Document:

Employment Agreement

 Exhibit 10.1 

GARY L. PIERCE 

AGREEMENT 

WITH 

STEIN MART, INC. 

This Agreement (this “Agreement”) entered into in the City of Jacksonville and State of Florida between Stein
Mart, Inc., a Florida corporation and its divisions, subsidiaries and affiliates (the “Company”), and GARY L. PIERCE (“Executive”), is made as of May 18, 2010 (the “Effective
Date”). 
 In consideration of the promises and mutual covenants contained herein, the parties, intending to be
legally bound, agree as follows: 
  

	SECTION 1.	TERM OF EMPLOYMENT 

(a) Term. The Company agrees to employ Executive, and Executive agrees to be employed by the Company, for a period
of two (2) year(s) beginning on the Effective Date (the “Term”). 
  

	SECTION 2.	DEFINITIONS 

“Board of Directors” means the Board of Directors of Stein Mart, Inc. and any of its divisions, affiliates or
subsidiaries. 
 “Cause” means the occurrence of any one or more of the following: 

(a) Executive has been convicted of, or pleads guilty or nolo contendere to, a felony involving dishonesty, theft,
misappropriation, embezzlement, fraud crimes against property or person, or moral turpitude which negatively impacts the Company; or 

(b) Executive intentionally furnishes materially false, misleading, or omissive information concerning a substantial
matter to the Company or persons to whom the Executive reports; or 
 (c) Executive intentionally fails to
fulfill any assigned responsibilities for compliance with the Sarbanes-Oxley Act of 2002 or violates the same; or 

(d) Executive intentionally and wrongfully damages material assets of the Company; or 

(e) Executive intentionally and wrongfully discloses material Confidential Information of the Employer; or 

 (f) Executive intentionally and wrongfully engages in any competitive
activity which would constitute a material breach of the duty of loyalty; or 
 (g) Executive intentionally
breaches any stated material employment policy or any material provision of the Company’s Ethics Policy which could reasonably be expected to expose the Company to liability, or 

(h) Executive intentionally commits a material breach of this Agreement, or 

(i) Executive intentionally engages in acts or omissions which constitute failure to follow reasonable and lawful
directives of the Company, provided, however, that such acts or omissions are not cured within five (5) days following the Company’s giving notice to Executive that the Company considers such acts or omissions to be “Cause” under
this Agreement. 
 No act, or failure to act, on the part of Executive shall be deemed “intentional” if it was due primarily to an
error in judgment or negligence, but shall be deemed “intentional” only if done, or omitted to be done, by the Executive not in good faith and without reasonable belief that his action or omission was in or not opposed to the best
interests of the Company. Failure to meet performance standards or objectives shall not constitute Cause for purposes hereof. 

“Change in Control” means the occurrence of any of the following: (a) the Board approves the sale of all or
substantially all of the assets of the Company in a single transaction or series of related transactions; (b) the Company sells and/or one or more shareholders sells a sufficient amount of its capital stock (whether by tender offer, original
issuance, or a single or series of related stock purchase and sale agreements and/or transactions) sufficient to confer on the purchaser or purchasers thereof (whether individually or a group acting in concert) beneficial ownership of at least 35%
of the combined voting power of the voting securities of the Company; (c) the Company is party to a merger, consolidation or combination, other than any merger, consolidation or combination that would result in the holders of the voting
securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than 50% of the combined voting power of the voting
securities of the Company (or such surviving entity) outstanding immediately after such merger, consolidation or combination; or (d) a majority of the board of directors consists of individuals who are not Continuing Directors (for this
purpose, a Continuing Director is an individual who (i) was a director of the Company on January 1, 2010 or (ii) whose election or nomination as a director of the Company is approved by a vote of at least a majority of the directors
then comprising the Continuing Directors). For purposes hereof, the definition of a Change of Control shall be construed and interpreted so as to comply with the definition contained in Code Section 409A. 

 

 2 

 “Code” means the Internal Revenue Code of 1986, as
amended. Any reference to a specific provision of the Code shall be deemed to refer to any successor provision thereto and the regulations promulgated thereunder. 

“Commencement Date” means May 17, 2010, the date the Executive shall report for work and assume
Executive’s responsibilities hereunder. 
 “Compensation Committee” means the
Company’s Compensation Committee or, if no such committee exists, the term Compensation Committee shall mean the Company’s Board of Directors. 

“Competing Business” means any business which (i) at the time of determination, is
substantially similar to the whole or a substantial part of the business conducted by the Company or any of its divisions or affiliates; (ii) at the time of determination, is operating a store or stores which, during its or their fiscal year
preceding the determination, had aggregate net sales, including sales in leased and licensed departments, in excess of $10,000,000, if such store or any such stores is or are located in a city or within a radius of 25 miles from the outer limits of
a city where the Company, or any of its divisions or affiliates, is operating a store or stores which, during their fiscal year preceding the determination, had aggregate net sales, including sales in leased and licensed departments, in excess of
$10,000,000; and (iii) had aggregate net sales at all locations, including sales in leased and licensed departments and sales by its divisions and affiliates, during its fiscal year preceding that in which the Executive first rendered personal
services thereto, in excess of $25,000,000. 
 “Continuation Period” means a period
following the Termination Date of the Executive’s employment with the company equal to: 
  

	 	(i)	twelve (12) months (a) following a termination by the Company due to a non-renewal of the Term of this Agreement under §5(a) hereof, or
(b) following a termination by the Company without Cause or by the Executive for Good Reason under §5(b) hereof, or 

  

	 	(ii)	twenty-four (24) months following a termination (a) by the Company without Cause following a Change in Control under §5(f)(i) hereof, or (b) by the
Executive for Good Reason following a Change in Control under §5(b) as the definition of Good Reason is expanded in §5(b)(i) hereof 

“Current Insurance Coverage” means medical, dental, life and accident and disability insurance with
coverage consistent with the lesser of (i) the coverage in effect at Executive’s termination, or (ii) the coverage in effect from time to time as applied to persons in positions similar to the position held by Executive at the time of
termination. 
 “Disability” means Executive’s incapacity due to physical or mental illness
or cause, which results in the Executive being unable to perform his duties with Company on a full-time basis for a period of six (6) consecutive months. Any dispute as to 

 

 3 

 
disability shall be conclusively determined by written opinions rendered by two qualified physicians, one selected by Executive, and one selected by Company; provided that if such opinions are
conflicting, then such physicians shall select a mutually agreeable third physician whose opinion shall be conclusive and binding. 

“Earned Bonus” means the bonus paid, if any, pursuant to the Company’s incentive compensation plans in
effect from time to time. Earned Bonus shall be prorated based on the ratio of the number of days during such year that Executive was employed to 365. 

“Good Reason” means the occurrence of any one or more of the following: 

 

	 	(i)	a material and continuing failure to pay to Executive compensation and benefits (as described in Section 4) that have been earned, if any, by Executive,
except failure to pay or provide compensation or benefits that are in dispute between the Company and the Executive unless such failure continues following the resolution of such dispute; or 

 

	 	(ii)	a material reduction in Executive’s compensation or benefits (as described in Section 4) which is materially more adverse to the Executive than similar
reductions applicable to other executives of a similar level of status within the Company as Executive; or 

  

	 	(iii)	any failure by the Company to comply with any of the material provisions of this Agreement and which is not remedied by the Company within thirty (30) days after
receipt of notice thereof given by Executive; or 

  

	 	(iv)	any requirement that Executive perform duties that, in the good faith and reasonable professional judgment of Executive, after consultation with the Board of Directors
of the Company, are inconsistent with ethical or lawful business practices; or 

  

	 	(v)	Executive’s being required to relocate to a principal place of employment more than one-hundred (100) miles from his current principal place of employment in
Jacksonville, Florida during the Term unless the Company shall pay all reasonable costs and expenses related thereto; or 

  

 4 

	 	(vi)	If following a Change in Control only, there occurs a material change in Executive’s duties, roles, or responsibilities. For purposes of this subsection,
“material change” shall be of such a character that a reasonable person serving in a like or similar executive capacity would feel compelled to resign from employment. Examples of “material change” include, but are not limited to
substantial reduction of Executive’s authority to make decisions relating to his or her business responsibilities; Executive being required to assume or perform substantially greater responsibilities (without additional compensation) than
previously required to perform; substantial reduction of Executive’s responsibilities for personnel matters relating to his or her business operations; substantial alteration or change in Executive’s work schedule; any restructuring or
reassignment of any of the Executive’s responsibilities, in a manner that diminishes them or is materially adverse to the Executive, from that which was in effect at the time of the Change in Control; and other substantial changes in
Executive’s terms or conditions of employment not related to Executive’s principal business responsibilities. Good Reason pursuant to this subsection shall not exist unless (a) the Executive’s “material change” has
existed for a period of at least six months; (b) Executive has consulted with management senior to Executive and his or her supervisor, in a good faith effort to resolve the issues giving Executive reason to believe a “material
change” has occurred; and (c) Executive gives written notice of Executive’s resignation for Good Reason under this paragraph within eight months following the commencement of the “material change”. 

“Termination Date” means the date of Executive’s termination of employment, or if the
Executive continues to provide services to Stein Mart, Inc. or its 409A affiliates following his termination of employment, such later date as is considered a separation from service from Stein Mart, Inc. and its 409A affiliates within the meaning
of Code Section 409A. For purposes of this Agreement, the Executive’s “termination of employment” shall be presumed to occur when Stein Mart, Inc. and the Executive reasonably anticipate that no further services will be performed
by the Executive for Stein Mart, Inc. and its 409A affiliates or that the level of bona fide services the Executive will perform as an employee of Stein Mart, Inc. and its 409A affiliates will permanently decrease to no more than 20% of the average
level of bona fide services performed by the Executive (whether as an employee or independent contractor) for Stein Mart, Inc. and its 409A affiliates over the immediately preceding 36-month period (or such lesser period of services). Whether the
Executive has experienced a termination of employment shall be determined by Stein Mart, Inc. in good faith and consistent with Section 409A of the Code. Notwithstanding the foregoing, if the Executive takes a leave of absence for purposes of
military leave, sick leave or other bona fide reason, the Executive will not be deemed to have experienced a termination of employment for the first six (6) months of the leave of absence, or if longer, for so long as the Executive’s right
to reemployment is provided either by statute or by contract, including this Agreement; provided that if the leave of absence is due to a medically determinable physical or mental impairment that can be expected to result in

  

 5 

 
death or last for a continuous period of not less than six (6) months, where such impairment causes the Executive to be unable to perform the duties of his position of employment or any
substantially similar position of employment, the leave may be extended by Stein Mart, Inc. for up to 29 months without causing a termination of employment. For purposes hereof, the term “409A affiliate” means each entity that is required
to be included in Stein Mart, Inc.’s controlled group of corporations within the meaning of Section 414(b) of the Code, or that is under common control with Stein Mart, Inc. within the meaning of Section 414(c) of the Code;
provided, however, that the phrase “at least 50 percent” shall be used in place of the phrase “at least 80 percent” each place it appears therein or in the regulations thereunder. 

 

	SECTION 3.	TITLE, POWERS AND RESPONSIBILITIES 

(a) Title. Executive shall be a Senior Vice-President and Director of Stores of the Company or such other
title as designated by the Chief Executive Officer or the Company’s Board of Directors. Executive shall assume those duties on the Commencement Date. 

(b) Powers and Responsibilities. 
  

	 	(i)	Executive shall use Executives best efforts to faithfully perform the duties of his employment and shall perform such duties as are usually performed by a person
serving in Executive’s position with a business similar in size and scope as the Company and such other additional duties as may be prescribed from time to time by the Company which are reasonable and consistent with the Company’s
operations, taking into account officer’s expertise and job responsibilities. Executive agrees to devote Executive’s full business time and attention to the business and affairs of the Company. Executive shall serve on such boards and in
such offices of the Company or its subsidiaries as the Company’s Board of Directors reasonably requests without additional compensation. 

  

	 	(ii)	Executive, as a condition to his employment under this Agreement, represents and warrants that he can assume and fulfill responsibilities described in
Section 3(b)(i) without any risk of violating any non-compete or other restrictive covenant or other agreement to which he is a party. During the Employment Term Executive shall not enter into any agreement that would preclude, hinder or impair
his ability to fulfill responsibilities described in Section 3(b)(i) specifically or this Agreement generally. 

  

	SECTION 4.	COMPENSATION AND BENEFITS 

(a) Annual Base Salary. Executive’s base salary shall be $325,000.00 per year
(“Annual Base Salary”) beginning on the Commencement Date, which amount may be periodically reviewed at the discretion of the Compensation Committee. The Annual Base Salary and any payments to the Executive
during any 
  

 6 

 
Continuation Period shall be payable in accordance with the Company’s standard payroll practices and policies (unless otherwise expressly provided herein) and shall be subject to such
withholdings as required by law or as otherwise permissible under such practices or policies. 
 (b) Earned
Bonus; Incentive Compensation; First Year Bonuses. Executive shall be eligible to receive an Earned Bonus. Executive shall also be eligible to participate in such annual and long term incentive plans as are in effect from time to time as
applicable to persons at Executive’s level of authority and position. For fiscal 2010, as applicable to Executive, and subject to the terms of the plans, the Company’s Annual Incentive Plan provides a cash bonus of 30% of Executive’s
Annual Base Salary if the Company achieves its “Target” level of performance and 45% of Executive’s Annual Base Salary if the “Superior” level of performance is achieved or exceeded by the Company, and Long Term Incentive
Plan provides 27,857 performance shares (based on an estimated closing price for he Company’s shares of $10.50 on the day of grant) of the Company’s common stock if the “Target” level of performance is achieved; Nothing in this
Section 4(b) guarantees that any Earned Bonus or other incentive compensation will be paid, or that future incentive plans (annual or long term) shall provide similar potential benefits. In addition Executive shall receive options to acquire
20,000 shares of the Company’s common stock under the Stein Mart, Inc. Omnibus Plan (the “Option Plan”) on terms set by the Board of Directors at an exercise price equal to the closing price of the
Company’s shares on NASDAQ as of the Effective Date; which options shall have a term of seven years and to vest 33% on the third anniversary of the Effective Date, 66% on the fourth anniversary of the Effective Date and 100% on the fifth
anniversary of the Effective Date. 
 (c) Employee Benefit Plans. Executive shall be entitled to receive
the benefits described in Schedule A attached hereto, if and for as long as the Company sponsors such plans and such plans remain in effect for other executives with the same level of status as Executive. The Company’s current Executive Split
Dollar Life insurance provides a death benefit of 500% of the Executive’s Base Salary and earned Annual Incentive Plan compensation. 

(d) Stock Options. The Board of Directors, in its discretion, may grant rights to Executive under the Stein Mart,
Inc. Omnibus Plan (the “Option Plan”) on terms set by the Board of Directors or the Compensation Committee. 

(e) Deferred Compensation. Executive will participate in the Stein Mart Executive Deferred Compensation Plan (the
“Deferred Compensation Plan”). The Company’s current Deferred Compensation normally provides for a match of up to 10% of Executives Annual Base Salary and earned Annual Incentive Plan compensation, although
for the present, the match has been suspended. The Company reserves the right to alter, modify, revise or eliminate the Deferred Compensation Plan provided that any such change to the terms will apply to Executive and similarly situated
participants. 
  

 7 

 (f) Vacation, Holidays and Salary Continuation. Executive shall
receive a total of 27 days of paid vacation, or holidays on a pro rata basis during any 365 day period of the Term. The amount may be adjusted in accordance with the Company’s standard policy or as directed by the Company’s Board of
Directors. Any vacation or holiday leave time not used during any 365 day period of the Term will not carry forward to the next 365 period and will be forfeited. 

(g) Expense Reimbursements. Executive shall have the right to expense reimbursements in accordance with the
Company’s standard policy on expense reimbursements as in effect from time to time. 
 (h)
Indemnification. With respect to Executive’s acts or failures to act during his employment in his capacity as an officer, employee or agent of the Company, Executive shall be entitled to indemnification from the Company, and to liability
insurance coverage (if any), on the same basis as other officers of the Company. Executive shall be indemnified by Company, and Company shall pay Executive’s related expenses when and as incurred, all to the full extent permitted by law.
Subject to applicable law, the Company reserves the right to discontinue indemnification in the event the Company determines that the Executive has breached this Agreement or the Executive has advances, or intends to advance, a business or legal
position contrary to the Company’s interests. Notwithstanding the foregoing, Executive shall not be entitled to any indemnification if a judgment or other final adjudication establishes that any act or omission of Executive was material to the
cause of action so adjudicated and that such act or omission constituted: (i) a criminal violation, unless Executive had reasonable cause to believe that Executive’s conduct was lawful or had no reasonable cause to believe that such
conduct was unlawful, (ii) a transaction from which Executive derived an improper personal benefit, or (iii) willful misconduct or a conscious disregard for the best interests of the Company. 

(i) Automobile Allowance. The Company will pay Executive $13,200 per year (paid quarterly) which shall be used for
the lease, purchase, maintenance and/or operation of a vehicle that Executive is to use for business travel or may use for personal travel. Executive shall be solely responsible for any taxes associated with the automobile allowance afforded to him.

 (j) Other Perquisites. The Company will provide Executive with such other perquisites as may be made
generally available to others in a similar level of executive position within the Company. 
 (k) Relocation
Assistance. The Company will pay the following relocation assistance amounts in connection with Executive’s relocation from Charlotte, North 

 

 8 

 
Carolina (the “Current Residence”) to Jacksonville, Florida, and Executive Agrees as soon as practical following the Commencement Date to relocate Executive’s principal residence
from Executive’s Current Residence to Jacksonville, Florida (the “Relocation”): 
 (i) a one-time payment
of $60,000 (gross) within 30 days of the Commencement Date to assist the Executive with the Relocation; 
 (ii) the reasonable
cost of the following (the “Moving Expenses”): (aa) packing, storage and moving Executive’s household goods to Jacksonville, (bb) such other relocation costs as the Company believes appropriate in its sole discretion. And (cc)
to the extent any Moving Expenses constitute taxable income to Executive for federal income tax purposes, the Company will “gross-up” such payments so Executive will receive the after tax benefit of such reimbursement; 

(iii) for the first six months following the Commencement Date, the Company will reimburse Executive for Executive’s actual cost of
coach fare travel between Jacksonville, Florida and Charlotte, NC; provided, however that (aa) there shall be no more than two such trips in any one calendar month, and (bb) the Company shall not reimburse Executive for more than eight such trips in
total; and 
 (iv) while the Executive maintains Executive’s Current Residence, but not to exceed twelve months following
the Commencement Date, the Company, at the Company’s expense, shall provide Executive with a furnished apartment in Jacksonville, Florida, for the Executive’s exclusive use at a cost of not to exceed $2,500 per month, and to the extent any
such temporary lodging expenses constitute taxable income to Executive for federal income tax purposes, the Company will “gross-up” such payments so Executive will receive the after tax benefit of such reimbursement; and 

(v) the Company shall reimburse Executive for two round trips from Executive’s Current Residence for Executive and Spouse to
Jacksonville to include coach airfare, reasonable lodging, transportation, and meals, for the purposes locating a principal residence in Jacksonville, Florida. 

(l) Limitation. The Company reserves the right to alter, modify, revise or eliminate any or all benefit plans and
perquisites applicable to Executive including, without limitation, the Annual Incentive Compensation Plan, the Long Term Incentive Compensation Plan, the Option Plan, the Deferred Compensation Plan, the 401K plan and all benefits shown on Schedule A
hereto; provided that any such change to the terms will apply to Executive and similarly situated participants. 
  

 9 

 (m) Prior Employer. The Company will direct its general counsel to
review Executive’s agreements with Executive’s prior employer with respect to any obligation of Executive to reimburse such prior employer for past relocation expenses. If it is determined that Executive owes such prior employer a
reimbursement for past relocation payments, the Company shall pay Executive the amount, not to exceed a total of $30,000, which Executive was required to repay to such prior employer. 

(n) Claw Back. The Executive shall repay the Company the Claw Back Amount (defined below) In the event Executive
leaves the employment of the Company at any time during the first year following the Commence Date, for any reason other than Good Reason, Death, Disability or termination by the Company without Cause. The “Claw Back Expenses” are
all amounts received by Executive from the Company as relocation assistance under Section 4(k) above. 
  

	SECTION 5.	TERMINATION OF EMPLOYMENT 

(a) General; Non-Renewal. The Board of Directors shall have the right to terminate Executive’s employment and
this Agreement at any time with or without Cause, and Executive shall have the right to terminate his employment and this Agreement at any time with or without Good Reason; provided that obligations under this Section 5, Section 6
and Section 7 shall survive termination of the Agreement. The Board of Directors may delegate its powers to terminate the Executive to the persons to whom the Executive reports. In the event the Company elects not to renew the Executive’s
employment following the end of the Term with compensation and benefits not materially less advantageous to the Executive than those set forth in this Agreement, but the Executive is willing and able to enter into a renewal of this Agreement with
compensation and benefits not materially less advantageous to the Executive than those set forth in this Agreement, then upon termination of the Executive’s employment, (i) the Company shall pay the Executive his normal base twelve
(12) months salary over a six month period beginning six (6) months following the Termination Date (subject in each case to such withholdings as required by law), and (ii) the Company shall continue until the earlier to occur of the
end of the Continuation Period or until such time as the Executive commences a new job, to maintain in effect for such Executive at the Company’s cost the Executive’s Current Insurance Coverage; provided that if the taxable value of
the continued life and accident and disability coverage to Executive during the first six (6) months following the Termination Date exceeds the annual dollar limit in effect under Code Section 402(g)(1)(B) for the year of such termination,
then the Executive shall pay the premiums in excess of such limit for such coverage during such six (6)-month period and after the end of such six (6)-month period, the Company shall reimburse the Executive for the amount of the premiums paid by the
Executive, without interest thereon. 
  

 10 

 (b) Termination by Board of Directors without Cause or by Executive for
Good Reason. If (i) the Board of Directors terminates Executive’s employment without Cause, or (ii) Executive resigns for Good Reason, then in either of those circumstances, the Company’s only obligation to Executive under
this Agreement (except as provided in §5(f) hereof) shall be to pay Executive his earned but unpaid base salary, if any, up to the date of his termination of employment, plus 100% of his current total Annual Base Salary as specified in
Section 4(a) (subject to such withholdings as required by law) payable in periodic payments (consistent with the payroll periods then in effect) for twelve (12) consecutive months beginning six (6) months following the Termination
Date. During the Continuation Period the Executive shall also continue to receive, at the Company’s cost, the Current Insurance Coverage; provided that if the taxable value of the continued life and accident and disability coverage to Executive
during the first six (6) months following the Termination Date exceeds the annual dollar limit in effect under Code Section 402(g)(1)(B) for the year of such termination, then the Executive shall pay the premiums in excess of such limit
for such coverage during such six (6)-month period and after the end of such six (6)-month period, the Company shall reimburse the Executive for the amount of the premiums paid by the Executive, without interest thereon. 

(c) Termination by the Board of Directors for Cause or by Executive without Good Reason. If the Board of Directors
of the Company terminates Executive’s employment for Cause or Executive resigns without Good Reason, the Company’s only obligation to Executive under this Agreement shall be to pay Executive his earned but unpaid base salary, if any, up to
the date of his termination of employment, and the Company shall have no obligation to pay any Earned Bonus with respect to the year during which the Termination Date occurs. The Company shall only be obligated to make such payments and provide such
benefits under any employee benefit plan, program or policy in which Executive was a participant as are explicitly required to be paid to Executive by the terms of any such benefit plan, program or policy following the Termination Date. 

(d) Termination for Disability. Subject to the definitions and requirements of Section 2
(“Disability”), after six (6) consecutive months of such disability leave of absence, Executive’s service may be terminated by Company. In the event Executive is terminated from employment due to Disability, the Company shall:

 (i) pay Executive his Annual Base Salary through the end of the month in which his employment terminates as soon as
practicable after his employment terminates; provided that if such payment exceeds the applicable dollar amount in effect under Code Section 402(g)(1)(B) for the year in which such termination occurs, then the payment in excess of such
applicable dollar amount shall be paid following six (6) months after the Executive’s Termination Date; 
  

 11 

 (ii) pay Executive his Earned Bonus, pro rata and if any, for the fiscal year in
which such termination of employment occurs, which amount shall be paid at the same time the Earned Bonus would have been paid had Executive remained in employment; 

(iii) pay Executive an additional nine (9) months of compensation at the then-Annual Base Salary, which aggregate amount shall be
payable in equal semi-monthly installments beginning not earlier than six (6) months following the Termination Date and continuing for nine (9) months thereafter; 

(iv) pay or cause the payment of benefits to which Executive is entitled under the terms of any disability plan of the Company covering
the Executive at the time of such Disability: 
 (v) pay premiums for COBRA coverage as provided in Section 5(g);

 (vi) make such payments and provide such benefits as otherwise called for under the terms of each other employee benefit
plan, program and policy in which Executive was a participant; provided no payments made under Section 5(d)(ii) or Section 5(d)(iii) shall be taken into account in computing any payments or benefits described in this Section 5(d)(iv);
and 
 (vii) in the event the Executive has any options or restricted shares (but excluding “performance shares” which
shall be governed by the terms set forth in the grant as to such shares) which are not vested on the date of termination for Disability, then pay to the Executive (i) as to any unvested options, the net value of the excess, if any, of the
closing price of the Company’s shares on the NASDAQ for the day on which the termination due to Disability occurs and the exercise price of such unvested options multiplied by the number of shares subject to options which failed to vest; and
(ii) as to any unvested restricted shares, the value of the closing price of the Company’s shares on the NASDAQ for the day on which the termination due to Disability occurs multiplied by the number of restricted shares, if any, which
failed to vest due to such termination of employment for Disability. 
  

 12 

 Notwithstanding the Executive’s Disability, during the period of Disability leave,
Executive shall be paid in full (net of insurance) as if he or she were actively performing services. Executive agrees to simultaneously utilize available leave under the Family and Medical Leave Act of 1993 during such disability leave of absence.
During the period of such Disability leave of absence, the Board of Directors may designate someone to perform Executive’s duties. Executive shall have the right to return to full-time service so long as he is able to resume and faithfully
perform his full-time duties. 
 (e) Death. If Executive’s employment terminates as a result of his
death, the Company shall: 
 (i) pay to Executive’s estate his Annual Base Salary through the end of the
month in which his employment terminates as soon as practicable after his death; 
 (ii) pay to Executive’s
estate his Earned Bonus, when actually determined, for the year in which Executive’s death occurs; 
 (iii)
make such payments and provide such benefits as otherwise called for under the terms of each other employee benefit plan, program and policy in which Executive was a participant; provided no payments made under Section 5(e)(ii) shall be taken
into account in computing any payments or benefits described in this Section 5(e)(iii); and 
 (iv) in the
event the Executive has any options or restricted shares (but excluding “performance shares” which shall be governed by the terms set forth in the grant as to such shares) which are not vested on the date of termination for death, then pay
to the Executive’s estate (i) as to any unvested options, the net value of the excess, if any, of the closing price of the Company’s shares on the NASDAQ for the day on which the death occurred and the exercise price of such unvested
options multiplied by the number of shares subject to options which failed to vest; and (ii) as to any unvested restricted shares, the value of the closing price of the Company’s shares on the NASDAQ for the day on which the death occurred
multiplied by the number of restricted shares, if any, which failed to vest due to such termination of employment for death. 

Any amounts payable to Executive under this Agreement which are unpaid at the date of Executive’s death or payable hereunder or
otherwise by reason of his death, shall be paid in accordance with the terms of this Agreement to Executive’s estate; provided that if there is a specific beneficiary designation in place for any specific amount payable, then payment of
such amount shall be made to such beneficiary. 
  

 13 

 (f) Change in Control. If a Change in Control occurs, then for a
period beginning on the occurrence of the Change in Control and ending two years following that occurrence (the “Post Change in Control Period”): 

(i) In addition to the other events constituting Good Reason under this Agreement, the following shall also constitute
Good Reason: if the Executive is willing and able to continue employment with the Company but the Company exercises its right to either not renew this Agreement, or only offers to renew this Agreement only under conditions or terms which would
constitute a “material change” (as that term is defined in the definition of Good Reason), provided, however, that notice of exercise of the Executive’s termination for Good Reason must be received by the Company during the
Post Change in Control Period and not later than thirty (30) days after the Company exercises its right not to renew this Agreement or to renew the Agreement only on terms which would constitute a “material change”; and

 (ii) In the event of termination of the Executive’s employment with the Company pursuant to §5(b)
hereof either by the Company without Cause, or by the Executive for Good Reason (as such term is expanded to include the circumstances described in §5(f)(i) above), with notice of such termination given within the Post Change in Control Period,
then the Executive shall receive the following (the “CIC Severance Payments”) in a lump sum payable in funds immediately available in Jacksonville, Florida not earlier than six (6) months following the Termination
Date and not later than seven (7) months following Termination Date: an amount equal to 200% of the sum of (A) the total of severance payments (other than continued insurance coverage) provided under §5(b) of this agreement (and in
lieu thereof), and (B) the Earned Bonus in the year of the Termination Date. For purposes of this subsection (f) Earned Bonus shall not be prorated and shall be an amount equal to “Target” bonus as defined in the Company’s
incentive compensation plan in effect from time to time. 
 (g) Benefit Continuation. Provided Executive
is eligible for COBRA coverage, and has not been terminated from employment for Cause or resigned without Good Reason, then the Company shall pay the Executive’s COBRA premiums commencing on the date of the Executive’s termination of
employment and continuing for the applicable Continuation Period in order to continue Executive’s health insurance coverage and maintain such coverage in effect; provided that following the end of the COBRA continuation period, if
Executive’s health insurance coverage is provided under a health plan that is subject to Code Section 105(h), benefits payable under such health plan shall comply with the requirements of Treasury Regulation Section 1.409A-3(i)(1)(iv)
and, if necessary, the Company shall amend such health plan to comply therewith. 
  

 14 

 (h) Relinquishment of Corporate Positions. Executive shall
automatically cease to be an officer and/or director of the Company and its affiliates as of his date of termination of employment. 

(i) Limitation. Anything in this Agreement to the contrary notwithstanding, Executive’s entitlement to or
payments under any other plan or agreement shall be limited to the extent necessary so that no payment to be made to Executive on account of termination of his employment with the Company will be subject to the excise tax imposed by Code
Section 4999, but only if, by reason of such limitation, Executive’s net after tax benefit shall exceed the net after tax benefit if such reduction were not made. “Net after tax benefit” shall mean (i) the sum of all
payments and benefits that Executive is then entitled to receive under any section of this Agreement or other plan or agreement that would constitute a “parachute payment” within the meaning of Section 280G of the Code, less
(ii) the amount of federal income tax payable with respect to the payments and benefits described in clause (i) above calculated at the maximum marginal income tax rate for each year in which such payments and benefits shall be paid to
Executive (based upon the rate in effect for such year as set forth in the Code at the time of the first payment of the foregoing), less (iii) the amount of excise tax imposed with respect to the payments and benefits described in clause
(i) above by Section 4999 of the Code. Any limitation under this Section 5(i) of Executive’s entitlement to payments shall be made in the manner and in the order directed by Executive. 

 

	SECTION 6.	COVENANTS BY EXECUTIVE 

(a) Company Property. Upon the termination of Executive’s employment for any reason, Executive shall promptly
return all Company Property which had been entrusted or made available to Executive by the Company. “Property” means all records, files, memoranda, communication, reports, price lists, plans for current or prospective
business operations, customer lists, drawings, plans, sketches, keys, codes, computer hardware and software and other property of any kind or description prepared, used or possessed by Executive during Executive’s employment by the Company (and
any duplicates of any such Property) together with any and all information, ideas, concepts, discoveries, processes, intellectual property, inventions and the like conceived, made, developed or acquired at any time by Executive individually or with
others during Executive’s employment which relate to the Company or its products or services or operations. 

(b) Trade Secrets. Executive agrees that Executive shall hold in a fiduciary capacity for the benefit of the
Company and shall not directly or indirectly use or disclose any Trade Secret that Executive may have acquired during the term of Executive’s employment by the Company for so long as such information remains a Trade Secret. “Trade
Secret” means information, including, but not limited to, technical or non-technical data, a formula, a pattern, a compilation, a program, a device, a method, a technique, a drawing or a process that (1) derives economic

  

 15 

 
value, actual or potential, from not being generally known to, and not being generally readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or
use and (2) is the subject of reasonable efforts by the Company to maintain its secrecy. This Section 6(b) is intended to provide rights to the Company which are in addition to, not in lieu of, those rights the Company has under the common
law or applicable statutes for the protection of trade secrets. 
 (c) Confidential Information. During
the Employment Term and continuing thereafter indefinitely, Executive shall hold in a fiduciary capacity for the benefit of the Company, and shall not directly or indirectly use or disclose, any Confidential Information that Executive may have
acquired (whether or not developed or compiled by Executive and whether or not Executive is authorized to have access to such information) during the term of, and in the course of, or as a result of Executive’s employment by the Company without
the prior written consent of the Board of Directors unless and except to the extent that such disclosure is (i) made in the ordinary course of Executive’s performance of his duties under this Agreement or (ii) required by any subpoena
or other legal process (in which event Executive will give the Company prompt notice of such subpoena or other legal process in order to permit the Company to seek appropriate protective orders). “Confidential Information”
means any secret, confidential or proprietary information possessed by the Company or any of its subsidiaries or affiliates, including, without limitation, trade secrets, customer or supplier lists, details of client or consultant contracts, current
and anticipated customer requirements, pricing policies, price lists, market studies, business plans, operational methods, marketing plans or strategies, advertising campaigns, information regarding customers or suppliers, computer software programs
(including object code and source code), data and documentation data, base technologies, systems, structures and architectures, inventions and ideas, past current and planned research and development, compilations, devices, methods, techniques,
processes, financial information and data, business acquisition plans and new personnel acquisition plans and the terms and conditions of this Agreement that has not become generally available to the public. 

(d) Non-Competition. Executive recognizes that his duties will entail the receipt of Trade Secrets and Confidential
Information as defined in this Section 6. Those Trade Secrets and Confidential Information have been developed by the Company at substantial cost and constitute valuable and unique property of the Company. Accordingly, the Executive
acknowledges that protection of Trade Secrets and Confidential Information is a legitimate business interest. Executive agrees not to compete with the Company during the Employment Term and for a reasonable and limited period thereafter. Therefore,
during the Employment Term and during the applicable Continuation Period thereafter (or, in the event of as termination for Cause by the Company or without Good Reason by the Executive, a period of two (2) years following the Termination Date),
the Executive shall not have an investment of $100,000.00 or more in a Competing Business (as defined herein) 
  

 16 

 
and shall not render personal services to any such Competing Business in any manner, including, without limitation, as owner, partner, director, trustee, officer, employee, consultant or advisor
thereof. If the Executive shall breach the covenants contained in this Non-Competition provision, the Company shall have no further obligation to make any payment to the Executive pursuant to this Agreement and may recover from the Executive all
such damages as it may be entitled to at law or in equity. In addition, the Executive acknowledges that any such breach is likely to result in irreparable harm to the Company. The Company shall be entitled to specific performance of the covenants in
this Section 6, including entry of a temporary restraining order in state or federal court, preliminary and permanent injunctive relief against activities in violation of this Section 6, or both, or other appropriate judicial remedy, writ
or order, in addition to any damages and legal expenses which the Company may be legally entitled to recover. Executive acknowledges and agrees that the covenants in this Section 6 shall be construed as agreements independent of any other
provision of this Agreement or any other agreement between the Company and Executive, and that the existence of any claim or cause of action by Executive against the Company, whether predicated upon this Agreement or any other agreement, shall not
constitute a defense to the enforcement by the Company of such covenants. The provisions of this subsection (d) shall not be applicable to Executive if (i) Executive is terminated from employment without Cause, (ii) the Executive
resigns from employment for Good Reason, or (iii) the Company elects not to renew the Executive’s employment following the end of the Term with compensation and benefits not materially less advantageous to the Executive than those set
forth in this Agreement, but the Executive is willing and able to enter into a renewal of this Agreement with compensation and benefits not materially less advantageous to the Executive than those set forth in this Agreement. 

(e) Non-Solicitation. During the Employment Term and for a period of two years hereafter (such period is referred
to as the “No Recruit Period”), the Executive will not solicit, either directly or indirectly, any person that he knows or should reasonably know to be an employee of the Company, whether any such employees are now or hereafter through the
No Recruit Period so employed or engaged to terminate their employment with the Company. The foregoing is not intended to limit any legal rights or remedies that any employee of the Company may have under common law with regard to any interference
by Executive at any time with the contractual relationship the Company may have with any of its employees. 
 (f)
Reasonable and Continuing Obligations. Executive agrees that Executive’s obligations under this Section 6 are obligations which will continue beyond the date Executive’s employment terminates and that such obligations are
reasonable, fair and equitable in scope. The terms and duration are necessary to protect the Company’s legitimate business interests and are a material inducement to the Company to enter into this Agreement. Executive further acknowledges that
the consideration for this Section 6 is his employment or continued employment. 
  

 17 

 
Executive will not be paid any additional compensation during this Restricted Period for application or enforcement of the restrictive covenants contained in this Section 6. 

(g) Work Product. The term “Work Product” includes any and all information, programs, concepts,
processes, discoveries, improvements, formulas, know-how and inventions, in any form whatsoever, relating to the business or activities of the Company, or resulting from or suggested by any work developed by the Executive in connection with the
Company, or by the Executive at the Company’s request. Executive acknowledges that all Work Product developed during the Term is property of the Company and accordingly, Executive does hereby irrevocably assign all Work Product developed by the
Executive to the Company and agrees: (a) to assign to the Company, free from any obligation of the Company to the Executive, all of the Executive’s right, title and interest in and to Work Product conceived, discovered, researched, or
developed by the Executive either solely or jointly with others during the term of this Agreement and for three (3) months after the termination or nonrenewal of this Agreement; and (b) to disclose to the Company promptly and in writing
such Work Product upon the Executive’s acquisition thereof. 
  

	SECTION 7.	MISCELLANEOUS 

(a) Notices. Notices and all other communications shall be in writing and shall be deemed to have been duly given
when personally delivered or when mailed by United States registered or certified mail. Notices to the Company shall be sent to: 
  

	
	 STEIN MART, INC

	 Attention: General Counsel

	 1200 Riverplace Boulevard, 10th Floor

	 Jacksonville, FL 32207

	 Facsimile: (904) 346-1297

Notices and communications to Executive shall be sent to the address Executive most recently provided to the Company. 

(b) No Waiver. No failure by either the Company or Executive at any time to give notice of any breach by the other
of, or to require compliance with, any condition or provision of this Agreement shall be deemed a waiver of any provisions or conditions of this Agreement. 

(c) Governing Law. This Agreement shall be governed by Florida law without reference to the choice of law
principles thereof. 
 (d) Assignment. This Agreement shall be binding upon and inure to the benefit of
the Company and any successor in interest to the Company or any 
  

 18 

 
segment of such business. The Company may assign this Agreement to any affiliate or successor that acquires all or substantially all of the assets and business of the Company or a majority of the
voting interests of the Company. The Company will require any successor (whether direct or indirect, by operation of law, by purchase, merger, consolidation or otherwise to all or substantially all of the business and/or assets of Company) to
expressly assume and agree to perform this Agreement in the same manner and to the same extent that Company would be required to perform it if no such succession had taken place. As used in this Agreement, “Company” shall mean Company as
defined above and, unless the context otherwise requires, any successor to its business and/or assets as aforesaid which assumes and agrees to perform this Agreement by operation of law, or otherwise. Executive’s rights and obligations under
this Agreement are personal and shall not be assigned or transferred. 
 (e) Other Agreements. This
Agreement replaces and merges any and all previous agreements and understandings regarding all the terms and conditions of Executive’s employment relationship with the Company, and this Agreement constitutes the entire agreement between the
Company and Executive with respect to such terms and conditions. 
 (f) Amendment. No amendment to this
Agreement shall be effective unless it is in writing and signed by the Company and by Executive. 
 (g)
Invalidity and Severability. If any part of this Agreement is held by a court of competent jurisdiction to be invalid or otherwise unenforceable, the remaining part shall be unaffected and shall continue in full force and effect, and the
invalid or otherwise unenforceable part shall be deemed not to be part of this Agreement. 
 (h)
Litigation. In the event that either party to this Agreement institutes litigation against the other party to enforce his or its respective rights under this Agreement, each party shall pay its own costs and expenses incurred in connection
with such litigation. As a material part of the consideration for this Agreement, BOTH PARTIES HERETO WAIVE ANY RIGHT TO A TRIAL BY A JURY in the event of any litigation arising from this Agreement. All legal actions arising out of or connected with
this Agreement must be instituted solely in the Circuit Court of Duval County, Florida, or in the Federal District Court for the Middle District of Florida, Jacksonville Division, and all parties hereto do hereby agree to submit to the exclusive
personal jurisdiction of such courts. Each of the parties hereby expressly and irrevocably submits to the jurisdiction of such courts for the purposes of any such action and expressly and irrevocably waives, to the fullest extent permitted by law,
any objection which it may have or hereafter may have to the laying of venue of any such action brought in any such court and any claim that any such action has been brought in an inconvenient forum. 

 

 19 

 (i) 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. 
 IN WITNESS
WHEREOF, the Company and Executive have executed this Agreement effective as of the Effective Date. 
  

							
	STEIN MART, INC.	 		 	EXECUTIVE
				
	By:	 	 /s/ D. Hunt Hawkins
	 		 	 /s/ Gary L. Pierce

	Name:	 	D. Hunt Hawkins	 		 	Gary L. Pierce
	Title:	 	EVP, Chief Administrative Officer	 		 	
	Date:	 	5/18/10	 		 	Date: 5/18/10

  

 20 

 SCHEDULE A 

BENEFITS 
  

	1.	Retirement Plan/Life Insurance/AD&D 

The Executive shall be entitled to participate in all retirement plans and will be entitled to life insurance and AD&D benefits which
other senior executives of the Company or affiliates of the Company are eligible. 
  

	2.	Long-Term Disability 

 The
Executive shall be entitled to participate in all Long-Term and Life Time Disability plans which other senior executives of the Company or affiliates of the Company are eligible. 

 

	3.	Medical/Dental Benefits 

The Executive shall be entitled to medical/dental benefits which other senior executives of the Company or affiliates of the Company are
eligible. 
  

	4.	Unavoidable Change in Travel Arrangements 

In the event Executive has arranged for travel between Jacksonville and Charlotte, the Company will reimburse Executive for any change
fees or fare increases resulting from any change in Executive’s itinerary made at the request of the Company. 
  

 A-1Form of Note Purchase Agreement

 Exhibit 10.101 

NOTE PURCHASE AGREEMENT 

This Note Purchase Agreement (this “Agreement”) is made and entered into as of May 19, 2010, by and between
                             (the “Holder”), and Headwaters Incorporated, a Delaware
corporation (the “Company”). 
 RECITALS 

WHEREAS, the Holder currently holds that principal amount of the 16% Convertible Senior Subordinated Notes due 2016 of the Company set
forth on Schedule A (the “Notes”); 
 WHEREAS, the Holder desires to sell the Notes to the Company
on the terms and conditions set forth in this Agreement (the “Sale”); 
 WHEREAS, the Company desires to
purchase the Notes from the Holder on the terms and conditions set forth in this Agreement; 
 NOW, THEREFORE, in consideration
of the premises and the agreements set forth below, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 

ARTICLE 1 

Sale of the Notes 

Section 1.1 Sale of the Notes. Upon the terms and subject to the conditions of this Agreement, at the Closing (as defined
herein), the Holder shall sell to the Company and the Company shall purchase from the Holder that aggregate principal amount of Notes set forth in Schedule A in exchange for an aggregate purchase price of
$         (the “Purchase Price”). In addition to the Purchase Price, the Company agrees that Holder shall receive an interest payment on the Notes equal to
$         (“Accrued Interest”) on June 1, 2010, which represents the amount of interest that would have accrued on the Notes had the Notes remained outstanding through the end of the
current interest payment period. 
 Section 1.2 Cancellation of Notes. Each of the Holder and Company hereby agrees
that the Notes shall be cancelled in connection with the Sale. The Purchase Price shall be paid by the Company to the Holder in cash by wire transfer of immediately available U.S. funds on the Closing Date (as defined below). The Accrued Interest
shall be paid on June 1, 2010 in accordance with the terms of the Indenture governing the Notes (“Indenture”). Each of the Holder and the Company acknowledges that the cancellation of the Notes shall have the effects specified in the
Indenture. 
 Section 1.3 Closing Mechanics. The closing (the “Closing”) of the transactions
contemplated by this Agreement shall occur at the offices of Pillsbury Winthrop Shaw Pittman LLP, 50 Fremont Street, San Francisco, California 94105, or such other location as may be mutually acceptable in each case at 9:00 a.m., San
Francisco time, on third business day after the date of this Agreement or at such other time on the same date or such other date as the parties may agree in writing (such time and date, the “Closing Date”). 

Section 1.4 Conditions to Closing. 

(a) The obligation of the Holder hereunder to consummate the transactions contemplated hereby at the Closing is subject to the
satisfaction, at or before the Closing Date, of the following condition, provided that the condition is for the Holder’s sole benefit and may be waived by the Holder at any time in its sole discretion by providing the Company with prior written
notice thereof: The representations and warranties of the Company in this Agreement shall be true and correct in all material respects on and as of the Closing Date with the same effect as if made on the Closing Date and the Company has complied in
all material respects with all the agreements and satisfied all the conditions on its part to be performed or satisfied at or prior to the Closing Date. 

 (b) The obligation of the Company hereunder to consummate the transactions contemplated
hereby at the Closing is subject to the satisfaction, at or before the Closing Date, of each of the following conditions, provided that these conditions are for the Company’s sole benefit and may be waived by the Company at any time in its sole
discretion by providing the Holder with prior written notice thereof: 
 (i) The Holder shall have delivered, or caused to be
delivered, to the Company (i) the Notes being sold pursuant to this Agreement in accordance with a properly completed and executed Letter of Transmittal in the form provided to the Holder (the “Letter of Transmittal”) and
(ii) all other documentation reasonably requested by the Company relating to the right, title and interest in and to all of the Notes, and whatever documents of conveyance or transfer that may reasonably be necessary or desirable to transfer to
and confirm in the Company all right, title and interest in and to (free and clear of any mortgage, lien, pledge, charge, security interest, encumbrance, title retention agreement, option, equity or other adverse claim thereto) the Notes; and

 (ii) The representations and warranties of the Holder in this Agreement shall be true and correct in all material respects on
and as of the Closing Date with the same effect as if made on the Closing Date and that the Holder shall have complied in all material respects with all the agreements and satisfied all the conditions on its part to be performed or satisfied at or
prior to the Closing Date. 
 ARTICLE 2 

Representations and Warranties of the Holder 

The Holder hereby makes the following representations and warranties, each of which is true and correct on the date hereof and the
Closing Date and shall survive the Closing Date and the transactions contemplated hereby to the extent set forth herein. 

Section 2.1 Existence and Power. 

(a) The Holder is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization and has the
power, authority and capacity to execute and deliver this Agreement and the Letter of Transmittal, to perform its obligations hereunder and thereunder, and to consummate the transactions contemplated hereby. 

(b) The execution of this Agreement by the Holder and the consummation by the Holder of the transactions contemplated hereby do not and
will not constitute or result in a breach, violation, conflict or default under any note, bond, mortgage, deed, indenture, lien, instrument, contract, agreement, lease or license to which the Holder is a party, whether written or oral, express or
implied, or any statute, law, ordinance, decree, order, injunction, rule, directive, judgment or regulation of any court, administrative or regulatory body, governmental authority, arbitrator, mediator or similar body on the part of the Holder or on
the part of any other party thereto or cause the acceleration or termination of any obligation or right of the Holder, except for such breaches, conflicts, defaults, rights or violations which would not, individually or in the aggregate, reasonably
be expected to have a material adverse effect on the ability of the Holder to perform its obligations hereunder. 

Section 2.2 Valid and Enforceable Agreement; Authorization. This Agreement has been duly executed and delivered by the Holder
and constitutes a legal, valid and binding obligation of the Holder, enforceable against the Holder in accordance with its terms, except that such enforcement may be subject to (a) bankruptcy, insolvency, reorganization, moratorium or other
similar laws affecting or relating to enforcement of creditors’ rights generally, and (b) general principles of equity. 

Section 2.3 Title to Notes. The Holder has good and valid title to the Notes in the aggregate principal amount set forth on
Schedule A, free and clear of any mortgage, lien, pledge, charge, security interest, encumbrance, title retention agreement, option, equity or other adverse claim thereto. The Holder has not, in whole or in part, (i) assigned, transferred,
hypothecated, pledged or otherwise disposed of the Notes or its rights in such Notes, or (ii) given any person or entity (“Person”) any transfer order, power of attorney or other authority of any nature whatsoever with respect
to such Notes which upon the Closing Date would limit the Holder’s power to transfer the Notes hereunder. 
  

 2 

 Section 2.4 Investment Decision. The Holder initially contacted the Company
regarding the potential sale of the Notes. The Holder (or its authorized representative) has had the opportunity to review the Company’s filings with the Securities and Exchange Commission (the “Commission”), including, without
limitation, the Company’s Annual Report on Form 10-K for the year ended September 30, 2009, the Company’s Quarterly Reports on Form 10-Q for the quarters ended December 31, 2009 and March 31, 2010, the Company’s Proxy
Statement filed January 11, 2010, and the Company’s Current Reports on Form 8-K filed on February 3, 2010, February 18, 2010, March 1, 2010 and May 4, 2010. The Holder has had such opportunity to ask questions
of the Company and its representatives and to obtain from representatives of the Company such information as is necessary to permit it to evaluate the merits and risks of selling the Notes and has independently, without reliance upon any
representatives of the Company and based on such information as the Holder deemed appropriate, made its own analysis and decision to enter into this Agreement. 

Section 2.5 Professional Advice. The Holder is knowledgeable, sophisticated and experienced in business and financial matters
and has had the opportunity to consult with its accounting, tax, financial and legal advisors to be able to evaluate the risks involved in the Sale and to make an informed investment decision with respect to the Sale. With respect to the tax,
accounting and other economic considerations involved in the Sale, the Holder is not relying on the Company or any of its affiliates, and the Holder has carefully considered and has, to the extent the Holder believes such discussion is necessary,
discussed with the Holder’s professional legal, tax, accounting and financial advisors the implications of the Sale for the Holder’s particular tax, accounting and financial situation. 

Section 2.6 Letter of Transmittal. The information provided by the Holder in the Letter of Transmittal in the form provided
to the Holder is true and accurate as of the date hereof and the Holder shall advise the Company promptly of any changes therein on or prior to the Closing. 

ARTICLE 3 

Representations, Warranties and Covenants of the Company 

The Company hereby makes the following representations, warranties, and covenants each of which is true and correct on the date hereof
and the Closing Date and shall survive the date of the Closing and the transactions contemplated hereby to the extent set forth herein. 

Section 3.1 Existence and Power. 

(a) The Company is an entity duly incorporated or otherwise organized, validly existing and in good standing under the laws of the
jurisdiction of its incorporation or organization (as applicable), with the requisite power and authority to own and use its properties and assets and to carry on its business as currently conducted. The Company has the requisite power and authority
to execute and deliver this Agreement, to perform its obligations hereunder and consummate the transactions contemplated hereby. 

(b) The execution of this Agreement by the Company and the consummation by the Company of the transactions contemplated hereby do not and
will not constitute or result in a breach, violation, conflict or default under any note, bond, mortgage, deed, indenture, lien, instrument, contract, agreement, lease or license to which the Company is a party, whether written or oral, express or
implied, or any statute, law, ordinance, decree, order, injunction, rule, directive, judgment or regulation of any court, administrative or regulatory body, governmental authority, arbitrator, mediator or similar body on the part of the Company or
on the part of any other party thereto or cause the acceleration or termination of any obligation or right of the Company, except for such breaches, conflicts, defaults, rights or violations which would not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect on the Company. As used in this Agreement, the term “Material Adverse Effect” shall mean a material adverse effect on the business, operations, condition (financial or
otherwise), properties or results of operations of the Company, or an event, change or occurrence that would materially adversely affect the ability of the Company to perform its obligations under this Agreement. 

Section 3.2 Valid and Enforceable Agreement; Authorization. This Agreement has been duly executed and delivered by the
Company and constitutes a legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its terms, except that such enforcement may be subject to (a) bankruptcy, insolvency, reorganization, moratorium or
other similar laws affecting or relating to enforcement of creditors’ rights generally, and (b) general principles of equity. 
  

 3 

 Section 3.3 Professional Advice. The Company is knowledgeable, sophisticated and
experienced in business and financial matters and has had the opportunity to consult with its accounting, tax, financial and legal advisors to be able to evaluate the risks involved in the Sale and to make an informed investment decision with
respect to the Sale. With respect to the tax, accounting and other economic considerations involved in the Sale, the Company is not relying on the Holder or any of its affiliates, and the Company has carefully considered and has, to the extent the
Holder believes such discussion is necessary, discussed with the Company’s professional legal, tax, accounting and financial advisors the implications of the Sale for the Company’s particular tax, accounting and financial situation.

 Section 3.4 No Event of Default. The Company represents and warrants to the Holder that after giving effect to
the terms of this Agreement and any other similar agreement with other holders of 16% Convertible Senior Subordinated Notes due 2016 of the Company, no default or event of default shall have occurred and be continuing as of the date hereof with
respect to the Notes or any other indebtedness of the Company. 
 Section 3.5 Consents. Neither the Company nor any
of its subsidiaries is required to obtain any consent, authorization or order of, or make any filing or registration with, any court, governmental agency or any regulatory or self-regulatory agency or any other Person in order for it to execute,
deliver or perform any of its obligations under or contemplated by this Agreement, in each case in accordance with the terms hereof or thereof. 

Section 3.6 Insolvency. Neither the Company nor any of its subsidiaries has taken any steps to seek protection pursuant to
any bankruptcy law nor does the Company have any knowledge or reason to believe that its creditors intend to initiate involuntary bankruptcy proceedings or any actual knowledge of any fact which would reasonably lead a creditor to do so. The Company
and its subsidiaries, individually and on a consolidated basis, are not as of the date hereof, and after giving effect to the transactions contemplated hereby to occur at the Closing, will not be Insolvent (as defined below). For purposes of this
Section 3.6, “Insolvent” means, with respect to any Person (i) the present fair saleable value of such Person’s assets is less than the amount required to pay such Person’s total indebtedness, (ii) such
Person is unable to pay its debts and liabilities, subordinated, contingent or otherwise, as such debts and liabilities become absolute and matured, (iii) such Person intends to incur or believes that it will incur debts that would be beyond
its ability to pay as such debts mature or (iv) such Person has unreasonably small capital with which to conduct the business in which it is engaged as such business is now conducted and is proposed to be conducted. 

ARTICLE 4 

Miscellaneous Provisions 

Section 4.1 Survival of Representations and Warranties. The agreements of the Company, as set forth herein, and the
respective representations and warranties of Holder and the Company as set forth herein in Sections 2 and 3, respectively, shall survive the Closing Date. 

Section 4.2 Notice. Any notice provided for in this Agreement shall be in writing and shall be either personally delivered,
or mailed first class mail (postage prepaid) with return receipt requested or sent by reputable overnight courier service (charges prepaid): 
  

	 	(a)	if to the Holder, at the most current address given by such Holder to the Company; and 

 

	 	(b)	if to the Company, at its address, as follows: 

Headwaters Incorporated 

10654 South River Front Parkway 

South Jordan, UT 80495 

Attention: General Counsel 
  

 4 

 with a copy to: 

Pillsbury Winthrop Shaw Pittman LLP 

50 Fremont Street 

San Francisco, CA 94105 

Attention: Linda C. Williams, Esq. 

The Company by notice to the Sale may designate additional or different addresses for subsequent notices or communications. Notices will be deemed to
have been given hereunder when delivered personally, three business days after deposit in the U.S. mail postage prepaid with return receipt requested and two business days after deposit postage prepaid with a reputable overnight courier service for
delivery on the next business day. 
 Section 4.3 Entire Agreement. This Agreement and the other documents and
agreements executed in connection with the Sale embody the entire agreement and understanding of the parties hereto with respect to the subject matter hereof and supersede all prior and contemporaneous oral or written agreements, representations,
warranties, contracts, correspondence, conversations, memoranda and understandings between or among the parties or any of their agents, representatives or affiliates relative to such subject matter, including, without limitation, any term sheets,
emails or draft documents. 
 Section 4.4 Assignment; Binding Agreement. This Agreement and the various rights and
obligations arising hereunder shall inure to the benefit of and be binding upon the parties hereto and their successors and assigns. 

Section 4.5 Counterparts. This Agreement may be executed in multiple counterparts, and on separate counterparts, each of
which shall be deemed an original, but all of which taken together shall constitute one and the same instrument. Any counterpart or other signature hereupon delivered by facsimile shall be deemed for all purposes as constituting good and valid
execution and delivery of this Agreement by such party. 
 Section 4.6 Remedies Cumulative. Except as otherwise
provided herein, all rights and remedies of the parties under this Agreement are cumulative and without prejudice to any other rights or remedies available at law. 

Section 4.7 Governing Law. This Agreement shall in all respects be construed in accordance with and governed by the
substantive laws of the State of New York, without reference to its conflicts of law rules. 
 Section 4.8 No Third
Party Beneficiaries or Other Rights. Nothing herein shall grant to or create in any person not a party hereto, or any such person’s dependents or heirs, any right to any benefits hereunder, and no such party shall be entitled to sue any
party to this Agreement with respect thereto. 
 Section 4.9 Waiver; Consent. This Agreement may not be changed,
amended, terminated, augmented, rescinded or discharged (other than in accordance with its terms), in whole or in part, except by a writing executed by the parties hereto. No waiver of any of the provisions or conditions of this Agreement or any of
the rights of a party hereto shall be effective or binding unless such waiver shall be in writing and signed by the party claimed to have given or consented thereto. Except to the extent otherwise agreed in writing, no waiver of any term, condition
or other provision of this Agreement, or any breach thereof shall be deemed to be a waiver of any other term, condition or provision or any breach thereof, or any subsequent breach of the same term, condition or provision, nor shall any forbearance
to seek a remedy for any noncompliance or breach be deemed to be a waiver of a party’s rights and remedies with respect to such noncompliance or breach. 

Section 4.10 Word Meanings. The words such as “herein”, “hereinafter”, “hereof”, and
“hereunder” refer to this Agreement as a whole and not merely to a subdivision in which such words appear unless the context otherwise requires. The singular shall include the plural, and vice versa, unless the context otherwise requires.
The masculine shall include the feminine and neuter, and vice versa, unless the context otherwise requires. 
  

 5 

 Section 4.11 No Broker. Neither party has engaged any third party as broker or
finder or incurred or become obligated to pay any broker’s commission or finder’s fee in connection with the transactions contemplated by this Agreement other than such fees and expenses for which it shall be solely responsible.

 Section 4.12 Further Assurances. The Holder and the Company each hereby agree to execute and deliver, or cause to
be executed and delivered, such other documents, instruments and agreements, and take such other actions, as either party may reasonably request in connection with the transactions contemplated by this Agreement. 

Section 4.13 Costs and Expenses. The Holder and the Company shall each pay their own respective costs and expenses incurred
in connection with the negotiation, preparation, execution and performance of this Agreement, including, but not limited to, attorneys’ fees. 

Section 4.14 Headings. The headings in this Agreement are for convenience of reference only and shall not limit or otherwise
affect the meaning hereof. 
 Section 4.15 Severability. If any one or more of the provisions contained herein, or
the application thereof in any circumstance, is held invalid, illegal or unenforceable, the validity, legality and enforceability of any such provision in every other respect and of the remaining provisions contained herein shall not be affected or
impaired thereby. 
 Section 4.16 Most Favored Nation. The Company hereby represents and warrants as of the date
hereof, and covenants and agrees from and after the date hereof until 90 days after the date hereof, that none of the terms offered by the Company to any Person with respect to any purchase, transfer or redemption (each a “Purchase
Document”) relating to the Company’s 16% Convertible Senior Subordinated Notes due 2016, is or will be more favorable to such Person than those of the Holder, and this Agreement shall be, without any further action by the Holder or the
Company, deemed amended and modified in an economically and legally equivalent manner such that the Holder shall receive the benefit of the more favorable terms contained in such Purchase Document. Notwithstanding the foregoing, the Company agrees,
at its expense, to take such other actions (such as entering into amendments to this Agreement) as the Holder may reasonably request to further effectuate the foregoing. 
  

 6 

 IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be executed as
of the date first above written. 
  

			
	HOLDER:
		
	By:	 	  

	Name:	 	  

	Title:	 	  

Signature Page to Note Purchase Agreement 
  

 7 

 IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be executed as
of the date first above written. 
  

			
	HEADWATERS INCORPORATED
		
	By:	 	  

	Name:	 	  

	Title:	 	  

Signature Page to Note Purchase Agreement 
  

 8 

 Schedule A 

HOLDER NAME: 

Aggregate Principal Amount of Notes

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00174-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00174-of-00352.parquet"}]]