Document:

Exhibit 4.1

	

    	
COUNTERSIGNED   AND REGISTERED: AMERICAN STOCK TRANSFER & TRUST COMPANY (Brooklyn, New   York) TRANSFER AGENT AND REGISTRAR INCORPORATED UNDER THE LAWS OF THE STATE   OF DELAWARESEE REVERSE SIDE FOR CERTAIN DEFINITIONS CUSIP 90353N 10 3 THIS   CERTIFIES THAT BY FULLY PAID AND NON-ASSESSABLE SHARES OF CLASS A COMMON STOCK,   $0.01 PAR VALUE, OF COMMON transferable on the books of the Corporation by   the holder hereof in person or by Attorney upon surrender of this certificate   properly endorsed. This certificate is not valid until countersigned and   registered by the Transfer Agent and Registrar. IN WITNESS WHEREOF, the said   Corporation has caused this certificate to be signed by facsimile signatures   of its duly authorized officers. AUTHORIZED SIGNATURE O PRESIDENT AND CHIEF   EXECUTIVE OFFICEREXECUTIVE VICE PRESIDENT, GENERAL COUNSEL AND SECRETARY 
    

 

 

	

    	
THE BOARD OF   THIS CORPORATION HAS THE AUTHORITY TO CREATE AND DETERMINE THE RELATIVE   RIGHTS AND PREFERENCES OF CLASSES OR SERIES OF SHARES OF CAPITAL STOCK OTHER   THAN COMMON STOCK. THIS CORPORATION WILL FURNISH TO ANY SHAREHOLDER UPON   WRITTEN REQUEST SENT TO ITS PRINCIPAL EXECUTIVE OFFICES, AND WITHOUT CHARGE,   A FULL STATEMENT OF THE BOARD’S AUTHORITY TO CREATE AND DETERMINE THE   RELATIVE RIGHTS AND PREFERENCES OF CLASSES OR SERIES OF SHARES OF CAPITAL   STOCK AS WELL AS THE DESIGNATIONS, PREFERENCES, LIMITATIONS AND RELATIVE   RIGHTS OF THE SHARES OF EACH CLASS OR SERIES THEN OUTSTANDING OR AUTHORIZED   TO BE ISSUED. The following abbreviations, when used in the inscription on   the face of this certificate, shall be construed as though they were written   out in full according to applicable laws or regulations: TEN COM – as tenants   in common UTMA – Custodian (Cust)(Minor) TEN ENT – as tenants by entireties   under Uniform Transfers to Minors JT TEN – as joint tenants with right of   survivorship Act and not as tenants in common (State) Additional   abbreviations may also be used though not in the above list. For value   received hereby sell, assign, and transfer unto PLEASE INSERT SOCIAL SECURITY   OR OTHER IDENTIFYING NUMBER OF ASSIGNEE (PLEASE PRINT OR TYPEWRITE NAME AND   ADDRESS INCLUDING POSTAL ZIP CODE OF ASSIGNEE) Shares of the capital stock   represented by the within Certificate, and do hereby irrevocably constitute   and appoint Attorney to transfer the said stock on the books of the   within-named Corporation with full power of substitution in the premises.   Dated NOTICE: THE SIGNATURE TO THIS ASSIGNMENT MUST CORRESPOND WITH THE NAME   AS WRITTEN UPON THE FACE OF THE CERTIFICATE IN EVERY PARTICULAR WITHOUT   ALTERATION OR ENLARGEMENT OR ANY CHANGE WHATEVER. SIGNATURE GUARANTEED ALL GUARANTEES   MUST BE MADE BY A FINANCIAL INSTITUTION (SUCH AS A BANK OR BROKER) WHICH IS A   PARTICIPANT IN THE SECURITIES TRANSFER AGENTS MEDALLION PROGRAM (“STAMP”),   THE NEW YORK STOCK EXCHANGE, INC. MEDALLION SIGNATURE PROGRAM (“MSP”), OR THE   STOCK EXCHANGES MEDALLION PROGRAM (“SEMP”) AND MUST NOT BE DATED. GUARANTEES   BY A NOTARY PUBLIC ARE NOT ACCEPTABLE.Exhibit 10.4

 

FORM OF 
 CONTRIBUTION AND SUBSCRIPTION AGREEMENT

 

This Contribution and Subscription Agreement (this “Agreement”) is entered into on this [·] day of [·], 2018, by and among US LBM Holdings, Inc., a Delaware corporation (the “Corporation”), LBM Acquisition, LLC, a Delaware limited liability company (“Acquisition”), and LBM Midco, LLC, a Delaware limited liability company (“Midco”).

 

RECITALS

 

WHEREAS, it is proposed that the Corporation engage in an underwritten initial public offering (the “Offering”) of shares of its Class A common stock, par value $0.01 per share (the “Class A Common Stock”);

 

WHEREAS, prior to the consummation of the Offering, each party hereto will effect certain reorganization transactions (the “Reorganization Transactions”);

 

WHEREAS, in connection with the Reorganization Transactions, Acquisition desires and intends to (i) pay the Corporation the product of (I) the par value of the Class B common stock, par value $0.0001 per share (the “Class B Common Stock”), and (II) the number of common units representing limited liability company interests in Midco (“Midco Units”) to be held by Acquisition following the closing of the Offering, in exchange for a number of newly issued shares of Class B Common Stock (the “Class B Subscription”) such that after such exchange, Acquisition holds a number of shares of Class B Common Stock equal to the number of Midco Units held by Acquisition and (ii) purchase from the Corporation a number of shares of Class A Common Stock (the “Class A Subscription” and, together with the Class B Subscription, the “Subscription”), at the price per share expected to be paid by the underwriters at the closing of the Offering, such that the total payments from Acquisition to the Corporation equals approximately, and no less than, $500,000 (the “Acquisition Contribution”).

 

WHEREAS, the Corporation desires to accept the Acquisition Contribution and Subscription and issue the Class A Common Stock and the Class B Common Stock to Acquisition;

 

WHEREAS, in connection with the Reorganization Transactions and in furtherance of the Acquisition Contribution and Subscription, Midco desires and intends to issue Midco Units to the Corporation in the same amount as the number of shares of Class A Common Stock issued to Acquisition hereby (the “Midco Issuance”) in exchange for the proceeds of the Class A Subscription (the “Corporation Contribution”); and

 

WHEREAS, the respective boards of directors of the Corporation and Acquisition and the managing member of Midco have approved the Acquisition Contribution, the Corporation Contribution, the Subscription and the Midco Issuance, as applicable.

 

NOW, THEREFORE, in consideration of the mutual promises and covenants made herein and of the mutual benefits to be derived herefrom, the parties hereto agree as follows:

 

 

1.                                      Acquisition Contribution and Subscription.  Effective upon the execution and delivery of this Agreement, (i) Acquisition hereby makes the Acquisition Contribution in exchange for the [·] shares of Class A Common Stock and the [·] shares of Class B Common Stock and (ii) the Corporation accepts the Acquisition Contribution and hereby issues the [·] shares of Class A Common Stock and the [·] shares of Class B Common Stock to Acquisition contemporaneously with its receipt of the Acquisition Contribution.

 

2.                                      Midco Issuance.  Effective upon the execution and delivery of this Agreement and receipt by the Corporation of the Acquisition Contribution, (i) the Corporation hereby makes the Corporation Contribution in exchange for the Midco Issuance and (ii) Midco accepts the Corporation Contribution and hereby issues [·] Midco Units to the Corporation.

 

3.                                      Further Assurances.  Each party hereto agrees to execute and deliver such instruments and evidences of payment and give such further assurances and perform such further acts as the other may reasonably request and as may reasonably be necessary in connection with the transactions contemplated by this Agreement.

 

4.                                      Successors and Assigns.  This Agreement shall bind and inure to the benefit of the respective parties hereto and their successors, transferees and assigns.

 

5.                                      Governing Law.  This Agreement shall be governed in all respects, including as to validity, interpretation and effect, by the laws of the State of Delaware, without giving effect to its principles or rules of conflict of laws to the extent such principles or rules are not mandatorily applicable by statute and would require or permit the application of the laws of another jurisdiction.

 

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

 

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

 

	
 
    	
US LBM HOLDINGS, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
Michelle Pollock
    
	
 
    	
 
    	
Title:
    	
Senior Vice President,   Secretary
    
	
 
    	
 
    	
 
    	
and General Counsel
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
LBM ACQUISITION, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
James J.   Connors, II
    
	
 
    	
 
    	
Title:
    	
Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
LBM MIDCO, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
By its sole member, LBM   Acquisition, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
James J.   Connors, II
    
	
 
    	
 
    	
Title:
    	
Vice President and   Secretary
    

 

[Signature Page to Contribution and Subscription Agreement]Exhibit 10.40

 

 

Annual Bonus Plan

Corporate

Effective January 1, 2018

 

I.                                        Plan Objectives

 

US LBM Holdings, LLC (“US LBM”) has an annual bonus plan (the “Annual Bonus Plan” or “Plan”) for its eligible corporate associates. This Annual Bonus Plan is a discretionary part of US LBM’s total compensation strategy. It is designed to support US LBM’s mission as well as attract, motivate, and retain high performing leaders. It is intended to reward those associates who substantially contribute to the performance and overall success of US LBM.

 

II.                                   Variable Pay Plan

 

The Annual Bonus Plan is a variable pay plan. Any payments received by Participants under the Annual Bonus Plan will not become a permanent part of the Participant’s base pay. Payments under the Annual Bonus Plan, if any, may vary from one Plan Period to the next, and must be re-earned during each Plan Period.

 

III.                              Eligible Participants

 

Eligibility in this Annual Bonus Plan is open to active employees of US LBM as selected by the Administrator (“Participants”).  Eligibility and Participants in the Plan are at the discretion of the Administrator and may vary from Plan Period to Plan Period.

 

IV.                               Plan Period

 

The Plan Period for each applicable Plan year is the one (1) year period coinciding with US LBM’s fiscal year, January 1st through December 31st.

 

V.                                    Award Target %

 

The potential award target (“Award Target”) for each Participant is expressed as a percent of his/her annual salary.  Determining the award target is based on impact of the respective position and, subject to any employment agreements between a Participant and US LBM (or any of its operating subsidiaries), is entirely at the discretion of the Administrator.

 

VI.                               Bonus Potential

 

The Administrator shall have the authority to establish performance goals, personal objectives, targets, metrics and/or other terms and conditions that will apply to bonuses awarded to

 

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Participants under the Annual Bonus Plan.

 

VII.                          Pro Ration

 

Unless determined otherwise by the Administrator, bonus awards earned, if any, will be awarded to late entrants provided their start date is prior to the 4th quarter of the fiscal year (last 3 months).  The award will be pro-rated based on the number of full months worked during the Plan Period.

 

VIII.                     Timing of Awards

 

Bonus payments will be made following the Plan Period in which the bonus is earned and the completion of the annual audit of the financial statements of the relevant parent entity of US LBM, but in any event no later than March 15 of the year following such Plan Period. Awards will be subject to all required and customary withholding and deductions by US LBM.

 

IX.                               Separation of Employment

 

Unless determined otherwise by the Administrator, (a) no Participant shall receive a bonus unless the Participant is on the payroll at the bonus payout date, and (b) any Participant who resigns or is terminated from their employment for any reason is ineligible for any bonus compensation under the Annual Bonus Plan.

 

X.                                    Sunset Provision

 

This Annual Bonus Plan may be modified, amended, continued, withdrawn or terminated at any time.  Awards under this Annual Bonus Plan are awarded entirely at the discretion of the Administrator. This Annual Bonus Plan is not intended to be a binding contract between Participants and US LBM.  Employment is “at-will” and, thus, may be terminated at any time and for any reason not prohibited by law, with or without cause or notice.  The offer or receipt of a bonus should not be construed as contractually limiting that right or guaranteeing employment for any specific period of time.

 

XI.                               Adjustments

 

The Administrator may adjust performance goals, personal objectives, targets or metrics at such time or times as determined by the Administrator.  The Administrator may in its discretion (a) reduce or eliminate the amount of any payment under the Plan that would otherwise be made to any Participant and/or (b) determine that an amount shall be paid under the Plan that is greater than what would apply under the applicable performance goals, based on individual performance or any other criteria as the Administrator deems appropriate.

 

XII.                          Administration

 

This Annual Bonus Plan shall be administered by the Administrator, which shall have the authority to make all determinations and take all other actions necessary or appropriate for the proper administration of the plan.  The Administrator’s interpretation of the Plan, and all actions taken within the scope of its authority, shall be final and binding on US LBM and current and former Participants under the Plan.  For purposes of this plan, “Administrator” shall mean (a) with respect

 

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to Participants who are executive officers of US LBM Holdings, Inc., a Delaware corporation (“US LBM Holdings”), the Compensation Committee (the “Committee”) of the Board of Directors (the “Board”) of US LBM Holdings or any successor thereto, or any of its delegates, as provided below or (b) with respect to all other Participants, US LBM.  The Committee may delegate some or all of its power and authority under the plan to a director or subcommittee of directors of the Board, the Chief Executive Officer or other executive officer or function of the Company as the Committee deems appropriate.  No Participant shall make decisions under this Plan with respect to his or her own compensation or with respect to the compensation of any person to whom such Participant reports directly or indirectly.

 

XIII.                     Forfeiture and Clawback

 

With respect to current or former executive officers of US LBM Holdings, the Administrator may (a) cancel, reduce, or require a Participant to forfeit any bonus granted under the Annual Bonus Plan or (b) require a Participant to reimburse or disgorge to US LBM or reimburse US LBM for any amounts received under the Annual Bonus Plan, in each case, if and to the extent required by applicable law, regulation, stock exchange rule or US LBM (or US LBM Holdings) policy in effect on or after the effective date of this Annual Bonus Plan.

 

XIV.                      Miscellaneous

 

The Annual Bonus Plan, and all determinations hereunder, to the extent not otherwise governed by the U.S. Internal Revenue Code or the laws of the United States, shall be governed by the laws of the State of Delaware and construed in accordance therewith without giving effect to principles of conflicts of laws.  The Annual Bonus Plan is an unfunded plan and Participants shall have the status of unsecured creditors of US LBM.  The Annual Bonus Plan is not intended to be subject to the Employee Retirement Income and Security Act of 1974, as amended.  This Annual Bonus Plan is intended to provide for payments that are exempt from the provisions of Section 409A of the U.S. Internal Revenue Code to the maximum extent possible and otherwise to be administered in a manner consistent with the requirements, where applicable, of such provisions and shall be interpreted accordingly.

 

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