Document:

exv10wa

Exhibit (10)a.

The Schuh Group Limited 2015 Management Bonus Scheme (the “Scheme”)

Adopted 23 June 2011

	1	 	In this document:

	 	 	“Accounting Period” means in respect of the period ending on 19 June 2011, each of the
thirteen four week periods in any financial year; and (ii) after 19 June 2011 each of the
twelve periods of either four or five weeks in respect of which the Group prepares, for
internal purposes and the purposes of reporting to its bankers, regular management and
financial information;

	 	 	“Aggregate EBITDA” means the sum of the EBITDA for the Performance Period as determined from
the Bonus Accounts in accordance with this Schedule;

	 	 	“Cash Bonus” means the cash bonus of approximately £17,515,689 paid by the Company on or
shortly after completion of the Transaction;

	 	 	“Change of Control” means the acquisition of an interest in shares conferring the power to
control more than 50% of the maximum number of votes that can be cast at a general meeting;

	 	 	“Completion Accounts” means the completion accounts prepared for the proposes of the
Transaction;

	 	 	“Performance Period” means the period commencing on (and including) 28 March 2011 and ending
on (and including) the Management Bonus Date;

	 	 	“Performance Period Group Accounts” means the consolidated audited accounts of the Group for
each Financial Period completed during the Performance Period prepared in accordance with
the Completion Accounts;

	 	 	“EBITDA” means earnings before interest, taxes, depreciation and amortisation of the Group
as derived from the income statement of the Performance Period Group Accounts and in respect
of any part of the Performance Period for which such consolidated audited accounts are not
available the Management Accounts in respect of that part of the Performance Period (“Bonus
Management Accounts”):

	 	(a)	 	after adding back bonuses (other than the Executive Bonus and the Cash Bonus)
paid or payable by any member of the Group to the Management Team or to other employees
of the Group or of Genesco or of any of its subsidiary undertakings (inclusive of
employer’s NIC and PAYE) up to the Relevant Amount but after the deduction of Excess
Management Remuneration and excluding the impact of the Executive Bonus and the Cash
Bonus;

	 	(b)	 	excluding the impact of any exceptional charges incurred by the Company or any
member of the Group;

	 	(c)	 	excluding the impact of any exceptional income of the Company or any member of
the Group;

	 	(d)	 	excluding for the avoidance of doubt any charge on Average Assets Employed as
referred to in paragraph 4.1 below;

 

 

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	 	(e)	 	unless otherwise agreed in writing hereafter between the Company and the
Management Representative, excluding any earnings or losses before interest, taxes,
depreciation and amortisation that are attributable to any Newly Acquired Company;

	 	(f)	 	after adding back any management and other charges (including but not limited to
any fees or other remuneration paid to directors appointed to any company within the
Group by Genesco) which have been imposed on the Group by Genesco or any member of
Genesco’s Group without the consent of the Management Team (such consent not to be
unreasonably withheld or delayed); and

	 	(g)	 	after adding back any costs referable to the transaction contemplated by this
agreement to the extent the same are borne by the Group at the direction of Genesco
after Completion;

	 	 	all to the extent the same have not been taken into account in an adjustment to the
Aggregate EBITDA target, pursuant to clause 4.3 below, as set out in a statement for the
relevant year, (such statement being referred to herein as the “Bonus Accounts”);

	 	 	“Excess Management Remuneration” means the amount by which the bonus payments (other than
the Executive Bonus and the Cash Bonus) (including employer’s NIC and PAYE thereon) payable
by any member of the Group in aggregate to the Management Team or to any person connected
with a Manager (as determined in accordance with the provisions, as at the date of this
Agreement, of [section 839 Income and Corporation Taxes Act 1988]) and/or to other employees
of the Group or of Genesco or of any of its subsidiary undertakings in the relevant
financial year exceeds the Relevant Amount;

	 	 	“Executive Bonus” means the bonus payable to Colin Temple and Mark Crutchley (if any)
pursuant to the Schuh Group Limited Executive Bonus Scheme adopted by the Company on 23
June 2011;

	 	 	“Financial Period” means the “financial year” as defined in section 390(3)(a) and (b)
Companies Act but so that each Financial Period ends on the last day of an accounting
reference period;

	 	 	“Genesco” means Gensco Inc. of 1415 Murfreesboro Road PO Box 731 Nashville, Tennessee,
37202-0731 and reference to the Gensco Group means Genesco and its Subsidairy Undertakings

	 	 	“Group” means the Company and the Subsidiary Undertakings and “Group Member” means any such
company.;

	 	 	“Management Accounts” means financial statements of the Group on a consolidated basis for
the relevant Accounting Period(s) of the Group (including a balance sheet, profit and loss
account and cashflow statement) prepared, so far as practical, consistently with the manner
of preparation of the Performance Period Group Accounts;

	 	 	“Management Bonus Date” means 28 March 2015;

	 	 	“Management Representative” means a person appointed by a majority of the members of the
Management Team to represent the Management Team in relation to the matters set out in this
Scheme, and identified in writing to the Company as the Management Representative;
	 
	 	 	“Management Team” shall mean the Company’s management team (excluding Colin Temple and Mark
Crutchley) as at the Management Bonus Date to be drawn from

 

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	 	(i)	 	those of the Managers who remain employed by any Group Company in a
management position as at the Management Bonus Date plus

	 	(ii)	 	any such other persons who become employees of a Group Company after
Completion in a senior management capacity as proposed for appointment to the
Company’s management team by such management team and approved by Genesco, such
approval not to be unreasonably withheld and who remain employed by any Group
Company in a senior management capacity as at the Management Bonus Date,

	 	 	 	plus any other person(s) approved in accordance with paragraph 1.5 of Part A of this
document;

	 	 	“Newly Acquired Company” means a company and/or the business and assets of a company
acquired by any Group Member following the date of this Agreement;

	 	 	“Relevant Amount” means the sum of £2,000,000; and

	 	 	“Subsidiary Undertaking” means the subsidiary undertakings (as defined in section 1162 of
the Companies Act) of the Company; and

	 	 	“Transaction” means the purchase by Genesco of the whole of the issued share capital of the
Company which completed on 23 June 2011.

	3	 	This document sets out the Management Bonus Scheme agreed to be adopted by the Company at
completion of the Transaction.

 

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Part A

Management Bonus

	1	 	Payment of the Management Bonus

	1.1	 	Subject to paragraph 1.2, the Company undertakes to each of the Management that the
Management Bonus shall be paid by the Company (in accordance with paragraph 1.2 below) within
5 Business Days of the Management Bonus being agreed or determined in accordance with
paragraph 3 of this document on the following basis:

	 	(a)	 	if Aggregate EBITDA is less than £93,000,000, the Management Bonus shall be zero;

	 	(b)	 	if Aggregate EBITDA is equal to or exceeds £93,000,000 but is less than
£110,000,000, the Management Bonus shall be an amount calculated as follows:

c
= (x-y) × b

a

	 	 	 	 	 	 	 

	 

	 	Where:
	 	x = Aggregate EBITDA      a = 17,000,000
	 

	 	 	 	 	 	y = 93,000,000      b = 25,000,000
	 

	 	 	 	 	 	c = Management Bonus in pounds sterling
	 
	 	 	 	 	 	 
	 	 	subject always to a maximum cap on the amount of Management Bonus of £25,000,000; and

	 	(c)	 	if Aggregate EBITDA is equal to or exceeds £110,000,000, the Management Bonus
payable shall be £25,000,000.

	1.2	 	The Management Bonus payable by the Company under paragraph 1.1 shall be paid, subject always
to the terms of paragraph 1.3 of this Part A, (1) to the Management Team and (2) to such of
the employees of the Group Companies who are employed as at the Management Bonus Date and as
the Management Representative and the Company (with the consent of Genesco) shall agree (such
agreement of the Company and Genesco not to be unreasonably withheld or delayed) and (3) in
such proportions as the Management Representative and the Company (with the consent of
Genesco) shall agree (such agreement of the Company and Genesco not to be unreasonably
withheld or delayed).

	1.3	 	Unless the Company (with the consent of Genesco) has otherwise given its prior written
consent, the maximum amount of the Management Bonus that may be allocated:-

	 	(a)	 	in aggregate to the Management Team shall not exceed 66.66% of the Management
Bonus; and

	 	(b)	 	to any one individual shall not exceed £2,500,000.

	1.4	 	For the purpose of this schedule, in giving consent or agreement the Management
Representative shall be acting on behalf of the Management Team.

 

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	1.5	 	Any person who has been employed by a Group Company at any time during the Performance Period
but has left such employment prior to the Management Bonus Date may still be eligible to
receive an allocation of the Management Bonus as though he were an employee at the Management
Bonus Date, but only with the consent of the board of directors of the Company, such consent
to be granted or not at the absolute discretion of such board.

	2	 	Preparation of the Bonus Accounts

	2.1	 	The Bonus Accounts shall be prepared in accordance with the provisions of and the policies
set out in part B of this document.

	3	 	Agreement of Bonus Accounts

	3.1	 	The Company shall deliver the draft Bonus Accounts and a written notice of its calculation of
the Management Bonus to the Management Representative within 10 Business Days of the later of:

	 	(a)	 	the signature on behalf of the Company and its auditors of the consolidated
audited accounts for the Group in respect of the financial year ending 31 January 2015;
and

	 	(b)	 	the preparation and approval by the Company of the relevant Bonus Management
Accounts.

	3.2	 	The Management Representative shall, within 10 Business Days of receipt of the Bonus Accounts
and delivery of the written notice referred to in paragraph 3.1 of this document (the “Review
Period”), deliver to the Company a report (the “Dispute Report”) setting out any matters of
disagreement with the calculation of the Management Bonus in sufficient detail to enable the
Company to consider them in full.

	3.3	 	For the purposes of preparing the Dispute Report, the Company shall procure that the
Management Team and their professional advisers are given reasonable access at reasonable
times to:

	 	(a)	 	the relevant accounting records and working papers required or used for; and

	 	(b)	 	all relevant employees of the Group and the accountants of the Company who
have been engaged in

	 	 	the calculation of the Management Bonus, and that the employees referred to in sub-paragraph
(b) of this paragraph answer all reasonable questions put to them by the Management Team or
their professional advisers.

	3.4	 	If no Dispute Report is delivered to the Company within the Review Period (assuming due
delivery by the Company of the written notice pursuant to paragraph 3.1 of this document), the
Bonus Accounts and the Management Bonus as calculated by the Company shall be deemed accepted
and approved by the Management Team and shall be binding and final on the parties.

	3.5	 	If the Management Representative delivers a Dispute Report to the Company, then the
Management Representative and the Company shall attempt to resolve the matters in dispute
through good faith negotiations. If, after a period of 15 Business Days from the end of the
Review Period (or such longer period as the parties may agree), there remains an outstanding
dispute in relation to the Bonus Accounts and the Management Bonus, the Management
Representative or the Company may refer the matter in dispute to an Independent Accountant for
determination. No party shall be entitled to make any

 

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		 	objection to the appointment of the Independent Accountant on the ground that he imposes
limits on his liability in relation to the carrying out of his instructions under this
agreement.

	3.6	 	The Independent Accountant shall act as an expert and not as an arbitrator and shall be
instructed to allow the Management Representative and the Company to make written submissions
regarding the calculation of the Management Bonus within 10 Business Days of his appointment
and the Management Team and the Company shall use their respective reasonable endeavours to
ensure that the Independent Accountant produces his decision within 20 Business Days of being
so appointed.

	3.7	 	The Independent Accountant appointed shall:

	 	(a)	 	for the purposes of making his determination, determine any issue as to the
interpretation of this agreement, his jurisdiction to determine any matter or his terms
of reference; and

	 	(b)	 	subject to 3.6 above, adopt such procedures to assist with the conduct of the
determination as he reasonably considers appropriate including instructing professional
advisers to assist him in reaching his determination

	 	 	and the decision of the Independent Accountant will be final and binding except in the case
of manifest error. The costs of the Independent Accountant shall, in the absence of a
direction to the contrary by the Independent Accountant, be borne equally by the Management
Team and the Company.

	4	 	Performance Period Protections

	4.1	 	The Management Representative, acting for the Management Team and the Principal Shareholders
and the Company (with the consent of Genesco) shall mutually agree on an annual budget for the
Company on or before 31 January of each year during the Performance Period (each, an “Annual
Budget”). There is annexed here to the long-term plan which has been agreed to by Genesco and
the Management Team on or before completion of the Transaction (the “Long-Term Plan”). The
Long-Term Plan specifies “Budgeted Results” for each quarter of each year during the Earn Out
Period. “Budgeted Results” means pre-tax earnings plus any amortisation charge on tangible
assets and net interest on debt minus the sum of (i) corporation taxes at the prevailing rate
and (ii) a charge at the rate of 12% per annum on “Average Assets Employed” for the relevant
period. “Average Assets Employed” means (A) the sum of (i) stock, plus (ii) trade debtors,
plus (iii) other Debtors, plus (iv) tangible assets, minus (B) the sum of (i) trade creditors,
plus (ii) wage creditors, plus (iii) VAT payables, plus (iv) other creditors, plus (v)
deferred income, plus (vi) current taxes payable.

	4.2	 	Genesco covenants to Management and agrees that during the Performance Period it will permit
the Management Team to supervise the day to day operation of the Company in the ordinary
course of business consistent with past practice and the Long-Term Plan and having regard to
the best interests of the Company, for so long as the Company achieves actual performance on a
rolling 12 month basis as shown in its Management Accounts of not less than 80% of the
Budgeted Results. In the event that actual performance falls short of Budgeted Results by 20%
or more for any rolling twelve-month period (other than as a result of Genesco causing the
Group to take any action (including the incurring of any costs)) contrary to the Long-Term
Plan or otherwise acting contrary to the terms of this Schedule without the consent of the
Management Representative, the board of directors of the Company may exercise their rights
(“Step-in Rights”) to take or cause the Management Team or the Company to take any actions
that Genesco deems necessary or appropriate (acting reasonably), including any that are not
consistent with the Long-Term Plan or an Annual Budget. Once the ability to exercise the
Step-In Rights

 

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	 	 	has arisen pursuant to this paragraph 4.2, such Rights will not lapse but will continue for
the duration of the Performance Period.

	4.3	 	The board of directors of the Company shall be as appointed by Genesco; Genesco shall use all
reasonable endeavours to procure that the board of directors of the Company act in accordance
with the provisions of the Scheme.

	4.4	 	Notwithstanding the foregoing, nothing contained in this Agreement shall be construed to
restrict in any way Genesco’s board of directors from exercising its fiduciary duties and
taking any action, acting in good faith and without having to take into consideration the
obligation to pay the Management Bonus, if earned, hereunder, that the board of directors
deems most beneficial for Genesco and Genesco’s shareholders; provided that Genesco shall not
take any action (i) in bad faith; or (ii) with the intent of hindering the Management Team’s
ability to earn the Management Bonus or (iii) which is deliberately aimed at reducing the
amount of the Management Bonus.

	4.5	 	In the event that Genesco causes the Company to directly take any action contrary to the
Long-Term Plan, other than pursuant to or in the course of exercise of the Step-In Rights,
without the consent of the Management Representative (acting for Management Team and the
Principal Shareholders), an appropriate adjustment shall be made to the Aggregate EBITDA
target which adjustment shall be approved by the Management Representative (acting for the
Management Team and the Principal Shareholders) (such approval not to be unreasonably
withheld, conditioned or delayed).

	4.6	 	For the avoidance of doubt, no such adjustment will be made to the Aggregate EBITDA target
pursuant to paragraph 4.5 for or in respect of any actions taken by Genesco pursuant to or as
a result of its exercise of its Step-In Rights if actual performance of the Group falls short
of Budgeted Results by 20% or more over any rolling twelve-month period.

	4.7	 	In the event that Genesco and the Management Representative cannot agree on an appropriate
adjustment to the Aggregate EBITDA target, if required, Genesco and the Management
Representative shall refer the matter to the auditors of Genesco to settle the dispute. If
issues are submitted to the auditors for resolution: (i) the Management Representative and
Genesco will furnish or cause to be furnished to the auditors such work papers and other
documents and information relating to the disputed issues as the auditors may request and are
available to that party or its agents and will be afforded the opportunity to present to the
auditors any material relating to the disputed issues and to discuss the issues with the
auditors; (ii) the determination by the Company’s auditors, as set forth in a notice to be
delivered to the Management Representative (on behalf of the Management Team) and the Buyer
within thirty (30) days of the submission to those auditors of the issues remaining in
dispute, will be final, binding, and conclusive on the parties; and (iii) the Management
Representative (on behalf of the Management Team) and the Buyer will pay an equal percentage
of the fees and costs of the auditors in connection with such determination.

	4.8	 	Genesco agrees with, and irrevocably undertakes to the Management Team that it will not and
it will procure that no present or future members of the Genesco Group (nor any Group Company)
will, except where the Management Representative (acting on behalf of the Management Team) has
so consented in writing (which consent shall not be unreasonably withheld) in advance, during
the Performance Period:-

	 	(a)	 	change the fundamental nature of the business of any Group Company to any
business or activity which is not ancillary or incidental to the business of any Group
Company;

 

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	 	(b)	 	enter into any contract outside the ordinary course of its business which might
reasonably be expected to materially adversely affect any Group Company;

	 	(c)	 	cause any resolution to be passed for any Group Company or Genesco to be wound up
voluntarily;

	 	(d)	 	acquire as part of the Group any Newly Acquired Company;

	 	(e)	 	dispose of any Group Company or any material part of its business as carried on
by it at Completion, for a period of four years after Completion;

	 	(f)	 	divert or seek to divert the business of any Group Company away from the Group;

	 	(g)	 	effect or procure or transact any transaction or agreement which is not on arm’s
length terms between the relevant Group Company and the Buyer or any member of Genesco’s
Group (other than as between one Group Company and another).

	4.9	 	Notwithstanding the first sentence of paragraph 4.2, the Management Team may not cause the
Company or any Subsidiary Undertaking to take any action which constitutes a material
deviation from the Long Term Plan and/or the Annual Budgets without the prior written consent
of Genesco. For the purposes of this paragraph 4.9 of part B of schedule 12, a “material
deviation” shall mean:-

	 	(i)	 	incurring any debt (other than normal working capital borrowings under the
overdraft facility provided under the Lloyds Facilities or any replacement thereof on
equivalent terms and with no higher borrowing facility) by the Company or any
Subsidiary Undertaking in any year that is not already included in the Annual Budget;

	 	(ii)	 	incurring any capital expenditures in any year in excess of those agreed to in
the Annual Budget; or incurring any individual capital expenditure or total capital
expenditures on a single project in excess of £60,000 provided, however, that Genesco’s
consent shall not be required for capital expenditures not to exceed £550,000 in
connection with the construction or refurbishment of a retail store so long as
projected pro forma financial statements for the term of the lease for such store
indicate a return on investment of at least 12% in the aggregate, calculated on a
discounted cash flow basis;

	 	(iii)	 	making any loan or advance to any other Person (other than loans of not more
than £10,000 in aggregate to staff) or giving any guaranty of any indebtedness or
payment;

	 	(iv)	 	entering into any agreement (other than an employment agreement in the ordinary
course of business) or transaction with any officer, director, employee of the Company
or any Subsidiary Undertaking;

	 	(v)	 	making any change in the compensation of Colin Temple, Mark Crutchley or any
member of the Management Team;

	 	(vi)	 	materially changing the business of the Company or any Subsidiary Undertaking
or the entry into by the Company or any Subsidiary Undertaking of a new business;

	 	(vii)	 	the sale, lease or license of any assets of the Company or any Subsidiary
Undertaking other than in the ordinary course of business;

 

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	 	(viii)	 	the acquisition or entry into of an agreement to acquire a corporate entity or
business or assets other than in the ordinary course of business;

	 	(ix)	 	the entry into of any corporate strategic relationship by the Company or any
Subsidiary Undertaking with any third party;

	 	(x)	 	the entry into of any contract or agreement outside the ordinary course of
business not contemplated by the Annual Budget involving payments or receipts or
anticipated payments or receipts of more than £60,000;

	 	(xi)	 	the hiring or termination of any employee being a Manager or the appointment of
any new member of the Management Team;

	 	(xii)	 	the set up of any new Subsidiary Undertaking;

	 	(xiii)	 	the making or settlement of any claim or legal action which is reasonably expected to
involve payments by or to the Company or any Subsidiary Undertaking (including legal
and other fees and expenses) of more than £60,000.

	4.10	 	Nothing in this Agreement shall be interpreted as a restriction or limitation on the Buyer’s
and its Affiliates’ right and ability (a) to acquire by purchase, exchange, or otherwise, any
other Person, whether or not engaged in a business similar or related to the Company (an
“Acquired Business”), or (b) at any time following the fourth anniversary of Completion to
sell all or any shares in the Company, to sell all or any of the assets of the Company, or to
merge (or to cause the Company to merge) with another Person (such other Person being referred
to herein as a “Consolidating Business”). The Management Team shall have no rights or
interests in or relating to any Acquired Business or any Consolidating Business. Genesco
shall account for any Acquired Business or Consolidating Business separate from the Company
such that the calculation of Aggregate EBITDA and Management Bonus (i) will in no way be
affected by such Acquired Business or Consolidating Business and (ii) will continue to be
reasonably determinable pursuant to the terms of this Agreement.

	4.11	 	Management agrees and acknowledges that in relation to the Management Bonus, if any, pursuant
to this Agreement: (a) there may be no Management Bonus payable pursuant to the provisions of
this document; (b) any right to receive the Management Bonus does not represent an ownership
interest in the Company, Genesco or any of its Associates; (c) it does not confer any voting,
dividend or liquidation rights; (d) it is not represented by any form of certificate or
instrument; (e) it does not bear any interest; and (f) it shall not be assignable or
transferable.

	4.12	 	Management acknowledges and agrees that nothing in this document gives any of them any
employment rights of any kind or any right to be retained as an employee of the Company or any
affiliate.

 

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Part B

Accounting Principles applicable to the Bonus Accounts

	1	 	General requirements

	1.1	 	The Bonus Accounts shall be prepared and drawn up in accordance with the policies that
appear, and in the order shown, below:

	 	(a)	 	the specific accounting policies, practices and methodologies used in the
preparation of the audited accounts of the Group for the financial year ended 27 March
2011; and

	 	(b)	 	subject to (a) above, in accordance with UK GAAP as at the date of this
Agreementexv10w1

Exhibit 10.1

EXECUTION COPY

MUTUAL WAIVER AND CONSENT

     This MUTUAL WAIVER AND CONSENT (this “Agreement”), dated as of September 6, 2011, is
entered into by and between NCI Building Systems, Inc. (the “Company”), a Delaware
corporation, on the one hand, and Clayton, Dubilier & Rice Fund VIII, L.P., a Cayman exempted
limited partnership (“Fund VIII”), and CD&R Friends & Family Fund VIII, L.P., a Cayman
exempted limited partnership (together with Fund VIII, the “CD&R Funds”), on the other
hand.

W I T N E S S E T H:

     WHEREAS, the CD&R Funds are the owners of all the issued and outstanding shares of the
Company’s Series B Cumulative Convertible Participating Preferred Stock (the “Series B
Preferred Stock”), issued pursuant to the Certificate of Designations, Preferences and Rights
of Series B Cumulative Convertible Participating Preferred Stock of NCI Building Systems, Inc. (the
“Certificate of Designations”) (defined terms used but not defined in this Agreement are
used as defined in the Certificate of Designations);

     WHEREAS, pursuant to the Certificate of Designations, Series B Preferred Dividends are payable
quarterly in arrears, if, as and when so authorized and declared by the Board of Directors, on each
Series B Preferred Dividend Payment Date;

     WHEREAS, pursuant to the Certificate of Designations and subject to the limitations therein
set forth, Series B Preferred Dividends may, at the option of the Company, be paid by issuing fully
paid and nonassessable shares of Series B Preferred Stock (a “PIK Dividend”) or in cash;

     WHEREAS, the Company and the CD&R Funds are parties to a Stockholders Agreement, dated as of
October 20, 2009 (the “Stockholders Agreement”);

     WHEREAS, pursuant to Section 6.1(a)(iii) of the Stockholders Agreement, the Company has
covenanted, subject to the terms and conditions therein set forth, that the Company will not,
without the prior consent of the CD&R Funds, authorize, issue, deliver, sell, pledge, dispose of,
grant, award or encumber any shares (or options, warrants, convertible securities or rights of any
kind to acquire or receive any shares) of capital stock, ownership interests or voting securities,
subject to certain exceptions, including issuances the aggregate proceeds of which to the Company
do not exceed $5 million in any given fiscal year (the “$5 Million Issuance Basket”);

     WHEREAS, the next Series B Preferred Dividend Payment Date is September 15, 2011 (the
“September 2011 Dividend Payment Date”), and the Company wishes to pay the Series B
Preferred Dividend due on that date as a PIK Dividend, computed at a Base
Dividend Rate of 8.00% per annum, rather than the 12% per annum otherwise provided for in the
Certificate of Designations (the “September 2011 Base Dividend Rate Reduction”);

 

 

     WHEREAS, the CD&R Funds are willing to consent to the September 2011 Base Dividend Rate
Reduction and waive their right to receive PIK Dividends on the September 2011 Dividend Payment
Date calculated at a rate in excess of 8.00% per annum, subject to and conditioned upon the
Company’s waiver of its right to utilize all or any portion of the $5 Million Issuance Basket in
respect of its fiscal year ending October 30, 2011; and

     WHEREAS, the Company is willing to waive its right to utilize all or any portion of the $5
Million Issuance Basket in respect of its fiscal year ending October 30, 2011 in return for the
CD&R Funds’ waiver and consent to the September 2011 Base Dividend Rate Reduction;

     NOW, THEREFORE, in consideration of the premises and of the respective representations,
warranties, covenants and conditions contained herein, the parties hereto agree as follows:

     Section 1. September 2011 Base Dividend Rate Reduction. Subject to and conditioned
on the Company’s due performance of its covenant set forth in Section 2, the CD&R Funds consent to
the September 2011 Base Dividend Rate Reduction and waive any right to receive, and the accrual of,
PIK Dividends on the September 2011 Dividend Payment Date in respect of the Payment Period then
ended at the rate of 12% per annum, rather than 8.00% per annum. For avoidance of doubt, nothing
contained in this Agreement shall affect the accrual or payment of Series B Preferred Dividends in
respect of any Payment Period after the September 2011 Dividend Payment Date.

     Section 2. Waiver of $5 Million Issuance Basket. Subject to and conditioned on the
CD&R Funds’ waiver and consent granted pursuant to Section 1, the Company waives any right under
the Stockholders Agreement to, and covenants not to, authorize, issue, deliver, sell, pledge,
dispose of, grant, award or encumber any shares (or options, warrants, convertible securities or
rights of any kind to acquire or receive any shares) of capital stock, ownership interests or
voting securities on or after the date hereof and prior to October 31, 2011, except (i)
with the prior written consent of the CD&R Funds, and (ii) grants in the ordinary course of
business consistent with past practice to employees or directors of the Company pursuant to an
existing stock option plan or restricted stock plan, pursuant to another plan or agreement adopted
or approved by the Board of Directors in the ordinary course with terms that are consistent with
past practice or pursuant to the issuance of shares in respect of any exercise of options or
settlement of any other share-based awards outstanding on the date of this Agreement, or as may be
granted after the date of this Agreement, as permitted by the Stockholders Agreement. For
avoidance of doubt, nothing contained in this Section 2 shall affect the right of the Company or
the CD&R Funds with respect to the authorization, issuance, delivery, sale,
pledge, disposal, grant, award or encumbrance of any shares on or after October 31, 2011.

2

 

     Section 3. Representations and Warranties. Each of the parties represents and
warrants that:

          (a) it has been duly incorporated or organized and is validly existing and in good standing
under the laws of the jurisdiction of its organization, and has full right, power, authority and
capacity to enter into this Agreement and to consummate the transactions contemplated hereby;

          (b) the execution, delivery and performance of this Agreement by it and the consummation of
the transactions contemplated hereby have been duly authorized by all necessary action on its part;
and

          (c) this Agreement has been duly authorized, validly executed and delivered by it, and
assuming due authorization, execution and delivery of this Agreement by the other parties hereto,
constitutes its valid and binding obligations, enforceable against it in accordance with its terms,
except to the extent that the enforcement thereof may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or similar Laws affecting the enforcement of creditors’
rights generally and general equitable principles, regardless of whether such enforceability is
considered in a proceeding at Law or in equity.

     Section 4. Successors and Assigns. This Agreement shall inure to the benefit of and
be enforceable by each of the parties hereto and its successors and assigns.

     Section 5. Notice. All notices and other communications required or permitted under
this Agreement shall be given in accordance with Section 13(c) of the Certificate of Designations.

     Section 6. Entire Agreement; Amendments. Except as otherwise specified herein, this
Agreement constitutes the entire agreement and understanding between the parties with respect to
the subject matter hereof. Except for the waivers and consent granted in Sections 1 and 2, each of
the terms of the Certificate of Designations and the Stockholders Agreement, as in effect as of the
date hereof, is confirmed and ratified by each of the parties and shall remain in full force and
effect.

     Section 7. Modification or Waiver. No provision of this Agreement may be modified or
waived unless such modification or waiver is agreed to in writing and signed by each of the parties
hereto. No waiver by either party hereto at any time of any breach by the other party hereto of,
or compliance with, any condition or provision of this Agreement to be performed by such other
party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at
any prior or subsequent time.

     Section 8. Governing Law; Validity. The interpretation, construction and performance
of this Agreement shall be governed by and construed and enforced in accordance with the internal
laws of the State of Delaware without regard to the principle of conflicts of laws. The invalidity
or enforceability of any provision of this Agreement

3

 

shall not affect the validity or
enforceability of any of the other provisions of this Agreement, which other provisions shall
remain in full force and effect.

     Section 9. Counterparts. This Agreement may be executed in counterparts, each of
which shall be deemed to be an original and all of which together shall be deemed to be one and the
same instrument.

[Signature Page Immediately Follows]

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     IN WITNESS WHEREOF, each of the parties has caused this Agreement to be duly executed by
its authorized officer as of the date set forth at the head of this Agreement.

	 	 	 	 	 	 	 

	 	 	NCI BUILDING SYSTEMS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	CLAYTON, DUBILIER & RICE FUND VIII, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	CD&R ASSOCIATES VIII, LTD.,	 	 
	 

	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

Theresa A. Gore
	 	 
	 

	 	Title:
	 	Vice President, Treasurer &	 	 
	 

	 	 	 	Assistant Secretary	 	 
	 
	 	 	 	 	 	 
	 	 	CD&R FRIENDS & FAMILY FUND VIII, L.P	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	CD&R ASSOCIATES VIII, LTD.,	 	 
	 

	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

Theresa A. Gore
	 	 
	 

	 	Title:
	 	Vice President, Treasurer &	 	 
	 

	 	 	 	Assistant Secretary	 	 

[Signature Page to Mutual Waiver and Consent]

5

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