Document:

exhibit10_2.htm

    EXHIBIT
10.2

    
      HAWK
CORPORATION

      ANNUAL
INCENTIVE COMPENSATION PLAN

      

      1.           Purpose

      

      The Hawk
Corporation Annual Incentive Compensation Plan (the “Plan”) is designed to
attract, retain, and reward highly-qualified executives who are important to the
Company’s success and to provide incentives relating directly to the financial
performance and long-term growth of the Company.

      

      2.           Definitions

      

      (a)         “Award”
means an incentive award entitling an Executive Officer to receive
performance-based incentive compensation based on reference to specified levels
of, growth in, or ratios involving, one or more Performance Goals, or any other
amounts determined by the Committee, pursuant to terms and conditions of the
Plan.

      

      (b)         “Board”
means the Board of Directors of Hawk Corporation.

      

      (c)         “Code”
means the Internal Revenue Code of 1986, as amended.

      

      (d)         “Committee”
means the Compensation Committee of the Board, or such other committee of the
Board that is designated by the Board to administer the Plan, in compliance with
requirements of Section 162(m) of the Code.

      

      (e)         “Company”
means Hawk Corporation and any other corporation in which Hawk Corporation
controls, directly or indirectly fifty percent (50%) or more of the combined
voting power of all classes of voting securities.

      

      (f)         “EBITDA”
means the Company’s earnings before interest, taxes, depreciation and
amortization (before consideration of the incentive awards paid under this Plan
and under a similar plan for all salaried and eligible hourly employees) for
each Plan Year.

      

      (g)         “Executive
Officer” means any officer of the Company subject to the reporting requirements
of Section 16 of the Securities Exchange Act of 1934, as amended (“Exchange
Act”).

      

      (h)         “Participant”
means an Executive Officer of the Company.

      

      (i)         “Performance
Goal” means the corporate performance goals considered by the Committee that may
include the attainment of one or more of the following: EBITDA, earnings per
share from continuing operations, internal growth, new business awards, new
product development, economic value added, operating income, revenues, gross
margin, return on operating assets, return on equity, stock price appreciation,
total stockholder return (measured in terms of stock price appreciation and
dividend growth), cost control, acquisitions or divestitures, customer
relationships, or other items deemed material to the short or long term success
of the Company. 

      

      (j)         “Plan”
means the Hawk Corporation Annual Incentive Compensation Plan.

      

      (k)         “Plan
Year” means a period beginning on January 1 of each calendar year and continuing
through December 31 of such calendar year.

      

      (l)         “Section
409A” means Section 409A of the Code and the U.S. Treasury Regulations and other
interpretive guidance issued thereunder.

      

      3.           Eligibility

      

      Only
Executive Officers are eligible to participate in the Plan.

      

      4.           Administration

      

      The
Committee shall administer the Plan.  The Committee will approve the
Performance Goals, participation, target Awards, actual Awards, timing of
payment and other action necessary to the administration of the
Plan.  The Committee’s decisions shall be final, conclusive, and
binding upon all persons.  The provisions of the Plan are intended to
ensure that all Awards granted hereunder to any Participant who is or may be a
“covered employee” (within the meaning of Section 162(m)(3) of the Code) qualify
for the Section 162(m) exception for performance-based compensation, and all
Awards and the Plan shall be interpreted and operated consistent with that
intention.  The Committee has the authority to interpret the Plan and
the Awards, to proscribe, amend and rescind rules and regulation relating to the
Plan and the Awards and to make all other determinations deemed necessary or
advisable for the administration of the Plan and the Awards, including anything
necessary to comply with the requirements of Section 162(m) of the
Code.

      

      The
Committee’s determinations under the Plan need not be uniform and may be made by
it selectively among persons who receive, or are eligible to receive, awards
under the Plan, whether or not such persons are similarly
situated.  With limiting the generality of the foregoing, the
Committee shall be entitled, among other things, to make nonuniform and
selective determinations and to establish nonuniform and selective performance
goals, performance criteria and the weightings thereof.

      

      5.           Awards

      

      The
Committee may make Awards to Participants with respect to each Plan Year,
subject to the terms and conditions set forth in the Plan.

      

      Establishment of Awards and
Performance Goals.  Within 90 days after the commencement of
each Plan Year (or such other date as required by Section 162(m) of the Code and
the regulations promulgated thereunder), the Committee shall, in writing, select
the Participants for such Plan Year and set the Performance Goals and target
Award (dollar amounts calculated by reference to such Performance Goals) for
each Participant for such Plan Year.  No Participant will be assigned
an Award greater than $4,000,000 for any Plan Year.  The method used
to determine the Award shall be stated in terms of objective formulas that
preclude discretion to increase the amount of the Award that would otherwise be
due upon the attainment of the Performance Goals.  No provision in
this Plan shall preclude the Committee from exercising negative discretion to
reduce any Award hereunder.

      

      A
Participant’s Award opportunity in any Plan Year is the maximum amount that the
Participant may receive under the Plan in that Plan Year.  Whether or
not a Participant will receive all or any portion of his Award will be based on
the achievement of Performance Goals established for that Participant for the
Plan Year and on the achievement of any individual goals.

      

      Award
Determination.  At the end of the Plan Year, the Committee
shall certify, in writing, prior to the payment of any Award, whether and to
what extent the Performance Goals have been achieved for the Plan
Year.  Notwithstanding the attainment of the Performance Goal, the
Committee shall have the discretion to reduce or eliminate the Award amount
based upon the performance of the Company or the individual goals of the
Participant or such other factors as the Committee determines in its
discretion.  The Committee may not increase the amount of such Award
or waive the achievement of the Performance Goal.

      

      Payments
under this Plan shall be made no later than March 15 of the calendar year
following the end of the applicable calendar year in which the amounts are
earned and accrued.  Payment of any Award under the Plan shall be made
in cash.

      

      The
Committee shall have the right to allow Participants to elect to defer up to
100% of their Award pursuant to the Hawk Corporation Deferred Compensation Plan
(effective June 1, 2007) (the “Deferred Compensation Plan”), subject to the
terms and conditions as the Committee may determine and subject to all
requirements under such Deferred Compensation Plan; provided, however, that the
Participant’s election to defer such payment of Awards complies with this
Section 5, including but not limited to the requirement that the election to
defer such payment is made in accordance with Section 409A.

      

      Whenever
payments are to be made under the Plan, the Company will withhold therefrom an
amount sufficient to satisfy any applicable governmental withholding tax
requirements related thereto.

      

      6.           Effective Date, Amendment and
Termination

      

      The
effective date of the Plan is January 1, 2009.  The Committee may
amend, modify, suspend, or terminate the Plan or the Awards for the purpose of
meeting or addressing any changes in legal requirements or for any other purpose
permitted by law.  The Committee will seek stockholder approval of any
amendment determined to require stockholder approval or advisable under the
regulations of the Internal Revenue Service or other applicable law or
regulation.  Notwithstanding the foregoing, no amendment or
modification shall be made under this Section 6 which will result in an Award
becoming subject to the terms and conditions of Section 409A or otherwise
constitute an impermissible acceleration, unless agreed upon by the Committee
and the Participant.

      

      
        	
                7.

              	
                Death or Disability, Change in
      Control, Termination of
Employment

              

      

      

      A
Participant shall have no right to any Award under this Plan until that Award is
paid.  Unpaid Awards may also be canceled at the discretion of the
Committee.

      

      Unless
otherwise provided in a Participant’s change in control agreement, termination
agreement or employment agreement, a Participant must be employed by the Company
on the date of payment of the Award in order to receive such Award; provided,
however, in the case of death, disability (as determined in the sole discretion
of the Committee) or change in control, unless otherwise provided in a
Participant’s change in control agreement, termination agreement or employment
agreement, such Participant’s Award will be equal to the product of (a) the
Award applicable to such Participant for the Plan Year in which the Participant
dies or becomes disabled, and (b) a fraction, the numerator of which is the
number of days in such Plan Year through the date of death or disability, and
denominator of which is 365.  Therefore, unless otherwise provided for
herein or in a Participant’s change in control agreement, termination agreement
or employment agreement (each as in effect prior to February 2008 and not
extended or renewed), Participant’s termination of employment for any reason
other than death, disability or a change in control will result in the
forfeiture of any right to payment of an Award under the Plan.

      

      8.           Nonassignability

      

      No Award
or other benefit under the Plan shall be assignable or transferable by the
Participant during the Participant’s lifetime.

      

      9.           No Right to Continued
Employment

      

      Nothing
in the Plan shall confer upon any employee any right to continue in the employ
of the Company or shall interfere with or restrict in any way the right of the
Company to discharge an employee at any time for any reason whatsoever, with or
without good cause.

      

      10.           Liability of the
Company

      

      Neither
the Company, nor any affiliate of the Company, nor any member of the Board or
the Committee, nor any other person participating in any determination of any
question under the Plan, or in the interpretation, administration and
application of the Plan, shall have liability to any party for an action taken
or not taken in good faith under the Plan.  Status as a Participant
shall not be construed as a commitment that any Award will be made under the
Plan to such Participant or to Participants generally.  Nothing
contained in this Plan (or any documents relating to the Plan or to any
incentive award under the Plan) shall confer upon any employee of the Company
any right to continue in the employ or other service of the Company or its
affiliates or constitute any contract or limit in any way the right of the
Company or its affiliates to change such person’s compensation or other
benefits.

      

      11.           Federal Income Tax
Consequences

      

      All
amounts paid pursuant to the Plan constitute taxable income to the Participant
when received.  If a Participant elects to defer a portion of the
award, such Participant may be entitled to defer the recognition of
income.  Generally, and subject to Section 162(m), the Company will be
entitled to a federal income tax deduction when amounts paid under the Plan are
included in the Participant’s income.  Subject to stockholder approval
of the Plan, the failure of any aspect of the Plan to satisfy Section 162(m)
will not void any action taken by the Committee under the Plan.

      

      12.           Unfunded Plan

      

      This Plan
shall be unfunded.  Neither the Plan nor any award under the Plan
shall create or be construed to create a trust or separate fund of any kind or a
fiduciary relationship between the Company and a Participant or any other
person.  To the extent any Participant acquires a right to receive
payments from the Company pursuant to an Award, such right shall be no greater
than the right of any unsecured general creditor of the Company.

      

      13.           Governing Law

      

      This Plan
and any controversy arising out of or relating to this Plan shall be governed by
and construed in accordance with the General Corporation Law of the State of
Delaware as to the matters within the scope thereof.  All other
matters shall be governed by and construed in accordance with the internal laws
of the State of Ohio without regard to any state’s conflict of law
principles.  Any legal action related to this Plan shall be brought
only in federal or state court located in Ohio.

      

      14.           Stockholder
Approval

      

      Payment
of any Awards under this Plan shall be contingent upon the approval of the
Company’s stockholders at the annual meeting of stockholders held in
2009.  Unless and until such stockholder approval is obtained, no
Award shall be paid pursuant to the Plan.  To the extent necessary for
purposes of Section 162(m) of the Code, the Plan shall be resubmitted to
stockholders for re-approval with respect to Awards payable for the tax year
commencing on and after January 1, 2014.

      

      If the
Company’s stockholders do not approve the Plan, payments that would have been
made pursuant to Awards that were made contingent upon such approval will not be
made.  No provision of the Plan shall prevent the Committee from
making any payments or granting any awards outside of the Plan whether or not
such payments or awards qualify for tax deductibility under Section 162(m) of
the Code.

      

      15.           Section 409A

      

      (a) To the
maximum extent permitted by applicable law, this Plan and each Award issued
under this Plan shall be interpreted in accordance with Section 409A, and more
specifically interpreted so that this Plan is determined to be a “short-term
deferral” as defined in Section 409A and thus not subject to Section 409A and
the amounts payable to a Participant under this Plan or under any Award shall be
made in reliance upon Treasury Regulation Section 1.409A-1(b)(4) (with respect
to short-term deferrals).

      

      (b) Notwithstanding
anything to the contrary in this Plan, to ensure compliance with Section 409A,
the Company shall pay:  (i) any amount payable under Section 7 upon a
“change in control” no later than March 15 of the calendar year following the
calendar year in which the “change in control” occurred; (ii) subject to the
terms of any applicable termination agreement (in existence as of February 21,
2008), any amount payable under Section 7 upon a Participant’s termination
without cause or with good reason by the Company no later than March 15 of the
calendar year following the calendar year in which the termination of the
Participant’s employment occurred; (iii) any amount payable under Section 7 upon
the death of a Participant no later than March 15 of the calendar year following
the calendar year in which the Participant’s death occurred; and (iv) any amount
payable under Section 7 upon the disability of a Participant no later than March
15 of the calendar year following the calendar year in which the Participant’s
disability occurred.

      

      (c) If a
Participant is a “specified employee” (within the meaning of Treasury Regulation
Section 1.409A-1(i)), as determined by the Company in accordance with Section
409A, as of the date of the Participant’s separation from service (within the
meaning of Treasury Regulation Section 1.409A-1(h)), to the extent that any
payments or benefits under this Plan or any Award are subject to Section 409A
and the delayed payment or distribution of all or any portion of such amounts to
which the Participant is entitled under this Plan or any Award, exclusive of any
amount that is permitted to be distributed under U.S. Treasury Regulations
§ 1.409A-1(b)(9)(iii) (regarding the two-times, two year exception), is
required in order to avoid a prohibited distribution under Section
409A(a)(2)(B)(i) of the Code, then such portion deferred under this Section
14(c) shall be paid or distributed (without interest) to the Participant in a
lump sum on the earlier of (i) the date that is six (6) months following
termination of the Participant’s employment, (ii) a date that is no later than
thirty (30) days after the date of the Participant’s death or (iii) the earliest
date as is permitted under Section 409A.  For purposes of clarity, the
six (6) month delay shall not apply in the case of severance pay contemplated by
Treasury Regulation Section 1.409A-1(b)(9)(iii) to the extent of the limits set
forth therein.  Any remaining payments due under this Plan or any
Award shall be paid as otherwise provided herein.

      

      (d) Notwithstanding
anything to the contrary in this Plan or any Award, any election by a
Participant to defer all or any portion of an Award under Section 5 shall be
subject to all requirements under Section 409A and the Deferred Compensation
Plan.ex101.htm

    
      

    

    Exhibit
10.1

     

     

    
      RETIRMENT
AND TRANSITION SERVICES AGREEMENT

       

      This
Retirement and Transition Services Agreement (“Agreement”)
is entered into as of March 26, 2009, by and between Bruce F. Dickson, an
individual (“Executive”),
and Standard Pacific Corp., a Delaware corporation (“Company”).

       

      WHEREAS,
Executive has served as the President of the Company’s Southeast
Region;

       

      WHEREAS,
Executive has decided to retire from his position with the Company;

       

      WHEREAS,
in connection with his retirement, the Company has requested, and Executive has
agreed to provide, certain transition services to the Company; and

       

      WHEREAS,
a potential issue has arisen as to whether Executive is entitled to the payment
of benefits under the December 1, 2006 Change in Control Agreement between
Executive and the Company.

       

      NOW,
THEREFORE, in consideration of the foregoing premises and the covenants
contained in this Agreement, the Company and Executive agree as
follows:

       

      
        	
                1)

              	
                Resignation.  Executive
      hereby confirms his resignation as an employee and as President of the
      Company’s Southwest Region, effective April 30, 2009 (the “Effective
      Date”).  In addition, Executive also hereby confirms his
      resignation from all positions held as an employee, officer or director of
      any affiliate of the Company, also effective as of the Effective
      Date.

              

      

       

      
        	
                2)

              	
                Transition
      Services.  Executive
      shall remain available to Company management to consult and discuss any
      transitional issues related to his position through December 31,
      2009.

              

      

       

      
        	
                3)

              	
                Severance
      Payment. Within
      two (2) days following November 1, 2009 (the date six (6) months and one
      (1) day after Executive’s separation of employment from the Company), the
      Company shall pay to Executive a single cash lump sum payment (less
      applicable taxes and withholdings), in the amount of one-million, six
      hundred thirty-nine thousand dollars ($1,639,000.00) (the “Severance
      Amount”). The Severance Amount shall be considered “wages” for
      purposes of the Internal Revenue Code and the Company shall issue a Form
      W-2 with respect to such
payment.

              

      

       

      
        	
                4)

              	
                Perquisites;
      Benefits; Business Expenses.

              

      

       

      
        	
                    
      a)

              	
                Termination
      of all Benefits other than COBRA.  All
      perquisites and employee benefits, and Executive’s participation in all
      employee benefit programs of the Company shall terminate on the Effective
      Date, except that the Company shall reimburse Executive for his monthly
      COBRA payments for himself and his covered and eligible dependents for a
      period of eighteen (18) months following the Effective Date, provided he
      exercises his right to continue his insurance pursuant to
      COBRA.  The reimbursements shall only be for the cost of
      medical, vision and dental insurance premiums, and shall not include
      costs

              

      

       

      
        
           

        

        
          1

          
            

          

        

        
           

        

      

      for life
insurance or any other programs.  Executive acknowledges that he has
received notice of his rights to benefits under COBRA.

       

      
        	
                    
      b)

              	
                Return
      of Company Property. On
      the Effective Date, Executive’s privileges under all Company credit cards
      will cease and Executive will be obligated to return to the Company all
      property of the Company, except that Executive shall be entitled to retain
      his cellular telephone/blackberry and to transfer his cellular telephone
      number to his personal account with the service provider of his
      choice.

              

      

       

      
        	
                    
      c)

              	
                Payout
      of Accrued Unused Vacation Time.  On the Effective Date,
      Executive shall be entitled to receive payment (less applicable taxes and
      withholdings) of Executive’s accrued unused vacation.  The
      parties agree that this amount shall be paid, less applicable taxes and
      withholding on or before May 5,
2009.

              

      

       

      
        	
                    
      d)

              	
                Relinquishment
      of Stock Options. Executive shall have no right to exercise any of
      his stock options, whether vested or unvested, following March 26,
      2009.   Executive hereby relinquishes all of his right,
      title and interest in and to any and all Company stock options that he has
      not exercised prior to March 26, 2009, irrespective of whether such
      options are vested or unvested.  All such stock options shall be
      immediately cancelled following expiration of the revocation period
      described in Section 13.

              

      

       

      
        	
                    
      e)

              	
                Reimbursement
      of Business Expenses.  Executive shall be entitled to
      receive reimbursement for all properly documented business expenses
      incurred prior to the Effective Date.  Executive agrees to
      submit proper documentation of all such expenses no later than April 30,
      2009. The Company shall provide reimbursement within 30 days of receipt of
      Executive’s properly documented business
  expenses

              

      

       

      
        	
                5)

              	
                Withholding
      and Taxes; No Reliance.
      All amounts required to be paid by the Company hereunder shall be subject
      to any and all applicable withholdings, including any withholdings for any
      related federal, state or local taxes. Executive shall be responsible for
      any and all income taxes or other taxes incurred by Executive as a result
      of his receipt of any compensation from the Company pursuant to the terms
      of this Agreement. Executive represents and warrants that he has not
      relied upon any advice whatsoever from the Company or its representatives
      as to the taxability of amounts payable hereunder.  Executive
      acknowledges that he is solely responsible for his own tax obligations or
      consequences arising from or relating to the payment of all such
      amounts.

              

      

       

      
        	
                6)

              	
                Non-Disparagement;
      Confidentiality; Employment
  Inquiries.

              

      

       

      
        	
                    
      a)

              	
                Non-Disparagement
      of Company. Executive shall not disparage the Company, its
      officers, directors, employees, agents, subsidiaries, or affiliates, or
      publish, republish, comment upon, or otherwise disseminate any comments
      suggesting or otherwise accusing the Company or its agents or employees of
      any act of discrimination, or misconduct.  Nothing in this
      provision shall be construed to prevent Executive from giving truthful
      testimony pursuant to a valid subpoena or other legal
      process.

              

      

       

      
        	
                    
      b)

              	
                Non-Disparagement
      of Executive.  The Company agrees that the members of its
      Board of Directors and Executive Officers (as such term is defined for
      Section 16 purposes

              

      

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

       

      under the
Securities Exchange Act of 1934) shall not disparage Executive to third parties.
Nothing in this provision shall be construed to prevent any person from giving
truthful testimony pursuant to a valid subpoena or other judicial
process.

       

      
        	
                    
      c)

              	
                Confidentiality.
      Executive acknowledges that in the course of his employment with
      the Company, certain factual and strategic information specifically
      related to the Company and its affiliates has been disclosed to him in
      confidence (“Company
      Information”). Executive agrees to keep such Company Information
      confidential, not to make use of such information on his own behalf or for
      any other purpose.  In addition, Executive agrees to keep the
      negotiations related to this Agreement and its terms confidential, but
      acknowledges that a copy of this Agreement will be filed by the Company
      with the Securities and Exchange
  Commission.

              

      

       

      
        	
                    
      d)

              	
                Non-Solicitation.
      Without the prior written consent of the Company, for a period of two
      (2) years following the Effective Date, Executive shall not, directly
      or indirectly, entice or solicit or seek to induce or influence any person
      who is an employee or consultant of the Company or any of its affiliates,
      to leave their employment or engagement with the Company or any of its
      affiliates.

              

      

       

      
        	
                    
      e)

              	
                Employment
      Inquiries. The Company shall be obligated to respond to inquiries
      from prospective employers only by stating Executive’s dates of employment
      and last position held.

              

      

      
         

        
          	
                      
      f)

                	
                  Equitable
      Relief. Each party hereto agrees that his violation, or threatened
      violation, of
      subsection
      (a)-(d) above
      would cause irreparable damage to the other party hereto and its
      affiliates. Each party hereto shall be entitled to seek an injunction
      prohibiting the other party hereto from any such violation or threatened
      violation

                

        

      

      
      

       

      
        	
                7)

              	
                Release
      of Claims.

              

      

       

      
        	
                    
      a)

              	
                Release
      by Executive.
      Except as prohibited by law, Executive, on behalf of himself and
      his successors and assigns does hereby forever release, discharge and
      acquit the Company and its subsidiaries, divisions, affiliates, and their
      respective predecessors in interest, members, partners, principals,
      shareholders, directors, officers, agents, employees, and representatives,
      and the successors and assigns of each of them (each a “Company
      Released Party”), from any and all charges, complaints, claims,
      demands, obligations, promises, agreements, damages, actions, causes of
      action, suits, rights, costs, losses, debts, expenses (including
      attorneys’ fees and costs), liabilities, and indebtedness, of every type,
      kind, nature, description or character, whether known or unknown,
      suspected or unsuspected, liquidated or unliquidated, arising from, under
      or related to, Executive’s employment, retention or other relationships
      with the Company or its affiliates, the separation of that employment or
      any event, act or omission arising on or before the date of this Agreement
      including, but not limited to, (1) any claim for salary, bonus,
      severance pay, or other compensation, (2) any claim under Executive’s
      December 1, 2006 Change in Control Agreement or March 6, 2008 Employment
      Letter, and (3) any claim for non-vested benefits under any employee
      benefit plan, whether or not heretofore brought before any state or
      federal court or before any state or federal agency or
      other

              

      

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

       

      governmental
entity (the “Company Released
Matters”). The
Company Released Matters shall not include any claims for any of the following:
(i) indemnification and defense as an officer, employee or agent under
applicable law, charter document or the indemnification agreement between the
Company and Executive (the “Indemnification
Agreement”), (ii) the parties’ rights under this Agreement,
(iii) Executive’s vested rights under the Company’s 401(k) plan,
(iv) Executive’s right to workers’ compensation or unemployment benefits,
(v) Executive’s rights with respect to coverage under the Company’s
directors and officers insurance policy. For the avoidance of doubt, the
releases contained herein shall not be construed to limit Executive’s rights to
the advancement of expenses provided under applicable law, the Company’s charter
documents or the Indemnification Agreement.

       

      
        	
                    
      b)

              	
                Release
      by Company.
      Except as prohibited by law, Company, on behalf of itself and its
      successors and assigns does hereby forever release, discharge and acquit
      Executive and his successors and assigns (each an “Executive Released
      Party”), from any and all charges, complaints, claims, demands,
      obligations, promises, agreements, damages, actions, causes of action,
      suits, rights, costs, losses, debts, expenses (including attorneys’ fees
      and costs), liabilities, and indebtedness, of every type, kind, nature,
      description or character, whether known or unknown, suspected or
      unsuspected, liquidated or unliquidated, arising from, under or related
      to, Executive’s employment, retention or other relationships with the
      Company or its affiliates or any event, act or omission arising on or
      before the date of this Agreement (the “Executive
      Released
      Matters”).

              

      

       

      
        	
                    
      c)

              	
                Release
      Final.
      Executive acknowledges and agrees that the releases made herein
      constitute final and complete releases of the Company Released Parties
      with respect to all Released Matters, and that by signing this Agreement,
      Executive is forever giving up the right to sue or attempt to recover
      money, damages or any other relief from the Company Released Parties for
      all claims he has or may have with respect to the Released Matters (even
      if any such claim is unforeseen as of the date hereof).  The
      Company acknowledges and agrees that the releases made herein constitute
      final and complete releases of the Executive Released Parties with respect
      to all Executive Released Matters, and that by signing this Agreement, the
      Company is forever giving up the right to sue or attempt to recover
      money, damages or any other relief from the Executive Released Parties for
      all claims it has or may have with respect to the Executive Released
      Matters (even if any such claim is unforeseen as of the date
      hereof).

              

      

       

      
        	
                    
      d)

              	
                Release
      of Unknown Claims Included.  Executive and the Company
      represent and warrant that they understands California Civil Code
      Section 1542, which provides as
  follows:

              

      

       

      “A
GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR
SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE WHICH
IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH
THE DEBTOR.”

       

      Executive
and the Company, being aware of Section 1542, each hereby expressly waives
any and all rights he or it may have thereunder as well as under any other
statute or common

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

      law
principles of similar effect under the laws of any state or the United States.
This Agreement shall act as a release of all claims that may arise from the
Company Released Matters and Executive Released Matters, whether such claims are
currently known or unknown, foreseen or unforeseen including, without
limitation, any claims for damages resulting from the acts or omissions which
occurred on or before the date of this Agreement.

       

      Thus,
notwithstanding the provisions of Section 1542, and for the purpose of
implementing a full and complete release and discharge of the Company Released
Parties and the Executive Released Parties, Executive and the Company expressly
acknowledge that this Agreement is intended to include in its effect, without
limitation, all Company Released Matters and Executive Released Matters
which he or it does not know or suspect to exist in his or its favor
at the time of execution hereof, and that this Agreement contemplates the
extinguishment of all such Company Released Matters and Executive Released
Matters.

       

      
        	
                8)

              	
                No
      Claims. Executive represents and warrants that he has not
      instituted any complaints, charges, lawsuits or other proceedings against
      any Company Released Parties with any governmental agency, court,
      arbitration agency or tribunal. Executive further agrees that he will not,
      directly or indirectly, (i) file, bring, cause to be brought any
      complaint, charge, lawsuit or other proceeding or action against any
      Company Released Parties at any time hereafter for any Company Released
      Matters, or (ii) defend in whole or in part any action, proceeding or
      suit brought to enforce any rights or obligations set forth in this
      Agreement, on the grounds that any or all of the terms or provisions of
      this Agreement are illegal, invalid, not binding, unenforceable or against
      public policy, except that this section shall not apply to the right to
      file, join or participate in, or provide any assistance in connection with
      a charge or complaint with the Equal Employment Opportunity
      Commission.

              

      

       

      
        	
                9)

              	
                Advice
      of Counsel.
      Executive represents and agrees that he fully understands his right to
      discuss, and that the Company has advised him to discuss, all aspects of
      this Agreement with his private attorney, that he has carefully read and
      fully understands all the provisions of the Agreement, that he understands
      its final and binding effect, that he is competent to sign this Agreement,
      and that he is voluntarily entering into this
      Agreement.

              

      

       

      
        	
                10)

              	
                Acknowledgment.
      Executive represents and agrees that in executing this Agreement he is
      relying solely upon his own judgment, belief and knowledge, and the advice
      and recommendations of any independently selected counsel, concerning the
      nature, extent and duration of his rights and claims. Executive
      acknowledges that no other individual has made any promise, representation
      or warranty, express or implied, not contained in this Agreement, to
      induce Executive to execute this Agreement. Executive further acknowledges
      that he is not executing this Agreement in reliance on any promise,
      representation, or warranty not contained in this
      Agreement.

              

      

       

      
        	
                11)

              	
                Compromise
      Settlement of Claims. This
      Agreement is a compromise settlement of the Company Released Matters and
      Executive Released Matters.  This Agreement does not constitute
      an admission of liability on the part of any party, nor an admission,
      directly or by implication, that any party has violated any law, rule,
      regulation, contractual right or any other duty or
      obligation.  This Agreement is entered into voluntarily by
      Executive and the Company of their own free will and accord without any
      coercion or duress whatsoever, including for the purpose of avoiding the
      costs, risks and hazards of litigation, and to
    settle

              

      

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

       

      
        	
                 
      

              	
                 all
      Company Released Matters and Executive Released Matters in a final and
      binding manner.

              

      

       

      
        	
                12)

              	
                Miscellaneous.

              

      

       

      
        	
                    
      a)

              	
                Binding
      on Successors and Assigns. This
      Agreement shall inure to the benefit of and be binding upon the successors
      and assigns of the Company and shall inure to the benefit of and be
      binding upon Executive’s heirs, executors, administrators, successors and
      assigns.

              

      

       

      
        	
                    
      b)

              	
                Severability.
      Should any provision of this Agreement be found, held, declared,
      determined, or deemed by any arbitrator or court of competent jurisdiction
      to be void, illegal, invalid or unenforceable under any applicable statute
      or controlling law, the legality, validity, and enforceability of the
      remaining provisions will not be affected and the illegal, invalid, or
      unenforceable provision will be deemed not to be a part of the
      Agreement.

              

      

       

      
        	
                    
      c)

              	
                Arbitration.
      Executive and the Company acknowledge and agree that any dispute regarding
      the application, interpretation or breach of this Agreement will be
      subject to final and binding arbitration before a single arbitrator who is
      a retired judge with JAMS/Endispute and in accordance with
      JAMS/Endispute’s rules for the resolution of employment disputes.
      Attorneys’ fees, costs and damages (where appropriate) shall be awarded to
      the prevailing party in any dispute, and any resolution, opinion or order
      of the arbitrator may be entered as a judgment of a court of competent
      jurisdiction. This Agreement shall be admissible in any proceeding to
      enforce its terms.

              

      

       

      
        	
                    
      d)

              	
                Governing
      Law. This
      Agreement shall be construed and interpreted in accordance with California
      law.

              

      

       

      
        	
                    
      e)

              	
                Entire
      Agreement. This
      Agreement contains the entire agreement and understanding between
      Executive and the Company regarding the matters set forth herein and
      replaces all prior agreements, arrangements and understandings, written or
      oral, including, without limitation, that certain Change in Control
      Agreement between Executive and the Company dated December 1, 2006
      and that certain letter agreement between Executive and the Company
      dated March __, 2008, each of which are hereby
      terminated.  Neither Executive nor the Company shall be bound or
      liable for any representation, promise or inducement not contained in this
      Agreement. This Agreement cannot be amended, modified, supplemented, or
      altered, except by written amendment or supplement signed by Executive and
      the Company.

              

      

      
         

        
          	
                      
      f)

                	
                  Counterparts.
      This Agreement may be executed in counterparts, including facsimile
      counterparts, each of which shall be deemed to be an original, but all of
      which shall constitute one and the same agreement. Delivery of an executed
      counterpart of a signature page to this Agreement by facsimile
      transmission shall be effective delivery of a manually executed
      counterpart to this
Agreement.

                

        

         

      

      
        	
                13)

              	
                ADEA
      Claims; Revocation Period.
      Executive agrees that the consideration in this Agreement includes
      consideration for the release of any claim of age discrimination under the
      Age Discrimination in Employment Act of 1967 (29 U.S.C. §§ 621-634) (the
      “ADEA”).

              

      

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

       

      Executive
acknowledges that the Company has advised him that he may consult with an
attorney of his choosing prior to signing this Agreement and that he has no less than
twenty-one (21) days during which to consider the provisions of this
Agreement, although he may sign and return it sooner.  Executive
understands that he has a period of seven (7) calendar
days after the date that he signs this Agreement to revoke this Agreement
by having his legal counsel deliver a written notification in person, by
messenger or by email addressed to the Company: 26 Technology, Irvine, CA 92618,
Attn:  John P. Babel, SVP, General Counsel and Secretary, email: jbabel@stanpac.com.  This
Agreement shall not become effective or enforceable until the expiration of this
revocation period.

       

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

       

       

      PLEASE
READ CAREFULLY.  THIS SETTLEMENT AGREEMENT AND RELEASE OF CLAIMS
INCLUDES A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS.

       

      
        	
                EXECUTIVE

              	 
      	 
      
	 
      	 
      	 
      	 
      
	
                DATED:

              	
                March
      26, 2009

              	 
      	
                /s/
      Bruce F. Dickson

              
	 
      	 
      	
                Bruce
      F. Dickson

              
	 
      	 
      	 
      
	
                STANDARD
      PACIFIC CORP.

              	 
      	 
      
	 
      	 
      	 
      	 
      
	
                DATED:

              	
                March
      31, 2009

              	 
      	
                /s/
      Ken Campbell

              
	 
      	 
      	 
      	
                Authorized
      Representative

              

      

       

       

       

      7

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