Document:

September 7, 2011

 

Ms. Kristin Savilia

 

Re: New Terms of Employment

 

Dear Kristin:

 

It gives me great pleasure to confirm the terms by which XO
Group Inc. (the “Company”) will continue your employment as the Executive Vice President, Local Enterprise,
reporting to the Chief Executive Officer. You will perform those services that are reasonably associated with this title and position
and those services reasonably assigned to you and that are commensurate with your position. You will serve as an executive officer
of the Company based on your continued designation as such by the Board of Directors.

 

The terms of this agreement are effective as of September 1,
2011 unless otherwise specified. This agreement supersedes the terms contained in your letter of employment dated March 3, 2010.

 

Base Salary

 

Your annualized base salary is $320,000 (“Base Salary”),
which will be paid semi-monthly, on the 15th and on the last workday of the month. The Compensation Committee of the Board of Directors
will review your Base Salary annually for potential adjustments based on your performance and other factors. Your Base Salary will
be subject to withholding of income, social security and employment taxes in accordance with the Company’s normal practices.

 

Incentive Compensation

 

The amount of your 2011 bonus potential will continue to be
determined according to the Company’s achievement of local enterprise revenue targets established by the Chief Executive
Officer, as in effect on the date hereof.

 

Beginning in 2012, you will participate in the Company’s
incentive compensation program for executive officers, which is currently the Long-Term Incentive Plan, as determined by the Compensation
Committee. The payment of incentive compensation will be subject to the terms and conditions of the incentive compensation program
for executive officers, as may be in effect from time to time, including the Long-Term Incentive Plan, and is payable following
the completion of the Company’s annual audit and approval by the Compensation Committee. The incentive compensation is not
guaranteed and is completely discretionary; you may receive the payment of incentive compensation in one year but not the next.

 

Other Compensation

 

You will be eligible to participate in future incentive compensation
programs for executive officers, if and when such programs are established by the Compensation Committee, at a level commensurate
with your position at the time awards are granted and on the same general terms and conditions as apply to the other executive
officers of the Company. In addition, in no event will the terms of equity awards granted to you with respect to accelerated vesting
upon a “change in control” be less favorable than the terms made available to any other executive officer, and the
Company will cause any award to be modified if and as necessary to carry out this provision.

 

    	 

    	 

    

 

Ms. Kristin Savilia

September 7, 2011

Page 2

 

Severance

 

If your employment is involuntarily terminated without cause
by the Company or a successor entity, or if you resign for “Good Reason,” you shall receive a lump-sum payment equal
to your annualized Base Salary, at your rate of pay in effect immediately prior to such termination or resignation, and for 12
months after such termination or resignation receive all benefits (other than vesting of any equity award) that were associated
with your employment immediately prior to such termination or resignation (to the extent and at such levels that these benefits
remain available to employees of the Company generally during such 12-month period). The Company shall pay the lump-sum payment
in connection with an involuntary termination without cause upon such termination, and the lump-sum payment in connection with
a Good Reason resignation within 10 business days of the end of the Cure Period, as defined below.

 

An involuntary termination “without cause” shall
mean a termination of employment other than for death, disability, termination for Cause or any resignation by you other than a
resignation for Good Reason. “Cause” shall mean (1) your willful failure to perform the principal elements of your
duties to the Company or any of its subsidiaries, which failure is not cured within 20 days following written notice to you specifying
the conduct to be cured, (2) your conviction of, or plea of nolo contendere to, a felony (regardless of the nature of the felony)
or any other crime involving dishonesty, fraud, or moral turpitude, (3) your gross negligence or willful misconduct (including
but not limited to acts of fraud, criminal activity or professional misconduct) in connection with the performance of your duties
and responsibilities to the Company or any of its subsidiaries, (4) your failure to substantially comply with the rules and policies
of the Company or any of its subsidiaries governing employee conduct or with the lawful directives of the Board of Directors of
the Company, or (5) your breach of any non-disclosure, non-solicitation, non-competition or other restrictive covenant obligations
to the Company or any of its subsidiaries. “Good Reason” shall mean (1) any reduction of your Base Salary, (2) the
relocation of your principal place of business outside of New York City, or (3) the material diminution of your responsibilities
or authority, any reduction of your title or any change in the reporting structure set forth in the first paragraph hereof, provided,
however, that no Good Reason shall exist if you have not given written notice to the Company within ninety (90) days of the initial
existence of the Good Reason condition(s) and until the Company has had thirty (30) days to cure such event (the “Cure Period”)
after the date on which you give the Company written notice specifying such event in specific detail before such event permits
you to terminate your employment for Good Reason.

 

Benefits and Other Terms

 

Benefits and Expenses

 

You will continue to participate in the Company’s benefits
program as in effect on the date hereof. As an executive officer, you will be covered by any supplemental travel and business expense
reimbursement policies in effect for executive officers. A full description of your benefits is contained in official plan documents
that will be available to you. Please be advised that these documents describe policies and benefits currently available and that
the Company reserves the right to amend, change and terminate its policies, programs and employee benefit plans at any time during
your employment.

 

    	 

    	 

    
 

Ms. Kristin Savilia

September 7, 2011

Page 3

  

Indemnification

 

The Company will enter into an Indemnification Agreement for
Directors and Officers with you. In addition, you shall be covered by the Company’s insurance policy for directors and officers.

 

Compliance With Section 409A of the Internal Revenue Code

 

The intent of the parties is that payments and benefits under
this agreement comply with Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), and the regulations
and guidance promulgated thereunder (collectively, “Section 409A”), and, accordingly, to the maximum extent permitted,
this agreement shall be interpreted to be in compliance therewith. If you notify the Company (with specificity as to the reason
therefor) that you believe that any provision of this agreement (or of any award of compensation, including equity compensation
or benefits) would cause you to incur any additional tax or interest under Section 409A and the Company concurs with such belief
or the Company (without any obligation whatsoever to do so) independently makes such determination, the Company shall, after consulting
with you, reform such provision to try to comply with Section 409A through good faith modifications to the minimum extent reasonably
appropriate to conform with Section 409A. To the extent that any provision hereof is modified in order to comply with Section 409A,
such modification shall be made in good faith and shall, to the maximum extent reasonably possible, maintain the original intent
and economic benefit to you and the Company of the applicable provision without violating the provisions of Section 409A.

 

A termination of employment shall not be deemed to have occurred
for purposes of any provision of this agreement providing for the payment of any amounts or benefits upon or following a termination
of employment unless such termination is also a “separation from service” within the meaning of Section 409A and, for
purposes of any such provision of this agreement, references to a “termination,” “termination of employment”
or like terms shall mean “separation from service.” If you are deemed on the date of termination to be a “specified
employee” within the meaning of that term under Section 409A(a)(2)(B) of the Code, then with regard to any payment or the
provision of any benefit that is specified as subject to this Section or that is otherwise considered deferred compensation under
Section 409A payable on account of a “separation from service,” such payment or benefit shall be made or provided at
the date which is the earlier of (A) the expiration of the six (6)-month period measured from the date of such “separation
from service” and (B) the date of your death (the “Delay Period”). Upon the expiration of the Delay Period, all
payments and benefits delayed pursuant to this Section (whether they would have otherwise been payable in a single sum or in installments
in the absence of such delay) shall be paid or reimbursed to you in a lump sum, and any remaining payments and benefits due under
this agreement shall be paid or provided in accordance with the normal payment dates specified for them herein. For purposes of
this agreement, the term “Separation Pay Limit” shall mean two (2) times the lesser of (A) your annualized compensation
based on your annual rate of pay for your taxable year preceding the taxable year in which you have a “separation from service,”
and (B) the maximum amount that may be taken into account under a tax qualified plan pursuant to Section 401(a)(17) of the Code
for the year in which you incur a “separation from service.”

 

All expenses or other reimbursements under this agreement shall
be made on or prior to the last day of the taxable year following the taxable year in which such expenses were incurred by you
(provided that if any such reimbursements constitute taxable income to you, such reimbursements shall be paid no later than March
15th of the calendar year following the calendar year in which the expenses to be reimbursed were incurred), and no such reimbursement
or expenses eligible for reimbursement in any taxable year shall in any way affect the expenses eligible for reimbursement in any
other taxable year.

 

    	 

    	 

    

 

Ms. Kristin Savilia

September 7, 2011

Page 4

 

In the event that it is determined that any payment or distribution
of any type to or for your benefit, whether paid or payable or distributed or distributable, pursuant to the terms of this agreement
would be subject to the additional tax and interest imposed by Section 409A, or any interest or penalties with respect to such
additional tax (such additional tax, together with any such interest or penalties, are collectively referred to as the “409A
Tax”), then you shall be entitled to receive an additional payment (a “409A Tax Restoration Payment”) in an amount
that shall fund the payment by you of any 409A Tax as well as all income taxes imposed on the 409A Tax Restoration Payment, any
409A Tax imposed on the 409A Tax Restoration Payment and any interest or penalties imposed with respect to taxes on the 409A Tax
Restoration Payment or any 409A Tax.

 

At-Will Employment

 

Please understand that your employment will be “at will,”
meaning that either you or the Company may terminate the relationship at any time, with or without cause or notice. Please also
note that the Company reserves the right to revise, supplement, or rescind any of its policies, practices, and procedures (including
those described in the Employee Handbook) as it deems appropriate in its sole and absolute discretion, provided that no such change
shall be effective as to you unless such change affects all executive officers of the Company.

 

*****

 

    	 

    	 

    

 

 

Ms. Kristin Savilia

September 7, 2011

Page 5

  

Please indicate your acceptance of these terms by returning
the original signed and dated version of this agreement to my attention.

 

	Sincerely,
	 
	/s/ DAVID LIU
	 
	David Liu
	Chief Executive Officer

 

By signing, dating and returning this agreement, you accept
our terms of employment.

 

	/s/ KRISTIN SAVILIA	9/12/2011
	Kristin Savilia	DateExhibit 10.3

 

 

EXECUTIVE EMPLOYMENT AGREEMENT

 

THIS EXECUTIVE
EMPLOYMENT AGREEMENT (the “Agreement”) is entered into as of January 1, 2012, by and between James L. Pokluda, III
(the “Executive”) and Houston Wire & Cable Company, a Delaware corporation (the “Company”).

 

WHEREAS,
the Company desires to employ the Executive as President and Chief Executive Officer of the Company and of its wholly owned subsidiary
HWC Wire & Cable Company, and the Company and the Executive desire to enter into this Agreement to set forth the terms and
conditions of the Executive’s employment.

 

NOW, THEREFORE,
for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

 

1.Capacities
and Duties.

 

1.1Title.
The Executive is hereby employed in the capacity of President and Chief Executive Officer of the Company and of HWC Wire &
Cable Company, effective as of January 1, 2012. The Executive shall report directly to the Board of Directors of the Company
(the “Board”) and shall be subject to its supervision, control and direction. The Executive will at all times abide
by the Company’s personnel policies in effect from time to time and will faithfully, industriously and to the best of the
Executive’s ability, experience and talents perform all of the duties that may be required of and from the Executive by the
Board pursuant to the express and implied terms hereof, consistent with the Executive’s status as the President and Chief
Executive Officer of the Company and HWC Wire & Cable Company.

 

1.2Exclusive
Services. During the Term, the Executive agrees to devote his best efforts and full business time to rendering services to
the Company. The Executive is specifically restricted from being employed by any other company, other than a Subsidiary or an Affiliate
(each as defined below) of the Company, while employed by the Company pursuant to this Agreement; provided that the Executive’s
service on boards of directors of other companies in accordance with the Company’s Corporate Governance Principles, or on
boards of any civic, charitable, education or professional organizations, shall not be considered employment in violation of this
Section 1.2.

 

1.3Election
as Director. The Company has elected the Executive as a member of the Company’s Board of Directors, effective as of January
1, 2012 and shall use its best efforts to cause the Executive to remain elected as such a member during the term of this Agreement.
The Company and the Executive shall enter into an indemnification agreement substantially similar to the form of agreement the
Company has with the other members of the Board of Directors.

 

2.Term.
Subject to earlier termination as set forth herein, the term of this Agreement shall be four years, commencing on the date of this
Agreement (the “Term”).

 

    	 

    	 

    

3.Compensation
and Benefits. For the Executive’s services performed during the Term of this Agreement, the Company agrees to pay
or provide the Executive with the following:

 

3.1Salary.
An annual base salary (“Base Salary”) of $400,000, to be paid according to the Company’s general payroll practices
as in effect from time to time. The Executive’s Base Salary will be subject to annual reviews and increases (but not decreases)
as approved by the Board and the Compensation Committee of the Board.

 

3.2Incentive
Compensation Program. The Company shall pay the Executive an annual bonus (“Incentive Bonus”) of up to 75% of his
Base Salary for each full fiscal year of the Company in which the Executive is employed by the Company, based upon achievement
of the performance target for such fiscal year as described in this Section 3.2. If the Company achieves less than 85% of the target
for a fiscal year, no Incentive Bonus shall be paid for such fiscal year. If the Company achieves 100% of the target for a fiscal
year, the Incentive Bonus for that fiscal year shall be equal to 50% of the Executive’s Base Salary for that fiscal year.
If the Company achieves 115% or more of the target for a fiscal year, the Incentive Bonus for that year shall be equal to 75% of
the Executive’s Base Salary for that fiscal year. If the Company achieves a percentage of the target for a fiscal year that
is between any two of the 85%, 100% or 115% thresholds referred to above, the Incentive Bonus shall be a percentage of the Executive’s
Base Salary for that fiscal year calculated on a straight line basis between the percentage that would apply at those two thresholds.
As used in this Section 3.2, “Base Salary” means the rate of Base Salary in effect for a majority of that fiscal year
(or, if no Base Salary rate was in effect for a majority of such fiscal year, then a rate equal to the actual Base Salary paid
for that fiscal year). No later than 60 days after the beginning of each fiscal year, the Board (or the Compensation Committee)
and the Executive shall mutually agree upon the performance target for such fiscal year, which performance target will be consistent
with the Company’s business plan approved by the Board for such fiscal year. Except as provided for in this Agreement, the
Company shall not be obligated to pay any Incentive Bonus for any fiscal year unless the Executive is employed by the Company at
the end of that fiscal year. The Executive shall be paid the Incentive Bonus by March 15 of the year following the fiscal year
to which the Bonus relates, provided that if the audit of the Company and its Subsidiaries is not completed by such date, payment
shall be made within 60 days following the completion of the audit, but no later than December 31 of such year.

 

3.3Stock
Plan. The Executive will participate in the Company’s 2006 Stock Plan (including any amended or successor plan, the “Stock
Plan”). On December 20, 2011, the Company granted awards to the Executive under the Stock Plan as follows:

 

(a)stock
options with respect to 64,330 shares of the Company’s common stock, which will vest 50% on December 31, 2016 and 50% on
December 31, 2017;

 

(b)26,576
shares of restricted stock, which will vest 50% on December 31, 2016 and 50% on December 31, 2017;

 

    	-2-

    	 

    

(c)14,175
shares of performance-based restricted stock, which will vest at the end of the three-year performance period ending December 31,
2014 based on the level of attainment of a cumulative operating income target; and

 

(d)stock
options with respect to 8,580 shares of the Company’s common stock, in accordance with the Company’s regular grant
procedures for 2011,

 

each as more specifically set forth
in the applicable award agreement. The Executive will be eligible to receive awards of stock options, restricted stock and/or restricted
stock units during the Term in accordance with the Company’s regular annual grant procedures.

 

3.4Benefits.
The Executive shall be entitled to receive all benefits of employment generally available to the Company’s other executive
employees when and as such benefits, if any, become available and the Executive becomes eligible for them, including any medical,
dental, life and disability insurance benefits, paid time off benefits, long-term incentive plan, stock option plan, pension plan
and/or profit-sharing plan; provided that the Executive shall not participate in the Senior Management Bonus Program. The Company
has the right to amend or terminate any such benefit plans or programs. The Executive shall be insured under the Company’s
director and officer indemnification policy.

 

3.5Vacation.
The Executive shall be entitled to four weeks of paid vacation each year during the Term, which shall accrue each January 1 during
the Term. The Executive will use his reasonable efforts to schedule vacation periods to minimize disruption of the Company’s
business.

 

3.6Vehicle
Allowance. The Executive shall be entitled to participate in the Company’s automobile policy as it applies to executive
employees.

 

3.7Reimbursement
of Expenses. The Company shall reimburse the Executive for up to $5,000 in legal expenses incurred in connection with the review
and negotiation of this Agreement. The Company shall also reimburse the Executive for any reasonable business expenses incurred
by the Executive in the ordinary course of the Company’s business in accordance with the Company’s reimbursement policies
then in effect. These expenses shall be substantiated by invoices and receipts, to be submitted by the Executive within 30 days
after incurrence, and reimbursement shall be made by the Company within 60 days following its receipt of all necessary documentation
with respect to such expenses.

 

4.Termination
of Employment.

 

4.1For
Cause or Other than for Good Reason or Disability. If, prior to the expiration of the Term and prior to a Change in Control,
the Company terminates the Executive’s employment for Cause or the Executive terminates his employment for any reason other
than Good Reason or Disability, the Company shall pay the Executive the unpaid Base Salary earned by the Executive through the
date of termination and any vacation pay, expense reimbursements and other cash entitlements accrued by the Executive that are
payable pursuant to the Company’s policies as of such date. Such payment shall be made within 30 days of termination or earlier
if required by law. All unexercised stock options and all unpaid restricted stock or restricted stock units and other equity incentive
compensation awards previously granted to the Executive shall be exercisable or forfeited, as the case may be, in accordance with
the applicable agreement or award between the Company and the Executive.

 

    	-3-

    	 

    

4.2Without
Cause or for Good Reason or Disability. If, prior to the expiration of the Term and prior to a Change in Control, the Company
terminates the Executive’s employment without Cause, the Executive terminates his employment for Good Reason or the Executive’s
employment terminates due to Disability, the Executive shall be entitled to receive:

 

(a)The
cash amounts described in Section 4.1 above.

 

(b)Continuation
of the Executive’s Base Salary as then in effect for the 12-month period beginning on the date of such termination of employment,
payable in accordance with the Company’s payroll policy then in effect.

 

(c)A
prorata payment of the Incentive Bonus that would have been earned by the Executive had he remained employed through the end of
the fiscal year in which the termination occurs (determined on the basis of the number of days of employment during such fiscal
year), paid at the same time bonuses for such fiscal year are paid by the Company to other executive employees.

 

(d)Continuation
of medical benefits under the Company’s group health plan as in effect from time to time for the Executive and his spouse
and covered dependents for 36 months. Coverage during the first 18 months is subject to the Executive’s timely payment of
premiums at active employee rates for such coverage and shall be concurrent with coverage under Title I, Part 6 of the Employee
Retirement Income Security Act of 1974 (“COBRA”), provided that the Executive timely elects COBRA continuation coverage.
Coverage for the remainder of the 36-month continuation period is subject to the Executive’s payment of the entire premium
for such coverage. The medical benefits provided under this Section shall terminate at such time that the Executive and his spouse
and covered dependents become eligible for medical benefits under any other benefit plan or policy to the extent not prohibited
by COBRA.

 

(e)On
the effective date of termination of the Executive’s employment, the stock option and restricted stock awards described in
Sections 3.3(a) and 3.3(b), respectively, shall each vest as to a number of shares equal to the sum of (i) and (ii), where (i)
is the product of (A) 50% of the total number of shares subject to such award and (B) a fraction, the numerator of which is the
number of days in the period beginning January 1, 2012 through the effective date of termination of employment, and the denominator
of which is the number of days in the period beginning January 1, 2012 through December 31, 2016 and (ii) is the product of (A)
50% of the total number of shares subject to such award and (B) a fraction, the numerator of which is the number of days in the
period beginning January 1, 2012 through the effective date of termination of employment, and the denominator of which is the number
of days in the period beginning January 1, 2012 through December 31, 2017. All other unexercised stock options and all unpaid restricted
stock or restricted stock units and other equity incentive compensation awards granted to the Executive shall be exercisable or
forfeited, as the case may be, in accordance with the applicable agreement or award between the Company and the Executive.

 

    	-4-

    	 

    

4.3Death.
If prior to the expiration of the Term the Executive’s employment terminates due to his death, the Executive’s estate
shall be entitled to receive:

 

(a)The
cash amounts described in Section 4.1 above.

 

(b)A
prorata payment of the Incentive Bonus that would have been earned by the Executive had he remained employed through the end of
the fiscal year in which the termination occurs (determined on the basis of the number of days of employment during such fiscal
year), paid at the same time bonuses for such fiscal year are paid by the Company to other executive employees.

 

(c)Continuation
of medical benefits under the Company’s group health plan as in effect from time to time for the Executive’s surviving
spouse and covered dependents for 36 months pursuant to COBRA. Coverage during the first 18 months is subject to the beneficiaries’
timely payment of premiums at active employee rates for such coverage, provided that the beneficiary timely elects COBRA continuation
coverage. Coverage for the remainder of the 36-month continuation period is subject to the beneficiaries’ payment of the
entire premium for such coverage. The medical benefits provided under this Section shall terminate at such time that the Executive’s
surviving spouse and covered dependents become eligible for medical benefits under any other benefit plan or policy to the extent
not prohibited by COBRA.

 

(d)All
unexercised stock options and all unpaid restricted stock or restricted stock units and other equity incentive compensation awards
previously granted to the Executive shall be exercisable or forfeited, as the case may be, in accordance with the applicable agreement
or award between the Company and the Executive.

 

4.4Without
Cause or for Good Reason following a Change in Control. If, prior to the expiration of the Term and following a Change in Control,
the Company terminates the Executive’s employment without Cause (other than for Disability) or the Executive terminates his
employment for Good Reason, the Executive shall be entitled to receive:

 

(a)The
cash amounts described in Section 4.1 above.

 

(b)Continuation
of the Executive’s Base Salary as then in effect for the 24-month period beginning on the date of such termination of employment,
payable in accordance with the Company’s payroll policy then in effect.

 

(c)A
prorata payment of the Incentive Bonus that would have been earned by the Executive had he remained employed through the end of
the fiscal year in which the termination occurs (determined on the basis of the number of days of employment during such fiscal
year), paid at the same time bonuses for such fiscal year are paid by the Company to other executive employees.

 

    	-5-

    	 

    

(d)Continuation
of medical benefits under the Company’s group health plan as in effect from time to time for the Executive and his spouse
and covered dependents for 36 months. Coverage during the first 18 months is subject to the Executive’s timely payment of
premiums at active employee rates for such coverage and shall be concurrent with coverage under COBRA, provided that the Executive
timely elects COBRA continuation coverage. Coverage for the remainder of the 36-month continuation period is subject to the Executive’s
payment of the entire premium for such coverage. The medical benefits provided under this Section shall terminate at such time
that the Executive and his spouse and covered dependents become eligible for medical benefits under any other benefit plan or policy
to the extent not prohibited by COBRA.

 

(e)All
unexercised stock options and all unpaid restricted stock or restricted stock units and other equity incentive compensation awards
previously granted to the Executive shall be exercisable or paid, as the case may be, in accordance with the applicable agreement
or award between the Company and the Executive. 

 

4.5Entitlement
To Benefits. Notwithstanding any other Section of this Agreement, upon termination of the Executive’s employment, the
Executive shall be entitled to all vested benefits, vested stock-based awards, accrued and unused vacation, return of personal
effects, COBRA rights and other rights that may not be waived or released as a matter of law, in addition to any other sums, benefits,
or rights which are provided for in this Agreement.

 

4.6Release
of Claims. The Executive agrees that, as a condition to receiving benefits under this Section 4, the Executive will execute
a general release of claims in a form provided by the Company. Payments of any continued Base Salary shall begin on the first payroll
period occurring after the 45th day following the Executive’s termination of employment, and the first payment shall include
amounts that would have been paid to the Executive in the interim had employment continued. Any release executed by the Executive
shall contain exceptions to the release for (a) any existing right to indemnification, contribution and a defense, (b) any directors
and officers and general liability insurance coverage of the Executive, (c) the Executive’s rights as a shareholder, (d)
all vested rights of the Executive, (e) the Executive’s right to enforce this Agreement and (f) any rights which cannot be
waived or released as a matter of law.

 

4.7No
Offset. Subject to Section 6, there shall be no offset of any kind to the payment of the severance benefits described in this
Section 4.

 

4.8Action
Required to Terminate the Executive. Action by the
affirmative vote of a majority of the members of the Board, other than the Executive, taken at a meeting of the Board or by written
consent of the Board shall be required for the Company to terminate the Executive’s employment.

 

4.9Internal
Revenue Code Section 280G. If (a) in connection with a Change in Control, the Executive would be or is subject to an excise
tax under Section 4999 of the Internal Revenue Code (an “Excise Tax”) with respect to any cash, benefits or other property
received, or any acceleration of vesting of any benefit or award (the “Change in Control Benefits”), and (b) (i) the
total net after-tax value of the Change in Control Benefits to the Executive (taking into account federal, state and local income
and employment taxes and the Excise Tax) is less than (ii) the total net after-tax value of the Change in Control Benefits (taking
into account federal, state and local income and employment taxes and the Excise Tax) reduced to the largest amount payable without
triggering the imposition of any Excise Tax, then the Change in Control Benefits payable under this Agreement shall be reduced
to the amount described in (b)(ii). No later than 30 days after the date of the Change in Control, a nationally recognized accounting
firm selected by the Company shall make a determination as to whether any Excise Tax would be reported with respect to the Change
in Control Benefits and, if so, the amounts described in each of (b)(i) and (b)(ii) above. If a reduction to the Change in Control
Benefits is necessary, the Executive shall determine the Change in Control Benefits to be reduced, and the Company shall provide
the Executive with such information as is necessary to make such determination. The Company and the Executive shall furnish to
the accounting firm such information and documents as the accounting firm may reasonably request in order to make a determination
under this Section 4.9. The Company shall be responsible for all fees and expenses connected with the determinations by the accounting
firm pursuant to this Section 4.9. The Executive agrees to notify the Company in the event of any audit or other proceeding by
the Internal Revenue Service or any taxing authority in which the Internal Revenue Service or other taxing authority asserts that
any Excise Tax should be assessed against the Executive and to cooperate with the Company in contesting any such proposed assessment
with respect to such Excise Tax.

 

    	-6-

    	 

    

4.10Definitions
of Terms Used in Section 4.

 

(a)Cause.
“Cause” shall exist if there is (i) a material neglect by the Executive of his assigned duties, which includes any
failure to follow the written direction of the Board or to comply with the Company’s code of ethics or written policies,
or repeated refusal by the Executive to perform his assigned duties, in each case other than by reason of Disability, which continues
for 30 days following receipt of written notice from the Board; (ii) the commission by the Executive of any act of fraud or embezzlement
against Company or any of its Affiliates or the commission of any felony or act involving dishonesty; (iii) the commission by the
Executive of any act of moral turpitude which actually causes financial harm to the Company or any of its Affiliates; (iv) a material
breach by the Executive of the terms of Section 5.1 of this Agreement or any other confidentiality or non-disclosure agreement
of the Executive with the Company; or (v) the Executive’s commencement of employment with another company while he is an
employee of the Company without the prior consent of the Board.

 

(b)Change
in Control. “Change in Control” shall have the meaning set forth in the Stock Plan, as in effect on the date of
this Agreement.

 

(c)Disability.
“Disability” means, in the sole judgment of the Board, the Executive’s inability to engage in any substantial
gainful activity by reason of any medically-determinable physical or mental impairment which can be expected to result in death
or which has lasted or can be expected to last for a continuous period of not less than 12 months.

 

(d)Good
Reason. “For Good Reason” shall mean voluntary termination of this Agreement by the Executive if, without the prior
consent of the Executive: (a) the Company shall relocate its principal executive offices to a location outside the Houston, Texas
metropolitan area, (b) there is a material reduction by the Company in the Executive’s responsibilities, duties, authority,
title or reporting relationship; or (c) the Company acts in any way that would materially reduce the Executive’s Base Salary
(as defined or subsequently increased pursuant to Section 3.1) or if the Company adversely affects the Executive’s participation
in or materially reduces the Executive’s benefit under any benefit plan of the Company in which the Executive is participating;
provided, however, that termination for Good Reason by the Executive shall not be permitted unless (x) the Executive has given
the Company at least 30 day’s prior written notice that he has a basis for a termination for Good Reason, which notice shall
specify the facts and circumstances constituting Good Reason, and (y) the Company has not remedied such facts and circumstances
constituting Good Reason within such 30-day period.

 

    	-7-

    	 

    

5.Restrictive
Covenants.

 

5.1Confidential
and Proprietary Information. During the Term and for a period of two years following the date of termination of the
Executive’s employment with the Company (except as to trade secrets, which shall not be disclosed at any time), the Executive
acknowledges that he has as of the date of this Agreement, and will continue to have, access to and use of Confidential and Proprietary
Information and agrees that he will not, either directly or indirectly, and he will not permit any Covered
Entity which is Controlled by the Executive to, either directly or indirectly, divulge to any Person or use any of the Confidential
and Proprietary Information, except as required in connection with the performance of the Executive’s duties to the Company.
The Executive and each Covered Entity (and if deceased, his personal representative) shall promptly, following a request therefor
from the Company, return to the Company, without retaining copies, all tangible items (including electronic data storage
devices) which are or which contain Confidential and Proprietary Information.

 

5.2Non-Competition;
Non-Solicitation; No Disparagement. The Executive acknowledges and agrees that: (i) through his continuing services to the
Company, he will learn valuable trade secrets and other Confidential and Proprietary Information relating to the Company’s
businesses; (ii) the Executive’s services to the Company are unique in nature, and (iii) the Company would be irreparably
damaged if the Executive were to provide services to any Person in violation of the restrictions contained in this Agreement. Accordingly,
as an inducement to the Company to enter into this Agreement, the Executive agrees that except in the Executive’s capacity
as an employee of the Company, neither the Executive nor any Covered Entity shall directly or indirectly, without the prior written
consent of the Company (which may be withheld in its sole discretion), during the Restriction Period:

 

(a)engage
or participate in, anywhere in the Territory (as defined below), as an employee, owner, partner, shareholder, officer, director,
member, manager, advisor, consultant, lender, lessor, agent or (without limitation by the specific enumeration of the foregoing)
otherwise, or permit his name to be used by or render services of any type for, any Competing Business (as defined below) or any
Person developing a Competing Business; provided, however, that nothing in this Agreement shall prevent the Executive from acquiring
or owning, but solely as a passive investment, up to five percent of any class of voting securities registered under the Securities
Exchange Act of 1934, as amended, of any issuer engaged in a Competing Business;

 

    	-8-

    	 

    

(b)take
any action which could reasonably be expected to divert from the Company any opportunity which would be within the scope of the
Company’s business;

 

(c)solicit
or attempt to solicit any Person who is or has been (A) a customer of the Company at any time within one year prior to the date
of termination of the Executive’s employment to purchase any product or service which may be provided by the Company, or
(B) a customer, supplier, licensor, licensee or other business relation conducting business with the Company at any time within
one year prior to the date of termination of the Executive’s employment, to cease doing business with, or to alter or limit
its business relationship with, the Company;

 

(d)solicit,
attempt to solicit, or assist anyone else to solicit any Business Associate (as defined below) to terminate his, her or its association
with the Company;

 

(e)recruit,
solicit, hire or otherwise retain the services of any Business Associate, whether on a full-time basis, part-time basis or otherwise
and whether as an employee, independent contractor, consultant, advisor or in another capacity; or

 

(f)make
(or cause to be made) to any Person any knowingly disparaging, derogatory or other negative statement about the Company or any
of its officers, directors, employees or agents.

 

5.3Protection
of and Rights to Intellectual Property. All Intellectual Property developed by the Executive during the Term shall be the sole
and exclusive property of the Company, without further compensation. Any Intellectual Property based upon Confidential and Proprietary
Information and developed at any time either during or following the Term shall be the property of the Company. The Executive shall
assign to the Company or its designees, the entire right, title and interest in said Intellectual Property. The Executive shall,
at the Company’s request and expense, make applications for domestic or foreign patents, execute all documents necessary
thereto, assist in securing, defending or enforcing any such title and right thereto, and assist the Company in any other claims
or litigation involving said Intellectual Property. Consistent with applicable law, the Company acknowledges that no provision
in this Agreement is intended to require assignment of any of the Executive’s rights in an invention if no equipment, supplies,
facilities, or trade secret information of the Company was used, and the invention was developed entirely on the Executive’s
own time, unless the invention relates to the Business or to the Company’s current or demonstrably anticipated business,
research or development, or the invention results from any work performed by the Executive for the Company.

 

5.4Specific
Performance. The Executive agrees that any violation by him of Sections 5.1, 5.2 or 5.3 of this Agreement would be highly injurious
to the Company and would cause irreparable harm to the Company. By reason of the foregoing, the Executive consents and agrees that
if he violates any provision of Sections 5.1, 5.2 or 5.3 of this Agreement, the Company shall be entitled, in addition to any other
rights and remedies that it may have, to apply to any court of competent jurisdiction in Houston, Texas for specific performance
and/or injunctive or other equitable relief in order to enforce, or prevent any continuing violation of, the provisions of such
Sections 5.1, 5.2 and 5.3. The Executive also recognizes that the territorial, time and scope limitations set forth in Sections
5.1 and 5.2, as applicable, are reasonable and are properly required for the protection of the Company, and, in the event that
any such territorial, time or scope limitation is deemed to be unreasonable by a court of competent jurisdiction, the Company and
the Executive agree, and the Executive submits, to the reduction of any or all of said territorial, time or scope limitations to
such an area, period or scope as said court shall deem reasonable under the circumstances. If such partial enforcement is not possible,
then to the extent permitted by law, the provision shall be deemed severed, and the remaining provisions of this Agreement shall
remain in full force and effect. If any covenant in Section 5.1 or 5.2 is breached, then (to the extent permitted by law) the Restricted
Period with respect to such covenant shall be extended by the number of days during which such breach exists.

 

    	-9-

    	 

    

5.5Impact
of Breach of Section 5 on Certain Payments. The Executive agrees that the payment of any compensation or benefits pursuant
to Section 4.2 or 4.4 is conditioned on the Executive’s compliance with the provisions of Sections 5.1, 5.2 and 5.3.

 

5.6Definitions
of Terms Used in Section 5.

 

(a)Affiliate.
An “Affiliate” of a Person is another Person that Controls, is Controlled by or is under common Control with such first
Person.

 

(b)Business
Associate. “Business Associate” means any employee, representative, consultant or agent of the Company who is acting
in such capacity as of the date hereof or has acted in such capacity at any time within the 12 month period immediately preceding
the date of hire, recruitment, solicitation or retention by the Executive or a Covered Entity.

 

(c)Competing
Business. A “Competing Business” means a business which is, in whole or in part, directly or indirectly, competitive
with the business of the Company as conducted at the time of enforcement of Section 5.2 (if such enforcement occurs prior to the
termination of the Executive’s employment) or at the time of the termination of the Executive’s employment (if enforcement
of Section 5.2 occurs at or following such time) or under development at either such time, as the case may be, and expected to
be introduced or undertaken within one year following such date of enforcement. Without limiting the generality of the foregoing
sentence, the term Competing Business shall include the business of the Company.

 

(d)Confidential
and Proprietary Information. “Confidential and Proprietary Information” means all information and any idea in any
form whatsoever, tangible or intangible, pertaining in any manner to the business of the Company or any Affiliate of the Company,
or to the Company’s clients, consultants or business associates, unless the information is or becomes publicly known
through lawful means (other than disclosure by the Executive, unless such disclosure by the Executive is made in good faith in
the course of performing the Executive’s duties under this Agreement, or with the express written consent of the Board of
Directors).

 

(e)Control.
“Control” means (i) in the case of corporate entities, direct or indirect ownership of more than 50% of the stock or
participating assets entitled to vote for the election of directors; and (ii) in the case of non-corporate entities (such as individuals,
limited liability companies, partnerships or limited partnerships), either (A) direct or indirect ownership of more than fifty
percent 50% of the equity interest or (B) the power to direct the management and policies of the noncorporate entity.

 

    	-10-

    	 

    

(f)Covered
Entity. “Covered Entity” means every Affiliate of the Executive, and every Person in which the Executive has invested
(whether through debt or equity securities), or to which the Executive has contributed any capital or made any advances, or in
which any Affiliate of the Executive has an ownership interest or profit sharing percentage, or a firm from which the Executive
or any Affiliate of the Executive receives or is entitled to receive income, compensation or consulting fees, or in which the Executive
or any Affiliate of the Executive has an interest as a lender (other than solely as a trade creditor for the sale of goods or provision
of services that do not otherwise violate the provisions of this Agreement). The agreements of the Executive contained herein specifically
apply to each Person which is presently a Covered Entity or which becomes a Covered Entity subsequent to the date of this Agreement.
Notwithstanding the foregoing, nothing contained in this Agreement prohibits the Executive or any Affiliate of the Executive from
owning less than five percent of any class of voting securities registered under the Securities Exchange Act of 1934, as amended,
of any issuer, and no such issuer shall be considered a Covered Entity solely by virtue of such ownership or the incidents thereof.
Further notwithstanding anything contained in the foregoing provisions to the contrary, the term “Covered Entity” shall
not include the Company, any Subsidiary of the Company, or any Affiliate of the Company or any such Subsidiary.

 

(g)Engage.
To “engage” in a business means (i) to render services in (or with respect to) the Territory for that business, or
(ii to own, manage, operate or control (or participate in the ownership, management, operation or control of) an enterprise engaged
in that business in (or with respect to) the Territory.

 

(h)Intellectual
Property. “Intellectual Property” means all discoveries, inventions, improvements, computer programs, formulas,
ideas, devices, writings or other intellectual property (including any notes, records, reports, sketches, plans, memoranda and
other tangible information relating to such Intellectual Property), whether or not subject to protection under the patent or copyright
laws, which the Executive shall conceive solely or jointly with others, in the course of, or within the scope of employment, or
which relates directly to the business of the Company or its actual or anticipated research and development, or which was conceived
or created using the Company’s materials or facilities, whether during or after working hours.

 

(i)Person.
“Person” means any individual, partnership, limited partnership, corporation, limited liability company, association,
joint stock company, trust, joint venture, unincorporated organization or any other entity.

 

(j)Restriction
Period. “Restriction Period” shall mean the period commencing on the date hereof and continuing during the Executive’s
employment with the Company and for a period of one year (two years in the event the Executive is entitled to continuation of Base
Salary under Section 4.2(b) or 4.4(b)) following the date of termination of the Executive’s employment with the Company.

 

    	-11-

    	 

    

(k)Solicit.
To “solicit” means to encourage or induce, or to take any action that is intended or calculated to encourage or induce,
or which is reasonably likely to result in encouragement or inducement.

 

(l)Subsidiary.
“Subsidiary” shall mean any Person which is Controlled, directly or indirectly, by the Company, including through the
ownership of stock or other interests in one or more other business enterprises which are connected with the Company.

 

(m)Territory.
“Territory” means the United States of America.

 

6.Recoupment.
In the event the Company restates its financial statements due to material noncompliance with any reporting requirement, the Executive
shall, within 60 days of written notice from the Company that such repayment is required by applicable law or Company policy, repay
any incentive compensation (including stock options) he has received from the Company that is in excess of the amount to which
he would have been entitled under the restated financial statements.

 

7.Withholding.
The Executive authorizes the Company to make any and all applicable withholdings of federal and state taxes and other items the
Company may be required to deduct, as such items may exist under this Agreement or otherwise from time to time.

 

8.Successors
and Assigns. This Agreement is intended to bind and inure to the benefit of and be enforceable by the Executive, the Company
and their respective heirs, successors and assigns, except that the Executive shall not have any right to assign or otherwise transfer
this Agreement, or any of the Executive’s rights, duties or any other interest herein, to any party without the prior written
consent of the Company, and any such purported assignment shall be null and void.

 

9.Survival
of Rights and Obligations. The rights and obligations of the parties as stated herein shall survive the termination of
this Agreement.

 

10.Entire
Agreement. This Agreement sets forth the parties’ sole and entire agreement regarding the subject matter hereof
and supersedes any and all other agreements, statements and representations of the parties, including but not limited to any employment
agreement or other agreement regarding the Executive’s compensation or terms of employment entered into prior to the date
hereof. Notwithstanding the foregoing, benefits provided under the Company’s employee benefit plans, including any awards
granted under the Stock Plan, will be subject to the terms and conditions of the relevant plans and, where applicable, award agreements.

 

11.Modifications
or Waivers. The terms and provisions of this Agreement may be modified or amended only by a written instrument executed
by each of the parties hereto, and compliance with the terms and provisions hereof may be waived only by a written instrument executed
by each party entitled to the benefits thereof. No failure or delay on the part of any party in exercising any right, power, or
privilege granted hereunder shall constitute a waiver thereof, nor shall any single or partial exercise of any such right, power,
or privilege preclude any other or further exercise thereof or the exercise of any other right, power, or privilege granted hereunder.

 

    	-12-

    	 

    

 

 

12.Governing
Law. This Agreement shall be governed pursuant to federal law, as applicable or the laws of the State of Texas, without
giving effect to any choice of law or conflict of law provision or rule that would cause the application of the laws of any jurisdiction
other than the State of Texas.

 

13.Internal
Revenue Code Section 409A. If at the time of the Executive’s termination of employment for reasons other than death
he is a “specified employee” (as such term is defined and determined in accordance with the procedures set forth in
Treas. Reg. §1.409A-1(i)), any amounts payable to the Executive pursuant to this Agreement that are subject to Section 409A
of the Internal Revenue Code (“Code Section 409A”) shall not be paid or commence to be paid until six months following
the Employee’s termination of employment or, if earlier, the Employee’s subsequent death. Each cash payment made pursuant
to Section 4 shall be considered a separate payment for purposes of Code Section 409A. This Agreement is to be construed and interpreted
in a manner consistent with Code Section 409A, and the parties hereto agree to amend this Agreement as necessary to avoid the imposition
of penalty taxes under Code Section 409A against the Executive. No payment required to be made hereunder shall be accelerated or
deferred by the Company or the Executive in a manner that would subject such payment to any excise tax under Code Section 409A.

 

14.Severability.
If any part, clause or condition of this Agreement is held to be partially or wholly invalid, unenforceable or inoperative for
any reason whatsoever, such shall not affect any other provision or portion hereof, which shall continue to be effective as though
such invalid, unenforceable or inoperative part, clause or condition had not been made. If any provision, or its application to
any Person or circumstance, is held by a court of competent jurisdiction or an arbitrator pursuant to Section 18 hereof to be invalid
or unenforceable, the court or the arbitrator is empowered to and shall modify any such provision so as to be enforceable. All
remaining provisions shall remain valid and enforceable.

 

15.Interpretation.

 

15.1Section
Headings. The section and subsection heading of this Agreement are included for purposes of convenience only, and shall not
affect the construction or interpretation of any of its provisions.

 

15.2Gender
and Number. Whenever required by the context, the singular shall include the plural, the plural shall include the singular,
and the masculine gender shall include the neuter and feminine genders and vice versa.

 

16.Notices.
All notices and other communications under or in connection with this Agreement shall be in writing and shall be deemed given (a)
if delivered personally, upon delivery, (b) if delivered by registered or certified mail (return receipt requested), upon the earlier
of actual delivery or three days after being mailed, (c) if given by overnight courier with receipt acknowledgment requested, the
next business day following the date sent, or (d) if given by telecopy, upon confirmation of transmission by telecopy, in each
case to the parties at the following addresses:

 

    	-13-

    	 

    

 

	 	To the Company:	Houston Wire & Cable Company
	 	 	10201 North Loop East
	 	 	Houston, TX  77029
	 	 	Facsimile:  (713) 609-2168
	 	 	Attention:  Chairman of the Board
	 	 	 
	 	with a copy to:	Schiff Hardin LLP
	 	 	6600 Sears Tower
	 	 	Chicago, Illinois  60606
	 	 	Facsimile:  (312) 258-5600
	 	 	Attention:  Robert Minkus
	 	 	 
	 	To the Executive:	James L. Pokluda III
	 	 	At the most recent address on file with the Company
	 	 	 

17.Joint
Preparation. Each of the parties to this Agreement has negotiated it at length, and has had the opportunity to consult
with and be represented by its or his own competent counsel. This Agreement is therefore deemed to have been jointly prepared by
the parties and any uncertainty or ambiguity existing in it shall not be interpreted against any party, but rather shall be interpreted
according to the rules generally governing the interpretation of contracts.

 

18.Mediation
and Arbitration. If requested
by the Company or the Executive, any unresolved controversy or claim arising from or related to this Agreement or breach hereof
shall be resolved by use of mediation initially, and if that fails to resolve the matter, by arbitration. Mediation shall be in
Houston, Texas, before one mediator qualified in mediation of employment matters agreed upon by the parties, or if no agreement
on a mediator is reached, before a mediator chosen according to the American Arbitration Association (“AAA”) National
Rules for the Resolution of Employment Disputes, specifically the Employment Mediation Rules. There shall be only one mediator.
The parties will use best efforts to obtain a mediator and complete the mediation within 30 days from the date of request for mediation.
If the mediation has not been completed within 45 days from the date of request for mediation, any party may, by notice to all
other parties and the AAA, forego mediation and move directly to arbitration under the AAA National Rules for the Resolution of
Employment Disputes; provided, however, that such arbitration shall be before three arbitrators, not one, and shall be in Houston,
Texas. Also, by written agreement signed by the Company and the Executive, the parties hereto may agree to forego mediation, may
make any agreement regarding scheduling of the mediation or the arbitration process, discovery or hearing, which agreement shall
be binding on the mediator or arbitrator, despite any AAA rule to the contrary. In any arbitration, if the Executive is the prevailing
party, the Company shall pay all reasonable attorney’s fees of the Executive, as well as the expenses and administrative
fees related to the arbitration. If the Company is the prevailing party at the arbitration, each party shall pay its own attorney’s
fees and expenses and its share of the administrative fees and expenses related to the arbitration. Notwithstanding the foregoing
provisions of this Section 18, (a) the parties are not required to arbitrate any issue for which injunctive relief is sought by
any party hereto, (b) all parties may seek injunctive relief in any federal or state court having jurisdiction located in Harris
County, Texas, and (c) claims of worker’s compensation and unemployment compensation shall not be subject to arbitration
under this Agreement.

 

    	-14-

    	 

    

19.Cooperation
and Further Actions. The parties agree to perform any and all acts and to execute and deliver any and all documents necessary
or convenient to carry out the terms of this Agreement.

 

20.Counterparts.
This Agreement may be executed in two or more counterparts, including electronically transmitted counterparts, each of which shall
be deemed an original and all of which shall be considered one and the same instrument.

 

[Signature Page Follows]

 

    	-15-

    	 

    

IN WITNESS WHEREOF,
the parties hereto have executed, or caused their duly authorized representatives to execute, this Agreement as of the Effective
Date.

 

	 	EXECUTIVE
	 	 
	 	By: 	/s/ James L. Pokluda III
	 	 	James L. Pokluda III

 
 

	 	HOUSTON WIRE & CABLE COMPANY
	 	 
	 	By: 	/s/ Scott L. Thompson
	 	 	Scott L. Thompson

Chairman of the Board

    	-16-

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