Document:

Exhibit 10.7

 

INTERLINE BRANDS, INC.

 

2004 EQUITY INCENTIVE PLAN

 

NONQUALIFIED STOCK OPTION
AGREEMENT

 

THIS NONQUALIFIED STOCK OPTION AGREEMENT (the “Agreement”)
is made and entered into this         
day of                   ,
200     (the “Date of Grant”) by and between
Interline Brands, Inc. (the “Company”) and                                   
(the “Optionee”).

 

W I T N E
S S E T H:

 

1.                                       Grant
of Option.

 

(a)                                  The
Option.  The Company hereby grants to
the Optionee an option (the “Option”) to purchase                     
shares of Common Stock on the terms and conditions set forth in this Agreement
and as otherwise provided in the Plan.  This
Option is not intended to be treated as an Incentive Stock Option, as such term
is defined in Section 422 of the Internal Revenue Code of 1986, as
amended.

 

(b)                                 Incorporation
by Reference, Etc.  The provisions of
the Plan are hereby incorporated herein by reference.  Except as otherwise expressly set forth
herein, this Agreement shall be construed in accordance with the provisions of
the Plan and any capitalized terms not otherwise defined in this Agreement
shall have the meaning set forth in the Plan.

 

2.                                       Terms
and Conditions.

 

(a)                                  Purchase
Price.  The price at which the
Optionee shall be entitled to purchase shares of Common Stock upon the exercise
of all or any portion of this Option shall be $        
per share.  Shares of Common Stock
acquired upon the exercise of the Option shall hereinafter be referred to as “Option
Shares.”

 

(b)                                 Expiration
Date.  The Option shall expire at
11:59 p.m. Eastern Standard Time on the seventh anniversary of the Date of
Grant (the “Expiration Date”).

 

(c)                                  Exercisability
of Option.  Subject to the Optionee’s
continued employment with the Company or an Affiliate, the Option shall become
vested and exercisable as to twenty-five percent (25%) of the Option Shares
subject thereto on each of the first, second, third and fourth anniversaries of
the Date of Grant.

 

(d)                                 Method
of Exercise.  The Option may be
exercised only by written notice, in a form to be provided by the Committee,
and delivered to the Company in person or sent by mail in accordance with Section 4(a) hereof
and, in either case,

 

 

accompanied by payment therefor.  The Option Price shall be payable (i) in
cash and/or shares of Stock valued at the Fair Market Value at the time the
Option is exercised (including by means of attestation of ownership of a
sufficient number of shares of Stock in lieu of actual delivery of such shares
to the Company), (ii) in the discretion of the Committee, either (A) in
other property having a fair market value on the date of exercise equal to the
Option Price or (B) by delivering to the Committee a copy of irrevocable
instructions to a stockbroker to deliver promptly to the Company an amount of
loan proceeds, or proceeds from the sale of the Option Shares subject to the
Option, sufficient to pay the Option Price or (iii) by such other method
as the Committee may allow. 
Notwithstanding the foregoing, in no event shall an Optionee be
permitted to exercise an Option in the manner described in clause (ii) of
the preceding sentences if the Committee determines that exercising an Option
in such manner would violate the Sarbanes-Oxley Act of 2002, any other
applicable law or the applicable rules and regulations of the Securities
and Exchange Commission, the applicable rules and regulations of any
securities exchange or inter-dealer quotation system on which the securities of
the Company or any of its Affiliates are listed or traded.

 

(e)                                  Exercise
Upon Termination of Employment.  In
the event that the Optionee ceases to be employed by the Company and its Affiliates
the Option held by the Optionee (to the extent then outstanding) shall
terminate as follows:

 

(i)                                     Without
Cause or by the Optionee.   If the
Company or its Affiliates terminates the Optionee’s employment with the Company
or its Affiliates without Cause (other than due to Disability), then the
unvested portion of the Option shall expire on the date of termination and the
vested portion of the Option shall remain exercisable by the Optionee through
the earlier of (x) the Expiration Date or (y) a period of one-hundred
twenty (120) days following such termination of employment, and shall
thereafter terminate without further consideration to the Optionee.  If the Optionee’s employment with the Company
or its Affiliates is terminated by the Optionee for any reason (other than due
to Retirement), the unvested portion of the Option shall expire on the date of
termination and the vested portion of the Option shall remain exercisable by
the Optionee through the earlier of (x) the Expiration Date or (y) a
period of ninety (90) days following such termination of employment, and shall
thereafter terminate without further consideration to the Optionee.

 

(ii)                                  For
Cause.  If the Optionee’s employment with
the Company or its Affiliates is terminated by the Company or its Affiliates for
Cause, then the both the unvested and the vested portions of the Option shall
terminate and expire on the date of such termination of employment without
further consideration to the Optionee.

 

(iii)                               Death
or Disability.  If the Optionee’s
employment with the Company or its Affiliates is terminated due to the Optionee’s
death or by the Company due to Disability, then the unvested portion of the
Option shall immediately vest on the date of termination and the Option shall
remain exercisable by the Optionee (or the Optionee’s estate or beneficiary, as

 

2

 

applicable) through the
earlier of (x) the Expiration Date or (y) the first anniversary of
such date of termination.

 

(iv)                              Retirement.  If the Optionee’s employment with the Company
or its Affiliates is terminated due to the Optionee’s Retirement (as defined
below), then the unvested portion of the Option shall continue to vest in
accordance with Section 2(c) of this Agreement; provided, however,
that Optionee has been employed by the Company for at least one year from the
Date of Grant, and each portion of the Option once vested shall remain exercisable
by the Optionee through the earlier of (x) the Expiration Date or (y) a
period of one-hundred twenty (120) days following the fourth anniversary of the
Date of Grant; provided, however, that (y) shall not be less
than one year from the date of Optionee’s Retirement. For purposes of this
Agreement, Retirement shall mean the
voluntary termination of an Optionee’s employment by the Company after the
Optionee is fifty-five (55) years of age and has at least ten (10) years
of service with the Company.

 

(f)                                    Transferability.  The Option may not be assigned, alienated,
pledged, attached, sold or otherwise transferred or encumbered by the Optionee
other than by will or by the laws of descent and distribution, and any such
purported assignment, alienation, pledge, attachment, sale, transfer or
encumbrance shall be void and unenforceable against the Company; provided,
that, the designation of a beneficiary shall not constitute an
assignment, alienation, pledge, attachment, sale, transfer or encumbrance.  No such permitted transfer of the Option to
heirs or legatees of the Optionee shall be effective to bind the Company unless
the Committee shall have been furnished with written notice thereof and a copy
of such evidence as the Committee may deem necessary to establish the validity
of the transfer and the acceptance by the transferee or transferees of the
terms and conditions hereof.  During the
Optionee’s lifetime, the Option is exercisable only by the Optionee or Optionee’s
legal representative.

 

(g)                                 Rights
as Stockholder.  The Optionee shall
not be deemed for any purpose to be the owner of any of the Option Shares
subject to this Option unless, until and to the extent that (i) the Option
shall have been exercised pursuant to its terms and (ii) the Company shall
have issued and delivered to the Optionee the Option Shares.

 

3.                                       Withholding
Taxes.

 

(a)                                  As a condition of the
exercise of the Option, the Optionee shall pay to the Company or
make arrangements satisfactory to the Committee regarding payment of any
federal, state or local taxes of any kind required by law to be withheld upon
the exercise of the Option and the Company shall, to the extent permitted or
required by law, have the right to deduct from any payment of any kind
otherwise due to the Optionee, federal, state and local taxes of any kind
required by law to withheld upon the exercise of the Option.

 

3

 

(b)                                 Without
limiting the generality of clause (a) above, the Optionee may satisfy, in
whole or in part, the foregoing withholding liability (but no more than the
minimum required withholding liability) by having the Company withhold from the
Option Shares otherwise issuable pursuant to the exercise of the Option a
number of shares with a Fair Market Value equal to such withholding liability.

 

4.                                       Miscellaneous.

 

(a)                                  Notices.  Any and all notices, designations, consents,
offers, acceptances and any other communications provided for herein shall be
given in writing and shall be delivered either personally or by registered or
certified mail, postage prepaid, which shall be addressed, in the case of the
Company to the Secretary of the Company at the principal office of the Company
and, in the case of the Optionee, to Optionee’s address appearing on the books
of the Company or to Optionee’s residence or to such other address as may be
designated in writing by the Optionee.

 

(b)                                 No
Right to Continued Employment. 
Nothing in the Plan or in this Agreement shall confer upon the Optionee
any right to continue in the employ of the Company or its Affiliates shall
interfere with or restrict in any way the right of the Company or its
Affiliates, which are hereby expressly reserved, to remove, terminate or
discharge the Optionee at any time for any reason whatsoever.

 

(c)                                  Bound
by Plan.  By signing this Agreement, the
Optionee acknowledges that Optionee has received a copy of the Plan and has had
an opportunity to review the Plan and agrees to be bound by all the terms and
provisions of the Plan.

 

(d)                                 Successors.  The terms of this Agreement shall be binding
upon and inure to the benefit of the Company, its successors and assigns, and
of the Optionee and the beneficiaries, executors, administrators, heirs and
successors of the Optionee.

 

(e)                                  Invalid
Provision.  The invalidity or unenforceability
of any particular provision hereof shall not affect the other provisions
hereof, and this Agreement shall be construed in all respects as if such
invalid or unenforceable provision had been omitted.

 

(f)                                    Modifications.  No change, modification or waiver of any
provision of this Agreement shall be valid unless the same be in writing and
signed by the parties hereto.

 

(g)                                 Entire
Agreement.  This Agreement and the
Plan contain the agreement and understanding of the parties hereto with respect
to the subject matter contained herein and therein and supersede all prior
communications, representations and negotiations in respect thereto.

 

(h)                                 Governing
Law.  This Agreement and the rights
of the Optionee hereunder shall be construed and determined in accordance with
the laws of the State of New York.

 

4

 

(i)                                     Headings.  The headings of the Sections hereof are
provided for convenience only and are not to serve as a basis for
interpretation or construction, and shall not constitute a part, of this
Agreement.

 

(j)                                     Counterparts.  This Agreement may be executed in
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

 

[Signature page follows]

 

5

 

IN WITNESS WHEREOF, this Agreement has been executed
and delivered by the parties hereto on the date set forth above.

 

	
   

  	
  INTERLINE
  BRANDS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Optionee

  
	
   

  	
   

  	
  Address:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

6EXHIBIT 10.10

 

AMENDMENT TO RESTRICTED
SHARE UNIT AWARD AGREEMENTS

 

WHEREAS, Interline Brands, Inc.
(the “Company”) has previously made grants of restricted share units
pursuant to the terms of the Interline
Brands, Inc. 2004 Equity Incentive Plan (as heretofore amended from time
to time, the “Plan”) and award agreements thereunder (the “RSU Agreements”);

 

WHEREAS, Section 11(t) of the Plan
provides that if the Committee (each capitalized but undefined term shall have
the meaning ascribed to such term in the Plan) determines that any amounts
payable under the Plan will be taxable to a Participant under Section 409A
of the Code and related Treasury guidance prior to payment to such Participant
of such amount, the Company may adopt such amendments to the Plan and Awards
and appropriate policies and procedures that the Committee determines necessary
or appropriate to preserve the intended tax treatment of the benefits provided
by the Plan and Awards thereunder and/or take such other actions as the
Committee determines necessary or appropriate to avoid or limit the imposition
of an additional tax under Section 409A of the Code; and

 

WHEREAS, the Committee has determined that it is
necessary and appropriate to make the amendment contained herein.

 

NOW,
THEREFORE, each RSU Agreement outstanding on the date hereof is hereby amended as follows, effective as of
the date hereof:

 

1.             If the Participant is, or at any time prior to the last
date on which it is possible to become fully vested under his or her RSU
Agreement, may become eligible to terminate employment and qualify as a “retirement”
under the terms of such RSU Agreement (a “Retirement Eligible Participant”),
then (a) notwithstanding anything to the contrary in such RSU Agreement, a
Change in Control shall not be a distribution event under such RSU Agreement
unless such event satisfies the definition of a change in the ownership or
effective control of a corporation, or a change in the ownership of a
substantial portion of the assets of a corporation pursuant to Section 409A
of the Code and any Treasury Regulations promulgated thereunder; and (b) the
phrase “as soon as reasonably practicable” (or words of similar import), each
time it occurs in such RSU Agreement, shall be interpreted to mean (if not
followed by a more definitive time for payment):  “as soon as reasonably practicable (but in no
event later than ninety (90) days)”; provided, that if distribution is in
connection with a Change in Control, such phrase shall be interpreted to mean “immediately
prior to or as soon as reasonable practicable (but in no event later than
fourteen (14) days)”.

 

2.             If the Participant is not a Retirement Eligible
Participant, or if the RSU Agreement does not provide for special provisions
upon “retirement”, then the phrase “as soon as reasonably practicable” (or
words of similar import), each time it occurs in the RSU Agreement, shall be
interpreted to mean (if not followed by a more definitive time for
payment):  “as soon as reasonably
practicable (but in no event later than the March 15 next occurring)”;
provided, that if distribution is in connection with a

 

 

Change in Control, such phrase shall be
interpreted to mean “immediately prior to or as soon as reasonable practicable
(but in no event later than fourteen (14) days)”.

 

3.             Continuing Effect of the Agreements.  Except as expressly modified hereby, the
provisions of each Agreement are and shall remain in full force and effect.

 

4.             Governing Law. 
This amendment shall be governed by, construed under, and interpreted in
accordance with the laws of the State of New York applicable to agreements made
and to be wholly performed within that State, without regard to its conflict of
laws provisions or any conflict of laws provisions of any other jurisdiction
which would cause the application of any law other than that of the State of
New York.

 

 

	
   

  	
  INTERLINE
  BRANDS, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Michael J. Grebe

  
	
   

  	
  Name:   Michael
  J. Grebe

  
	
   

  	
  Title:   Chairman, CEO & President

  

 

2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00153-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00153-of-00352.parquet"}]]