Document:

EX-10.1

 Exhibit 10.1 
  

 
 16 SOUTH PENNSYLVANIA AVENUE • P. O. BOX 754 • OKLAHOMA CITY, OK 73101 • PHONE (405) 235-4546 • FAX
(405) 236-1209 
 June 30, 2017 
 Mr. Jack E.
Golsen 
 Executive Chairman 
 LSB Industries, Inc. 

16 South Pennsylvania 
 Oklahoma City, OK 73107 

Dear Jack: 
 You have informed the board of
directors (the “Board”) of LSB Industries, Inc. (the “Company”) of your election to retire as Executive Chairman effective December 31, 2017. The Company wishes to acknowledge your role in founding and building
the Company and thank you for your significant contribution to the Company, its employees and shareholders. This letter agreement (this “Agreement”) will memorialize our agreement for your continued services and contributions
to the Company. 
 In order to formalize your retirement, the Company is hereby addressing that certain Employment Agreement, by and between
you and the Company, dated as of March 21, 1996, as amended on April 29, 2003, May 12, 2005, December 17, 2008 and January 1, 2015 (collectively, the “Employment Agreement”), which Employment Agreement
shall remain in full force and effect in accordance with its terms until the Retirement Date. 
 1. Retirement Date. In
accordance with the terms and conditions set forth in Section 1 of the Employment Agreement, the Board will not extend the Initial Term of your employment (as defined in the Employment Agreement) beyond December 31, 2017, representing the
last day of the Initial Term. Accordingly, your employment with the Company as Executive Chairman of the Board shall terminate effective December 31, 2017 (the “Retirement Date”). 

2. Term. The term of this Agreement (the “Term”) shall commence on January 1, 2018 and end upon the
earlier of (i) your death or (ii) a Change in Control (as defined in the Company’s 2016 Long Term Incentive Plan); provided, however, in the event of sub-section (ii) above, you have been paid the full amount of the Severance
Payment pursuant to Section 7 hereof. 
 3. Chairman Emeritus. You currently serve as a director of the Company and will
continue to serve as a director of the Company for the remainder of your current term, ending at the annual meeting of stockholders in 2019. Following the Retirement Date, you will also serve as Chairman Emeritus of the Board for as long as you are
willing and able, in your sole discretion. In such role, you will have the duties and responsibilities customarily associated with the position of a Chairman Emeritus, subject to such duties and responsibilities being acceptable to you, which
acceptance will not be unreasonably withheld. During your term as Chairman Emeritus, you will make reasonable efforts to 

 
attend Board meetings and you will continue to use reasonable efforts to abide by the policies of the Company that are in effect for all members of the Board of Directors, whether now existing or
hereafter in effect, including, but not limited to, the Company’s Code of Business Conduct and the Company’s insider trading policies. 

4. Compensation. Beginning on January 1, 2018, in consideration of your service to the Company, including as Chairman
Emeritus of the Board, you will receive an annual cash retainer in the amount of $480,000 (the “Retainer Payment”) during the Term, which shall be payable in arrears not later than the
15th day following the end of each calendar quarter. You will be reimbursed for all reasonable and documented business expenses incurred as Chairman Emeritus (including expenses incurred in
connection with your attendance at Board meetings) in accordance with the Company’s policies. 
 5. Medical Benefits. In
connection with your retirement, (i) pursuant to Section 4(e) of the Employment Agreement, subject to your timely election of COBRA continuation coverage, the Company will provide you with continued participation in the Company’s
medical, dental and vision plans for 18 months following the Retirement Date (the “Continuation Period”), and the Company will reimburse you for the cost of any premiums for such coverage on an after-tax basis on the last
business day of each month during the Continuation Period and (ii) following the Continuation Period, the Company will reimburse you for the cost of coverage under Medicare Part B and D medical insurance until your death. 

6. Fringe Benefits. The Company will continue to (i) provide you with an allowance for a vehicle and driver, for a total
amount of $1,800 per month; (ii) pay for or reimburse you for your country club and/or Petroleum Club dues, for a total amount of $540 per month; (iii) provide you with the use of a cell phone, house phone, internet and/or fax, for a total
amount of $600 per month; and (iv) provide you with an office space allowance, for a total amount of $1,500 per month, with the understanding that you will be vacating your current office on or prior to your Retirement Date. 

7. Severance Payment and Lump Sum Payment on Change in Control. Effective as of the Retirement Date, the Severance Agreement,
dated January 17, 1989, between you and the Company, as amended and in effect as of the date of this Agreement (the “Severance Agreement”), shall terminate and cease to be of any further force or effect (except as otherwise
specifically provided herein). In consideration of your services to the Company, including as Chairman Emeritus of the Board, the Company will provide you with a one-time cash payment equal to $2,320,000 (less any withholding required under
applicable law), upon the consummation of a Change of Control (as defined in Section 2 hereof) (provided that such Change of Control also constitutes a change in the ownership or effective control of the Company or in the ownership of a
substantial portion of the assets of the Company under Section 409A(a)(2)(A)(v) of the Internal Revenue Code) prior to your death, provided that you execute and do not revoke a release of claims substantially in the form of Exhibit A attached
hereto in favor of the Company and its subsidiaries, which release of claims is reasonably acceptable to you. 
 8.
Disability. In the event that you become disabled (as defined in the Employment Agreement) prior to the Retirement Date, this Agreement shall become null and void and your rights shall be governed by the terms of the Employment
Agreement, the Severance Agreement and such other agreements in effect as of the date you claim a disability. 
 9. Board
Representation and Standstill Agreement and Indemnification Agreement. Notwithstanding anything herein to the contrary, the Board Representation and Standstill Agreement, dated December 4, 2005, between the Company, LSB Funding, you and
numerous other parties (“Board Representation Agreement”) shall remain in full force and effect and not be effected or amended by this Agreement. Further, notwithstanding anything herein to the contrary, all indemnification
agreements 

  
 -2- 

 
provided by the Company to you or contained in the Company’s Certificate of Incorporation or Bylaws shall remain in full force and effect and not be affected or amended by this Agreement.

 10. Death Benefit Agreement. The Death Benefit Agreement, dated May 12, 2005, between the Company and you (the
“Death Benefit Agreement”) shall remain in full force and effect in accordance with its terms and nothing contained herein shall be deemed to amend or otherwise modify any of the terms and conditions of the Death Benefit Agreement.

 11. No Offset. The parties agree that any payments and obligation to be made or performed by the Company under this
Agreement shall not be subject to setoff, counterclaims, recoupment, defense or any other right which the Company may have against you for any reason whatsoever. 

12. Counterpart. This Agreement may be executed in two or more counterparts with the same effect as if the signature to all such
counterparts were upon the same instrument, and all such counterparts shall constitute but one instrument. 
 13. Governing Law and
Entire Agreement. This Agreement shall be governed by the laws of the State of Oklahoma. This Agreement constitutes the entire agreement among the parties with respect to the subject matter hereof. This Agreement may not be amended except in
writing signed by all the parties to this Agreement. 
 Should you have any questions regarding the foregoing, please contact me at
(405) 510-3596 or at mfoster@lsbindustries.com. 
 [Signature Page Follows] 

  
 -3- 

			
	 Sincerely,
  

LSB INDUSTRIES, INC.

		
	By:	 	 
		 	 Name: Michael J. Foster
 Title: Senior Vice
President, General Counsel & Secretary

 AGREED AND ACCEPTED 
 as of this
             day of                  2017: 

 

			
	  

	Jack E. Golsen

  
 -4- 

 EXHIBIT “A” 

GENERAL RELEASE 
 NOTICE. Various laws,
including Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1866, the Pregnancy Discrimination Act of 1978, the Equal Pay Act, the Civil Rights Act of 1991, the Age Discrimination in Employment Act, the Rehabilitation Act of 1973,
the Americans With Disabilities Act, the Employee Retirement Income Security Act and the Veterans Reemployment Rights Act (all as amended from time to time), prohibit employment discrimination based on sex, race, color, national origin, religion,
age, disability, eligibility for covered employee benefits and veteran status. You may also have rights under laws such as the Older Worker Benefit Protection Act of 1990, the Worker Adjustment and Retraining Act of 1988, the Fair Labor Standards
Act, the Family and Medical Leave Act, the Occupational Safety and Health Act and other federal, state and/or municipal statutes, orders or regulations pertaining to labor, employment and/or employee benefits. These laws are enforced through the
United States Department of Labor, including the Equal Employment Opportunity Commission, and various state and municipal labor departments, fair employment boards, human rights commissions and similar agencies. 

This General Release is being provided to you in connection with that certain Letter Agreement dated June 30, 2017 (the “Agreement”) concerning
your retirement from the Company. In accordance with Section 7 the Agreement, this General Release will not take effect unless and until the Company pays to you the one-time cash payment of $2,320,000 (less any withholding required under
applicable law), upon the consummation of a Change of Control (as defined in the Company’s 2016 Long Term Incentive Plan) (provided that such Change of Control also constitutes a change in the ownership or effective control of the Company or in
the ownership of a substantial portion of the assets of the Company under Section 409A(a)(2)(A)(v) of the Internal Revenue Code) prior to your death. 

The federal Older Worker Benefit Protection Act requires that you have at least twenty-one (21) days, if you want it, to consider whether you wish to
sign a release such as this one in connection with a special, individualized severance package. You have until the close of business twenty-one (21) days from the date you receive this General Release to
make your decision. You may not sign this General Release until, at the earliest, your official date of separation from employment. 
 BEFORE EXECUTING THIS
GENERAL RELEASE YOU SHOULD REVIEW THESE DOCUMENTS CAREFULLY AND CONSULT WITH YOUR ATTORNEY. 
 You may revoke this General Release within seven (7) days
after you sign it and it shall not become effective or enforceable until that revocation period has expired. If you do not accept the severance package and sign and return this General Release, or if you exercise your right to revoke the General
Release after signing it, you will not be eligible for the special, individualized severance package set forth in the Agreement. Any revocation must be in writing and must be received by LSB Industries, Inc., 16 South Pennsylvania Avenue, P.O. Box
754, Oklahoma City, 

 
OK 73107, Attn: General Counsel within the seven-day period following your execution of this General Release. 
  

 
 GENERAL RELEASE 

In consideration of paragraph 7 of the June 30, 2017 Letter Agreement between the Company and you and the payment to you of a one-time cash payment equal
to $2,320,000.00 by LSB Industries, Inc., the receipt of which is hereby acknowledged, I hereby release and discharge LSB Industries, Inc. and its predecessors, successors, affiliates, parent, subsidiaries and partners and each of those
entities’ employees, officers, directors and agents (hereafter collectively referred to as the “Company”) from all claims, liabilities, demands, and causes of action, known or unknown, fixed or contingent, which I may have or claim to
have against the Company either as a result of my past employment with the Company and/or the severance of that relationship and/or otherwise, and hereby waive any and all rights I may have with respect to and promise not to file a lawsuit to assert
any such claims, provided that nothing contained in this General Release shall constitute a release of the Company from any obligations it may have to the undersigned (a) under the continuing obligations under Letter Agreement, Death Benefit
Agreement, and Board Representation and Standstill Agreement and Indemnification Agreement (all as defined in the Letter Agreement), or any other written agreement between the undersigned and the Company in effect as of the Date of Termination;
(b) relating to any employee benefit plan, stock option plan, stock option agreement, or ownership of the Company’s stock or debt securities; or (c) relating to any rights of indemnification and/or defense under the Company’s
certificate of incorporation, bylaws, or coverage under officers and directors insurance. 
 This General Release includes, but is not limited to, claims
arising under Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1866, the Pregnancy Discrimination Act of 1978, the Equal Pay Act, the Civil Rights Act of 1991, the Age Discrimination in Employment Act, the Rehabilitation Act of
1973, the Americans With Disabilities Act, the Employee Retirement Income Security Act or 1974 and the Veterans Reemployment Rights Act (all as amended from time to time). This General Release also includes, but is not limited to, any rights I may
have under the Older Workers Benefit Protection Act of 1990, the Worker Adjustment and Retraining Act of 1988, the Fair Labor Standards Act, the Family and Medical Leave Act, the Occupational Safety and Health Act and any other federal, state and/or
municipal statutes, orders or regulations pertaining to labor, employment and/or employee benefits. This General Release also applies to any claims or rights I may have growing out of any legal or equitable restrictions on the Company’s rights
not to continue an employment relationship with its employees, including any express or implied employment contracts, and to any claims I may have against the Company for fraudulent inducement or misrepresentation, defamation, wrongful termination
or other retaliation claims in connection with workers’ compensation or alleged “whistleblower” status or on any other basis whatsoever. 

It is specifically agreed, however, that this General Release does not have any effect on any rights or claims I may have against the Company which arise
after the date I execute this General Release. 

 I have carefully reviewed and fully understand all the provisions of the Agreement and General Release, including
the foregoing Notice. I have not relied on any representation or statement, oral or written, by the Company or any of its representatives, which is not set forth in those documents. 

Except as noted above, the Agreement and this General Release, including the foregoing Notice, set forth the entire agreement between me and the Company with
respect to this subject. I understand that my receipt and retention of the cash payment under Section 7 of the Agreement is contingent on my execution of this General Release. I acknowledge that the Company gave me twenty-one (21) days to
consider whether I wish to accept or reject the separation benefits I am eligible to receive under the Agreement in exchange for this General Release. I also acknowledge that the Company advised me to seek independent legal advice as to these
matters, if I chose to do so. I hereby represent and state that I have taken such actions and obtained such information and independent legal or other advice, if any, that I believed were necessary for me to fully understand the effects and
consequences of the Agreement and General Release prior to signing those documents. 
 Dated this
             day of
                                    ,
201    . 
  

	
	   

	Jack E. GolsenExhibit 10.1

 

SEPARATION AND RELEASE AGREEMENT

 

This Separation and Release Agreement (the
"Agreement"), dated the 29th day of June, 2017 by and between Lumber Liquidators, Inc. (“LL”) and
its affiliated entity (ies) (collectively and, where applicable, individually, the “Company”), and Gregory Whirley
(“Employee”) provides:

 

RECITALS:

 

WHEREAS, Employee has been employed the
Company as a Senior Vice President, Finance and Risk Management;

 

WHEREAS, the parties to this Agreement
desire to resolve the issues arising out of the termination of Employee’s employment with the Company in a mutually satisfactory
manner, confidentially, and without resort to litigation; and

 

NOW, THEREFORE, in consideration of the
promises and of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, the parties do hereby covenant and agree as follows:

 

1. Termination
of Employment; Separation Benefits. 

 

1.1       Employee’s
employment with the Company will cease effective August 11, 2017 (the “Termination Date”). Employee shall be
paid, offered and provided compensation and benefits at Employee’s current rates through the Termination Date. Notwithstanding
the above, the parties agree that Employee’s accrued but unused vacation days will be equivalent to 80 hours, which amount
will be paid in accordance with the Company’s normal policies.

 

1.2       In
consideration of this Agreement, the Company shall pay to Employee fifty-two (52) weeks of pay at Employee’s regular base
rate of pay as of the Termination Date (the “Separation Pay”). The period of time during which Employee receives Separation
Pay shall be referred to herein as the “Separation Pay Period.” Such weekly payments shall be made after the Termination
Date at the time of Company’s regular pay periods, commencing with the first such pay period following the Termination Date.

 

1.3       In
addition to the Separation Pay and for purposes of compensating the Employee in recognition of his many contributions, the Company
has agreed to pay Employee an additional amount equal to One Hundred Thousand Dollars ($100,000) (the “Additional Payment”).
The Additional Payment will be paid in fifty-two (52) weekly payments consisting of fifty-one (51) weekly payments of One Thousand
Nine Hundred and Twenty-Three dollars ($1,923) and one (1) payment of One Thousand Nine Hundred and Twenty-Seven dollars ($1,927).
Such weekly payments shall be made after the Termination Date at the time of Company’s regular pay periods, commencing with
the first such pay period following the Termination Date.

 

    	 	1	 

     

    

 

1.4       If,
after the Termination Date, Employee elects to continue health and dental insurance through COBRA continuation coverage, Company
agrees to pay through the Separation Pay Period, the premium for such insurance and Employee shall pay that portion of the premium
that Employee would have paid had Employee maintained such insurance prior to the Termination Date.  Employee hereby requests
and authorizes that such amount be deducted by Company from the Separation Pay.

 

1.5       Employee
hereby agrees that Company will deduct from the Separation Pay and the Additional Pay all withholding taxes and other payroll
deductions that Company is required by law to make from wage payments to employees. With the sole limitation of the withholdings
and deductions in this Section 1.5 that are the sole responsibility of Company, if any governmental taxing authority or court
of competent jurisdiction ultimately determines that Employee owes any additional taxes with respect to any money distributed
under Section 1 of this Agreement, it is expressly agreed that the determination of any tax liability is between Employee and
the taxing authority, and that Company will not be responsible for the payment of such taxes, including any interest or penalties.
Employee further agrees and acknowledges that he shall indemnify, defend and hold harmless Company for any possible federal, state
or local tax liabilities relating to the employee share of any applicable payroll taxes resulting from the payments made pursuant
to Section 1 of this Agreement and that he shall reimburse or make good any taxes, interest and/or penalties assessed against
Company, as well as all attorneys’ fees, costs, and expenses incurred with regard to said taxes, interest, and/or penalties,
for any such tax liabilities caused by the payments made pursuant to Section 1 of this Agreement and/or Company’s failure
to withhold from any such payments. Employee hereby agrees that the Separation Pay, the Additional Payment, and the accrued vacation
pay set out in this Section  are all that Employee shall be entitled to receive from Company except for vested qualified
retirement benefits, if any, to which Employee may be entitled under the Company’s ERISA plans.

 

1.6 Company also
agrees to provide Employee access to an outplacement service through a firm chosen and paid for by Company for purposes of assisting
Employee in locating employment opportunities.  If Employee elects to utilize outplacement services, Employee should contact
the Vice President, Human Resources and must begin the services within 120 days of the Termination Date.

 

2.       Consideration.
Employee hereby agrees and acknowledges that the benefits set forth in the Agreement are in addition to, and more than, the Company
is required to do under its normal policies and procedures and that they are in addition to anything of value to which Employee
already is entitled.

 

3.       Complete Payment. Employee agrees
that the payments and performances described in this Agreement are all that Employee shall be entitled to receive from the Company
except for vested qualified retirement benefits, if any, to which Employee may be entitled under the Company's ERISA plans. Except
as required by law, the Company shall not be required to make any payments of any kind to Employee upon termination or expiration
of this Agreement. Employee further agrees and acknowledges that Employee shall have no right or claim to any bonus payment from
the Company including, but not limited to, any bonus under the Lumber Liquidators Holdings, Inc. Annual Bonus Plan for Executive
Management or the Lumber Liquidators Holdings, Inc. Annual Bonus Plan for Non-Executive Management. Notwithstanding the termination,
expiration or nonrenewal of this Agreement, the parties shall be required to carry out any provisions of this Agreement which contemplate
performance by them after such termination, expiration or nonrenewal, expressly including Sections 4, 6, 8-10 and 13.

 

    	 	2	 

     

    

 

4.       
Return of Company Property. On or before the Termination Date, as determined by the Company, Employee will promptly deliver
to the Company all Company property, including but not limited to, all computers, phones, correspondence, manuals, letters, notes,
notebooks, reports, flow charts, programs, proposals, third party equipment that Company is authorized to represent, and any documents
concerning the Company’s customers, operations, products or processes (actual or prospective) or concerning any other aspect
of the Company’s business (actual or prospective) and, without limiting the foregoing, will promptly deliver to the Company
any and all other documents or materials containing or constituting Confidential Information as defined in Section 8, except that
Employee may retain personal papers relating to Employee’s employment, compensation and benefits.

 

5.       Complete
Release. Employee, on the behalf of himself, his heirs, executors, administrators, and/or assigns, hereby knowingly and voluntarily
releases and forever discharges the Company, any related companies, and the former and current employees, officers, agents, directors,
shareholders, investors, attorneys, affiliates, successors and assigns of any of them (the “Released Parties”) from
all liabilities, claims, demands, rights of action or causes of action, whether known or unknown, suspected or unsuspected, that
Employee or his heirs, executors, administrators and/or assigns, had, has or may have against any of the Released Parties, including
but not limited to, any claims or demands based upon or relating to Employee’s employment with the Company or the cessation
of that employment. This includes, but is not limited to, a release of any rights or claims Employee may have under the Age Discrimination
in Employment Act of 1967 (“ADEA”), Title VII of the Civil Rights Act of 1964, the Equal Pay Act, the Americans with
Disabilities Act, the Family and Medical Leave Act, the Virginia Human Rights Act, or any other federal, state or local laws or
regulations prohibiting employment discrimination or retaliation. This also includes, but is not limited to, a release by Employee
of any claims for wrongful discharge, breach of contract, or any other statutory, common law, tort, contract, or negligence claim
that Employee had, has or may have against any of the Released Parties. Employee further acknowledges that Employee has received
compensation for all hours worked in accordance with applicable state and federal laws.

 

Neither this Section, nor any other Section
in this Agreement, waives or releases (i) Employee’s right, if any, to payment of vested qualified retirement benefits under
the Company’s ERISA plans; (ii) the right, if any, to continuation in the Company’s medical plans as provided by COBRA;
(iii) the right to bring any claims under the ADEA which arise after the date that Employee executes this Agreement, provided,
however, that Employee acknowledges that the decision to cease Employee’s employment with the Company occurred prior to Employee’s
execution of this Agreement; (iv) Employee’s eligibility, if any, for indemnification and/or advancement of expenses in accordance
with any applicable Company Bylaws, if any; (v) Employee’s rights, if any, to coverage under directors’ and officers’
liability insurance policy or policies of the Company and its subsidiaries and affiliates; or (vi) Employee’s rights under
this Agreement. Nothing in this Section 5, or any other provision of this Agreement, waives or affects Employee’s right to
file a charge of discrimination with the Equal Employment Opportunity Commission (“EEOC”) or to provide information
to, or participate as a witness in, an investigation undertaken or a proceeding initiated by the EEOC. However, Employee waives
Employee’s right to monetary or other recovery, including attorneys’ fees, should Employee or any federal, state or
local administrative agency pursue any claims on Employee’s behalf arising out of Employee’s employment or the conclusion
of Employee’s employment with the Company.

 

    	 	3	 

     

    

 

Notwithstanding the foregoing, the parties
agree that nothing in this Agreement shall be construed to prohibit the exercise of any rights by either party that such party
may not waive as a matter of law.

 

6.       No
Future Lawsuits. To the fullest extent allowed by law, Employee promises never to file a lawsuit asserting any claims that
are released in this Agreement. In the event Employee breaches this Section, Employee shall pay to the Company all of its expenses
incurred as a result of such breach, including but not limited to, reasonable attorneys’ fees and expenses. Notwithstanding
the foregoing, the parties acknowledge and agree that this Agreement and this Section 6 shall not be construed to prohibit the
exercise of any rights by Employee that Employee may not waive or forego as a matter of law.

 

7.       Disclaimer
of Liability. This Agreement and the payments and performances hereunder are made solely to assist Employee in making the transition
from employment with Company, and are not and shall not be construed to be an admission of liability, an admission of the truth
of any fact, or a declaration against interest on the part of Company.

 

8.       Confidentiality.
Employee shall not disclose or use at any time for a period of ten (10) years after the Termination Date, or as otherwise protected
by applicable law including the Virginia Uniform Trade Secrets Act, whichever is longer, any Confidential Information (as defined
below) of which Employee is aware, whether or not such information was developed by him, except to the extent that such disclosure
or use is directly related to and required by this Agreement or is required to be disclosed by law, court order, or similar compulsion;
provided, however, that such disclosure shall be limited to the extent so required or compelled; and provided, further, that Employee
shall give the Company notice of such disclosure and cooperate with the Company in seeking suitable protection. Employee shall
take reasonable and appropriate steps to safeguard Confidential Information and to protect it against disclosure, misuse, espionage,
loss and theft. Employee acknowledges and agrees that all Confidential Information, which Employee had access to, received or generated
in the course of providing, directly or indirectly, services to the Company, is the sole property of the Company. Employee shall
deliver to the Company all memoranda, notes, plans, records, reports, computer tapes and software and other documents and data
(and copies thereof regardless of the form thereof, including electronic and tangible copies) containing Confidential Information
(as defined below) of the Company which Employee possesses or has under Employee’s control. Notwithstanding anything herein
to the contrary, Employee may retain personal papers relating to Employee’s employment, compensation and benefits.

 

    	 	4	 

     

    

 

As used in this Agreement, the term “Confidential
Information” means any data or information related to the Company’s business operations and is not generally known
by the public, and that was made known to Employee or acquired by Employee in the course of Employee’s employment with the
Company or directly or indirectly providing services to the Company, including business and trade secrets and the following: (i)
reports, pricing, sales manuals and training manuals, selling, purchasing, and pricing procedures, and financing methods of the
Company, together with any proprietary techniques utilized by the Company in designing, developing, testing or marketing its products,
product mix and supplier information or in performing services for clients, customers and accounts of the Company; (ii) the business
plans and financial statements, reports and projections of the Company; (iii) research or development projects or results; (iv)
identities and addresses of consultants, customers or clients and prospective clients, or any other Confidential Information relating
to or dealing with the business operations or activities of the Company; (v) trade secrets and other intellectual property of the
Company; and (vi) existing or contemplated software, products, databases, services, technology, designs, processes and research
or product developments of the Company. Notwithstanding the foregoing or any other provision herein, Confidential Information shall
not include any information that (A) is generally known to the public at the time of disclosure or becomes generally known through
no wrongful act on the part of Employee, (B) becomes known to Employee through disclosure by independent third-party sources having
a legal right to disclose such information, or (C) is independently developed by Employee without reference to Confidential
Information.

 

Nothing in this Section 8, or in Section
13, or in any other provision of this Agreement, prohibits Employee or the Company from reporting possible violations of federal
law or regulation to any governmental agency or entity, including but not limited to the Department of Justice, the Securities
and Exchange Commission, the Congress, and any agency Inspector General, or making other disclosures that are protected under the
whistleblower provisions of federal or state law or regulation. Employee does not need the prior authorization of the Company to
make any such reports or disclosures and Employee is not required to notify the Company that Employee has made such reports or
disclosures.

 

9.       Restrictive
Covenants.

 

A.      Definitions.

 

		i.	“Business” means the sale and provision of hardwood, engineered, bamboo, cork, laminate,
resilient or tile flooring and related products and services.

 

		ii.	“Competing Business” means Home Depot, Lowe’s, Floor & Décor, The
Tile Shop, Menards and/or any Person that earns more than 50% of its gross revenues from, individually or in combination, the sale
or installation of hardwood, engineered, bamboo, cork, laminate, resilient or tile flooring or related flooring products and services.

 

		iii.	“Competing Position” means a position held by Employee with a Competing Business that
involves duties within the Restricted Territory that are the same as or substantially similar to the duties Employee performed
for the Company within the twelve (12) months prior to the Termination Date.

 

    	 	5	 

     

    

 

		iv.	“Customer” means any Person to whom or which Employee has provided, or is providing,
any products or services related to the Business during the twelve (12)-month period preceding the Termination Date.

 

		v.	“Material Contact” means: (a) for purposes of the Customer non-solicitation provision
below, contact between Employee and any Customer within twelve (12) months prior to the Termination Date; provided, however, that:
(i) Employee communicated directly with such Customer on behalf of the Company during that twelve (12) month period; or (ii) Employee
obtained confidential information about such Customer in the ordinary course of business as a result of Employee’s association
with the Company; and (b) for purposes of the employee, Contractor and Vendor non-recruit and non-solicitation provisions below,
contact in person, by telephone, or by paper or electronic correspondence, in furtherance of the Business, within the twelve (12)
month period preceding the Termination Date.

 

		vi.	“Person” means a governmental body or any individual, partnership, firm, corporation,
limited liability company, association, trust, unincorporated organization or other entity.

 

		vii.	“Restricted Period” means the twelve (12) months following the Termination Date. Nothing
herein is intended to relieve Employee of Employee’s fiduciary duties under applicable law.

 

		viii.	“Restricted Territory” means the continental United States and Ontario, Canada.

 

		ix.	“Vendor” or “Contractor” means any Person who or which has provided products
or services to the Company in exchange for compensation of over $10,000 within twelve (12) months prior to the Termination Date.

 

B.       Non-Competition.
Employee acknowledges that, in the course of Employee’s employment with the Company, Employee has become familiar with the
Company’s trade secrets and other Confidential Information and that Employee’s services have been of special, unique
and extraordinary value to the Company. Therefore, Employee agrees that Employee shall not, during the Restricted Period, directly
or indirectly work in a Competing Position or supervise, manage or control a Competing Business, where Employee’s primary
duty is to provide the same or substantially similar products or services as the Company within the Restricted Territory. For the
avoidance of doubt, nothing herein shall prohibit Employee from being a passive owner of not more than three percent (3%) of the
outstanding stock of any Competing Business which is publicly traded, so long as Employee has no active participation in the business
of such company.

 

    	 	6	 

     

    

 

C.       Non-Piracy
of Employees. During the Restricted Period, Employee shall not directly or indirectly through another Person, whether on Employee’s
own behalf or on behalf of another Person: (i) induce or attempt to induce any employee of the Company with whom Employee had Material
Contact to terminate or lessen such employment with the Company for the purpose of performing services or selling products for
a Competing Business; or (ii) hire or cause to be hired by a Competing Business any person who was employed by the Company within
the twelve (12) month period preceding the Termination Date.

 

D.       Non-Solicitation
of Customers. During the Restricted Period, Employee shall not directly or indirectly through another Person, whether on Employee’s
own behalf or on behalf of another Person: (i) induce or attempt to induce any Customer with whom Employee had Material Contact
for the purpose of selling to the Customer any products or services for a Competing Business; or (ii) sell or offer to sell products
or services on behalf of a Competing Business to any Customer of the Company with whom Employee had Material Contact.

 

E.       Non-Interference
With Contracts. During the Restricted Period, Employee shall not directly or indirectly through another Person, whether on
Employee’s own behalf or on behalf of another Person, induce or attempt to induce any Contractor to or Vendor of the Company
with whom Employee had Material Contact to terminate, diminish or lessen their relationship with the Company.

 

F.       Employee
understands that the foregoing restrictions will not limit Employee’s ability to earn a livelihood and that Employee has
received and will receive sufficient consideration and other benefits as an employee of the Company and as otherwise provided hereunder
to clearly justify such restrictions (given Employee’s education, skills and ability). Employee further understands that
(i) the Company would not have consummated this Agreement or the Severance Agreement but for the covenants contained in this Section
9 and (ii) the provisions of Sections 8 and 9 are reasonable and necessary to preserve the business of the Company.

 

G.       Employee
shall inform any prospective employer that engages in any business similar to the Business of any and all restrictions contained
in this Section 9 of the Agreement during any period when such restrictions remain effective and provide such employer with a copy
of such restrictions prior to the commencement of that employment.

 

10.    Cooperation.Employee
agrees that for a period of ten (10) years following the Termination Date, Employee shall have a continuing duty to fully and promptly
reasonably cooperate with the Company and its legal counsel by providing any and all requested information and assistance concerning
any legal or business matters that in any way relate to Employee’s actions or responsibilities as an employee of the Company,
or to the period during Employee’s employment with the Company. Such reasonable cooperation shall include but not be limited
to truthfully and in a timely manner participating and consulting concerning facts, responding to questions, providing pertinent
information, providing affidavits and statements, preparing for and attending depositions, and preparing for and attending trials,
hearings and other proceedings. Such reasonable cooperation shall include meeting with representatives of the Company upon reasonable
notice at reasonable times and locations. The Company shall use its reasonable efforts to coordinate with Employee the time and
place at which Employee's reasonable cooperation shall be provided with the goal of minimizing the impact of such reasonable cooperation
on any other material pre-scheduled business or professional commitments that Employee may have. The coordination and communication
from the Company to Employee regarding Employee’s cooperation shall come through the Company’s Chief Legal Officer.
The Company shall reimburse Employee for reasonable out-of-pocket expenses incurred by Employee in compliance with this Section,
including any reasonable travel expenses incurred by Employee in providing such assistance. As part of the consideration provided
to Employee under this Agreement, Employee shall provide cooperation to the Company at no additional cost to the Company. At no
time subsequent to the Termination Date shall Employee be deemed to be a contractor or employee of the Company.

 

    	 	7	 

     

    

 

11.       Enforcement.
Employee agrees that the Company has a legitimate business interest to protect justifying the covenants set forth in Sections
8, 9 and 10. Such legitimate business interests include: (i) trade secrets, (ii) valuable Confidential Information that does not
otherwise qualify as a trade secret, (iii) substantial relationships with prospective or existing Customers, (iv) Customer goodwill,
and (v) preservation of the brands with which Employee has operated. For purposes of the Company obtaining specific performance
and/or injunctive relief, Employee acknowledges that irreparable injuries shall be presumed in the event that Employee violates
Employee’s covenants herein contained. Because Employee’s services are unique and because Employee has access to Confidential
Information, the parties hereto agree that money damages would be an inadequate remedy for any breach of this Agreement. Therefore,
in the event of a breach or threatened breach of Sections 8, 9 or 10 of this Agreement, the Company and its successors or assigns
may, in addition to other rights and remedies existing in their favor at law or in equity, apply to any court of competent jurisdiction
for specific performance and/or injunctive or other relief in order to enforce, or prevent any violations of, the provisions in
Sections 8, 9 or 10 hereof. In addition to the foregoing, if any action should have to be brought by the Company against Employee
to enforce the provisions of this Agreement, Employee recognizes, acknowledges and agrees that the Company may be entitled (without
limitation) to (a) preliminary and permanent injunctive relief restraining Employee from unauthorized disclosure or use of any
trade secret or Confidential Information, in whole or in part, or otherwise violating any of the restrictive covenants set forth
herein, and (b) actual damages. Nothing in this Agreement shall be construed as prohibiting the Company from pursuing any other
legal or equity remedies available for breach or threatened breach to the provisions of this Agreement or the Severance Agreement
which may otherwise be available. In the event of an alleged breach or violation by Employee of Sections 8, 9 or 10 of this Agreement,
the parties agree that the court, in its discretion, may toll the Restricted Period during the period of the breach.

 

12.       Claim
for Reinstatement. Employee agrees to waive and abandon any claim to reinstatement with Company.

 

13.       Statements
Regarding Company and/or Employment.

 

    	 	8	 

     

    

 

A.       Employee
agrees not to do or say anything, directly or indirectly, that reasonably may be expected to have the effect of criticizing or
disparaging Company, any director of Company, any of Company’s employees, officers or agents, or diminishing or impairing
the goodwill and reputation of Company or the products and services it provides. Employee further agrees not to assert that any
current or former employee, agent, director or officer of Company has acted improperly or unlawfully with respect to Employee or
any other person regarding employment.

 

The Company agrees not to do or say anything,
directly or indirectly, that reasonably would have the effect of criticizing or disparaging the Employee.

 

B. Notwithstanding the foregoing provisions
of this Section 13, the Parties agree that nothing in this Agreement shall be construed to prohibit the exercise of any rights
by either party that such party may not waive as a matter of law nor does this Agreement prohibit Employee, Company or Company's
officers, employees and/or directors from testifying truthfully in response to a subpoena, inquiry or order by a court or governmental
body with appropriate jurisdiction or as otherwise required by law.

 

14.       Period
for Review and Consideration of Agreement. Employee understands that Employee has been given a period of twenty-one (21)
days to review and consider this Agreement before signing it. Employee further understands that Employee may use as much of this
21-day period as Employee wishes prior to signing.

 

15.Employee’s Right to Revoke
Agreement. Employee may revoke this Agreement within seven (7) days of Employee’s signing it. Revocation can
be made by delivering a written notice of revocation to the Vice President, Human Resources, 3000 John Deere Road, Toano, Virginia
23168. For this revocation to be effective, written notice must be received by the Chief Legal Officer, no later than the close
of business on the seventh day after Employee signs this Agreement. If Employee has not revoked the Agreement, the eighth (8th)
day after Employee signs this Agreement shall be the Effective Date for purposes of this Agreement.

 

16.       Encouragement
to Consult with Attorney. Employee is encouraged to consult with an attorney before signing this Agreement.

 

17.       Execution
of Documents. Each of the parties hereto shall execute any and all further documents and perform any and all further acts reasonably
necessary or useful in carrying out the provisions of this Agreement.

 

18.       Invalid
Provisions. The invalidity or unenforceability of any particular provision of this Agreement shall not affect the validity
or enforceability of any other provisions hereof, and this Agreement shall be construed in all respects as if such invalid or unenforceable
provision were omitted.

 

19.       Acknowledgment.
Employee acknowledges that Employee has signed this Agreement freely and voluntarily without duress of any kind. Employee has
conferred with an attorney or has knowingly and voluntarily chosen not to confer with an attorney about the Agreement.

 

    	 	9	 

     

    

 

20.       Entire
Agreement. This Agreement and the Severance Agreement contain the entire understanding of the parties concerning the subject
matter of those agreements. This Agreement may not be modified or supplemented except by a subsequent written agreement signed
by all parties.

 

21.       Successorship.
It is the intention of the parties that the provisions hereof are binding upon, and inure to the benefit of, the parties, their
employees, affiliates, agents, heirs, estates, successors and assigns forever.

 

22.       Governing
Law. This Agreement shall be governed by the laws of the Commonwealth of Virginia, without regard to its conflict of laws principles.

 

23.       Arbitration
of Disputes. Except as to a request for an injunction or similar equitable relief as provided in Section 11, any controversy
or claim arising out of or relating to this Agreement, or the breach thereof, shall be fully and finally settled by arbitration
administered by the American Arbitration Association in accordance with its National Rules for the Arbitration of Employment Disputes
then in effect (“AAA Rules”), and judgment on the award rendered by the arbitrator may be entered in any court having
jurisdiction thereof. The arbitration shall be conducted by one arbitrator either mutually agreed upon by the Company and Employee
or chosen in accordance with the AAA Rules. The place of arbitration shall be the City of Richmond, Virginia. Except as may be
required by law, neither a party nor an arbitrator may disclose the existence, content, or results of any arbitration hereunder
without the prior written consent of both parties.

 

EMPLOYEE ACKNOWLEDGES THAT EMPLOYEE
HAS READ THIS AGREEMENT, UNDERSTANDS IT, AND IS VOLUNTARILY ENTERING INTO IT. PLEASE READ THIS AGREEMENT CAREFULLY. IT CONTAINS
A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS.

 

[SIGNATURE PAGE FOLLOWS]

 

    	 	10	 

     

    

 

IN WITNESS WHEREOF,
the parties have freely and voluntarily executed this Agreement in a manner so as to be binding on the dates stated below.

 

	 	EMPLOYEE
	 	 	 
	 	 	 
	June 29, 2017	 	
        /s/ Gregory Whirley

        
	 
	Date	Gregory Whirley
	 	 	 
	 	 	 
	 	 	 
		LUMBER LIQUIDATORS, INC.
	 	 	 
	 	 	 
	June 29, 2017	 	By:	/s/ Marty Agard	 
	Date	 	 
	 	 	 
	 	Its:	Chief Financial Officer	 

 

 

 

 

 

 

    	 	11

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