Document:

EXHIBIT
10.4

    

     

    MSC INDUSTRIAL DIRECT CO., INC.

    2005
OMNIBUS EQUITY PLAN

     

    NON-QUALIFIED
STOCK OPTION AGREEMENT

     

    STOCK OPTION AGREEMENT (the
"Agreement"),
dated as of _____________ __, 200__, by and between MSC Industrial Direct Co.,
Inc. (the "Company"), having an
address at 75 Maxess Road, Melville, New York 11747, and [INSERT
ASSOCIATE NAME] (the "Grantee"), having an
address at _________________________________________________.

     

    In
accordance with Section 4 of the MSC Industrial Direct Co., Inc. 2005 Omnibus
Equity Plan (the "Plan") and subject to
the terms of the Plan and this Agreement, the Company hereby grants to the
Grantee an option (the "Option") to purchase
all or any part of an aggregate of [INSERT
SHARES] shares (the “Shares”) of Class A
common stock, $.001 par value per share, of the Company (the “Stock”).    Capitalized
terms used but not defined herein shall have the meaning given to such terms in
the Plan.

     

    To
evidence the Option and to set forth its terms, the Company and the Grantee
agree as follows:

     

    1.           Confirmation of
Grant.  The Company hereby evidences the Option granted to the
Grantee as of October ___, 2009, the date of
the grant of the Option by the Company’s Compensation Committee of the Board of
Directors (the “Committee”).  The
Option granted hereby is a Non-Qualified Stock Option and is not intended to be
an "incentive stock option" within the meaning of Section 422 of the Internal
Revenue Code of 1986, as amended (the "Code").

     

    2.           Number of
Shares.  This Option shall be for an aggregate of [# OF
SHARES] Shares (subject to adjustment as provided in Section 3 of the
Plan).

     

    3.           Exercise
Price.  The exercise price shall be $_____ per Share (the
"Exercise
Price") (subject to adjustment as provided in Section 3 of the
Plan).  The Exercise Price reflects 100% of the Fair Market Value of
one Share of Stock as calculated under the Plan.

     

    4.           Term and Exercisability of
the Option.  The Option shall expire on October 15, 2015, and,
except as otherwise provided herein, may be exercised prior to its expiration at
such times and for such number of whole Shares as follows:

     

    (a)         On
or after October ___, 2010, the Option
is exercisable for up to 25% of the total number of Shares subject to this
Option;

     

    (b)         On
or after October ___, 2011, the Option
is exercisable for up to 50% of the total number of Shares subject to this
Option;

     

    (c)         On
or after October ___, 2012, the Option
is exercisable for up to 75% of the total number of Shares subject to this
Option; and

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (d)         On
or after October ___, 2013, the Option
is exercisable for up to 100% of the total number of Shares subject to this
Option.

    

    Notwithstanding the foregoing
provisions of this Paragraph 4, and, except as otherwise provided herein, any
portion of the Option which is not otherwise exercisable at the time of the
Grantee's termination of employment (or provision of services, if applicable)
with the Company and its Affiliates shall not become exercisable after such
termination.

    

    5.           Exercise of
Option.  On or after the date any portion of the Option becomes
exercisable, but prior to the expiration of the Option in accordance with
Paragraph 4 above, the portion of the Option which has become exercisable may be
exercised in whole or in part by the Grantee (or, pursuant to Paragraph 6
hereof, his or her permitted successor) upon delivery of the following to the
Company:

    

    (a)          a
written notice of exercise which identifies this Agreement and states the number
of whole Shares then being purchased; and

    

    (b)         any
combination of cash (or by certified or bank check), and/or (i) mature shares of
unrestricted Stock as meet the requirements in the Plan then owned by the
Grantee in an amount having a combined Fair Market Value on the exercise date
equal to the aggregate Exercise Price of the Shares then being purchased using
such unrestricted Stock, (ii) certification of ownership of shares of mature
Stock owned by the Grantee to the satisfaction of the Administrator for later
delivery to the Company as specified by the Company, or (iii) unless otherwise
prohibited by law for either the Company or the Grantee, an irrevocable
authorization of a third party to sell Shares of Stock acquired upon the
exercise of the Option and remit to the Company a sufficient portion of the sale
proceeds to pay the entire exercise price and any tax withholdings resulting
from such exercise.

    

    Notwithstanding the foregoing, (i) the
Grantee (or any permitted successor) shall take whatever additional actions,
including, without limitation, the furnishing of an opinion of counsel, and
execute whatever additional documents the Company may, in its sole discretion,
deem necessary or advisable in order to carry out or effect one or more of the
obligations or restrictions imposed by the Plan, this Agreement or applicable
law, and (ii) the Company may restrict the Grantee’s ability to exercise the
Option during any period when such exercise would constitute a violation of the
Company’s insider trading policy or any applicable federal or state securities
or other law or regulation.

     

    No Shares
shall be issued upon exercise of the Option until full payment has been
made.  Upon satisfaction of the conditions and requirements of this
Paragraph 5, the Company shall deliver to the Grantee (or his or her permitted
successor) a certificate or certificates for the number of Shares in respect of
which the Option shall have been exercised (less the number of Shares, if any,
utilized in the payment of the Exercise Price in a cashless exercise as
permitted under the Plan and the Agreement).  Upon exercise of the
Option (or a portion thereof), the Company shall have a reasonable time to issue
the Stock for which the Option has been exercised, and the Grantee shall not be
treated as a stockholder for any purposes whatsoever prior to such
issuance.  No adjustment shall be made for cash dividends or other
rights for which the record date is prior to the date such Stock is recorded as
issued and transferred in the Company’s official stockholder records, except as
otherwise provided in the Plan or the Agreement.

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

     

    6.           Limitation Upon
Transfer.  This Option and all rights granted hereunder shall
not be transferred by the Grantee, other than to a Family Member (provided the
transfer is a gift without consideration and there is no subsequent transfer
other than by will or the laws of descent and distribution) or by will or by the
laws of descent and distribution, shall not otherwise be assigned, pledged or
hypothecated in any way, and shall not be subject to execution, attachment or
similar process.  Any attempt to transfer this Option, other than as
provided above, or to assign, pledge or hypothecate or otherwise dispose of this
Option or of any rights granted hereunder contrary to the provisions hereof, or
upon the levy of any attachment or similar process upon this Option or such
rights, shall be  null and void.  The Option shall be
exercised during the Grantee's lifetime only by the Grantee or by the Grantee's
guardian or the Grantee’s legal representative.

    

    7.           Termination of Employment or
Provision of Services by Death, Disability.  If the Grantee’s
employment with or provision of services for the Company and its Affiliates
terminates by death or Disability, the Option shall become exercisable in full
for a period of one year from the date of such death or Disability or until the
expiration of the stated term of such Option, whichever period is
shorter.

    

    8.           Termination of Employment or
Provision of Services by Retirement.  If the Grantee’s
employment with or provision of services for the Company and its Affiliates
terminates by reason of Grantee’s Retirement, the Option shall become
exercisable in full for a period of one year from the date of such termination
or until the expiration of the stated term of such Option, whichever period is
shorter.

    

    9.           Involuntary Termination of
Employment or Provision of Services for Cause.  If the
Grantee's employment with or provision of services for the Company and its
Affiliates terminates for Cause, vesting of all outstanding Options held by the
Grantee covered hereunder shall thereupon terminate and all Options held by the
Grantee covered hereunder shall thereupon terminate.

    

    10.          Involuntary Termination of
Employment or Provision of Services Without Cause. If the Grantee’s
employment with or provision of services for the Company and its Affiliates
terminates involuntarily for any reason other than death, Disability, Retirement
or Cause, the Option held by the Grantee covered hereunder may thereafter be
exercised, to the extent it was exercisable at the time of termination, for a
period of 30 days from the date of such termination of employment or provision
of services or until the expiration of the stated term of such Option, whichever
period is shorter.  Notwithstanding the foregoing, to the extent the
Option is unvested or unexercisable at the date of termination, the Option shall
thereupon terminate.

    

    11.          Other Termination of
Employment or Provision of Services.  If the Grantee’s
employment with or provision of services for the Company and its Affiliates is
terminated by the Grantee for any reason other than death, Disability or
Retirement, the Option may thereafter be exercised, to the extent it was
exercisable at the time of termination, for a period of 30 days from the date of
such termination of employment or provision of services or until the expiration
of the stated term of such Option, whichever period is
shorter.  Notwithstanding the foregoing, to the extent the Option is
unvested or unexercisable at the date of termination, the Option shall thereupon
terminate.

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

    
 

    12.          Tolling.  Notwithstanding
the foregoing, to the extent permitted under Section 409A of the Code, the
exercise period following a termination described in Paragraphs (7), (8), (10)
or (11) above shall be tolled for any applicable window/blackout period
restrictions under the Company’s insider trading policy.

    

    13.          Change in
Control.   Upon a Change in Control, and subject to the
terms of the Plan, the Options not then vested and exercisable shall become
fully vested and exercisable and shall be otherwise subject to the
Plan.

    

    14.          Effect of Amendment of
Plan.  No discontinuation, modification, or amendment of the
Plan may, without the express written consent of the Grantee, adversely affect
the rights of the Grantee under this Option, except as expressly provided under
the Plan.

    

    This Agreement may be amended as
provided under the Plan, but except as provided thereunder shall not adversely
affect Grantee’s rights hereunder without Grantee’s consent.

    

    15.          No Limitation on Rights of
the Company.  The grant of this Option shall not in any way
affect the right or power of the Company to make adjustments, reclassifications,
or changes in its capital or business structure or to merge, consolidate,
dissolve, liquidate, sell, or transfer all or any part of its business or
assets.

    

    16.          Rights as a
Shareholder.  The Grantee shall have the rights of a
shareholder with respect to the Shares covered by the Option only upon becoming
the holder of record of those Shares.

    

    17.           Compliance with Applicable
Law.  Notwithstanding anything herein to the contrary, the
Company shall not be obligated to cause to be issued or delivered any
certificates for Shares pursuant to the exercise of the Option, unless and until
the Company is advised by its counsel that the issuance and delivery of such
certificates is in compliance with all applicable laws, regulations of
governmental authority, and the requirements of any exchange upon which Shares
are traded.  The Company shall in no event be obligated to register
any securities pursuant to the Securities Act of 1933 (as now in effect or as
hereafter amended) or to take any other action in order to cause the issuance
and delivery of such certificates to comply with any such law, regulation or
requirement.  The Company may require, as a condition of the issuance
and delivery of such certificates and in order to ensure compliance with such
laws, regulations, and requirements, that the Grantee make such covenants,
agreements, and representations as the Company, in its sole discretion,
considers necessary or desirable.

    

    18.          No Obligation to Exercise
Option.  The granting of the Option shall impose no obligation
upon the Grantee to exercise the Option.

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

    
 

    19.          Agreement Not a Contract of
Employment or Other Relationship.  This Agreement is not a
contract of employment, and the terms of employment of the Grantee or other
relationship of the Grantee with the Company or any of its subsidiaries or
affiliates shall not be affected in any way by this Agreement except as
specifically provided herein.  The execution of this Agreement shall
not be construed as conferring any legal rights upon the Grantee for a
continuation of an employment or other relationship with the Company or any of
its subsidiaries or affiliates, nor shall it interfere with the right of the
Company or any of its subsidiaries or affiliates to discharge the Grantee and to
treat him or her without regard to the effect which such treatment might have
upon him or her as a Grantee.

    

    20.          Tax
Consequences.  The Company makes no representations or
warranties with respect to the tax consequences of the grant or exercise of the
Option and the disposition of the Shares obtained thereby.  A Grantee should consult his or her
own tax advisor for information concerning the tax consequences of the grant and
exercise of the Option.

    

    21.          Withholding
Taxes.  No later than the date as of which an amount first becomes
includible in the gross income of the Grantee for Federal income tax purposes
with respect to the exercise of the Option, the Grantee shall make arrangements
satisfactory to the Company regarding the payment of, any Federal, state, local
or foreign taxes of any kind required by law to be withheld with respect to such
amount, and by acceptance of this Award, Grantee has agreed to and hereby does,
instruct the Company to satisfy his or her withholding obligations with Shares
that would otherwise be delivered upon exercise of the Option.  The
obligations of the Company under the Plan shall be conditional on such payment
arrangements, and the Company, its Subsidiaries and its Affiliates shall, to the
extent permitted by law, have the right to deduct any such taxes from any
payment otherwise due to the Grantee. The Administrator may establish such
procedures as it deems appropriate for such settlement of withholding
obligations with Grantee.

    

    22.          Notices.  Any
notice or other communication required or permitted hereunder shall be in
writing and shall be delivered personally or sent by certified, registered, or
express mail, postage prepaid, return receipt requested, or by a reputable
overnight delivery service.  Any such notice shall be deemed given
when received by the intended recipient.

    

    23.          Governing
Law.  Except to the extent preempted by Federal law, this
Agreement shall be construed and enforced in accordance with, and governed by,
the laws of the State of New York without regard to the principles thereof
relating to the conflicts of laws.

    

    24.           Receipt of
Plan.  The Grantee acknowledges receipt of a copy of the Plan,
and represents that the Grantee is familiar with the terms and provisions
thereof, and hereby accepts this Option subject to all the terms and provisions
of this Agreement and of the Plan.  The Grantee hereby agrees to
accept as binding, conclusive and final all decisions or interpretations of the
Administrator with respect to any questions arising under this Agreement or the
Plan.

     

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

    
 

    25.          Other Terms and
Conditions.  The foregoing does not modify or amend any terms
of the Plan.  To the extent any provisions of the Agreement are
inconsistent or in conflict with any terms or provisions of the Plan, the Plan
shall govern.

     

     

     

     

     

     

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

     

     

    IN WITNESS WHEREOF, the
Company and the Grantee have duly executed this Agreement as of the date first
written above.

    

    

    MSC
INDUSTRIAL DIRECT CO.,
INC.              

    

    

     

    I have
read, understand and agree to abide by the terms of this Agreement, the Plan and
the Associate confidentiality, Non-Solicitation and Non-Competition Agreement
that I entered into with the company dated as of
_______________________  _____, 200___ (the “Associate
Agreement”).  I hereby acknowledge that the grant of Shares pursuant
to this Agreement is consideration for my entering into and complying with the
Associate Agreement.  I understand this Agreement, the Plan and the
Associate Agreement in all respects the terms and conditions of the Option
granted to me.

     

    In
addition, in accordance with the Company's Executive Incentive Compensation
Recoupment Policy (the “Policy”), a copy of which I acknowledge having received
and which I have reviewed and understand, I agree to the following:

     

    (i)  I
agree, upon demand by the Company, to forfeit, return or repay to the Company
any or all of the “Option Benefits and Proceeds” if the Company determines that
I engaged in Misconduct that caused or partially caused the need for a
significant restatement of financial results, other than as a result of a change
in accounting principles (a “Restatement”).  “Misconduct” shall mean a
knowing violation of SEC rules and regulations or Company policy, as determined
by the Board or the Compensation Committee of the Board in its sole and absolute
discretion.

     

    (ii)  I
agree, upon demand by the Company, to forfeit, return or repay to the Company
any or all of the "Option Benefits and Proceeds" if I breach or violate any of
the terms of the Associate Agreement (which also shall mean any future Associate
Agreement) following the termination of my employment with the
Company.

     

    “Option
Benefits and Proceeds” shall mean (a) to the extent that the Option has not been
fully exercised, all of my remaining rights under the Option, (b) to the extent
that I have exercised all or any part of the Option and continue to hold shares
acquired upon exercise of the Option, any such shares, and (c) to the extent
that I have exercised all or any part of the Option and disposed of shares
acquired upon exercise of the Option, any net proceeds realized from such
disposition (or, in the case of a gift, the fair market value of the shares so
gifted at the time of the gift); provided, that for purposes of clause (ii)
above, clauses (b) and (c) of this definition of “Option Benefits and Proceeds”
only shall apply with respect to an exercise of the Option during the period
beginning two years before and ending two years after the termination of my
employment.

     

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

     

     

    These
provisions are subject to the limitations on the period for recoupment set forth
in the Policy and shall terminate in the event of a Change in
Control.

    

    

    
      	
                
      

            	 
      	
                
      

            
	
              Date

            	 
      	
              Associate
      Signature

            

    

    

    

    

    

    FOR MSC INDUSTRIAL DIRECT
CO., INC. USE ONLY

    

    ACCEPTED
BY MSC INDUSTRIAL DIRECT CO., INC.

    

    

    
      	
              By:

            	  
      	 
	 
      	
              Name:
      Danielle Fox

            	 
	 
      	
              Title:
      Sr. Compensation Analyst

            	 
	 
      	 
      	 
	 
      	 
      	 
	
              Date:

            	  
      	 

    

    

    

    

    

    

     

    
      
        
        

      

      
        -8-EXHIBIT
10.5

       

    

    MSC INDUSTRIAL DIRECT CO., INC.

    2005
OMNIBUS EQUITY PLAN

    

    RESTRICTED
STOCK AWARD

    

     

    MSC
INDUSTRIAL DIRECT CO., INC. (the “Company”), hereby
grants to [ASSOCIATE
NAME] (the “Participant”) under
the MSC Industrial Direct Co., Inc. 2005 Omnibus Equity Plan (the “Plan”) a Restricted
Stock Award (the “Award”), pursuant to
and evidencing the grant thereof by the Compensation Committee of the Board of
Directors of the Company on October ___, 2009 (the “Award Date”) with
respect to [#
SHARES] shares of the Class A common stock, par value $.001 per share
(the “Stock”),
of the Company (the “Shares”), all in
accordance with and subject to the following terms and conditions:

     

    1.           Definitions.                                Capitalized
terms used but not defined herein shall have the meaning given to such terms in
the Plan.

     

    2.           Restrictions.  Subject
to Sections 5, 6 and 10 below, the restrictions on the applicable percentage of
Shares shall lapse, and the applicable percentage of Shares shall vest, on each
“Vesting Date” in accordance with the following schedule, provided that the
Participant remains an associate of, or in the service of, the Company (or a
subsidiary or affiliate) during the entire period (the “Restriction Period”)
commencing on the Award Date and ending the applicable Vesting
Date:

     

    
      	
              Vesting
      Date

            	
              Percentage
      of Shares Vested

            
	
              October
      ___,
      2012

            	
              50%

            
	
              October
      ___,
      2013

            	
              75%

            
	
              October
      ___,
      2014

            	
              100%

            

    

    

     

    3.           Voting and Dividend
Rights.  Upon the earlier of (i) issuance of the certificate or
certificates for the Shares in the name of the Participant or (ii) book entry
recordation of the grant by the Company’s transfer agent as provided in Section
11 hereof, the Participant shall thereupon be a shareholder with respect to all
the Shares represented by such certificate or certificates and shall have the
rights of a shareholder with respect to such Shares, including the right to vote
such Shares and to receive all dividends and other distributions paid with
respect to such Shares.  Dividends, if any, declared by the Company
during a calendar year with respect to such Shares shall be paid to the
Participant no later than the end of the calendar year in which the dividends
are declared, or, if later, the fifteenth (15th) day of the third (3rd) month
following the date such dividends are declared.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    4.           Transfer Restrictions;
Forfeitures.  This Award and the Shares (until they become
unrestricted pursuant to the terms hereof) are non-transferable and may not be
assigned, pledged or hypothecated and shall not be subject to execution,
attachment or similar process.  Upon any attempt to effect any such
disposition, or upon the levy of any such process, the Award shall immediately
become null and void and the Shares shall be forfeited.

     

    5.           Termination of Employment or
Provision of Services by Reason of Death, Disability or
Retirement.  If the Participant’s employment with or provision
of services for the Company and its Affiliates terminates by reason of death,
Disability or Retirement, the restrictions to the Shares shall forthwith
terminate.

     

    6.           Other Termination of
Employment or Provision of Services.  If the Participant’s
employment or provision of services is terminated for any reason other than
death, Disability or Retirement, the Participant shall be obligated to redeliver
such Shares that are still restricted prior to termination to the Company
immediately and the Company shall pay to the Participant, in redemption of such
restricted Shares, the amount equal to the price paid (if any) by the
Participant for such Shares.

     

    7.           Election Under Section
83(b). No later than 30 days after the date of grant of the Shares
hereunder, Participant may make an election to be taxed upon such award
under  Section 83(b) of the Internal Revenue Code of 1986, as
amended  (the “Code”).  If the Participant makes a Section
83(b) election  with respect to the Shares granted hereunder, he or
she shall provide a copy thereof to the Company within ten days of the filing of
such election with the Internal Revenue Service and shall satisfy all then
applicable Federal, state or local withholding tax obligations arising from that
election in accordance with Section 8 below.  The Participant should consult his or
her own tax advisor for information concerning the tax consequences of the grant
of an Award, the filing of a Section 83(b) election and the lapse of
restrictions with respect to the Shares.

     

    8.           Withholding
Taxes.  No later than the date as of which an amount first
becomes includible in the gross income of the Participant for Federal income tax
purposes with respect to any Award under the Plan, the Participant shall make
arrangements satisfactory to the Company regarding the payment of, any Federal,
state, local or foreign taxes of any kind required by law to be withheld with
respect to such amount. Unless the Participant elects, with respect to each
particular vesting event, to satisfy his or her withholding obligation with a
cash payment in accordance with rules established by the Administrator, the
Participant shall be deemed to have, and by his or her signature hereto hereby
does, instruct the Company to satisfy his or her withholding obligations with
Stock that is part of the Award that gives rise to the withholding
requirement.  Changes to this instruction to pay withholding
obligations in Stock (i.e., to make arrangements to pay withholding obligations
in cash) can only be made during the “trading window” prior to the vesting event
under the Company’s Insider Trading Policy.  The obligations of the
Company under the Plan shall be conditional on such payment or arrangements, and
the Company, its Subsidiaries and its Affiliates shall, to the extent permitted
by law, have the right to deduct any such taxes from any payment otherwise due
to the Participant. The Administrator may establish such procedures as it deems
appropriate for the settlement of withholding obligations with Stock or
cash.  A Participant
should consult his or her own tax advisor for more information concerning the
tax consequences of the grant of an Award.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    9.           Death of
Participant.  If any of the Shares shall vest upon the death of
the Participant, they shall be registered in the name of the estate of the
Participant unless the Company shall have theretofore received in writing a
beneficiary designation, in which event they shall be registered in the name of
the designated beneficiary.

     

    10.         Change in Control.
Upon any Change in Control as provided under the Plan, and otherwise subject to
the Plan, any restrictions applicable to Shares covered hereunder shall lapse
and such Shares shall become free of restrictions and fully vested and
transferable and shall be otherwise subject to the Plan.

     

    11.         Issuance of
Shares.  The Shares will be initially evidenced by a book entry
record maintained by the Company’s transfer agent.  Once the Shares
have vested, physical share certificates (less those needed for withholding
taxes) may be issued upon the Participant’s written request to the transfer
agent or Plan Administrator.  The Company may place on the
certificates representing the Shares such legend or legends as the Company may
deem appropriate and the Company may place a stop transfer order with respect to
such Shares with the transfer agent(s) for the Shares.

     

    12.         Effect of Amendment of
Plan.  No discontinuation, modification, or amendment of the
Plan may, without the express written consent of the Participant, adversely
affect the rights of the Participant under this Award, except as expressly
provided under the Plan.

     

    This Restricted Stock Award Agreement
(the “Agreement”) may be
amended as provided under the Plan, but except as provided thereunder any such
amendment shall not adversely affect Participant’s rights hereunder without
Participant’s consent.

     

    13.         No Limitation on Rights of
the Company.  The grant of this Award shall not in any way
affect the right or power of the Company to make adjustments, reclassifications,
or changes in its capital or business structure or to merge, consolidate,
dissolve, liquidate, sell, or transfer all or any part of its business or
assets.

     

    14.         Compliance with Applicable
Law.  Notwithstanding anything herein to the contrary, the
Company shall not be obligated to cause to be issued or delivered any
certificates for Shares, unless and until the Company is advised by its counsel
that the issuance and delivery of such certificates is in compliance with all
applicable laws, regulations of governmental authority, and the requirements of
any exchange upon which Shares are traded.  The Company shall in no
event be obligated to register any securities pursuant to the Securities Act of
1933 (as now in effect or as hereafter amended) or to take any other action in
order to cause the issuance and delivery of such certificates to comply with any
such law, regulation or requirement.  The Company may require, as a
condition of the issuance and delivery of such certificates and in order to
ensure compliance with such laws, regulations, and requirements, that the
Participants make such covenants, agreements, and representations as the
Company, in its sole discretion, considers necessary or desirable.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    15.         Agreement Not a Contract of
Employment or Other Relationship.  This Agreement is not a
contract of employment, and the terms of employment of the Participant or other
relationship of the Participant with the Company or any of its subsidiaries or
affiliates shall not be affected in any way by this Agreement except as
specifically provided herein.  The execution of this Agreement shall
not be construed as conferring any legal rights upon the Participant for a
continuation of an employment or other relationship with the Company or any of
its subsidiaries or affiliates, nor shall it interfere with the right of the
Company or any of its subsidiaries or affiliates to discharge the Participant
and to treat him or her without regard to the effect which such treatment might
have upon him or her as a Participant.

     

    16.         Notices.  Any
notice or other communication required or permitted hereunder shall be in
writing and shall be delivered personally or sent by certified, registered, or
express mail, postage prepaid, return receipt requested, or by a reputable
overnight delivery service.  Any such notice shall be deemed given
when received by the intended recipient.

     

    17.         Governing
Law.  Except to the extent preempted by Federal law, this
Agreement shall be construed and enforced in accordance with, and governed by,
the laws of the State of New York without regard to the principles thereof
relating to the conflicts of laws.

     

    18.         No Rights to Continued
Employment.  Nothing contained in the Plan shall give any
associate the right to be retained in the employment or service of the Company
or any of its subsidiaries or affiliates or affect the right of any such
employer to terminate the Participant.  The adoption and maintenance
of the Plan shall not constitute an inducement to, or condition of, the
employment or service of the Participant.  The Plan is a discretionary
plan, and participation by the Participant is purely
voluntary.  Participation in the Plan with respect to this Award shall
not entitle the Participant to participate with respect to any other
award.  Any payment or benefit paid to the Participant with respect to
this Award shall not be considered to be part of the Participant’s “salary,” and
thus, shall not be taken into account for purposes of determining the
Participant’s termination indemnity, severance pay, retirement or pension
payment, or any other employee benefits, except to the extent required under
applicable law.

     

    19.         Receipt of
Plan.  The Participant acknowledges receipt of a copy of the
Plan, and represents that the Participant is familiar with the terms and
provisions thereof, and hereby accepts this Award subject to all the terms and
provisions of this Agreement and of the Plan.  The Participant hereby
agrees to accept as binding, conclusive and final all decisions or
interpretations of the Administrator with respect to any questions arising under
this Agreement or the Plan.

     

    20.         Other Terms and
Conditions.  The foregoing does not modify or amend any terms
of the Plan.  To the extent any provisions of the Agreement are
inconsistent or in conflict with any terms or provisions of the Plan, the Plan
shall govern.

     

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

     

    IN
WITNESS WHEREOF, this Agreement has been duly executed as of
___________________.

     

    MSC
Industrial Direct Co.,
Inc.                   

    

    

    

    

    I have read, understand and agree to
abide by the terms of this Agreement, the Plan and the Associate
Confidentiality, Non-Solicitation and Non-Competition Agreement that I entered
into with the Company dated as of                                          
         ,
200      
(the “Associate Agreement”).  I hereby acknowledge that the grant of
Shares pursuant to this Agreement is consideration for my entering into and
complying with the Associate Agreement.  I understand this Agreement,
the Plan and the Associate Agreement control in all respects the terms and
conditions of the Award granted to me.

     

    In
addition, in accordance with the Company’s Executive Incentive Compensation
Recoupment Policy (the “Policy”), a copy of which I acknowledge having received
and which I have reviewed and understand, I agree to the following:

     

    (i)          I
agree, upon demand by the Company, to forfeit, return or repay to the Company
any or all of the “Award Benefits and Proceeds” if the Company determines that I
engaged in Misconduct that caused or partially caused the need for a significant
restatement of financial results, other than as a result of a change in
accounting principles (a “Restatement”).  “Misconduct” shall mean a
knowing violation of SEC rules and regulations or Company policy, as determined
by the Board or the Compensation Committee of the Board in its sole and absolute
discretion.

     

    (ii)       
 I agree, upon demand by the Company, to forfeit, return or repay to the
Company any or all of the “Award Benefits and Proceeds” if I breach or violate
any of the terms of the Associate Agreement (which also shall mean any future
Associate Agreement) following the termination of my employment with the
Company.

     

    “Award
Benefits and Proceeds” shall mean (a) to the extent that the Award has not fully
vested, all of my remaining rights under the Award, (b) to the extent that all
or any part of the Award has vested and I continue to hold shares that vested,
any such shares, and (c) to the extent that all or any part of the Award has
vested and I have disposed of shares that vested under the Award, any net
proceeds realized from such disposition (or, in the case of a gift, the fair
market value of the shares so gifted at the time of the gift); provided, that
for purposes of clause (ii) above, clauses (b) and (c) of this definition of
“Award Benefits and Proceeds” only shall apply with respect to shares that
vested during the period beginning two years before and ending two years after
the termination of my employment.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    These
provisions are subject to the limitations on the period for recoupment set forth
in the Policy and shall terminate in the event of a Change in
Control.

    

    
      	
               
      

            	 
      	
                
      

            
	
              Date

            	 
      	
              Associate
      Signature

            

    

    

    

    

    

    FOR MSC INDUSTRIAL DIRECT
CO., INC. USE ONLY

    

    ACCEPTED
BY MSC INDUSTRIAL DIRECT CO., INC.

    

    

    
      	
              By:

            	  
      	 
	 
      	
              Name:
      Danielle Fox

            	 
	 
      	
              Title:
      Sr. Compensation Analyst

            	 
	 
      	 
      	 
	 
      	 
      	 
	
              Date:

            	 
      	 

    

    

    

    

    

    

    
      
        
        

      

      
        6

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