Document:

EXHIBIT 10.3

BEACON
ROOFING SUPPLY, INC. 2004 STOCK PLAN

STOCK
OPTION AGREEMENT

A Stock Option (the “Option”) granted, as of October
24, 2006, by Beacon Roofing Supply, Inc., a Delaware corporation (the “Company”),
to the employee named in the attached Option letter (the “Optionee”), for
common stock, par value $.01 per share (the “Common Stock”), of the Company
shall be subject to the following terms and conditions:

1.     Stock Option Grant.  Subject to the provisions set forth herein
and the terms and conditions of the Beacon Roofing Supply, Inc. 2004 Stock Plan
(the “Plan”), a copy of which is attached hereto
and the terms of which are hereby incorporated by reference, and in
consideration of the agreements of the Optionee herein provided, the Company
hereby grants to the Optionee an Option to purchase from the Company the number
of shares of Common Stock, at the purchase price per share, and on the
schedule, set forth in the attached Option letter.  Any Incentive Stock Option is intended to be
an incentive stock option within the meaning of Section 422A of the Internal
Revenue Code of 1986.

2.     Exercise of Option.  Written notice of an election to exercise any
portion of the Option shall be given by the Optionee, or his personal
representative in the event of the Optionee’s death, in accordance with
procedures established by the Compensation Committee of the Board of Directors
of the Company (the “Committee”) as in effect at the time of such exercise.

At the time of exercise of
the Option, payment of the purchase price for the shares of Common Stock with
respect to which the Option is exercised must be made by one or more of the
following methods:  (i) in cash, or (ii)
in cash received from a broker-dealer to whom the Optionee has submitted an
exercise notice and irrevocable instructions to deliver the purchase price to
the Company from the proceeds of the sale of shares subject to the Option.

If applicable, an amount
sufficient to satisfy all minimum Federal, state and local withholding tax
requirements prior to delivery of any certificate for shares of Common Stock
must also accompany the exercise. 
Payment of such taxes can be made by a method specified above, and/or by
directing the Company to withhold such number of shares of Common Stock
otherwise issuable upon exercise of the Option with a fair market value equal
to the amount of tax to be withheld.

3.     Exercise Upon Termination of Employment.  Except as set forth in Section 6 below, if
the Optionee’s employment with the Company and all affiliates terminates for
any reason other than death, disability or retirement, the then vested portion
of the Option shall continue to be exercisable until the earlier of the 90th
day after the date of the Optionee’s termination or the date the Option expires
by its terms.

In the event of the Optionee’s
death, disability or retirement during employment with the Company or any
affiliate, the outstanding portion of the Option shall become fully vested on
such date and shall continue to be exercisable until the earlier of the first
anniversary of the date of the Optionee’s death, disability or retirement or
the date the Option expires by its terms. 
For this purpose (i) “disability” means (as determined by the Committee
in its sole discretion) the inability of the Optionee to engage in any
substantial gainful activity by reason of any medically determinable physical
or mental impairment which is expected to result in death or disability or
which has lasted or can be expected to last for a continuous period of not less
than 12 months, and (ii) “retirement” means the Optionee’s termination from
employment with the Company and all affiliates without cause (as determined by
the Committee in its sole discretion) when the Optionee is 65 or older.  (Full vesting of an Incentive Stock Option
may result in all or part of the Option being treated as a Non-Qualified Stock
Option in accordance with Section 5.4 of the Plan.)

4.     Option Not Transferable.  The Option may be exercised only by the
Optionee during his lifetime and may not be transferred other than by will or
the applicable laws of descent or distribution or pursuant to a qualified
domestic relations order. The Option shall not otherwise be assigned,
transferred, or pledged for any purpose whatsoever and is not subject, in whole
or in part, to attachment, execution or levy of any kind. Any attempted
assignment, transfer, pledge, or encumbrance of the Option, other than in
accordance with its terms, shall be void and of no effect.

5.     Surrender
of or Changes to Agreement.  In the
event the Option shall be exercised in whole, this Agreement shall be
surrendered to the Company for cancellation. In the event this Option shall be
exercised in part, this Agreement shall be delivered by the Optionee to the
Company for the purpose of making appropriate notation thereon, or of otherwise
reflecting, in such manner as the Company shall determine, the change in the
number of shares.

 

6.     Forfeiture
of Options.  If an Optionee’s employment with the Company
or its subsidiaries terminates due to Cause, all of the Optionee’s Options,
including the vested and unvested portions, shall be forfeited as of the date
of such termination.  For purposes
hereof, “Cause” shall mean: (a)
conviction of a felony connected with Optionee’s employment with the Company or
its subsidiaries, (b) misappropriation or theft of property of the Company or
its subsidiaries, (c) gross negligence or willful misconduct in the performance
of employee’s duties, (d) any act of fraud against the Company or its
subsidiaries, and (e) any unauthorized dissemination of confidential
information or trade or business secrets of the Company or its subsidiaries.

7.     Administration.  The Option shall be exercised in accordance
with such administrative regulations as the Committee shall from time to time adopt.

8.     Governing Law.  This Agreement, and the Option, shall be
construed, administered and governed in all respects under and by the laws of
the State of Delaware.

IN WITNESS WHEREOF, this
Agreement is executed by the Company as of the 24th day of October,
2006.

	
  

  	
  BEACON ROOFING
  SUPPLY, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  AGREED AND
  ACCEPTED:

  	
   

  
	
   

  	
   

  
	
  OPTIONEE

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Date:EXHIBIT 10.5

[Employee
- Directors]

BEACON
ROOFING SUPPLY, INC. 2004 STOCK PLAN

STOCK
OPTION AGREEMENT

A Stock Option (the “Option”) granted by Beacon
Roofing Supply, Inc., a Delaware corporation (the “Company”), to the
employee/Director named in the attached Option letter (the “Optionee”), for
common stock, par value $.01 per share (the “Common Stock”), of the Company
shall be subject to the following terms and conditions:

1.     Stock Option Grant.  Subject to the provisions set forth herein
and the terms and conditions of the Beacon Roofing Supply, Inc. 2004 Stock Plan
(the “Plan”), a copy of which is attached hereto
and the terms of which are hereby incorporated by reference, and in
consideration of the agreements of the Optionee herein provided, the Company
hereby grants to the Optionee an Option to purchase from the Company the number
of shares of Common Stock, at the purchase price per share, and on the
schedule, set forth in the attached Option letter.  Any incentive stock option is intended to be
an incentive stock option within the meaning of Section 422A of the Internal
Revenue Code of 1986.

2.     Exercise of Option.  Written notice of an election to exercise any
portion of the Option shall be given by the Optionee, or his personal
representative in the event of the Optionee’s death, in accordance with
procedures established by the Compensation Committee of the Board of Directors
of the Company (the “Committee”), as in effect at the time of such exercise.

At the time of exercise of
the Option, payment of the purchase price for the shares of Common Stock with
respect to which the Option is exercised must be made by one or more of the
following methods:  (i) in cash, or (ii)
in cash received from a broker-dealer to whom the Optionee has submitted an
exercise notice and irrevocable instructions to deliver the purchase price to
the Company from the proceeds of the sale of shares subject to the Option.

If applicable, an amount
sufficient to satisfy all minimum Federal, state and local withholding tax
requirements prior to delivery of any certificate for shares of Common Stock
must also accompany the exercise. 
Payment of such taxes can be made by a method specified above, and/or by
directing the Company to withhold such number of shares of Common Stock
otherwise issuable upon exercise of the Option with a fair market value equal
to the amount of tax to be withheld.

3.     Exercise Upon Termination of Employment.  Except as set forth in Section 6 below, if
the Optionee’s employment with the Company and all affiliates terminates for
any reason other than death, disability or retirement (as defined below), and
in connection therewith the Optionee’s service on the Board terminates, the
then vested portion of the Option shall continue to be exercisable until the
earlier of the 90th day after the date of such termination of employment or the
date the Option expires by its terms.

In the event of the Optionee’s
death or disability during employment with the Company or any affiliate, or in
the event of the Optionee’s retirement, and in connection therewith his service
on the Board terminates, the outstanding portion of the Option shall become
fully vested on such date and shall continue to be exercisable until the
earlier of the first anniversary of the date of the Optionee’s death,
disability or retirement or the date the Option expires by its terms.

In the event the Optionee’s
employment with the Company and all affiliates terminates for any reason other
than death, disability or retirement, and the Optionee’s service on the Board
continues thereafter, the Option shall continue to vest and remain exercisable
in accordance with the Option letter.  If
the Optionee’s service on the Board subsequently terminates, then (i) if
termination is due to death, disability or retirement, the outstanding portion
of the Option shall become fully vested on such date and shall continue to be
exercisable until the earlier of the first anniversary of the date of the
Optionee’s death, disability or retirement or the date the Option expires by
its terms, and (ii) if the termination is for any reason other than death,
disability or retirement, the then vested portion of the Option shall continue
to be exercisable until the earlier of the 90th day after the date of such
termination or the date the Option expires by its terms.

For purposes of this Section
3, (i) “disability” means (as determined by the Committee in its sole
discretion) the inability of the Optionee to engage in any substantial gainful
activity by reason of any medically determinable physical or mental impairment
which is expected to result in death or disability or which has lasted or can
be expected to last for a continuous period of not less than 12 months, and
(ii) “retirement” means (A) while the Optionee is employed, the Optionee’s
termination from employment with the Company and all affiliates without cause
(as determined by the

 

Committee in its sole
discretion) when the Optionee is 65 or older; or (B) while the Optionee is a
non-employee Director, retirement in accordance with the Company’s retirement
policy for Directors.

4.     Option Not Transferable.  The Option may be exercised only by the
Optionee during his lifetime and may not be transferred other than by will or
the applicable laws of descent or distribution or pursuant to a qualified
domestic relations order. The Option shall not otherwise be assigned,
transferred, or pledged for any purpose whatsoever and is not subject, in whole
or in part, to attachment, execution or levy of any kind. Any attempted
assignment, transfer, pledge, or encumbrance of the Option, other than in
accordance with its terms, shall be void and of no effect.

5.     Surrender of or Changes to Agreement.  In the event the Option shall be exercised in
whole, this Agreement shall be surrendered to the Company for cancellation. In
the event this Option shall be exercised in part, this Agreement shall be
delivered by the Optionee to the Company for the purpose of making appropriate
notation thereon, or of otherwise reflecting, in such manner as the Company
shall determine, the change in the number of shares.

6.     Forfeiture
of Options.  If an Optionee’s employment with the Company
or its subsidiaries terminates due to Cause, all of the Optionee’s Options,
including the vested and unvested portions, shall be forfeited as of the date
of such termination.  For purposes
hereof, “Cause” shall mean: (a)
conviction of a felony connected with Optionee’s employment with the Company or
its subsidiaries, (b)misappropriation or theft of property of the Company or
its subsidiaries,(c)failure to observe any policy of the Company or its
subsidiaries, including the Company’s Code of Conduct, (d)gross negligence or
willful misconduct in the performance of employee’s duties, (e)any act of fraud
against the Company or its subsidiaries, and (f) any unauthorized dissemination
of confidential information or trade or business secrets of the Company or its
subsidiaries.

7.     Administration.  The Option shall be exercised in accordance
with such administrative regulations as the Committee shall from time to time
adopt.

8.     Governing Law.  This Agreement, and the Option, shall be
construed, administered and governed in all respects under and by the laws of
the State of Delaware.

IN
WITNESS WHEREOF, this Agreement is executed by the Company as of the 24th day of October, 2006.

	
  

  	
  BEACON ROOFING SUPPLY, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  AGREED AND ACCEPTED:

  	
   

  
	
   

  	
   

  
	
  OPTIONEE

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Date:

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