Document:

Exhibit
      10.70

     

    BUILDING
      MATERIALS HOLDING CORPORATION

     

    Severance
      Plan for Certain Executive Officers,

    Senior
      Management and Key Employees of the

    Company
      and
      its Subsidiaries

     

    This
      Severance Plan
      (the "Plan") was adopted by the Board of Directors of BMC West Corporation,
      a
      Delaware corporation, on July 20, 1993 and was assumed by Building Materials
      Holding Corporation, a Delaware corporation (together with its predecessor,
      the
      "Company") as of September 23, 1997, for the benefit of certain executive
      officers, senior management and key employees of the Company and its
      Subsidiaries. The Plan, as amended and restated, was confirmed by the Board
      of
      Directors on February 17, 2000, May 7, 2003, May 3, 2004, May 1, 2006 and June
      28, 2006.

     

    1. Purpose

     

    The
      Company, on
      behalf of itself and its stockholders, desires to continue to attract and retain
      well-qualified executive and key personnel who are an integral part of the
      management of the Company, such as the Designated Employees, and to assure
      itself of continuity of management. The principal purposes of the Plan are
      to
      (i) provide an incentive to the Designated Employees to remain in the employ
      of
      the Company, notwithstanding any uncertainty and job insecurity which may be
      created by an actual or prospective Change in Control, (ii) encourage the
      Designated Employees' full attention and dedication to the Company currently
      and
      in the event of any actual or prospective Change in Control, and (iii) provide
      an incentive for the Designated Employees to be objective concerning any
      potential Change in Control and to fully support any Change in Control
      transaction approved by the Board of Directors.

     

    2. Definitions

     

    Terms
      not otherwise
      defined in the Plan shall have the meanings set forth in this Section
      2.

     

    (a) Cash
      Compensation.
      "Cash
      Compensation" shall mean the sum of (i) the higher of the Designated Employee's
      annual base salary (x) at the time the Notice of Termination provided for in
      Section 4(c) of the Plan is given or (y) immediately prior to a Change in
      Control, and (ii) an amount equal to the highest cash bonus paid to the
      Designated Employee under the Company's bonus program for any of such prior
      three years, and (iii) the highest amount contributed as a Company matching
      or
      profit-sharing contribution on behalf of the Designated Employee under the
      Company's 401(k) plan (or any successor plan) for any of the three fiscal years
      immediately preceding the year in which the Date of Termination occurs, and
      (iv)
      the highest amount allocated or accrued (whether or not funded) as a Company
      contribution on behalf of the Designated Employee under the Company's
      supplemental executive retirement plan (or any successor plan) for any of the
      three fiscal years immediately preceding the year in which the Date of
      Termination occurs.

     

    (b) Cause.
      For purposes of
      the Plan and any agreements entered into pursuant to the Plan only, "Cause"
      shall mean: (i) the conviction by a court of competent jurisdiction of, or
      entry
      of a plea of guilty or of no contest to, any felony involving moral turpitude
      of
      dishonesty, (ii) a willful dereliction of duty or intentional and malicious
      conduct contrary to the best interests of the Company or its business if such
      dereliction of duty or misconduct is not corrected within thirty (30) days
      after
      written notice thereof from the Company, or (iii) a refusal to perform
      reasonable services customarily performed by such Designated Employee (other
      than by reason of a Disability) if such refusal is not corrected within thirty
      (30) days after written notice thereof from the Company; provided, however,
      that
      the Designated Employee shall not be deemed to have been terminated for Cause
      unless and until there shall have been delivered to the Designated Employee
      a
      copy of a resolution duly adopted by the affirmative vote of not less than
      three-quarters of the entire membership of the Company's Board of Directors
      at a
      meeting of the Board called and held for the purpose (after reasonable notice
      to
      the Designated Employee and an opportunity for the Designated Employee, together
      with the Designated Employee's counsel, to be heard before the Board), finding
      that in the good faith opinion of the Board the Designated Employee was guilty
      of the conduct set forth above and specifying the particulars thereof in detail.
      Notwithstanding the foregoing, the Designated Employee shall have the right
      to
      contest his termination for Cause (for purposes of this Agreement) by
      arbitration in accordance with the provisions of the Plan.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (c) Change
      in
      Control.
      A "Change in
      Control" of the Company shall be deemed to have occurred if (i) there shall
      be
      consummated (x) any consolidation, merger or similar reorganization or other
      transaction involving the Company, other than a transaction in which the holders
      of the Company's Common Stock immediately prior to the transaction have the
      same
      proportionate ownership of common stock of the Company or other surviving
      corporation in the transaction immediately after the transaction, or (y) any
      sale, lease, exchange or other transfer (in one transaction or a series of
      related transactions) of all, or substantially all, of the business and/or
      assets of the Company, or (ii) the stockholders of the Company approve a plan
      or
      proposal for the liquidation or dissolution of the Company, or (iii) any
      "person" (as defined in Sections 13(d) and 14(d) of the Securities Exchange
      Act
      of 1934, as amended (the "Exchange Act"), including any group), shall become
      the
      "beneficial owner" (as defined in Rule 13d-3 under the Exchange Act), directly
      or indirectly, of thirty-five (35%) percent or more of the Company's outstanding
      Common Stock, or (iv) if for any reason a majority of the Board is not comprised
      of "Continuing Directors," where a "Continuing Director" of the Corporation
      as
      of any date means a member of the Board who (x) was a member of the Board two
      years prior to such date and at all times through such date or (y) was nominated
      for election or elected to the Board with the affirmative vote of at least
      two-thirds of the directors who were Continuing Directors at the time of such
      nomination or election; provided,
however,
      that no
      individual initially elected or nominated as a director of the Corporation
      as a
      result of an actual or threatened election contest with respect to directors
      or
      any other actual or threatened solicitation of proxies or consents by or on
      behalf of any person other than the Board shall be deemed to be a Continuing
      Director. 

     

    (d) Code.
      "Code" shall
      refer to the Internal Revenue Code of 1986, as amended from time to
      time.

     

    (e) Designated
      Employees.
      "Designated
      Employees"' shall refer to those employees of the Company and its Subsidiaries
      who are designated on Schedule A attached hereto and incorporated herein by
      reference ("Schedule A"), and such other employees of the Company and its
      Subsidiaries as the Board of Directors of the Company shall designate from
      time
      to time. The Designated Employees may be divided into certain categories for
      purposes of the Plan as set forth on Schedule A.

     

    
      
        
        

      

      
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    (f) Good
      Reason.
      A Designated
      Employee's termination of employment with the Company shall be deemed for "Good
      Reason" if any of the following events occur without the Designated Employee's
      express written consent and the Designated Employee provides his Notice of
      Termination upon or within six months after such event occurring:

     

    (i) The
      assignment to
      the Designated Employee by the Company of duties inconsistent with, or a
      substantial alteration in the nature or status of, the Designated Employee's
      responsibilities immediately prior to a Change in Control of the Company (or
      thereafter if such duties and responsibilities change following a Change in
      Control with the Designated Employee’s consent) other than any such alteration
      primarily attributable to the fact that the Company's securities are no longer
      publicly traded;

     

    (ii) A
      reduction by the
      Company in the Designated Employee's annual base salary or annual cash bonus
      opportunity as in effect on the date of a Change in Control of the Company
      or as
      in effect thereafter if such base salary and/or bonus opportunity has been
      increased;

     

    (iii) Any
      failure by the
      Company to continue in effect without substantial change any compensation,
      incentive, welfare or retirement benefit plan or arrangement, as well as any
      plan or arrangement whereby the Designated Employee may acquire securities
      of
      the Company or its publicly traded parent, in which the Designated Employee
      is
      participating at the time of a Change in Control of the Company (or any other
      plans providing the Designated Employee with substantially similar benefits)
      (hereinafter referred to as "Benefit Plans"), or the taking of any action by
      the
      Company which would adversely affect, either as to the past or prospectively,
      the Designated Employee's participation in or materially reduce or deprive
      the
      Designated Employee of the Designated Employee's benefits that were provided
      under any such Benefit Plan at the time of a Change in Control of the Company;
      unless an equitable substitute arrangement (embodied in an ongoing substitute
      or
      alternative Benefit Plan) has been made for the benefit of the Designated
      Employee with respect to the Benefit Plan in question; provided that for
      purposes of the foregoing, "Benefit Plans" shall include, but not be limited
      to,
      the Company's stock option plans, 401 (k) plan, annual bonus plan, long-term
      incentive plan, or any other plan or arrangement to receive and exercise stock
      options or stock appreciation rights, supplemental pension plan, insured medical
      reimbursement plan, automobile benefits, executive financial planning, group
      life insurance plan, personal catastrophe liability insurance, medical, dental,
      accident and disability plans; 

     

    (iv) Relocation
      to any
      place more than 25 miles from the office regularly occupied by the Designated
      Employee prior to the time of a Change in Control, except for required travel
      by
      the Designated Employee on the Company's business to an extent substantially
      consistent with the Designated Employee's business travel obligations at the
      time of a Change in Control of the Company; 

     

    
      
        
        

      

      
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    (v) Any
      material breach
      by the Company of any provision of the Plan or of any agreement entered into
      pursuant to the Plan or any other material agreement between the Company or
      any
      subsidiary and the Designated Employee; or 

     

    (vi)
      The failure by
      the Company or by any successor or assign of the Company (whether by operation
      of law or otherwise, including any surviving company in a merger or similar
      transaction involving the Company), within ten business days following a Change
      in Control to deliver to the Designated Employee an agreement expressly
      reaffirming its obligations under or agreeing to assume and comply with the
      obligations of the Company under this Plan and any agreement entered into with
      the Designated Employee pursuant to the Plan. 

     

    (g) Independent
      Director.
      "Independent
      Director" shall have the meaning ascribed to such term in the Company's Rights
      Plan as initially adopted by the Board of Directors.

     

    (h) Key
      Employee.
      "Key Employee"
      shall have the meaning ascribed to such term in Section 416(i) of the Code
      without regard to paragraph (5) thereof.

     

    3. Beneficiaries

     

    Each
      of the
      Designated Employees shall be a beneficiary of the Plan and entitled to receive
      the Benefits set forth herein. The Company and each of the Designated Employees
      will execute an agreement reiterating or incorporating the obligations and
      benefits which arise from the Plan.

     

    4. Termination
      in Connection with Change in Control

     

    (a) Termination
      of
      Employment.
      If a Change in
      Control of the Company shall have occurred while the Designated Employee is
      still an employee of the Company, the Designated Employee shall be entitled
      to
      the compensation provided in Section 5 upon the subsequent termination, within
      three years of such Change in Control, of the Designated Employee's employment
      with the Company unless such termination is as a result of (i) the Designated
      Employee's death; (ii) the Designated Employee's Disability (as defined in
      Section 4(b) below); (iii) the Designated Employee's retirement in accordance
      with the Company's retirement policies; (iv) the Designated Employee's
      termination by the Company for Cause; or (v) the Designated Employee's decision
      to terminate his employment with the Company other than for Good
      Reason. In
      addition, if,
      prior to a Change in Control, the Designated Employee's employment with the
      Company shall be terminated other than as a result of one of the circumstances
      enumerated in Section 4(a)(i) through (v), and, within three (3) months
      following the date of such termination of employment, a Change in Control shall
      occur, the Designated Employee shall be entitled to the compensation provided
      in
      Section 5, determined as if the Designated Employee’s employment had so
      terminated following a Change in Control, which compensation shall be reduced
      by
      any other severance compensation previously paid to the Designated Employee
      in
      respect of such termination of employment.

     

    (b) Disability.
      If, as a result
      of the Designated Employee's incapacity due to physical or mental illness,
      the
      Designated Employee shall have been absent from his duties with the Company
      on a
      full-time basis for six months and the Company thereafter gives the Designated
      Employee thirty (30) day's written notice of its intention to terminate his
      employment, upon the expiration of such thirty (30) day period the Company
      may
      terminate the Designated Employee's employment for "Disability" if the
      Designated Employee shall not have returned to the full-time performance of
      the
      Designated Employee's duties.

     

    
      
        
        

      

      
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    (c) Notice
      of
      Termination.
      Any purported
      termination of the Designated Employee's employment by the Company or the
      Designated Employee hereunder shall be communicated by a Notice of Termination
      given to the other party in accordance with the terms of the agreement entered
      into pursuant to the Plan. For purposes of the Plan and any agreement entered
      into pursuant hereto, a "Notice of Termination" shall mean a written notice
      which shall indicate whether or not the termination is as a result of any of
      the
      situations enumerated in Section 4(a) above and which sets forth in reasonable
      detail the facts and circumstances claimed to provide a basis for asserting
      that
      the termination of the Designated Employee's employment is or is not under
      the
      provision so indicated.

     

    (d) Date
      of
      Termination.
      "Date of
      Termination" shall mean (i) if the Designated Employee is terminated by the
      Company for Disability, thirty (30) days after the Notice of Termination is
      given to the Designated Employee (provided that the Designated Employee shall
      not have returned to the performance of the Designated Employee's duties on
      a
      full-time basis during such thirty (30) day period) or (ii) if the Designated
      Employee's employment is terminated by the Company for any other reason or
      by
      the Designated Employee, the date on which a Notice of Termination is
      given.

     

    5. Severance
      Compensation upon Termination of Employment

     

    If
      the Designated Employee's employment with the Company shall be terminated other
      than as a result of one of the circumstances enumerated in Section 4(a)(i)
      through (v) of the Plan, then the Company shall, subject to the execution and
      non-revocation of a mutual release of claims by the Designated Employee in
      the
      form set forth on Exhibit A hereto:

     

    (i) Pay
      to the
      Designated Employee as severance pay in a lump sum, in cash, on or before the
      tenth day following the Date of Termination, an amount equal to the multiple
      specified on Schedule A times the Designated Employee's Cash Compensation;
      

     

    (ii) Arrange
      to provide
      the Designated Employee, for the period (or such shorter period as the
      Designated Employee may elect) specified on Schedule A, with health and life
      insurance substantially similar to those insurance benefits which the Designated
      Employee is receiving immediately prior to either (A) the Change in Control
      or
      (B) the Notice of Termination, as elected by the Designated Employee. Benefits
      otherwise receivable by the Designated Employee pursuant to this Section 5(ii)
      shall be reduced to the extent comparable benefits are actually received by
      the
      Designated Employee during such specified period following his termination
      (or
      such shorter period elected by the Designated Employee) from a subsequent
      employer or through self-employment, and any such benefits actually received
      by
      the Designated Employee shall be reported by him to the Company;

     

    
      
        
        

      

      
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    (iii) Pay
      to the
      Designated Employee a single lump sum payment, on or before the tenth day
      following the Date of Termination, equal to the excess of (x) over (y), where
      (x) is equal to the lump sum present value of the pension benefit that the
      Designated Employee would receive under any pension plan which is or has been
      maintained by the Company and in which the Designated Employee is or was a
      participant (the "Pension Plan"), at his earliest benefit commencement date
      under the Pension Plan computed by increasing his actual number of years of
      credited service performed as of the date of his termination of employment,
      or,
      if earlier, the termination of the Pension Plan, by the number of years
      specified on Schedule A, and (y) is equal to the lump sum present value of
      the
      pension benefit actually payable to the Designated Employee on his earliest
      benefit commencement date under the Pension Plan based on the actual number
      of
      years of credited service performed as of the Designated Employee's Date of
      Termination, or, if earlier, the termination of the Pension Plan. The foregoing
      lump sum present value amounts shall be computed using the actuarial factors
      under the Pension Plan in effect on the Designated Employee's Date of
      Termination or, if earlier, the termination of the Pension Plan; 

     

    (iv) Pay
      to the
      Designated Employee, on or before the tenth day following the Date of
      Termination, an amount equal to the Designated Employee’s target or base bonus
      opportunity for the year in which the Date of Termination occurs under the
      Company’s annual cash-based incentive compensation plan, prorated by multiplying
      such amount by a fraction, the numerator of which shall be the actual number
      of
      days that have elapsed during such year prior to the Date of Termination, and
      the denominator of which shall be 365; and

     

    (v) Pay
      to the
      Designated Employee, on or before the tenth day following the Date of
      Termination, any gross-up amounts as calculated under Section 6 of the
      Plan.

     

    Notwithstanding
      the
      foregoing, in the event that the multiples set forth on Schedule A for any
      Designated Employee are greater than the number of full years remaining until
      such Designated Employee's agreed upon retirement date or normal retirement
      age
      of 65, the multiples shall be automatically reduced to the number of years
      and/or partial years (measured by months) remaining until said Designated
      Employee's retirement date. In addition, following the expiration of the health
      insurance benefits continuation provided under Section 5(ii), each Designated
      Employee who, at the time of his termination of employment, was an officer
      of
      the Company shall be eligible to participate in the Company's health care plan,
      either on an individual basis or family basis to include his dependent spouse,
      until such time as he becomes eligible to participate in the BMHC Retirement
      Health Care Plan ("Retiree Health Care Plan"), subject to such Designated
      Employee's payment of one-half of the applicable COBRA premiums. If a Designated
      Employee who, at the time of his termination of employment, was an officer
      of
      the Company shall be eligible and elects to participate in the Retiree Health
      Care Plan in accordance with its terms and conditions, such Designated Employee
      shall only be required to pay one-half of the applicable premium under the
      Retiree Health Care Plan.

     

    In
      addition, notwithstanding anything herein to the contrary, to the extent that
      the Board of Directors of the Company determines, in its sole discretion, that
      any payments or benefits to be provided hereunder to or for the benefit of
      a
      Designated Employee who is also a Key Employee would be subject to the
      additional tax imposed under Section 409A(a)(1)(B) of the Code or any other
      taxes or penalties imposed under Section 409A of the Code or a successor or
      comparable provision (the "Section 409A Taxes"), the commencement of such
      payments and/or benefits shall be delayed until the date that is six months
      following the Date of Termination or such earlier date that, as determined
      by
      the Company, is sufficient to avoid the imposition of Section 409A Taxes (such
      date is referred to herein as the "Distribution Date"). In the event that the
      Board of Directors determines that the commencement of any of the benefits
      to be
      provided under Section 5(ii) are to be delayed pursuant to the preceding
      sentence, the Company shall require the Designated Employee to bear the full
      cost of such benefits until the Distribution Date at which time the Company
      shall reimburse the Designated Employee for all such costs. If any payments
      or
      benefits are delayed pursuant to this paragraph, such delayed payments or
      benefits, when paid or reimbursed, shall be increased by an amount equal to
      interest on such payments or reimbursements for the period between the Date
      of
      Termination and the applicable Distribution Date at a rate equal to the prime
      rate in effect as of the Date of Termination plus one point (for this purpose,
      the prime rate will be based on the rate published from time to time in
The
      Wall Street Journal).

     

    
      
        
        

      

      
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        6.
          Gross-up
          Payments

      

    

     

    (a) Gross-up
      in
      Benefits For "Parachute Payment".
      In the event
      that, as a result of payments in the nature of compensation to or for the
      benefit of a Designated Employee under this Plan or otherwise in connection
      with
      a Change in Control, any state, local or federal taxing authority imposes any
      taxes on the Designated Employee that would not be imposed but for the
      occurrence of a Change in Control, including any excise tax under Section 4999
      of the Code and any successor or comparable provision (other than ordinary
      income and employment taxes imposed on such payments), then, in addition to
      the
      benefits provided for under Sections 5(i) through (iv) or otherwise (including
      Section 6(b)), the Company (including any successor to the Company) shall pay
      to
      the Designated Employee at the time any such amounts are paid an amount equal
      to
      the amount of any such tax imposed or to be imposed on the Designated Employee
      (the amount of any such payment, the "Parachute Tax Reimbursement"). In
      addition, the Company (including any successor to the Company) shall "gross
      up"
      such Parachute Tax Reimbursement by paying to the Designated Employee at the
      same time an additional amount equal to the aggregate amount of any additional
      taxes (whether income taxes, excise taxes, special taxes, additional taxes,
      employment taxes or otherwise) that are or will be payable by the Designated
      Employee as a result of the Parachute Tax Reimbursement being paid or payable
      to
      the Designated Employee and/or as a result of the additional amounts paid or
      payable to the Designated Employee pursuant to this sentence, such that after
      payment of such additional taxes the Designated Employee shall have been paid
      on
      an after-tax basis an amount equal to the Parachute Tax
      Reimbursement.

     

    (b) Gross-up
      in
      Benefits For Additional Taxes under Section 409A of the Code.
      In the event
      that, as a result of payments to or for the benefit of a Designated Employee
      under this Plan, the Designated Employee is subject to the Section 409A Taxes,
      then, in addition to the benefits provided for under Sections 5(i) through
      (iv)
      or otherwise (including Section 6(a)), the Company (including any successor
      to
      the Company) shall pay to the Designated Employee at the time any such amounts
      are paid an amount equal to the amount of any such Section 409A Tax imposed
      or
      to be imposed on the Designated Employee (the amount of any such payment, the
      "Section 409A Tax Reimbursement"). In addition, the Company (including any
      successor to the Company) shall "gross up" such Section 409A Tax Reimbursement
      by paying to the Designated Employee at the same time an additional amount
      equal
      to the aggregate amount of any additional taxes (whether income taxes, excise
      taxes, special taxes, additional taxes, employment taxes or otherwise) that
      are
      or will be payable by the Designated Employee as a result of the Section 409A
      Tax Reimbursement being paid or payable to the Designated Employee and/or as
      a
      result of the additional amounts paid or payable to the Designated Employee
      pursuant to this sentence, such that after payment of such additional taxes
      the
      Designated Employee shall have been paid on an after-tax basis an amount equal
      to the Section 409A Tax Reimbursement.

     

    
      
        
        

      

      
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    7. Arbitration

     

    The
      Company and, by
      accepting participation in the Plan, each Designated Employee agree that any
      and
      all disputes or controversies arising out of or relating to the Plan, including,
      without limitation, any claim of fraud, any agreement entered into between
      the
      parties pursuant to the Plan or the general validity or enforceability of
      either, shall be governed by the laws of the State of Delaware, without giving
      effect to its conflict of laws provisions, and shall be submitted to binding
      arbitration in accordance with the employment arbitration rules of Judicial
      Arbitration and Mediation Services ("JAMS")
      by a single
      impartial arbitrator experienced in employment law selected as follows: if
      the
      Company and the applicable Designated Employee are unable to agree upon an
      impartial arbitrator within ten (10) days of a request for arbitration, the
      parties shall request a panel of employment arbitrators from JAMS and
      alternative strike names until a single arbitrator remains. The arbitration
      shall be conducted in the city where the Designated Employee's principal office
      was maintained prior to his termination of employment, applying the laws of
      the
      State of Delaware, and the Company and, by accepting participation in the Plan,
      each Designated Employee agree to submit to the jurisdiction of the arbitrator
      selected in accordance with JAMS' rules and procedures. All fees and expenses
      of
      any arbitration, including the Designated Employee's reasonable legal fees
      and
      costs, are to be advanced by the Company. The
      Company
      and, by accepting
      participation in the Plan, each Designated Employee further
      agree that
      arbitration as provided in this Section 7 shall be the exclusive and binding
      remedy for any such dispute and will be used instead of any court action, which
      is hereby expressly waived, except for any request by either party hereto for
      temporary or preliminary injunctive relief pending arbitration in accordance
      with applicable law, or an administrative claim with an administrative
      agency,
      and that the
      award of the arbitrator, which shall include a determination based on relative
      success on the merits as to whom shall bear the Designated Employee's legal
      fees, shall be final and binding on both parties, and nonappealable. The
      arbitrator shall have discretion to award monetary and other damages, or no
      damages, and to fashion such other relief as the arbitrator deems appropriate.
      The Company will be responsible for paying any filing fees and costs of the
      arbitration proceeding itself (for example, arbitrators' fees, conference room,
      transcripts), but, except as set forth in this Section 7, each party shall
      be
      responsible for its own attorneys' fees. THE COMPANY AND EACH DESIGNATED
      EMPLOYEE ACKNOWLEDGE AND AGREE THAT BY AGREEING TO ARBITRATE, THEY ARE WAIVING
      ANY RIGHT TO BRING AN ACTION AGAINST THE OTHER IN A COURT OF LAW, EITHER STATE
      OR FEDERAL, AND ARE WAIVING THE RIGHT TO HAVE CLAIMS AND DAMAGES, IF ANY,
      DETERMINED BY A JURY.

     

    
      
        
        

      

      
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    8. Mitigation
      of Damages; Effect of Plan

     

    (a) The
      Designated
      Employee shall not be required to mitigate damages or the amount of any payment
      provided for under the Plan by seeking other employment or otherwise, nor shall
      the amount of any payment provided for under the Plan be reduced by any
      compensation earned by the Designated Employee as a result of employment by
      another employer or by retirement benefits after the Date of Termination, or
      otherwise, except to the extent provided in Section 5(ii) above.

     

    (b) The
      provisions of
      the Plan, and any payment provided for hereunder, shall not reduce any amounts
      otherwise payable, or in any way diminish the Designated Employee's then
      existing rights, or rights which would accrue solely as a result of the passage
      of time, under any Benefit Plan, employment agreement or other contract, plan
      or
      arrangement.

     

    9. Funding
      Upon Change in Control

     

    (a) Immediately
      prior
      to the occurrence of a Change in Control, the Board of Directors of the Company
      shall have the discretion to direct the Company to fund, to the extent it has
      not done so, a sum equal to the present value on the date of the Change in
      Control (determined using an interest rate equal to the short-term applicable
      federal rate (with annual compounding) established under Section 1274(d) of
      the
      Code for the month in which the Change in Control occurs) of any amounts that
      are or would reasonably be expected to become payable to the Designated
      Employees under the Plan (including a good faith estimate of expenses of the
      trust in the event that the Company does not timely pay such expenses) by
      establishing and irrevocably funding a trust for the benefit of the Designated
      Employees. The trustee of such trust shall be instructed to pay out any such
      amounts as and to the extent such amounts become payable in accordance with
      the
      terms of the Plan. 

     

    (b) The
      trust
      established under this Section 9 shall be a grantor trust described in Section
      671 of the Code. The Company shall be solely responsible for and shall directly
      pay all fees and expenses of the trust; provided, however, in the event that
      the
      Company does not pay all of the fees and expenses of the trust, the trustee
      shall have the authority to pay such fees from the assets of the
      trust.

     

    (c) Any
      payments of
      severance or other benefits by the trust established pursuant to this Section
      9
      shall, to the extent thereof, discharge the Company’s obligation to pay
      severance and other benefits under the Plan, it being the intent of the Company
      that the assets in such trust be held for the purpose of discharging any
      obligation of the Company to pay severance and other benefits under the
      Plan.

     

    (d) The
      trust
      established under this Section 9 shall not terminate until the date on which
      all
      payments and benefits to be funded out of the trust have been satisfied and
      discharged in full. Upon termination of the trust any assets remaining in the
      trust shall be returned to the Company.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    10. Term;
      Amendments; No Effect on Employment Prior to Change in
      Control

     

    (a) The
      Plan shall have
      successive two-year terms which shall be automatically renewed unless prior
      to a
      Change in Control and prior to the applicable automatic renewal date action
      is
      taken by the Board of Directors of the Company to terminate the Plan effective
      as of a renewal date. The Plan may also be amended from time to time by the
      Board of Directors of the Company; provided, however, that such amendments
      (other than amendments that are (i) intended to ensure compliance with
      applicable law or (ii) are favorable to the Designated Employees) may only
      be adopted prior to a Change in Control and shall only be effective on and
      after
      the applicable renewal date, in both cases unless agreed to and approved by
      the
      Designated Employee. Notwithstanding the foregoing, the Plan shall terminate
      three years from the date of a Change in Control and shall terminate as to
      any
      Designated Employee participating in the Plan upon the termination of the
      Designated Employee's employment with the Company based on death, Disability
      (as
      defined in Section 3(b)), mandatory retirement or Cause (as defined in Section
      1(b)) or by the Designated Employee other than for Good Reason (as defined
      in
      Section 1(e)). Termination or amendment of the Plan shall not affect any
      obligation of the Company under the Plan which has accrued and is unpaid as
      of
      the effective date of the termination or amendment. Unless and until a Change
      in
      Control shall have occurred, a Designated Employee shall not have any vested
      rights under the Plan or any agreement entered into pursuant to the
      Plan.

     

    (b) Nothing
      in the Plan
      or any agreement entered into pursuant to the Plan shall confer upon the
      Designated Employee any right to continue in the employ of the Company prior
      to
      a Change in Control of the Company or shall interfere with or restrict in any
      way the rights of the Company, which are hereby expressly reserved, to discharge
      the Designated Employee at any time prior to the date of a Change in Control
      of
      the Company for any reason whatsoever, with or without cause.

     

    (c) Notwithstanding
      anything herein or in any agreement entered into pursuant to the Plan to the
      contrary, the Board of Directors of the Company may, in its sole discretion,
      amend the Plan (which amendment shall be effective upon its adoption or at
      such
      other time designated by the Board of Directors) at any time prior to a Change
      in Control as may be necessary to avoid the imposition of the additional tax
      under Section 409A(a)(1)(B) of the Code; provided, however, that any such
      amendment shall be implemented in such a manner as to preserve, to the greatest
      extent possible, the terms and conditions of the Plan as in existence
      immediately prior to any such amendment.

     

    
      
        
        

      

      10Exhibit
      10.90

     

    AMENDED
      AND RESTATED

     

    EMPLOYMENT
      AGREEMENT

     

    This
      Employment
      Agreement (the "Agreement")
      is made and
      entered into as of this day of June 1, 2002, and amended February 23, 2004,
      June
      16, 2005 and June 28, 2006, by and between Robert E. Mellor ("Executive"),
      and Building
      Materials Holding Corporation, a Delaware corporation (the "Company").

     

    WITNESSETH

     

    WHEREAS,
      Executive
      is currently employed by the Company as its Chairman, Chief Executive Officer
      and President; 

     

    WHEREAS,
      Executive
      and the Company are parties to an Amended and Restated Senior Management and
      Key
      Employee Severance Agreement (the "Severance
      Agreement");
      and

     

    WHEREAS,
      the
      Company wishes to extend the duration of Executive's services and further
      clarify the terms and conditions of his employment by entering into this
      Agreement with Executive and Executive is willing to commit his services to
      the
      Company, on the terms and conditions set forth below.

     

    NOW,
      THEREFORE, in
      consideration of the premises and the mutual covenants herein contained,
      Executive and the Company hereto agree as follows:

     

    1.     Term

     

    This
      Agreement
      shall commence on the date hereof, and shall continue in effect for an initial
      5-year period (the "Initial
      Term").
      Upon completion
      of the Initial Term, the term of this Agreement shall be automatically extended
      for a two-year period. The Initial Term and the two-year extension are referred
      to in this Agreement as the "Employment
      Term".

     

    2.     Employment

     

    2.1 Engagement.
      The Company
      hereby employs Executive and Executive hereby agrees to be employed by the
      Company, subject to the terms and conditions herein set forth. During the
      Initial Term and any extended term, Executive shall be employed as Chief
      Executive Officer and Chairman of the Company, and shall be responsible for
      the
      duties normally and customarily attendant to such offices. Executive shall
      render such other services and duties of an executive nature consistent with
      the
      duties of a senior executive officer of the Company as may from time to time
      be
      designated by the Board of Directors (the "Board").

     

    2.2 Exclusive
      Employment.
      During the
      Employment Term, Executive shall devote his full business time to his duties
      and
      responsibilities set forth in Section 2.1. Without limiting the generality
      of
      the foregoing, Executive shall not, without the prior written approval of the
      Board, during the Employment Term, render services of a business, professional
      or commercial nature to any other person, firm or corporation, whether for
      compensation or otherwise, except that Executive may engage in civic,
      philanthropic and community service activities so long as such activities do
      not
      materially interfere with Executive’s ability to comply with this Agreement and
      are not otherwise in conflict with the policies or interest of the Company,
      and
      Executive may serve on the board of directors of two companies without Company
      approval.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    3.     Compensation
      and General Benefits

     

    3.1 Base
      Salary.
      During the term
      of this Agreement, the Company shall pay Executive a base salary in an
      annualized amount equal to five hundred fifty thousand dollars ($750,000)
      ("Base
      Salary")
      payable pro rata
      on the Company's regular payday, and subject to adjustment as hereinafter
      provided.

     

    3.2 Salary
      Reviews.
      Executive's Base
      Salary shall be reviewed annually by the Compensation Committee of the Board
      for
      the purpose of considering increases thereof. In conducting this review, the
      Compensation Committee of the Board shall consider appropriate factors,
      including, without limitation, Executive's performance, the Company's financial
      condition and compensation afforded to senior executives of comparable
      corporations. The Base Salary shall not be decreased without the written consent
      of Executive.

     

    3.3 Bonus.

     

    (a) During
      the
      Employment Term, in addition to the Base Salary provided by Section 3.1,
      Executive will participate in the Company's Annual CEO Incentive Plan (the
      "Annual
      Bonus
      Plan"),
      pursuant to
      which Executive shall be eligible to receive additional incentive compensation
      on an annual basis based upon meeting targeted objectives as determined annually
      by the Compensation Committee of the Board. The range of the annual base bonus
      shall be 0% to 200% of Base Salary with the base bonus set at 100% of Base
      Salary if Executive meets the targeted objectives. 

     

    (b) During
      the
      Employment Term, in addition to the Base Salary and Annual Bonus Plan, Executive
      shall participate in the Company's Long-Term Incentive Plan (the "LTIP")
      pursuant to
      which Executive shall be eligible to receive additional incentive compensation
      under the LTIP of from 0% to 160% of Base Salary based upon meeting targeted
      objectives determined for each three-year period in the LTIP and in accordance
      with its terms, with such participation set at 80% of Base Salary if the
      targeted objectives under the LTIP are met. Payments of awards under the LTIP
      shall be made in accordance with the terms set forth in the LTIP as amended
      from
      time to time.

     

    3.4 Vacation.
      Executive shall
      be entitled to four weeks paid vacation in any fiscal year during the Employment
      Term in accordance with Company vacation and leave policies. Vacation time
      shall
      be planned and taken consistent with Executive's duties and obligations
      hereunder.

     

    3.5 Other
      Benefits.
      During the
      Employment Term, Executive (and his spouse and dependents) shall be entitled
      to
      participate in the Company's executive perquisite plan, supplemental retirement
      plan, liability insurance, life insurance, disability insurance, dental
      insurance, hospitalization insurance, medical, accident, and other employee
      benefit plans from time to time adopted by the Company. The Company shall have
      the right to change insurance carriers and benefit plans as may be appropriate
      in light of future market conditions and shall have the right to purchase
      individual policies covering Executive if necessary. 

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    3.6 Stock
      Incentive
      Plans.
      Executive shall
      also be eligible to receive additional incentive compensation in the form of
      stock option or restricted stock grants. Review for any such grant shall be
      concurrent with Executive's annual salary review and shall be in the sole
      discretion of the Compensation Committee of the Board. 

     

    3.7 Reimbursement
      of
      Expenses.
      Upon submission
      of appropriate documentation in accordance with Company policy, the Company
      will
      promptly reimburse Executive for all reasonable business expenses incurred
      by
      Executive in pursuing the business of the Company, including, without
      limitation, expenditures for entertainment and travel.

     

    4.     Confidential
      Information

     

    During
      the term of
      this Agreement and forever thereafter, Executive agrees to keep confidential
      all
      information provided by the Company, excepting any such information as is
      already known to the public, and including any such information and material
      relating to any customer, vendor, licensor, licensee, or other party transacting
      business with the Company, and not to release, use, or disclose the same, except
      with the prior written permission of the Company. Executive further covenants
      and agrees that every document, computer disk, computer software program,
      notation, record, diary, memorandum, development, investigation, or the like,
      and any method or manner of doing business, of the Company (or containing any
      other secret or confidential information of the Company) made or acquired by
      Executive during his employment, is and shall be the sole and exclusive property
      of the Company.

     

    5.     Covenants
      of Executive.
      

     

    5.1 Non-Compete.
      Executive agrees
      that, during the Employment Term and for a period of one year following a
      termination of employment other than following a Change in Control (as defined
      in the Severance Agreement), he will not, directly or indirectly, engage in
      any
      business or activity competitive with the business activities of the Company.
      The foregoing shall not apply to passive investments by Executive of up to
      5% of
      the outstanding stock of any publicly traded company or to service by Executive
      on boards of directors of companies as permitted under this Agreement,
      regardless of whether such company competes with the Company.

     

    5.2 Solicitation
      of
      Employees.
      During the
      Employment Term and for a period of one year following a termination of
      employment other than following a Change in Control, (i) he shall not, directly
      or indirectly, individually, or together through any other person, firm,
      corporation or entity, hire any member of senior management of the Company
      (defined as an officer with a title of vice president or higher) who is then
      in
      the employ of the Company, or (ii) solicit for hire any employee of the Company,
      provided, however, that general solicitations not targeted to Company employees
      shall not be deemed to violate this clause (ii).

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    5.3 Solicitation
      of
      Customers and Suppliers.
      Executive agrees
      that, during the Employment Term and for a period of one year following a
      termination of employment other than following a Change in Control , he shall
      not, directly or indirectly, individually, or together through any other person,
      firm, corporation or entity, (i) use the Company's Confidential Information
      to
      solicit the business of any material customers of or supplies to the Company,
      or
      (ii) discourage any person or entity which is a customer of the Company from
      continuing its existing business or contractual relationship with the Company.
      

     

    5.4 Compliance
      with
      Company Policies.
      Executive agrees
      that, during the Employment Term, he shall comply with the Company's employee
      manual and other policies and procedures reasonably established by the Company
      from time to time concerning matters such as management, supervision,
      recruiting, diversity, and sexual harassment.

     

    5.5 Cooperation.
      For a period of
      three years following his termination of employment under this Agreement, he
      shall, upon Company’s reasonable request and in good faith and with his best
      efforts, subject to his reasonable availability, cooperate and assist Company
      in
      any dispute, controversy, or litigation in which Company may be involved and
      with respect to which Executive obtained knowledge while employed by the Company
      or any of its affiliates, successors, or assigns, including, but not limited
      to,
      his participation in any court or arbitration proceedings, giving of testimony,
      signing of affidavits, or such other personal cooperation as counsel for the
      Company shall request. Any such activities shall be scheduled, to the extent
      reasonably possible, to accommodate Executive’s business and personal
      obligations at the time. The Company shall pay Executive’s reasonable travel and
      incidental out-of-pocket expenses incurred in connection with any such
      cooperation, as well as the reasonable costs of an attorney Executive engages
      to
      advise him in connection with the foregoing.

     

    5.6 Return
      of
      Business Records and Equipment.
      Upon termination
      of Executive's employment hereunder, Executive shall promptly return to the
      Company: (i) all documents, records, procedures, books, notebooks, and any
      other
      documentation in any form whatsoever, including but not limited to written,
      audio, video or electronic, containing any information pertaining to the Company
      which includes confidential information, including any and all copies of such
      documentation then in Executive's possession or control regardless of whether
      such documentation was prepared or compiled by Executive, Company, other
      employees of the Company, representatives, agents, or independent contractors,
      and (ii) all equipment or tangible personal property entrusted to Executive
      by
      the Company. Executive acknowledges that all such documentation, copies of
      such
      documentation, equipment, and tangible personal property are and shall at all
      times remain the sole and exclusive property of the Company.

     

    6.     Covenants
      of the Company

     

    6.1 Indemnification.
      In the event
      Executive is made, or threatened to be made, a party to any legal action or
      proceeding, by reason of the fact that Executive is or was an employee, director
      or officer of the Company or serves or served any other entity in any capacity
      at the Company's request, Executive shall be indemnified by the Company, and
      the
      Company shall pay Executive's related expenses when and as incurred, including
      but not limited to attorney fees, all to the fullest extent permitted by
      law.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    6.2 Change
      in
      Control.
      During the
      Employment Term, the Company shall continue in full force and effect with
      respect to Executive, the Severance Agreement, as amended from time to time
      in
      accordance with the terms thereof. The Severance Agreement shall control the
      compensation and benefits to be received by Executive in the event of a Change
      in Control (as defined in the Severance Agreement). 

     

    6.3 Supplemental
      Retirement Program.
      The Company shall
      establish for Executive and make contributions to fund an additional defined
      contribution supplemental retirement program (the "SRIP"),
      designed to
      provide Executive with a retirement annuity, at age 65, in an amount, taken
      together with other pension and social security benefits to which Executive
      may
      be entitled at age 65, equal to 35% of his final average compensation from
      Base
      Salary and Annual Bonus for the last three years of his employment. The SRIP
      shall be based on the assumptions set forth on Schedule 1 to this Agreement.
      The
      annual benefit will be reduced if Executive's employment terminates before
      2008,
      unless, subject to approval of by the Board, such termination occurs as a result
      of a termination of employment by the Company without Cause or Executive for
      Good Reason either following or 3 months prior to a Change in Control. The
      annual contribution shall be calculated each year, and Executive acknowledges
      that the amount of the contribution will likely be different from the amounts
      shown in Schedule 1. Executive further acknowledges that the contribution will
      vary based on the performance of the Company and whether Executive meets or
      exceeds targeted bonus levels under the Annual Bonus Plan. LTIP participation
      shall not be included in calculating average compensation above.

     

    7.     Compensation
      and Benefits Upon Termination Other than in Connection with a Change in
      Control.

     

    7.1 Termination
      Upon
      Death.
      If Executive dies
      prior to the expiration of the Employment Term, the Company shall pay to
      Executive's estate, or other designated beneficiary(s) as shown in the records
      of the Company, any earned but unpaid Base Salary, a pro-rata amount of the
      annual bonus that Executive would be eligible to receive under the Company's
      Annual Bonus Plan for the year in which Executive's death occurs, LTIP benefits
      in accordance with the terms of the LTIP, accrued benefits under the SRIP and
      any other benefits that Executive is entitled to receive as of the Date of
      Termination under applicable benefit plans of the Company,
      less standard
      withholdings for tax and social security purposes. Except as required by law,
      after the Date of Termination, the Company shall have no obligation to make
      any
      other payment, including severance or other compensation, of any kind to
      Executive’s estate upon a termination of employment by death. 

     

    7.2 Termination
      Upon
      Disability.
      The Company may
      terminate Executive's employment in the event Executive suffers a Disability.
      In
      the event that Executive's employment is terminated pursuant to this
      Section 7.2, Executive shall receive payment for any earned and unpaid Base
      Salary, a pro-rata amount of the annual bonus that Executive would be eligible
      to receive under the Company's Annual Bonus Plan for the year in which such
      termination occurs, LTIP benefits in accordance with the terms of the LTIP,
      accrued benefits under the SRIP, and any other benefits that Executive is then
      entitled to receive under applicable benefit plans of the Company, less standard
      withholdings for tax and social security purposes.
      Except
      as required
      by law,
      after
      the Date of
      Termination, no other compensation of any kind or severance or other payment
      of
      any kind or payment in lieu of notice shall be payable by the Company to
      Executive upon a termination of employment for Disability. 

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    7.3 Voluntary
      Termination.
      Executive
      may
      voluntarily terminate his employment with the Company at any time upon 90 days'
      prior written notice. The Company may accelerate the termination of Executive's
      employment and the right to any further compensation to a date prior to the
      90th
      day upon written notice thereof being delivered to Executive by the Company.
      In
      the event that Executive's employment is terminated under this Section 7.3,
      Executive shall receive payment for any earned and unpaid Base Salary, and
      benefits the Executive is entitled to receive under the employee benefit plans
      of the Company, but excluding bonuses otherwise payable under the Company's
      Annual Bonus Plan, less standard withholdings for tax and social security
      purposes, through the Date of Termination. Except
      as required
      by law,
      after
      the Date of
      Termination the Company shall have no further obligation to pay any compensation
      of any kind or severance payment of any kind nor to make any further payment
      in
      lieu of notice to Executive. 

     

    7.4 Termination
      for
      Cause.
      The Board may
      terminate Executive's employment with the Company at any time for Cause. In
      the
      event that Executive's employment is terminated under this Section 7.4,
      Executive shall receive payment for all earned but unpaid Base Salary, and
      benefits the Executive is then entitled to receive under the employee benefit
      plans of the Company, but excluding bonuses otherwise payable under the
      Company's Annual Bonus Plan, less standard withholdings for tax and social
      security purposes, through the Date of Termination. Except
      as required
      by law,
      after
      the Date of
      Termination the Company shall have no further obligation to pay any severance
      or
      compensation of any kind nor to make any payment in lieu of notice to Executive.
      Except as required by law, all benefits provided by the Company to Executive
      under this Agreement or otherwise shall cease as of the Date of Termination.
      

     

    7.5 Termination
      Without Cause.
      The Company may,
      at any time and without prior written notice, terminate Executive without Cause.
      In the event that Executive's employment with the Company is terminated without
      Cause, Executive shall receive (i) payment for all earned but unpaid Base
      Salary, and benefits the Executive is then entitled to receive under benefit
      plans of the Company, if any, less standard withholdings for tax and social
      security purposes, through the Date of Termination; (ii) within 90 days after
      execution by Executive of a mutual release of claims, payment in a lump sum
      of
      an amount equal to 36 months of Executive's then current Base Salary if the
      termination occurs during the first 24 months of the Initial Term, 24 months
      of
      Executive's then current Base Salary if the termination occurs during the last
      36 months of the Initial Term, and 12 months if the termination occurs during
      any renewal period or if the Agreement is not renewed at the end of the Initial
      Term, in each case less standard withholdings for tax and social security
      purposes; (iii) payment of a pro-rata amount of the Annual Bonus that
      Executive would be eligible to receive under the Company's Bonus Plan for the
      year in which the termination occurs; (iv) payment of amounts accrued under
      the
      LTIP in accordance with the terms of the LTIP; (v) if, and only if permitted
      under the terms of the Company's plans, continuation of Executive's
      participation in the Company's medical and health insurance plans during the
      period he is to receive severance compensation and assuming Executive is
      eligible and elects COBRA, payment on Executive's behalf of continuation
      premiums for health insurance under Federal or State COBRA for a period of
      18
      months following the date that severance payments cease; (vi) acceleration
      of
      the vesting of a portion of any unvested stock options in the amount
      that would
      have become
      vested at the end of the calendar year in which the termination occurred; and
      (vii) payment of the annual contribution to the SRIP for the calendar year
      in
      which the termination occurs. No other compensation of any kind or severance
      or
      other payment of any kind shall be payable by the Company to Executive after
      such Date of Termination. Except as specifically provided in this Section 7.5
      and except as required by law, all benefits provided by the Company to Executive
      under this Agreement or otherwise shall cease as of the Date of
      Termination.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    7.6 Termination
      for
      Good Reason.
      Notwithstanding
      anything in this Section 7 to the contrary, Executive may voluntarily terminate
      his employment with the Company and receive the benefits detailed in Section
      7.5
      upon or within 180 days following the occurrence of an event constituting Good
      Reason.

     

    7.7 Termination
      Following a Change in Control.
      If the employment
      of Executive is terminated within the period commencing 3 months prior to a
      Change in Control and ending 3 years following a Change in Control, the
      provisions of this Section 7 shall not apply and all payments shall be made
      in
      accordance with the provisions of the Severance Agreement, except that, subject
      to the approval of the Board, in the event such termination occurs as a result
      of a termination of employment by the Company without Cause or by Executive
      for
      Good Reason, Executive shall also be entitled to (i) payment of the annual
      contribution to the SRIP for the calendar year in which the termination occurs
      and (ii) payment of an additional contribution to the SRIP in an amount
      necessary to ensure that the anticipated target benefit provided to Executive
      under the SRIP (i.e. 35% of his final average compensation from Base Salary
      and
      Annual Bonus for the last three years of his employment) is fully funded as
      of
      the date of such termination. 

     

    7.8 Certain
      Definitions.
      For purposes of
      this Agreement, the following term shall have the meanings set forth
      below.

     

    (a) "Cause"
      shall mean that
      Executive shall: (i) commit an act of fraud, embezzlement or misappropriation
      involving the Company; (ii) be convicted by a court of competent jurisdiction
      of, or enter a plea of guilty of no contest to, any felony involving moral
      turpitude or dishonesty; (iii) commit an act, or fail to commit an act,
      involving the Company which amounts to, or with the passage of time would amount
      to, willful misconduct, gross negligence or a breach of this Agreement and
      which
      results or will result in material harm to the Company, if such act is not
      corrected within 30 days following receipt written notice thereof from the
      Company; or (iv) willfully fail to perform the responsibilities and duties
      specified herein for a period of 30 days following receipt of written notice
      from the Company which specifically describes past instances of willful failure
      of performance; provided that in the case of (iv) above, during the 30-day
      period following receipt of such notice, Executive shall be given the
      opportunity to take reasonable steps to cure any such claimed past failure
      of
      performance; provided, however, that Executive shall not be deemed to have
      been
      terminated for Cause unless and until there shall have been delivered to
      Executive a copy of a resolution duly adopted by the affirmative vote of not
      less than three-quarters of the entire membership of the Board at a meeting
      of
      the Board called and held for the purpose (after reasonable notice to Executive
      and an opportunity for Executive, together with Executive 's counsel, to be
      heard before the Board), finding that in the good faith opinion of the Board
      Executive was guilty of the conduct set forth above and specifying the
      particulars thereof in detail. Notwithstanding the foregoing, Executive shall
      have the right to contest his termination for Cause (for purposes of this
      Agreement) by arbitration in accordance with the provisions of this
      Agreement.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    (b) "Date
      of
      Termination"
      shall mean
      (i) if Executive is terminated by the Company for Disability, 30 days after
      written notice of termination is given to Executive (provided that Executive
      shall not have returned to the performance of his duties on a full-time basis
      during such 30-day period) or (ii) if Executive's employment is terminated
      by the Company for any other reason or by Executive, the date on which a written
      notice of termination, specifying in reasonable detail the facts and
      circumstances claimed to provide a basis for termination of Executive's
      employment is given; provided that, in the case of a termination for Cause,
      Executive shall not have cured the matter or matters stated in the notice of
      termination within the 10-day notice period provided in Section 7.8(a)
      above.

     

    (c) "Disability"
      shall mean a
      physical or mental disability that renders Executive unable, as determined
      in
      good faith by a licensed physician, to perform the essential functions of his
      position, even with reasonable accommodation, for 180 days within any 12-month
      period. The Company and Executive or his legal representative shall use their
      best efforts to agree on the physician to determine disability. If they cannot
      agree within 10 days after the first party makes a written proposal stating
      the
      name of a physician, then the other party shall select a physician within 10
      days and within 10 days thereafter the two physicians shall select a third
      physician. All such physicians must be board certified in the medical area
      giving rise to the alleged disability. The determination of the third physician
      shall be final and binding. If one party fails to select a physician within
      the
      10-day period, the physician named by the other party shall make the
      determination of disability. 

     

    (d) "Good
      Reason"
      shall mean
      Executive's resignation from employment within 180 days after the occurrence
      of
      one of the following events without Executive’s express written consent:

     

    (i)
      a change of
      Executive's title as Chief Executive Officer or a material reduction in
      Executive's responsibilities or the assignment to Executive by the Company
      of
      duties inconsistent with his position as Chief Executive Officer; 

     

    (ii)
      a reduction in
      his Base Salary or participation in the Annual Bonus Plan or other employee
      benefit plans described in this Agreement;

     

    (iii)
      a relocation
      to any place more than 25 miles from the office regularly occupied by Executive,
      except for reasonably required travel by Executive on the Company's business;
      

     

    (iv)
      any material
      breach by the Company of any provision of this Agreement or any other material
      agreement between the Company or any subsidiary and Executive; or 

     

    (v)
      the failure by
      the Company or by any successor or assign of the Company (whether by operation
      of law or otherwise, including any surviving company in a merger or similar
      transaction involving the Company), within ten business days following a Change
      in Control, to deliver to Executive an agreement expressly reaffirming its
      obligations under or agreeing to assume and comply with the obligations of
      the
      Company under this Agreement.

    

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    8.     Warranties
      and Representations.
      Executive hereby
      represents and warrants to the Company that he is not now under any obligation
      of a contractual or quasi-contractual nature known to him that is inconsistent
      or in conflict with this Agreement or that would prevent, limit or impair the
      performance by Executive of his obligations hereunder; and has been or has
      had
      the opportunity to be represented by legal counsel in the preparation,
      negotiation, execution and delivery of this Agreement and understands fully
      the
      terms and provisions hereof

     

    9.     Notices

     

    All
      notices
      required or permitted to be given by either party hereunder shall be in writing
      and shall be deemed sufficiently given if mailed by registered or certified
      mail, or personally delivered to the party entitled thereto at the address
      stated below, or to such changed address as the addressee may have given by
      a
      similar notice:

     

    

    
      	
              To
                the
                Company:

            	
              Building
                Materials Holding Corporation

              Four
                Embarcadero Center, Suite 3250

              San
                Francisco, California 94111

              Attn:
                Chairman of the Compensation Committee 

              Fax:
                (415)
                627-9119

            
	 	 
	
              With
                a Copy
                to:

            	
              Building
                Materials Holding Corporation

              720
                Park
                Blvd., Suite 200

              P.O.
                Box
                7006

              Boise,
                Idaho,
                83707

              Fax:
                (208)
                387-4367

              Attention:
                Paul Street, Esq.

            
	 	 
	
              To
                Executive:

            	
              Robert
                E.
                Mellor

              Building
                Materials Holding Corporation

              Four
                Embarcadero Center, Suite 3250

              San
                Francisco, California 94111

              Telecopier:
                (415) 627-9119

            
	 	 

    

     

    10.     General
      Provisions

     

    10.1 Waiver.
      No waiver by any
      party hereto of any failure of any other party to keep or perform any covenant
      or condition of this Agreement shall be deemed to be a waiver of any preceding
      or succeeding breach of the same, or any other covenant or
      condition.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    10.2 Amendments.
      No provision of
      this Agreement may be amended, modified or waived unless such amendment,
      modification or waiver shall be agreed to in writing and signed by Executive
      and
      a duly authorized officer of the Company.

     

    10.3 Severability.
      The provisions of
      this Agreement are severable and in the event that a court of competent
      jurisdiction determines that any provision of this Agreement is in violation
      of
      any law or public policy, in whole or in part, only the portions of this
      Agreement that violate such law or public policy shall be stricken. All portions
      of this Agreement that do not violate any statute or public policy shall not
      be
      affected thereby and shall continue in full force and effect. Further, any
      court
      order striking any portion of this Agreement shall modify the stricken terms
      as
      narrowly as possible to give as much effect as possible to the intentions of
      the
      parties under this Agreement.

     

    10.4 Assignment.
      No right to or
      interest in any payments shall be assignable by either party; provided; however,
      that this provision shall not preclude Executive from designating one or more
      beneficiaries to receive any amount that may be payable after his death and
      shall not preclude his executor or administrator from assigning any right
      hereunder to the person or persons entitled hereto. Further, the Company may
      assign this Agreement: (a) to an affiliate so long as such affiliate assumes
      the
      Company's obligations hereunder, or (b) in connection with a merger or
      consolidation involving the Company or a sale of substantially all its assets
      or
      shares to the surviving corporation or purchaser as the case may be so long
      as
      such assignee assumes the Company's obligations hereunder.

     

    10.5 Successors
      and
      Assigns.
      This Agreement
      and the obligations of the Company and Executive hereunder shall be binding
      upon
      and shall be assumed by their respective successors including, without
      limitation, any corporation or corporations acquiring the Company, whether
      by
      merger, consolidation, sale or otherwise.

     

    10.6 Governing
      Law.
      The validity,
      interpretation, performance, and enforcement of this Agreement shall be governed
      by the laws of the State of California without regard to the principles of
      conflict of laws thereof.

     

    10.7 Attorney's
      Fees
      and Costs.
      If any action at
      law or in equity is necessary to enforce or interpret the terms of this
      Agreement, the prevailing party shall be entitled to reasonable attorneys'
      fees,
      costs, and necessary disbursements in addition to any other relief to which
      that
      party may be entitled. This provision shall be construed as applicable to the
      entire contract.

     

    10.8 No
      Representation.
      No officer,
      employee or representative of the Company has any authority to make any
      representation or promise in connection with this Agreement or the subject
      matter hereto which is not contained herein, and Executive agrees that he has
      not executed this Agreement in reliance upon any such representation or
      promise.

     

    10.9 Interpretation
      of Agreement.
      Each of the
      parties has been represented by counsel in the negotiation and preparation
      of
      this Agreement. The parties agree that this Agreement is to be construed as
      jointly drafted. Accordingly, this Agreement will be construed according to
      the
      fair meaning of its language, and the rule of construction that ambiguities
      are
      to be resolved against the drafting party will not be employed in the
      interpretation of this Agreement.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    10.10 Headings.
      The headings of
      sections and subsections are included solely for convenience of reference and
      shall not control the meaning or interpretation of any of the provisions of
      this
      Agreement.

     

    10.11 Entire
      Agreement.
      This document
      constitutes the entire understanding and Agreement of the parties with respect
      to the subject matter of this Agreement, and any and all prior agreements,
      understandings and representations are hereby terminated and cancelled in their
      entirety and are of no further force or effect.

     

    10.12 Counterparts.
      This Agreement
      may be executed in two or more counterparts with the same effect as if the
      signatures to all such counterparts was upon the same instrument, and all such
      counterparts shall constitute but one instrument.

     

    10.13 Remedies. In
      view of the
      position of confidence which Executive will enjoy with the Company and the
      anticipated relationship with the clients, customers, and employees of the
      Company and its affiliates pursuant to his employment hereunder, and recognizing
      both the access to confidential financial and other information which Executive
      will have pursuant to his employment, Executive expressly acknowledges that
      the
      restrictive covenants set forth in Section 5 are reasonable and necessary in
      order to protect and maintain the proprietary interests and other legitimate
      business interests of the Company and its affiliates. Executive further
      acknowledges that (1) it would be difficult to calculate damages to the Company
      and its affiliates from any breach of his obligations under this Section 5,
      (ii)
      that injury to the Company and its affiliates from any such breach would be
      irreparable and impossible to measure, and (iii) that the remedy at law for
      any
      breach or threatened breach of Section 5 would therefore be an inadequate remedy
      and, accordingly, the Company shall, in addition to all other available remedies
      (including without limitation seeking such damages as it can show it and its
      affiliates has sustained by reason of such breach and/or the exercise of all
      other rights it has under this Agreement), be entitled to injunctive and other
      similar equitable remedies.

     

    10.14 No
      Mitigation of
      Damages.
      Executive shall
      not be required to mitigate damages or the amount of any payment provided for
      under this Agreement by seeking other employment or otherwise, nor shall the
      amount of any payment provided for under this Agreement be reduced by any
      compensation earned by Executive as a result of employment by another employer
      or by retirement benefits after the Date of Termination, except as specifically
      provided hereunder. The provisions of this Agreement, and any payment provided
      for hereunder, shall not reduce any amounts otherwise payable, or in any way
      diminish the Executive's then existing rights, or rights which would accrue
      solely as a result of the passage of time, under any Company benefit plan or
      other contract, plan or arrangement.

     

    10.15 Dispute
      Resolution and Binding Arbitration.
      Executive and the
      Company agree that in the event a dispute arises concerning or relating to
      Executive's employment with the Company, or any termination therefrom, such
      dispute shall be submitted to binding arbitration in accordance with the
      employment arbitration rules of Judicial Arbitration and Mediation Services
      ("JAMS")
      by a single
      impartial arbitrator experienced in employment law selected as follows: if
      the
      Company and Executive are unable to agree upon an impartial arbitrator within
      10
      days of a request for arbitration, the parties shall request a panel of
      employment arbitrators from JAMS and alternatively strike names until a single
      arbitrator remains. The arbitration shall take place in San Francisco,
      California, and both Executive and the Company agree to submit to the
      jurisdiction of the arbitrator selected in accordance with JAMS' rules and
      procedures. Except as set forth in Section 10.13 hereof, Executive and the
      Company further agree that arbitration as provided for in this section will
      be
      the exclusive and
      binding remedy
      for any such dispute and will be used instead of any court action, which is
      hereby expressly waived, except for any request by either party hereto for
      temporary or preliminary injunctive relief pending arbitration in accordance
      with applicable law, or an administrative claim with an administrative
      agency,
      and that the
      award of the arbitrator shall be final and binding on both parties, and
      nonappealable. The arbitrator shall have discretion to award monetary and other
      damages, or no damages, and to fashion such other relief as the arbitrator
      deems
      appropriate. The Company will be responsible for paying any filing fees and
      costs of the arbitration proceeding itself (for example, arbitrators' fees,
      conference room, transcripts), but each party shall be responsible for its
      own
      attorneys' fees. THE COMPANY AND EXECUTIVE ACKNOWLEDGE AND AGREE THAT BY
      AGREEING TO ARBITRATE, THEY ARE WAIVING ANY RIGHT TO BRING AN ACTION AGAINST
      THE
      OTHER IN A COURT OF LAW, EITHER STATE OR FEDERAL, AND ARE WAIVING THE RIGHT
      TO
      HAVE CLAIMS AND DAMAGES, IF ANY, DETERMINED BY A JURY.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the parties have executed this Agreement as of the day and
      year
      first above written.

     

    

    
      	
              _________________________

              Robert
                E.
                Mellor

            	
              BUILDING
                MATERIALS HOLDING CORPORATION

            
	 	
              By:
                 

            
	 	
              Title:
                _________________________

            
	 	 

    

     

    

    
      
        
        

      

      
        12

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