the Company operates.  The foregoing powers and duties shall be subject to the direction of the Company’s Board of Directors (the “Board”) and its Chief Executive Officer.  Executive shall report to the Chief Executive Officer of the Company or his successor.  Executive shall devote Executive’s full business time and attention and full diligence and vigor and good faith efforts to the affairs of the Company and Executive shall not engage in any other material business duties or pursuits or render any services of a professional nature to any other entity or person, or serve on any other board of directors (other than a not for profit board of directors), without the prior written consent of the Chief Executive Officer.
1.3    Effective Date; Indefinite Term.  Executive’s employment under this Agreement shall continue for an indefinite term, until terminated in accordance with SECTION 3 below.  Certain provisions, however, as more fully set forth in SECTION 4, SECTION 5 and SECTION 6 below, 

continue in effect beyond the date of the termination of Executive’s employment (the “Termination Date”).
SECTION 2 
COMPENSATION AND BENEFITS
2.1    Compensation.
(a)    Base Salary.  The Company shall pay to Executive an annual base salary at the rate not less than $310,000 each calendar year (“Base Salary”), payable in accordance with the Company’s ordinary payroll and withholding practices from time to time in effect for its employees.  During the term of employment hereunder, the Executive’s salary shall be reviewed from time to time (but no less than annually) to determine whether an increase in Executive’s salary is appropriate.  Any such increase shall be at the sole discretion of the Board. 
(b)    Annual Cash Bonus.  During the term of employment, Executive shall be eligible to receive an annual cash bonus (“Annual Cash Bonus”) under the Company’s incentive award plan for management and executives as from time to time adopted by the Board (the “Incentive Plan”).  The Annual Cash Bonus shall be determined based on a target bonus equal to 100% of Base Salary (the “Target Bonus”). The actual amount of the Annual Cash Bonus to be determined by the Board based upon percentage achievement of certain Company-wide and individual performance goals or milestones for each respective calendar year (or any portion thereof), as established in the Incentive Plan, and may be greater or lesser than the Target Bonus.
(c)    Annual Equity Grant.  During the term of employment, Executive shall be eligible to receive an annual grant of equity (the “Annual Equity Grant”) under the Company’s Incentive Plan.  The actual award and amount of any Annual Equity Grant will be determined by the Board or the Compensation Committee of the Board, as appropriate, based upon any of the factors described in the Incentive Plan in addition to general factors relating to retention of talent.
2.2    Benefit.
(a)    Generally.  Executive shall be eligible to participate, to the extent it is legal and permitted by the applicable benefits plans, policies or contracts, in all employee benefits programs that the Company may adopt for its U.S. employees generally providing for sick or other leave, vacation, group health, disability and life insurance benefits.  Executive shall be eligible to participate in the Company’s 401(k) plan on the terms and conditions and qualifications of such plan from time to time in effect, with a Company match (if any) no less favorable than that provided to any other Company executive.
(b)    Executive.  Executive shall be eligible to participate, to the extent it is legal and permitted by the applicable plans, policies or contracts, in all benefits or fringe benefits which are in effect generally for the Company’s executive personnel from time to time.

     2

2.3    Expense Reimbursement.  The Company shall pay or reimburse Executive for all reasonable expenses incurred in connection with performing his duties upon presentation of documents in accordance with the reasonable procedures established by the Company. 
SECTION 3
TERMINATION
3.1    By the Company:
(a)    For Cause.  The Company shall have the right at any time, exercisable upon written notice, to terminate the Executive’s employment for Cause.  As used in this Agreement, “Cause” shall mean that the Executive:
(i)    has been convicted of, or has entered a pleading of guilty or nolo contendre to, a felony (other than DUI or similar felony) or any crime involving fraud, theft, embezzlement or other act of dishonesty involving the Company;
(ii)    has knowingly and intentionally participated in fraud, embezzlement, or other act of dishonesty involving the Company;
(iii)    materially fails to attempt in good faith to perform Executive’s duties required under Executive’s employment by or other relationship with the Company (it being agreed that failure of the Company to achieve operating results or similar poor performance of the Company shall not, in and of itself, be deemed a failure to perform Executive’s duties);
(iv)    fails to attempt in good faith to comply with a lawful directive of the CEO or the Board that is consistent with the Company’s business practices and Code of Ethics;
(v)    engages in willful misconduct for which Executive receives a material and improper personal benefit at the expense of the Company, or accidental misconduct resulting in such a benefit which Executive does not promptly report to the Company and redress promptly upon becoming aware of such benefit;
(vi)    in carrying out his duties under this Agreement, has engaged in acts or omissions constituting gross negligence or willful misconduct resulting in, or which, in the good faith opinion of the Board, could be expected to result in, substantial economic harm to the Company; 
(vii)    has failed for any reason to correct, cease or alter any action or omission that (A)  materially violates or does not conform with the Company’s policies, standards or regulations in a material way, (B) constitutes a material breach of this Agreement or the Confidentiality Agreement (as defined below), or (C) constitutes a material breach of his duty of loyalty to the Company; or
(viii)    has disclosed any Proprietary Information (as defined below) without authorization from the Board, Chief Executive Officer or General Counsel except as 

     3

otherwise permitted by this Agreement, another agreement between the parties or any Company policy in effect at the time of disclosure.
For purposes of the definition of “Cause”, “Company” shall include any subsidiary, business unit or affiliate of the Company with respect to which Executive performs Executive’s duties.
The Company shall provide written notice to Executive of any act or omission that the Company believes constitutes grounds for “Cause” pursuant to clause (iii), (iv) or (vii) above, and no such act or omission shall constitute “Cause” unless Executive fails to remedy such act or omission within ten (10) days of the receipt of such notice; provided that such ten (10) day cure period shall not apply with respect to any matter that is incapable of cure within such period.  
(b)    Due to Death or Disability.  Executive’s employment shall terminate upon Executive’s death and the Company may terminate Executive’s employment due to Executive’s Disability.  As used in this Agreement, “Disability” shall mean any physical or mental disability or incapacity that renders Executive incapable of fully performing the services required of Executive by the Company for a period of 180 consecutive days or for shorter periods aggregating 180 days during any twelve (12) month period.  For purposes of the definition of “Disability”, “Company” shall include any subsidiary, business unit or affiliate of the Company with respect to which Executive performs Executive’s duties.  Any question as to the existence of a Disability upon which Executive and the Company cannot agree shall be determined by a qualified independent physician selected by Executive (or, if Executive is unable to make such selection, a selection shall be made by Executive’s spouse, if available, or if such spouse is unavailable due to death or incapacity, any other adult member of Executive’s immediate family), with the consent of the Company, which consent shall not be unreasonably withheld.  The determination of such physician made in writing to the Company and Executive shall be final and conclusive for all purposes of determining Disability under this Agreement.
(c)    Without Cause.  The Company may terminate Executive’s employment under this Agreement at anytime Without Cause.  As used in this Agreement, a termination “Without Cause” shall mean the termination of Executive’s employment by the Company other than (i) for Cause pursuant to SECTION 3.1(a) above or (ii) due to death or Disability pursuant to SECTION 3.1(b) above.  
3.2    By the Executive:
(a)    Without Good Reason.  Executive may terminate his employment under this Agreement at any time Without Good Reason.  As used in this Agreement, a termination “Without Good Reason” shall mean termination of Executive’s employment by Executive other than For Good Reason pursuant to SECTION 3.2(b) below.
(b)    For Good Reason.  Executive shall have the right at any time to resign his employment under this Agreement For Good Reason.  As used in this Agreement, “For Good Reason” shall mean any of the following: (i) a material diminution in the Executive’s Base Salary or Target Annual Cash Bonus, (ii) a material diminution in Executive’s title, authority, duties and responsibilities as compared to Executive’s title, authority, duties and responsibilities measured immediately after the 

     4

Effective Date, (iii) any requirement that the Executive report to anyone but (A) the Chief Executive Officer of the ultimate parent entity, or (B) if the Company becomes a subsidiary or a division of another entity not engaged predominantly in the same business as the Company, the most senior executive of such subsidiary or division, (iv) any material breach by the Company or related entities of this Agreement or the Executive’s other agreements with the Company or related entities, (v) the failure of any successor to all or substantially all of the Company’s business or assets to promptly assume and continue this Agreement, whether contractually or as a matter of law, within fifteen (15) days of the transaction which gives rise to the successor’s rights in this Agreement, and (vi) any requirement by the Company that Executive relocate her personal residence. 
Notwithstanding the foregoing, no event shall be a Good Reason event unless the Executive gives the Company written notice thereof within ninety (90) days of the first occurrence thereof, the Company does not cure such event within thirty (30) days of the giving of such notice and the Executive does not terminate employment prior to sixty (60) days after the end of the cure period.
3.3    Compensation Upon Termination.  Upon termination of Executive’s employment with the Company, the Company’s obligation to pay compensation and benefits under SECTION 2 hereof shall terminate, except that the Company shall pay to the Executive or, if applicable, the Executive’s heirs, all earned but unpaid Base Salary under SECTION 2.1(a) and accrued vacation under SECTION 2.2, in each case, through the Termination Date.  If the Company terminates Executive’s employment Without Cause, for Executive’s death, for Executive’s Disability, or if Executive terminates his employment for Good Reason, then, in addition, to the foregoing compensation, upon execution and delivery (and non-revocation) by Executive of the Separation Agreement and General Release as set forth in SECTION 6.11, the Company shall pay severance benefits pursuant to SECTION 3.4 below.  No other payments or compensation of any kind shall be paid in respect of Executive’s employment with or termination from the Company.  In addition, Executive shall be entitled to receive any amounts or benefits due under any plan or program in accordance with the term thereof, and, other than on termination for Cause or a voluntary termination by Executive without Good Reason, his annual bonus for any completed fiscal year at the same time annual bonuses would have been paid if he had continued in employment (it being understood that in the event of any such termination Executive is not entitled to an Annual Bonus for the then-current Fiscal Year).  Notwithstanding any contrary provision contained herein, in the event of any termination of Executive’s employment, the exclusive remedies available to the Executive shall be the amounts due under this SECTION 3, which are in the nature of liquidated damages, and are not in the nature of a penalty.  
3.4    Severance Benefits.  
(a)    Termination without Cause or for Good Reason.  Subject to the terms and conditions of eligibility for Executive’s receipt of severance benefits under this Agreement, including the timely execution and delivery (and non-revocation) by Executive of the Separation Agreement and General Release as set forth in SECTION 6.11, the Company shall pay to Executive, as severance benefits:
(i)    An amount equal to the product of (a) the applicable Severance Multiple (as defined below) and (b) the sum of (x) the highest annual Base Salary rate for Executive in effect over the prior two (2) years and (y) the highest amount of Executive’s Target Bonus 

     5

or Annual Cash Bonus actually paid over the prior two (2) years, whichever is greater, which total payment shall be paid to Executive on a salary continuation basis according to the Company’s normal payroll practices over the 18 month period following the date the Executive incurs a Separation from Service, but in no event less frequently than monthly.  As used herein, the “Severance Multiple” shall be 2.5 if the termination without Cause or resignation for Good Reason occurs within ninety (90) days preceding or twelve (12) months following a “Change in Control” (as defined below) and 1.5 in the case of any other termination without Cause or resignation for Good Reason.  
(ii)    Subject to (1) the Executive’s timely election of continuation coverage  under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), and (2) the Executive’s continued copayment of premiums at the same level and cost to the Executive as if the Executive were an employee of the Company (excluding, for purposes of calculating cost, an employee’s ability to pay premiums with pre-tax dollars), continued participation in the Company’s group health plan (to the extent permitted under applicable law and the terms of such plan) which covers the Executive (and the Executive’s eligible dependents) for a period of 18 months at the Company’s expense, provided that the Executive is eligible and remains eligible for COBRA coverage.  The Company may modify its obligation under this SECTION 3.4(a)(ii) to the extent reasonably necessary to avoid any penalty or excise taxes imposed on it in connection with the continued payment of premiums by the Company under the Patient Protection and Affordable Care Act of 2010, as amended.
(iii)    In addition to the benefits described in Section 3.4(a)(i) and (ii), in the event that such termination occurs within ninety (90) days preceding or twelve (12) months following a “Change in Control” (as defined below), the Company shall accelerate the vesting of the Executive’s then-outstanding and unvested stock options, stock appreciation rights, restricted stock units or shares, performance stock units or any other Company equity compensation awards, to the extent that such awards would have vested solely upon the Executive’s continued employment, such that one hundred percent (100%) of such awards become vested in full.
(b)    Termination for Executive’s Death or Disability.  In the event of Executive’s death or Disability, the Company shall accelerate the vesting of the Executive’s then-outstanding and unvested stock options, stock appreciation rights, restricted stock units or shares, performance stock units or any other Company equity compensation awards, to the extent that such awards would have vested solely upon the Executive’s continued employment, such that one hundred percent (100%) of such awards become vested in full.
(c)    Notwithstanding any other provision of this Agreement, any severance benefits that would otherwise have been paid before the Company’s first normal payroll payment date falling on or after the thirtieth (30th) day after the date on which the Executive incurs a Separation from Service (the “First Payment Date”) shall be made on the First Payment Date.  Each separate severance installment payment and each other payment that Executive may be eligible to receive under this Agreement shall be a separate payment under this Agreement for all purposes. 

     6

(d)    Notwithstanding anything to the contrary in this Agreement, with respect to any severance benefits or amounts payable to the Executive under this Agreement, in no event shall a termination of employment occur under this Agreement unless such termination constitutes a Separation from Service.  For purposes of this Agreement, a “Separation from Service” shall mean the Executive’s “separation from service” with the Company as such term is defined in Treasury Regulation Section 1.409A-1(h) and any successor provision thereto.
(e)    Notwithstanding anything to the contrary in this Agreement, to the maximum extent permitted by applicable law, amounts payable to the Executive pursuant to this SECTION 3.4 shall be made in reliance upon Treas. Reg. Section 1.409A-1(b)(9) (Separation Pay Plans) or Treas. Reg. Section 1.409A-1(b)(4) (Short-Term Deferrals).  However, to the extent any such payments are treated as non-qualified deferred compensation subject to Section 409A of  the Internal Revenue Code of 1986, as amended (the “Code”), then if Executive is deemed at the time of his Separation from Service to be a “specified employee” for purposes of Section 409A(a)(2)(B)(i) of the Code, then to the extent delayed commencement of any portion of the benefits to which the Executive is entitled under this Agreement is required in order to avoid a prohibited distribution under Section 409A(a)(2)(B)(i) of the Code, such portion of the Executive’s termination benefits shall not be provided to the Executive prior to the earlier of (i) the expiration of the six-month period measured from the date of the Executive’s Separation from Service or (ii) the date of Executive’s death.  Upon the earlier of such dates, all payments deferred pursuant to this SECTION 3.4(e) shall be paid in a lump sum to the Executive.  Thereafter, payments will resume in accordance with this Agreement.  The determination of whether the Executive is a “specified employee” for purposes of Section 409A(a)(2)(B)(i) of the Code as of the time of his Separation from Service shall be made by the Company in accordance with the terms of Section 409A of the Code and applicable guidance thereunder (including without limitation Treas. Reg. Section 1.409A-1(i) and any successor provision thereto).
(f)    The Executive shall have no duty or obligation to mitigate the amounts due under SECTION 3.4(a) above and any amounts earned by Executive from other employment shall not be offset or reduce the amounts due hereunder.
(g)    The term “Change in Control” shall mean the occurrence of any of the following events: (i) the Board approves a plan of liquidation, dissolution or winding-up of the Company, (ii) the consummation of a sale or other disposition of all or substantially all of the assets of the Company and its subsidiaries, (iii) any “person,” as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (other than the Company, any trustee or other fiduciary holding securities under any employee benefit plan of the Company, Gores Building Holdings, LLC. or its affiliates, or any company owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of Common Stock of the Company), becoming the beneficial owner (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing more than 50% of the combined voting power of the Company’s then outstanding securities or otherwise acquiring the power to elect or designate a majority of the members of the Board, (iv) a merger or consolidation of the Company with any other corporation or entity (a “Merger Partner”), as a result of which (A) the voting securities of the Merger Partner outstanding immediately prior thereto  represent (either by remaining outstanding or by being converted into voting securities of a surviving entity) more than 

     7

50% of the combined voting power of the voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation, or (B) the shareholders of the Merger Partner immediately prior thereto have the power to elect or designate a majority of the members of the Board of the Company or such surviving entity; provided, however, that a merger or consolidation effected to implement a recapitalization of the Company (or similar transaction) in which no person (other than those covered by the exceptions in clause (iii) above) acquires more than 50% of the combined voting power of the Company’s then outstanding securities or the power to elect or designate a majority of the members of the Board shall not constitute a Change in Control of the Company.  For the avoidance of doubt  Gores Building Holdings, LLC or any of its affiliates reducing its equity holdings in the Company, directly or indirectly, shall not, in and of itself, constitute a Change in Control hereunder, unless such reduction in equity holdings is part of a transaction that constitutes a Change in Control pursuant to clauses (iii) or (iv) of this definition.
SECTION 4
CERTAIN AGREEMENTS
4.1    Confidentiality.  Executive acknowledges that the Company owns and shall own and has developed and shall develop proprietary information concerning its business and its customers and clients (“Proprietary Information”).  Such Proprietary Information includes, among other things, trade secrets, financial information, product plans, customer lists, marketing plans, systems, manuals, training materials, forecasts, inventions, improvements, know-how and other intellectual property, in each case, relating to the Company’s business.  Executive shall, at all times, both during employment by the Company and thereafter, keep all Proprietary Information in confidence and trust and shall not use or disclose any Proprietary Information without the written consent of the Company, except as necessary in the ordinary course of Executive’s duties.  Executive shall keep the terms of this Agreement in confidence and trust and shall not disclose such terms, except to Executive’s family, accountants, financial advisors, or attorneys, or as otherwise authorized or required by law.  Executive agrees to execute the Company’s standard form of confidentiality agreement (the “Confidentiality Agreement”) applicable to all employees on the Effective Date.
4.2    Company Property.  Executive recognizes that all Proprietary Information, however stored or memorialized, and all identification cards, keys, flash drives, computers, mobile phones, Personal Data Assistants, telephone numbers, access codes, marketing materials, documents, records and other equipment or property which the Company provides are the sole property of the Company.  Upon termination of employment, Executive shall (1) refrain from taking any such property from the Company’s premises, and (2) return any such property in Executive’s possession within ten (10) business days.
4.3    Assignment of Inventions to the Company.  Executive shall promptly disclose to the Company all improvements, inventions, formulas, processes, computer programs, know-how and trade secrets developed, whether or not patentable, made or conceived or reduced to practice or developed by Executive, either alone or jointly with others, during and related to Executive’s employment and the Company’s business or while using the Company’s equipment, supplies, facilities or trade secret information (collectively, “Inventions”).  All Inventions, and other intellectual property rights shall be the sole property of the Company and shall be “works made for 

     8

hire.”  Executive hereby assigns to the Company any rights Executive may have or acquire in all Inventions and agrees to perform, during and after employment with the Company, at the Company’s expense including reasonable compensation to Executive, all acts reasonably necessary by the Company in obtaining and enforcing intellectual property rights with respect to such Inventions.  Executive hereby irrevocably appoints the Company and its officers and agents as Executive’s attorney-in-fact to act for and in Executive’s name and stead with respect to such Inventions.
SECTION 5 
COVENANT NOT TO ENGAGE IN CERTAIN ACTS
5.1    General.  The parties understand and agree that the purpose of the restrictions contained in this Section 5 is to protect the goodwill and other legitimate business interests of the Company, and that the Company would not have entered into this Agreement in the absence of such restrictions.  Executive acknowledges and agrees that the restrictions are reasonable and do not, and will not, unduly impair his ability to make a living after the termination of his or her employment with the Company.  The provisions of this SECTION 5 shall survive the expiration or sooner termination of this Agreement.  For purposes of this SECTION 5, “Company” shall include any subsidiary, business unit or affiliate of the Company with respect to which Executive performs Executive’s duties.
5.2    Non-Compete; Non-Diversion.  In consideration for this Agreement to employ Executive and other valuable consideration provided hereunder, Executive agrees and covenants that during the term of employment and for a period of twelve (12) months after the Termination Date, Executive shall not, directly or indirectly, for himself or any third party, or alone or as a member of a partnership or limited liability company, or as an officer, director, shareholder, member or otherwise, engage in the following acts:
(i)    divert or attempt to divert any existing business of the Company provided that after the Termination Date this shall not prevent normal competitive sales for a non-Listed Company (as defined below);
(ii)    solicit, induce or entice, or seek to solicit, induce or entice, or otherwise interfere with the Company’s business relationship with, any customer of the Company, provided that after the Termination Date this shall not prevent normal competitive sales activities for a non-Listed Company;
(iii)    (A) during the term of employment, render any services  (whether as an independent contractor or otherwise) on behalf of any company or line of business that competes anywhere in the United States with the Company (a “Competing Business”), and (B) for a period of twelve months after the Termination Date, render any services other than legal services (whether as an independent contractor or otherwise) on behalf of any Listed Company  (as defined below);
(iv)    own or control any interest in (except as a passive investor of less than two percent (2%) of the capital stock or publicly traded notes or debentures of a publicly held company), or become an officer, director, partner, member, or joint venturer of, any 

     9

Competing Business, provided that after the Termination Date this shall only apply to the Listed Companies;
(v)    advance credit or lend money to any third party for the purpose of establishing or operating any Competing Business, provided that after the Termination Date this shall only apply to the Listed Companies; or
(vi)    with respect to any substantially full time independent contractor of the Company, employee of the Company or individual who was, at any time during the three months prior to the Termination Date, an employee of the Company: (A) hire or retain, or attempt to hire or retain, such individual to provide services for any third party; or (B) encourage, induce, solicit or attempt to solicit, divert, cause or attempt to cause, such individual to (1) terminate and/or leave his or her employment, (2) accept employment with any person or entity other than the Company, or (3) terminate his or her relationship with the Company or devote less than his or her full time efforts to the Company.
As used herein, “Listed Company” means one of nine (9) companies that are material competitors as identified by the Company, provided that the Company may at any time change such nine (9) companies to alternative competitors so long as the number does not exceed nine (9), no change can be effective after the termination of Executive’s employment with the Company and any change shall be effective thirty (30) days after Executive is given written notice thereof and only if at the end of such thirty (30) day period the Executive is employed by the Company.  As of the Effective Date, the Listed Companies are Pro Build Holdings, Inc., 84 Lumber Co., Builders FirstSource, Inc., BMC Select, HD Supply, Inc., Ganahl Lumber Co., US LBM Holdings, LLC, Carter Lumber Company and McCoy Corporation (dba McCoy’s Building Supply).  The parties acknowledge and agree that clause (vi) above shall not be violated by general advertising not targeted at the foregoing people nor serving as a reference upon request of the foregoing with regard to an entity with which Executive is not associated.  The parties acknowledge and agree that the term “Competing Business” does not include (i) builders of light frame (wood) commercial and new residential homes or (ii) any manufacturer of lumber, building materials or equipment or appliances.  Further, the Parties hereby acknowledge and agree that if Executive becomes employed by any company described in the preceding sentence, Executive shall be permitted to contact, solicit, sell to or otherwise do business with such Competing Businesses and that such activities shall not violate the terms of this Section.  
5.3    Cessation/Reimbursement of Payments.  If Executive violates any provision of this SECTION 5, the Company may, upon giving written notice to Executive, immediately cease all payments and benefits that it may be providing to Executive pursuant to SECTION 2 or SECTION 3, and Executive shall be required to reimburse the Company for any payments received from, and the cash value of any benefits provided by, the Company between the first day of the violation and the date such notice is given; provided, however, that the foregoing shall be in addition to such other remedies as may be available to the Company and shall not be deemed to permit Executive to forego or waive such payments in order to avoid his or her obligations under this SECTION 5; and provided, further, that any release of claims by Executive pursuant to SECTION 6.11 shall continue in effect.

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5.4    Survival; Injunctive Relief.  Executive agrees that the provisions of this SECTION 5 shall survive the termination of this Agreement and the termination of the Executive’s employment.  Executive acknowledges that a breach by him of the covenants contained in this SECTION 5 cannot be reasonably or adequately compensated in damages in an action at law and that such breach will cause the Company immeasurable and irreparable injury and damage.  Executive further acknowledges that he possesses unique skills, knowledge and ability and that competition in violation of this SECTION 5 would be extremely detrimental to the Company.  By reason thereof, each of the Company and Executive agrees that the other shall be entitled, in addition to any other remedies it may have under this Agreement, at law or in equity, or otherwise, to temporary, preliminary and/or permanent injunctive and other equitable relief to prevent or curtail any actual or threatened violation of this SECTION 5, without proof of actual damages that have been or may be caused to the Company by such breach or threatened breach, and waives to the fullest extent permitted by law the posting or securing of any bond by the other party in connection with such remedies.
SECTION 6 
MISCELLANEOUS
6.1    Notices.  All notices and other communications required or permitted hereunder shall be in writing and shall be mailed by certified or registered mail, postage prepaid, with return receipt requested, telecopy (with hard copy delivered by overnight courier service), or delivered by hand, messenger or overnight courier service, and shall be deemed given when received at the addresses of the parties set forth below, or at such other address furnished in writing to the other parties hereto:
		
	To the Company:
	Stock Building Supply Holdings, Inc. 
8020 Arco Corporate Drive, Ste. 400 
Raleigh, NC  27617 
Attn:  General Counsel 
Fax:919-431-1180

		
	To Executive:
	at the home address of Executive maintained in the human resource records of the Company.

6.2    Severability.  The parties agree that it is not their intention to violate any public policy or statutory or common law.  In the event that any provision or portion of this Agreement shall be determined to be invalid or unenforceable for any reason, in whole or in part, the remaining provisions of this Agreement shall be unaffected thereby and shall remain in full force and effect to the fullest extent permitted by law.  Without limiting the foregoing, if any portion of Section 5 is held to be unenforceable, the maximum enforceable restriction of time, scope of activities and geographic area will be substituted for any such restrictions held unenforceable.
6.3    Governing Law.  This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of North Carolina without regard to its principles of conflicts of laws.  Executive agrees to submit to the jurisdiction of the State of North Carolina; agrees that any dispute concerning the interpretation or application of this Agreement shall be heard by A 

     11

JUDGE AND NOT A JURY; and agrees that any dispute shall be brought exclusively in a state or federal court of competent jurisdiction in North Carolina.  Executive waives any and all objections to jurisdiction or venue.
6.4    Survival.  The covenants and agreements of the parties set forth in Sections 4, 5 and 6 are of a continuing nature and shall survive the expiration, termination or cancellation of this Agreement, irrespective of the reason therefor. 
6.5    Entire Agreement.  This Agreement contains the entire understanding between the parties hereto with respect to the terms of employment, compensation, benefits, and covenants of Executive, and supersede all other prior and contemporaneous agreements and understandings, inducements or conditions, express or implied, oral or written, between Executive and the Company relating to the subject matter of the Agreement, which such other prior and contemporaneous agreements and understandings, inducements or conditions shall be deemed terminated effective immediately. For the avoidance of doubt, the parties agree that any and all indemnification agreements between Executive and the Company shall continue in full force unimpaired by this Agreement. Notwithstanding the foregoing, Executive acknowledges that the Confidentiality Agreement shall continue in effect during the term of Executive’s employment. 
6.6    Binding Effect, Etc.  This Agreement shall be binding upon and inure to the benefit of and be enforceable by the parties hereto and the Company’s successors and assigns, including any direct or indirect successor by purchase, merger, consolidation, reorganization, liquidation, dissolution, winding up or otherwise with respect to all or substantially all of the business or assets of the Company, and the Executive’s spouse, heirs, and personal and legal representatives.
6.7    Counterparts; Amendment.  This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.  This Agreement may be amended or modified only by written instrument duly executed by the Company and Executive.
6.8    Voluntary Agreement.  Executive has read this Agreement carefully and understands and accepts the obligations that it imposes upon Executive without reservation.  No other promises or representations have been made to Executive to induce Executive to sign this Agreement.  Executive is signing this Agreement voluntarily and freely.
6.9    Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors, assigns (including any direct or indirect successor, spouses, heirs and personal and legal representatives.  Any such successor or assign of the Company shall be included in the term “Company” as used in this Agreement.
6.10    Release of Claims.  In consideration for the compensation and other benefits provided pursuant to this Agreement, Executive agrees to execute a “Separation Agreement and General Release” form substantially in the form of Exhibit A attached hereto and incorporated herein by this reference.  The Company’s obligation to pay severance benefits pursuant to SECTION 3.4 is expressly conditioned on Executive’s execution and delivery of such Separation Agreement and General Release no later than forty-five (45) days after the date the Executive incurs a Separation 

     12

from Service without revoking it for a period of seven (7) days following delivery.  Executive’s failure to execute and deliver such Separation Agreement and General Release within such forty-five (45) day time period (or Executive’s subsequent revocation of such Separation Agreement and General Release) will void the Company’s obligation to pay severance benefits under this Agreement.
6.11    Confidentiality Of Previous Employers’ Information.  The Company acknowledges that the Executive may have had access to confidential and proprietary information of his previous employer(s) and that Executive may be obligated to maintain the confidentiality of such information, not use such information or not to provide certain services to the Company, in each case pursuant to applicable law and/or any contractual relationship between Executive and a previous employer.  The Company hereby instructs Executive as follows: (1) Executive shall not disclose any such confidential or proprietary information to the Company or any of its affiliates, (2) Executive shall not use any such confidential or proprietary information in connection with his employment with the Company, and (3) Executive shall not perform any services for the benefit of the Company that would cause Executive to be in breach of his obligations owed to any previous employer or other third party.  If the Company requests Executive to provide any such services or to disclose any such information, Executive will advise the Company that he or she is prohibited from doing so.  Executive agrees to indemnify, defend and hold the Company and its affiliates harmless from and against any claims, losses or liabilities (including reasonable attorneys’ fees) incurred by the Company or any of its affiliates as a result of any breach by Executive of this SECTION 6.11.
6.12    In-kind Benefits and Reimbursements.  Notwithstanding anything to the contrary in this Agreement, in-kind benefits and reimbursements provided under this Agreement during any tax year of the Executive shall not affect in-kind benefits or reimbursements to be provided in any other tax year of the Executive, except for the reimbursement of medical expenses referred to in Section 105(b) of the Code, and are not subject to liquidation or exchange for another benefit.  Notwithstanding anything to the contrary in this Agreement, reimbursement requests must be timely submitted by Executive and, if timely submitted, reimbursement payments shall be made to the Executive as soon as administratively practicable following such submission, but in no event later than December 31st of the calendar year following the calendar year in which the expense was incurred.  In no event shall the Executive be entitled to any reimbursement payments after December 31st of the calendar year following the calendar year in which the expense was incurred.  This SECTION 6.12 shall only apply to in-kind benefits and reimbursements that would result in taxable compensation income to the Executive.
6.13    Section 409A.  This Agreement is intended to be written, administered, interpreted and construed in a manner such that no payment or benefits provided under this Agreement become subject to (a) the gross income inclusion set forth within Code Section 409A(a)(1)(A) or (b) the interest and additional tax set forth within Code Section 409A(a)(1)(B) (together, referred to herein as the “Section 409A Penalties”), including, where appropriate, the construction of defined terms to have meanings that would not cause the imposition of Section 409A Penalties.  In no event shall the Company be required to provide a tax gross-up payment to Executive or otherwise reimburse Executive with respect to Section 409A Penalties.  In the event that following the date hereof the 

     13

Company reasonably determines that any compensation or benefits payable under this Agreement may be subject to Section 409A of the Code, the Company and the Executive shall work together to adopt such amendments to this Agreement or adopt other policies or procedures (including amendments, policies and procedures with retroactive effect), or take any other commercially reasonable actions necessary or appropriate to (x) exempt the compensation and benefits payable under this Agreement from Section 409A of the Code and/or preserve the intended tax treatment of the compensation and benefits provided with respect to this Agreement or (y) comply with the requirements of Section 409A of the Code and related Department of Treasury guidance.
6.14    Indemnification, etc.  The Company shall indemnify and hold harmless Executive to the fullest extent permitted by law (including advance of legal fees) for any action or inaction he takes in good faith with regard to the Company or parent or any benefit plan of either.  Further, the Company shall cover Executive on its directors’ and officers’ liability insurance policies to no less extent than that which covers any other officer or director of the Company. 
[signatures on following page]

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

	 
	 
	 
	 

	STOCK BUILDING SUPPLY 
HOLDINGS, INC.
	 
	 

	 
	 
	 
	 

	By:
	/s/ C. Lowell Ball    
	 
	/s/ Lisa M. Hamblet

	Name:
	C. Lowell Ball
	 
	LISA M. HAMBLET

	Its:
	Senior Vice President, General Counsel and Corporate Secretary
	 
	 

Signature Page to Employment Agreement

EXHIBIT A 
 
SEPARATION AGREEMENT AND GENERAL RELEASE
This Separation Agreement and General Release (this “Agreement”) is made as of ________________________ by and between LISA M. HAMBLET (“Executive”) and STOCK BUILDING SUPPLY HOLDINGS, INC. (the “Company”).  For good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:
1.Termination of Employment.  The parties agree that Executive’s employment with the Company and all of its affiliates is terminated effective as of _____________ (the “Effective Date”).
2.    Payments Due to Executive.  Executive acknowledges receipt of $______________ from the Company, representing Executive’s accrued but unpaid Base Salary through the Effective Date.  Other than as expressly set forth in this Section, Executive is not entitled to any consulting fees, wages, accrued vacation pay, benefits or any other amounts with respect to his employment through the Effective Date.
3.    Severance Benefits and Continuing Health Insurance Coverage.  In consideration of Executive’s execution and non-revocation of this Agreement, the Company agrees to pay to Executive the amounts provided in SECTION 3.4 of that certain Employment Agreement, dated as of ____________ by and between the Executive and the Company.
4.    General Release.
(a)    Executive, on behalf of Executive, his or her heirs, executors, personal representatives, administrators and assigns, irrevocably, knowingly and unconditionally releases, remises and discharges the Company, its parents, all current or former affiliated or related companies of the Company and its parent, partnerships, or joint ventures, and, with respect to each of them, all of the Company’s or such related entities’ predecessors and successors, and with respect to each such entity, its officers, directors, managers, Executives, equity holders, advisors and counsel (collectively, the “Company Parties”) from any and all actions, causes of action, charges, complaints, claims, damages, demands, debts, lawsuits, rights, understandings and obligations of any kind, nature or description whatsoever, known or unknown (collectively, the “Claims”), arising out of or relating to the Executive’s employment with the Company and/or the separation of Executive from the Company.
(b)    This general release of Claims by Executive includes, without limitation, (i) all Claims based upon actions or omissions (or alleged actions or omissions) that have occurred up to and including the date of this Agreement, regardless of ripeness or other limitation on immediate pursuit of any Claim in the absence of this Agreement; (ii) all Claims relating to or arising out of Executive’s employment with and separation from the Company; (iii) all Claims (including Claims for discrimination, harassment, and retaliation) arising under any federal, state or local statute, regulation, ordinance, or the common law, including without limitation, Claims arising under Title VII of the Civil Rights Act of 1964, the Americans With Disabilities Act, the Age Discrimination 

in Employment Act, as amended, the Family and Medical Leave Act and the Executive Retirement Income Security Act of 1974, the Civil Rights Act of 1991, the Equal Pay Act, the Fair labor Standards Act, 42 U.S.C. § 1981, and any other federal or state law, local ordinance or common law including for wrongful discharge, breach of implied or express contract, intentional or negligent infliction of emotional distress, defamation or other tort; and (iv) all Claims for reinstatement, attorney’s fees, interest, costs, wages or other compensation.
(c)    Executive agrees that there is a risk that each and every injury which he or she may have suffered by reason of his or her employment relationship might not now be known, and there is a further risk that such injuries, whether known or unknown at the date of this Agreement, might become progressively worse, and that as a result thereof further damages may be sustained by Executive; nevertheless, Executive desires to forever and fully release and discharge the Company Parties, and he or she fully understands that by the execution of this Agreement no further claims for any such injuries may ever be asserted.    
(d)    This general release does not release any Claim that relates to: (i) Executive’s right to enforce this Agreement; (ii) any rights Executive may have to indemnification from personal liability or to protection under any insurance policy maintained by the Company, including without limitation any general liability, EPLI, or directors and officers insurance policy or any contractual indemnification agreement; (iii) Executive’s right, if any, to government-provided unemployment and worker’s compensation benefits; or (iv) Executive’s rights under any Company Executive benefit plans (i.e. health, disability or retirement plans), which by their explicit terms survive the termination of Executive’s employment.
(e)    Executive agrees that the consideration set forth in Paragraph 3 above shall constitute the entire consideration provided under this Agreement, and that Executive will not seek from the Company Parties any further compensation or other consideration for any claimed obligation, entitlement, damage, cost or attorneys’ fees in connection with the matters encompassed by this Agreement.
(f)    Executive understands and agrees that if any facts with respect to this Agreement or Executive’s prior treatment by or employment with the Company are found to be different from the facts now believed to be true, Executive expressly accepts, assumes the risk of, and agrees that this Agreement shall remain effective notwithstanding such differences.  Executive agrees that the various items of consideration set forth in this Agreement fully compensate for said risks, and that Executive will have no legal recourse against the Company in the event of discovery of a difference in facts.
(g)    Executive agrees to the release of all known and unknown claims, including expressly the waiver of any rights or claims arising out of the Federal Age Discrimination in Employment Act, 29 U.S.C. § 621, et seq. (“ADEA”), and in connection with such waiver of ADEA claims, and as provided by the Older Worker Benefit Protection Act, Executive understands and agrees as follows: 
		
	i
	Executive has the right to consult with an attorney before signing this Agreement, and is hereby advised to do so; 

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	ii
	Executive shall have a period of forty-five (45) days from the Termination Date (or from the date of receipt of this Agreement if received after the Termination Date) in which to consider the terms of the Agreement (the “Review Period”).  Executive may at his or her option execute this Agreement at any time during the Review Period.  If the Executive does not return the signed Agreement to the Company prior to the expiration of the 45 day period, then the offer of severance benefits set forth in this Agreement shall lapse and shall be withdrawn by the Company; 

		
	iii
	Executive may revoke this Agreement at any time during the first seven (7) days following Executive’s execution of this Agreement, and this Agreement and release shall not be effective or enforceable until the seven-day period has expired (“Revocation Period Expiration Date”).  Notice of a revocation by the Executive must be made to the designated representative of the Company (as described below) within the seven (7) day period after Executive signs this Agreement.  If Executive revokes this Agreement, it shall not be effective or enforceable.  Accordingly, the “Effective Date” of this Agreement shall be on the eighth (8th) day after Executive signs the Agreement and returns it to the Company, and provided that Executive does not revoke the Agreement during the seven (7) day revocation period; 

In the event Executive elects to revoke this release pursuant to Paragraph 4(g)iii above, Executive shall notify Company by hand-delivery, express courier or certified mail, return receipt requested, within seven (7) days after signing this Agreement to: ATTN: General Counsel, Legal Department, Stock Building Supply Holdings, Inc., 8020 Arco Corporate Drive, Suite 400, Raleigh, North Carolina 27617.  In the event that Executive exercises his or her right to revoke this release pursuant to Paragraph 4(g)iii above, any and all obligations of Company under this Agreement shall be null and void.  Executive agrees that by signing this Agreement prior to the expiration of the forty-five (45) day period he or she has voluntarily waived his or her right to consider this Agreement for the full forty-five (45) day period.
EXECUTIVE AGREES THAT THE CONSIDERATION RECEIVED BY HIM OR HER UNDER THIS AGREEMENT, INCLUDING THE PAYMENTS DESCRIBED ABOVE, IS IN FULL AND COMPLETE SATISFACTION OF ANY CLAIMS THAT EXECUTIVE MAY HAVE, OR MAY HAVE HAD, ARISING OUT OF EXECUTIVE’S EMPLOYMENT WITH COMPANY (INCLUDING FOR THE AVOIDANCE OF DOUBT, ALL OF ITS SUBSIDIARIES OR AFFILIATES) OR THE TERMINATION OF THAT EMPLOYMENT, UP TO THE DATE OF EXECUTION OF THIS AGREEMENT.  EXECUTIVE ACKNOWLEDGES THAT HE OR SHE UNDERSTANDS THAT, BY ENTERING INTO THIS AGREEMENT, HE OR SHE NO LONGER HAS THE RIGHT TO ASSERT ANY CLAIM OR LAWSUIT OF ANY KIND ATTEMPTING TO RECOVER MONEY OR ANY OTHER REILEF AGAINST THE COMPANY PARTIES FOR ACTS OR INJURIES ARISING OUT OF EXECUTIVE’S FORMER EMPLOYMENT BY COMPANY (INCLUDING FOR THE AVOIDANCE OF DOUBT, ALL OF ITS SUBSIDIARIES OR AFFILIATES) OR THE TERMINATION OF THAT EMPLOYMENT.  Such claims further include any claims Executive may have pursuant to an internal grievance procedure at Company (including for the avoidance of doubt, all of its subsidiaries or affiliates).  Executive does not waive any rights or claims that may arise after the date this Agreement is executed. 

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5.    Review of Agreement; No Assignment of Claims.  Executive represents and warrants that he or she (a) has carefully read and understands all of the provisions of this Agreement and has had the opportunity for it to be reviewed and explained by counsel to the extent Executive deems it necessary, (b) is voluntarily entering into this Agreement, (c) has not relied upon any representation or statement made by the Company or any other person with regard to the subject matter or effect of this Agreement, (d) has not transferred or assigned any Claims and (e) has not filed any complaint or charge against any of the Company Parties with any local, state, or federal agency or court.
6.    No Claims.  Each party represents that it has not filed any Claim against the other Party with any state, federal or local agency or court and that it will not file any Claim at any time regarding the matters covered by this Agreement; provided, however, that nothing in this Agreement shall be construed to prohibit Executive from filing a Claim, including a challenge to the validity of this Agreement, with the Equal Employment Opportunity Commission or participating in any investigation or proceeding conducted by the Equal Employment Opportunity Commission; provided, further, that Executive acknowledges that he will not be entitled to recover any monetary or other damages in connection with or as a result of any such EEOC or state FEP agency proceeding.
7.    Interpretation.  This Agreement shall take effect as an instrument under seal and shall be governed and construed in accordance with the laws of the State of North Carolina without regard to provisions or principles thereof relating to conflict of laws.
8.    Agreement as Defense.  This Agreement may be pleaded as a full and complete defense to any subsequent action or other proceeding arising out of, relating to, or having anything to do with any and all Claims, counterclaims, defenses or other matters capable of being alleged, which are specifically released and discharged by this Agreement.  This Agreement may also be used to abate any such action or proceeding and/or as a basis of a cross-complaint for damages.
9.    Nondisclosure of Agreement.  The terms and conditions of this Agreement are confidential.  Executive agrees not to disclose the terms of this Agreement to anyone except immediate family members and Executive’s attorneys and financial advisers.  Executive further agrees to inform these people that the Agreement is confidential and must not be disclosed to anyone else.  Executive may disclose the terms of this Agreement if compelled to do so by a court, but Executive agrees to notify the Company immediately if anyone seeks to compel Executive’s testimony in this regard, and to cooperate with the Company if the Company decides to oppose such effort.  Executive agrees that disclosure by Executive in violation of this Agreement would cause so much injury to the Company that money alone could not fully compensate the Company and that the Company is entitled to injunctive and equitable relief.  Executive also agrees that the Company would be entitled to recover money from Executive if this Agreement were violated.
10.    Ongoing Covenants.  Executive acknowledges that nothing in this Agreement shall limit or otherwise impact Executive’s continuing obligations of confidentiality to the Company in accordance with Company policy and applicable law, or any applicable Company policies or agreements between the Company and Executive with respect to non-competition or non-solicitation, and Executive covenants and agrees to abide by all such continuing obligations.

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11.    No Adverse Comments.  For two (2) years, Executive and the Company agree not to make, issue, release or authorize any written or oral statements, derogatory or defamatory in nature, about the other (which in the case of the Company shall include its affiliates or their respective products, services, directors, officers or Executives), provided that the foregoing shall not be violated by truthful testimony in response to legal process, normal competitive statements, rebuttal of statements by the other or actions to enforce the party’s rights.
12.    Integration; Severability.  The terms and conditions of this Agreement constitute the entire agreement between Company and Executive and supercede all previous communications, either oral or written, between the parties with respect to the subject matter of this Agreement.  No agreement or understanding varying or extending the terms of this Agreement shall be binding upon either party unless in writing signed by or on behalf of such party.  In the event that a court finds any portion of this Agreement unenforceable for any reason whatsoever, Company and Executive agree that the other provisions of the Agreement shall be deemed to be severable and will continue in full force and effect to the fullest extent permitted by law. 
EXECUTIVE ACKNOWLEDGES THE FOLLOWING: HE OR SHE HAS ENTERED INTO THIS AGREEMENT KNOWINGLY, VOLUNTARILY AND OF HIS OR HER OWN FREE WILL WITH A FULL UNDERSTANDING OF ITS TERMS; HE OR SHE HAS READ THIS AGREEMENT; THAT HE OR SHE FULLY UNDERSTANDS ITS TERMS; THAT EXECUTIVE IS ADVISED TO CONSULT AN ATTORNEY FOR ADVICE; THAT HE OR SHE HAS THE RIGHT TO CONSULT WITH AN ATTORNEY PRIOR TO EXECUTING THIS AGREEMENT; THAT HE OR SHE HAS HAD AMPLE TIME TO CONSIDER HIS OR HER DECISION BEFORE ENTERING INTO THE AGREEMENT. EXECUTIVE ACKNOWLEDGES THAT HE OR SHE IS SATISFIED WITH THE TERMS OF THIS AGREEMENT AND AGREES THAT THE TERMS ARE BINDING UPON HIM OR HER. 
IN WITNESS WHEREOF, the parties have executed this Agreement with effect as of the date first above written.

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EXECUTIVE ACKNOWLEDGES THAT HE HAS BEEN ADVISED BY THE COMPANY OF HIS ABILITY TO TAKE ADVANTAGE OF THE CONSIDERATION PERIOD AFFORDED BY PARAGRAPH 4 ABOVE AND THAT HE HAS THE RIGHT TO CONSULT WITH AN ATTORNEY BEFORE SIGNING THIS AGREEMENT. 
IN WITNESS WHEREOF, the parties have executed this Agreement with effect as of the date first above written.
	
			
	 
	 
	 

	 
	LISA M. HAMBLET

	 
	 
	 

	 
	STOCK BUILDING SUPPLY HOLDINGS, INC.

	 
	 
	 

	 
	By:
	 

	 
	Name:
	 

	 
	Title:
	 

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