Document:

Form of Cash Performance Unit Agreement

 Exhibit 10.1 
 

 
 FORM OF CASH PERFORMANCE UNIT (“CPU”) AWARD AGREEMENT 
  

					
	 This AGREEMENT (this “Agreement”), effective as of the date indicated on the Notice
of Grant delivered herewith (the “Notice of Grant”), is made and entered into by and between Dean Foods Company, a Delaware corporation (the “Company”), and the individual named on the Notice of Grant
(“you”).
  
 WITNESSETH:
  
 WHEREAS, the Board of Directors of the Company has adopted and approved the Dean Foods Company 2007 Stock Incentive Plan (the “Plan”), which Plan was approved as required by the Company’s stockholders and provides for
the grant of Performance Units and other forms of incentive compensation to certain selected Employees and non-employee Directors of the Company and its Subsidiaries (Capitalized terms used and not otherwise defined in this Agreement shall have the
meanings set forth in the Plan); and
  
 WHEREAS, during your employment, and based upon your position with the Company and/or its Subsidiaries, you have acquired and will continue to acquire, by reason of your position, substantial knowledge of
the operations and practices of the business of the Company; and
  
 WHEREAS, the Company desires to assure that, to the extent and for the period of your service and for a reasonable period thereafter, it may maintain the confidentiality of its trade secrets and
proprietary information, and protect goodwill and other legitimate business interests, each of which could be compromised if any competitive business were to secure your services; and
  
 WHEREAS, the Committee has selected
you to participate in the Plan and has awarded to you the
	 		  	 Performance Units, which are referred to in this Agreement as CPUs, described in this Agreement, Appendix A hereto and in the Notice of
Grant.
  
 NOW, THEREFORE, in
consideration of the foregoing and of the mutual covenants and agreements herein contained, and as an inducement to you to continue as an employee of the Company (or its Subsidiaries), you and the Company hereby agree as follows:
  
 1. Grant of Award. The Company
hereby grants to you and you hereby accept, subject to the terms and conditions set forth in the Plan and in this Agreement, the number of CPUs for the Performance Cycle (as defined below) shown on the Notice of Grant, effective as of the date
indicated on the Notice of Grant (the “Date of Grant”). Each CPU represents the right to receive cash in the amount determined in accordance with this Agreement, subject to the terms and conditions set forth in the Plan and in this
Agreement. You must accept this CPU Award by electronic acceptance in the manner designated by the Company in the Notice of Grant not later than 90 days after the Date of Grant, or electronic notification of such Grant, whichever occurs later, or
this Award will be rendered void and without effect. Once accepted as provided above, but subject to the provisions of Sections 2(c), 2(d) and 6 hereof, this Award of CPUs is irrevocable and is intended to conform in all respects with the
Plan.
  
 2. Vesting.

  
 (a) Regular
Vesting. Except as otherwise provided in the Plan or in this Section 2, your CPUs will vest, if at all, to the extent that the performance goals applicable to your CPUs and set forth in Appendix A hereto (the “Performance Goals”)
shall be satisfied over the performance

 

 
  

					
	 cycle in respect of your CPUs specified in such Appendix A (the “Performance Cycle”), provided that, subject
to the provisions of Section 2(b)(1), you have been continuously in the Company’s employment from the date hereof to the end of the Performance Cycle.
  
 (b) Accelerated Vesting.
  
 (1) Unless otherwise determined by the
Committee, or except as provided in another written agreement between you and your Employer, if your Service terminates by reason of Death, Disability or Retirement prior to the payment date in respect of such CPUs, you shall be entitled to receive
a payment in respect of your CPUs determined in accordance with this Section 2(b)(1). Such payment shall be equal to the amount determined by applying the formula specified in Section 3(a), but assuming solely for this purpose that the
Performance Cycle ends as of the end of the calendar year in which your employment terminates, multiplied by a fraction, the numerator of which is the number of your full months of Service completed during the Performance Cycle through and including
the date of your termination of employment, and the denominator of which is the total number of full months that had been scheduled to occur during the Performance Cycle without regard to this Section 2(b)(1); provided that, for purposes
of this fraction, a partial month of Service consisting of 15 or more days of Service shall be treated as though a full month of Service. Payment of such pro-rated amount shall be made in the first calendar quarter (but not later than March 15)
of the calendar year following your date of termination, except that, if you are a specified employee (within the meaning of Section 409A of the Code) and your right to receive a payment under this Section 2(b)(1) arises due to your
Retirement or Disability, such payment shall not be made prior to the six month anniversary of your date of your separation from service. For purposes of this Agreement, “Retirement” shall be defined as your retirement from
employment or other service to the Company or any Subsidiary after you reach (i) age fifty-five (55), so long as you shall also have
	 		  	 completed at least ten (10) years of continuous service immediately prior to your retirement, or (ii) age
sixty-five (65). “Disability” shall be defined as your permanent and total disability (within the meaning of Section 22(e)(3) of the Code).
  
 (2) In addition to the vesting provisions contained in Sections 2(a), and 2(b)(1) above, you
will have a vested right to receive payment in respect of your CPUs in the event that a Change in Control occurs during the Performance Cycle. The amount payable in accordance with this Section 2(b)(2) shall be an amount equal to the amount
calculated in accordance with the provisions of Section 3(a), but assuming that the Performance Cycle ends on the date the Change in Control occurs, multiplied by a fraction, the numerator of which is the number of days in the Performance Cycle
through and including the date on which the Change in Control occurs, and the denominator of which is the total number of days that had been scheduled to occur during the Performance Cycle without regard to such Change of Control. In the event that
a Change in Control occurs following the completion of the Performance Cycle, but prior to the date of payment, if any, in respect of your CPUs, you shall be entitled to receive a payment in the amount, if any, determined to be payable in accordance
with Section 3(a). The provisions of this Section 2(b)(2) shall apply notwithstanding the terms and conditions of any other agreement between you and the Company.
  
 (c) Forfeiture of Unvested CPUs. Unless otherwise determined by the Committee, or
except as provided in an agreement between you and your Employer, if your Service terminates for any reason other than Death, Disability or Retirement prior to the end of the Performance Cycle, any CPUs you held will be forfeited and canceled as of
the date of such termination of Service. For the avoidance of doubt, this means that your rights with respect to unvested CPUs shall in all events be immediately forfeited and canceled as of the date of your voluntary termination of employment other
than due to Retirement or the termination of your Service by each of your Employers with or without

  

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	 Cause. For purposes of this Agreement, “Cause” means (i) your willful failure to perform
substantially your duties; (ii) your willful or serious misconduct that has caused, or could reasonably be expected to result in, material injury to the business or reputation of an Employer; (iii) your conviction of, or entering a plea of
guilty or nolo contendere to, a crime constituting a felony; (iv) your breach of any written covenant or agreement with an Employer, any material written policy of any Employer or any Employer’s code of conduct or code of ethics, or
(v) your failure to cooperate with an Employer in any internal investigation or administrative, regulatory or judicial proceeding. In addition, your Service shall be deemed to have terminated for Cause if, after your Service has terminated (for
a reason other than Cause), facts and circumstances are discovered that would have justified a termination for Cause. Your CPUs will also be immediately forfeited and canceled in accordance with Section 6 upon your breach of the provisions set
forth in Section 6.
  
 (d) Demotion. In the event that, during a Performance Cycle, you are demoted to a position which, under the Company’s generally applicable policies and procedures, would not ordinarily be eligible to receive a grant of CPUs (or
which would not be eligible for a grant of a comparable amount of CPUs), the Committee shall have the right, but not the obligation, to forfeit your CPU Award in connection with such demotion, to reduce the number of units subject to this CPU Award
or to impose additional conditions on the vesting of such CPU Award, in each case in its sole discretion.
  
 3. Payment in Respect of CPUs.
  
 (a) Payment Following Performance Cycle. Following (but not later than 60 days after)
the end of the Performance Cycle, the Committee shall determine the extent to which the Performance Goals have been achieved, in accordance with the provisions of Appendix A. The amount, if any, payable in respect of each of your CPUs shall be equal
to the product of (i) the target value of each CPU, as established in the Notice of Grant, (ii) the
	 		  	 number of CPUs subject to this Award and (iii) the percentage of achievement of the Performance Goals, as
certified by the Committee based on the criteria established in Appendix A. The Company will pay you (or to your estate in the event of your Death) an amount in cash equal to the product established pursuant to the preceding sentence, as soon as
practicable after the Committee certifies the achievement of the Performance Goals, but in no event later than 74 days after the date the Performance Cycle ends.
  
 (b) Compliance With Law. The Plan, the granting and exercising of this CPU, and any
obligations of the Company under the Plan, shall be subject to all applicable federal, state and foreign country laws, rules and regulations, and to such approvals by any regulatory or governmental agency as may be required, and to any rules or
regulations of any exchange on which the Stock is listed.
  
 4. Tax Withholding. The Employer shall have the right to deduct from all amounts payable to you in cash (whether under this Agreement or otherwise) any amount required by law to be withheld in
respect of the CPUs as may be necessary in the opinion of the Employer to satisfy any applicable tax withholding requirements under the laws of any country, state, province, city or other jurisdiction, including but not limited to income taxes and
social security contributions that are required by law to be withheld.
  
 5. Transfer of CPUs. Except to the extent that an amount shall be payable to your estate or beneficiary under Section 2(b)(1) upon your Death, the CPUs granted herein are
not transferable.
  
 6.
Covenants Not to Disclose, Compete or Solicit.
  
 (a) You acknowledge that (i) the Company is engaged in a continuous program of research, development and production respecting its business throughout the United States (the foregoing, together with
any other businesses in which the

  

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	 Company engages from the date hereof to the date of the termination of your employment with the Company and its
Subsidiaries as the “Company Business”); (ii) your work for and position with the Company and/or one of its Subsidiaries has allowed you, and will continue to allow you, access to trade secrets of, and Confidential Information
concerning the Company Business; (iii) the Company Business is national and international in scope; (iv) the Company would not have agreed to grant you this Award but for the agreements and covenants contained in this Agreement; and
(v) the agreements and covenants contained in this Agreement are necessary and essential to protect the business, goodwill, and customer relationships that Company and its Subsidiaries have expended significant resources to develop. The Company
agrees and acknowledges that, on or following the date hereof, it will provide you with one or more of the following: (a) authorization to access Confidential Information through a new computer password or by other means, (b) authorization
to represent the Company in communications with customers and other third parties to promote the goodwill of the business in accordance with generally applicable Company policies and (c) access to participate in certain restricted access
meetings, conferences or training relating to your position with the Company. You understand and agree that if Confidential Information were used in competition against the Company, the Company would experience serious harm and the competitor would
have a unique advantage against the Company.
  
 (b) For purposes of this Agreement, “Confidential Information” shall mean all business records, trade secrets, know-how, customer lists or compilations, terms of customer agreements,
sources of supply, pricing or cost information, financial information or personnel data and other confidential or proprietary information used and/or obtained by you in the course of your employment with the Company or any Subsidiary; provided that
the term “Confidential Information” will not include information which (i) is or becomes publicly available other than as a result of a
	 		  	 disclosure by you which is prohibited by this agreement or by any other legal, contractual or fiduciary obligation that
you may owe to the Company or any Subsidiary, or (ii) is widely known within one or more of the industries in which the Company or any Subsidiary operates, or you can demonstrate was otherwise known to you prior to becoming an employee of the
Company or any Subsidiary, or (iii) is or becomes available to you on a non-confidential basis from a source (other than the Company or any Subsidiary, including any employee thereof) that is not prohibited from disclosing such information to
you by a legal, contractual or fiduciary obligation to the Company or any Subsidiary. You agree to keep Confidential Information confidential and not to engage in unauthorized use or disclosure of Confidential Information. You further agree that
upon termination of your employment (or earlier if so requested) you will preserve and return to the Company any and all records in your possession or control, tangible and intangible, containing any Confidential Information. You further agree not
to keep or retain any copies of such records without written authorization from a duly authorized officer of the Company covering the specific item retained.
  
 (c) Ancillary to the foregoing and this Award, you hereby agree that, during the term of your
employment with the Company or any Subsidiary and for a period of two years thereafter (the “Restricted Period”), you will not, directly or indirectly, individually or on behalf of any person or entity other than the Company or any of its
Subsidiaries:
  
 (i)
Provide Competing Services (as defined below) to any company or business (other than the Company or any Subsidiary) engaged primarily in the manufacture, distribution, sale or marketing of any of the Relevant Products (as defined below) in the
Relevant Market Area (as defined below);
  
 (ii) Approach, consult, solicit business from, or contact or otherwise communicate, directly or indirectly, in any way with any Customer (as defined below) in an attempt to (1)

  

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	 divert business from, or interfere with any business relationship of the Company or any of its Subsidiaries, or
(2) convince any Customer to change or alter any of such Customer’s existing or prospective contractual terms and conditions with the Company or any Subsidiary; or
  
 (iii) Solicit, induce, recruit or encourage, either directly or indirectly, any employee of
the Company or any Subsidiary to leave his or her employment with the Company or any Subsidiary or employ or offer to employ any employee of the Company or any Subsidiary. For the purposes of this section, an employee of the Company or any
Subsidiary shall be deemed to be an employee of the Company or any Subsidiary while employed by the Company and for a period of sixty (60) days thereafter.
  
 (d) For purposes of this Agreement, the following terms shall have the meanings indicated:

  
 (i) to provide
“Competing Services” means to provide, manage, supervise, or consult about (whether as an employee, owner, partner, stockholder, investor, joint venturer, lender, director, manager, officer, employee, consultant, independent
contractor, representative or agent, or otherwise) any services that are similar in purpose or function to services you provided to the Company in the two year period preceding the termination of your employment, that might involve the use or
disclosure of Confidential Information, or that would involve business opportunities related to Relevant Products.
  
 (ii) “Customer” means any and all persons or entities who purchased any Relevant Product from the
Company or any Subsidiary during the term of your employment with the Company or any Subsidiary and as to whom, within the course of the last two (2) years of your employment with the Company or any Subsidiary, (a) you or someone under
your supervision had contact and/or (b) you received or had access to Confidential Information.
	 		  	 (iii) “Relevant Product(s)” means (i) milk or milk-based beverages,
(ii) creams, (iii) dairy or other non-dairy coffee creamers or other coffee whiteners, (iv) ice cream or ice cream novelties, (v) ice cream mix, (vi) cultured dairy products, (vii) soy milk or any other soy-based
beverage or cultured soy product, (viii) organic dairy products (including milk, cream and cultured dairy products) or organic juice, and/or (ix) any other product not listed above that was developed or sold by the Company or a Subsidiary
within the course of the last two (2) years of your employment with the Company or any Subsidiary.
  
 (iv) “Relevant Market Area” means the counties (or county equivalents) in the United States where the
Company does business that you assist in providing services to and/or receive Confidential Information about in the two year period preceding the termination of your employment so long as the Company continues to do business in that geographic
market area during the Restricted Period.
  
 (e) Notwithstanding the foregoing, (1) the restrictions of subsection 6(a) above shall not prohibit your employment with a non-competing, independently operated subsidiary, division, or unit of a
diversified company (even if other separately operated portions of the diversified company are involved in Relevant Products) if in advance of your providing any services, you and the diversified company that is going to employ you both provide the
Company with written assurances that are satisfactory to the Company establishing that (a) the entity, subsidiary, division, or unit of the diversified business that you are going to be employed in is not involved in Relevant Products or
preparing to become involved in Relevant Products, and (b) your position will not involve Competing Services of any kind, and (2) you are not prohibited from owning, either of record or beneficially, not more than five percent (5%) of
the shares or other equity of any publicly traded company. Your obligation under this Section 6 shall survive the vesting or forfeiture of your CPUs

  

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	 and/or payment in satisfaction of your rights under this Agreement.
  
 (f) Any breach of any provision of
this Section 6 will result in immediate and complete forfeiture of your unpaid CPUs. In addition, you hereby agree that if you violate any provision of this Section 6, the Company will be entitled to injunctive relief, specific
performance, or such other legal and equitable relief as is needed to prevent or enjoin any violation of the provisions of this Agreement in addition to and not to the exclusion of any other remedy that may be allowed by law for damages experienced
prior to the issuance of injunctive relief. You also agree that, if you are found to have breached any of the time-limited covenants in this Section 6, the time period during which you are subject to such covenant shall be extended by one day
for each day you are found to have violated such restriction, up to a maximum of two years.
  
 (g) You acknowledge that you have given careful consideration to the restraints imposed by this Agreement, and you fully agree that they are necessary for the reasonable and proper
protection of the business of the Company and its Subsidiaries. The restrictions set forth herein shall be construed as a series of separate and severable covenants. You agree that each and every restraint imposed by this Agreement is reasonable
with respect to subject matter, time period, and geographical area. Except as expressly set forth herein, the restraints imposed by this Agreement shall continue during their full time periods and throughout the geographical area set forth in this
Agreement.
  
 (h) You
stipulate and agree that one of the purposes of this Agreement is to fully resolve and bring finality to any concerns over the enforceability of the Restrictive Covenants. You also stipulate and agree that (a) the enforceability of the
Restrictive Covenants and (b) the Company’s agreement herein to provide you with this CPU Award are mutually dependent clauses and obligations without which this Agreement
	 		  	 would not be made by the parties. Accordingly, you agree not to sue or otherwise pursue a legal claim to set aside or
avoid enforcement of the Restrictive Covenants. And, in the event that you or any other party pursues a legal challenge to the enforceability of any material provision of the restrictions in Section 6 of this Agreement and a material provision
is found unenforceable by a court of law or other legally binding authority such that you are no longer bound by a material provision of Section 6, then (1) your unpaid CPUs shall be forfeited and (2) you hereby agree that you will
return to the Company any amounts that were previously paid to you. The foregoing is not intended as a liquidated damage remedy but is instead a return-of-gains and contractual rescission remedy due to the mutual dependent nature of the subject
provisions in the Agreement.
  
 (i) If any of the Restrictive Covenants are deemed unenforceable as written, you and the Company expressly authorize the court to revise, delete, or add to the restrictions contained in this Section 6 to the extent necessary to enforce
the intent of the parties and to provide the goodwill, Confidential Information, and other business interests of the Company and its Subsidiaries with effective protection. And, in the event that such reformation of the restriction is acceptable to
the Company, then the forfeiture and rescission (return of gain) remedies provided for in subsection 6(h) above shall not apply.
  
 (j) The provisions of this Section 6 are not intended to override, supercede, reduce, modify or affect in any manner
any other non-competition or non-solicitation agreement between you and the Company or any Subsidiary, and instead are intended to supplement any such agreements.
  
 7. Plan Incorporated. You accept the CPUs hereby granted subject to all the provisions
of the Plan, which, except as expressly contradicted by the terms hereof, are incorporated into this Agreement, including the provisions that authorize the Committee to administer and interpret the Plan and which provide that the Committee’s
decisions,

  

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	 determinations and interpretations with respect to the Plan are final and conclusive on all persons affected thereby.

  
 8. Assignment of
Intellectual Property Rights. In consideration of the granting of this CPU Award, you hereby agree that all right, title and interest to any and all products, improvements or processes (“Intellectual Property”) whatsoever,
discovered, invented or conceived during the course of employment with the Company or any of its Subsidiaries, relating to the subject matter of the business of the Company or any of its Subsidiaries or which may be directly or indirectly utilized
in connection therewith, are vested in the Company, and you hereby forever waive any and all interest you have in such Intellectual Property and agree to assign such Intellectual Property to the Company. In addition, all writings produced in the
course of work or employment for the Company or any Subsidiary are works produced for hire and the property of the Company and its Subsidiaries, including any copyrights for those writings.
  
 9. Miscellaneous.
  
 (a) No Guaranteed Employment.
Nothing contained in this Agreement shall affect the right of the Company to terminate your employment at any time, with or without Cause, or shall be deemed to create any rights to employment on your part. The rights and obligations arising under
this Agreement are not intended to and do not affect the employment relationship that otherwise exists between the Company and you, whether such employment relationship is at will or defined by an employment contract. Moreover, this Agreement is not
intended to and does not amend any existing employment contract between the Company and you. To the extent there is a conflict between this Agreement and such an employment contract, the employment contract shall govern and take priority.

 
 (b) Notices. Any notice to
be given to the Company under the terms of this Agreement shall be addressed to the Company at its principal executive offices, and any notice to be given to you
	 		  	 shall be addressed to you at the address set forth on the attached Notice of Grant, or at such other address for a party
as such party may hereafter designate in writing to the other. Any such notice shall be deemed to have been duly given if mailed, postage prepaid, addressed as aforesaid.
  
 (c) Binding Agreement. Subject to the limitations in this Agreement on the
transferability by you of the Award granted herein, this Agreement shall be binding upon and inure to the benefit of the representatives, executors, successors or beneficiaries of the parties hereto. This Agreement may only be amended by a written
document signed by you and the Company, provided, however, that if the amendment is not adverse to your interests, this Agreement may be amended by a written document executed solely by the Company.
  
 (d) Governing Law.
The interpretation, performance and enforcement of this Agreement shall be governed by the laws of the State of Delaware and the United States, as applicable, without reference to the conflict of laws provisions thereof.
  
 (e) Severability. Except as
otherwise expressly provided for herein in Section 6 above, if any provision of this Agreement is declared or found to be illegal, unenforceable or void, in whole or in part, then the parties shall be relieved of all obligations arising under
such provision, but only to the extent that it is illegal, unenforceable or void, it being the intent and agreement of the parties that this Agreement shall be deemed amended by modifying such provision to the extent necessary to make it legal and
enforceable while preserving its intent or, if that is not possible, by substituting therefor another provision that is legal and enforceable and achieves the same objectives.
  
 (f) Interpretation. All section titles and captions in this Agreement are for
convenience only, shall not be deemed part of this Agreement, and in no way shall define, limit, extend or describe

  

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	 the scope or intent of any provisions of this Agreement.
  
 (g) Entire Agreement. Except as
otherwise provided for in Section 6 above, this Agreement and the Appendix A hereto constitute the entire agreement among the parties hereto pertaining to the subject matter hereof and supersedes all prior agreements and understandings
pertaining thereto.
  
 (h)
No Waiver. No failure by any party to insist upon the strict performance of any covenant, duty, agreement or condition of this Agreement or to exercise any right or remedy consequent upon a breach thereof shall constitute waiver of any such

	 		  	 breach or any other covenant, duty, agreement or condition.
  
 (i) Counterparts. This
Agreement may be executed in counterparts, all of which together shall constitute one agreement binding on all the parties hereto, notwithstanding that all such parties are not signatories to the original or the same counterpart.
  
 (j) Relief. In addition to all
other rights or remedies available at law or in equity, the Company shall be entitled to injunctive and other equitable relief to prevent or enjoin any violation of the provisions of this Agreement.

 END OF AGREEMENT 
  

 -8-Exhibit 10.15

 Exhibit 10.15 
 ROOMSTORE, INC. 
 NON-EMPLOYEE DIRECTOR DEFERRED
COMPENSATION PLAN 
 ARTICLE I: PURPOSE AND ELIGIBILITY 
 1.1 Purpose of Plan. The purpose of this Non-Employee Director Deferred Compensation Plan is to advance the interests of
RoomStore, Inc., a Virginia corporation, to retain and attract non-employee Directors of the Company, and to enable non-employee Directors to enhance their retirement security by permitting them to enter into annual agreements to defer certain
director fees. 
 1.2 Effective Date and Term. The effective date of this Plan is April 24, 2008 (the
“Effective Date”). This Plan shall remain in effect until terminated by action of the Board, or until all Directors have received all amounts to which they are entitled hereunder, if earlier. 
 1.3 Eligibility to Participate in this Plan. Each Director who is a member of the Board on the Effective Date of this Plan and
any individual who becomes a Director thereafter while this Plan is in effect, and who is not also an employee of the Company, is eligible to participate in this Plan. 
 ARTICLE II: DEFINITIONS 
 2.1 Certain
Defined Terms. Unless otherwise defined in this Plan, for all purposes of this Plan, the terms listed below are defined as follows: 
 (a) “Account” means a ledger account maintained on behalf of a Director. 
 (b) “Beneficiary” means the person, persons or legal entity entitled to receive benefits under this Plan which become payable in the event of the Director’s death. 
 (c) “Board” means the Board of Directors of the Company. 
 (d) “Company” means Room Store, Inc., a Virginia corporation. 
 (e) “Deferral” means the annual amount of Total Director Fees that a Director elects to defer pursuant to a
properly executed written election. 
 (f) “Deferred Cash Amount” means the amount of Total
Director Fees credited to a Director’s Account. 
 (g) “Director” means a current
non-employee member of the Board of Directors of RoomStore, Inc., or a former non-employee member who retains the rights to benefits under this Plan. 
 (h) “Plan” means the RoomStore, Inc. Non-Employee Director Deferred Compensation Plan as set forth herein and as it may be amended from time to time. 

 (i) “Plan Administrator” means the individual or committee
appointed by the Company to administer this Plan. 
 (j) “Term Year” means the twelve month
period beginning on the first day of each term served by a Director, and in the event a term is for two or more years, each twelve month period beginning on the anniversary date of the first day of such term. 
 (k) “Total Director Fees” means the sum of a Director’s Annual Retainer, Meeting Fees and such other
compensation as the Board may deem appropriate, as applicable. 
 ARTICLE III: DIRECTOR COMPENSATION UNDER THIS PLAN

 3.1 Annual Retainer. Directors shall receive an Annual Retainer (currently $18,000, but subject to
modification), which shall be earned and paid pro rata over their term at the beginning of each calendar quarter. The Annual Retainer is intended to compensate the Director for their service on the Board as well as consultation and participation in
teleconference meetings held for periodic Board updates. 
 3.2 Meeting Fee. Directors shall receive a Meeting Fee
(currently $1,000, but subject to modification) per meeting for preparation and attendance at regularly scheduled Board meetings and special meetings of the Board called for the purpose of specific actions by the Board (consents, resolutions, etc.)

 ARTICLE IV: ELECTION TO DEFER 
 4.1 Annual Deferred Election. A Director shall have the option to defer their Annual Retainer, Meeting Fees and such other compensation as the Board may deem appropriate, as the case may be.
To exercise this option, a Director shall make an election in writing to the Plan Administrator to defer all or a portion of their Annual Retainer and Meeting Fees for the upcoming Term Year. The election shall be made during the thirty
(30) day period immediately prior to the beginning of each Term Year. With respect to the initial deferral election under this Plan, the election shall be made during the thirty (30) day period beginning on the Effective Date of this Plan.
With respect to a new Director, their initial deferral election must be made no later than 30 days after the first day of their initial term as a Director. An election, once made, is irrevocable for the applicable period to which it relates. An
election shall remain in force and effect for the applicable period to which the election relates and all subsequent Term Years unless changed during the thirty (30) day period prior to the beginning of a Term Year. 
 ARTICLE V: DEFERRED BENEFIT TYPE; DISTRIBUTION OF BENEFITS 
 5.1. Deferred Benefit Type. The type of benefit available to the Directors is the Deferred Cash Amount. The Deferred Cash
Amount is the amount of Total Director Fees credited to a Director’s Account. 
  

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 5.2 Distribution of Benefits 
 5.2.1 Eligibility for Payments. Distribution of benefits from this Plan shall be made no earlier than the
Director’s Termination of Service or in the event of an approved Hardship. 
 (a) “Termination of
Service” means the severance of a Director’s service to the Board for any reason, including voluntary departure, failure to be renominated or re-elected, removal by vote of the shareholders, permanent disability (as determined by the
Board) or death. 
 (b) “Hardship” means a severe financial hardship to the Director resulting
from a sudden and unexpected illness or accident of the Director or a dependent of the Director, loss of the Director’s property due to casualty, or other similar extraordinary and unforeseeable circumstances arising as a result of events
beyond the control of the Director. The circumstances that will constitute a Hardship will depend upon the facts of each case, but, in any case, payment shall not be made in the event that such Hardship is or may be relieved: 
 (1) through reimbursement or compensation by insurance or otherwise, 
 (2) by liquidation of the Director’s assets, to the extent that liquidation of such assets would not itself cause
severe financial hardship, or 
 (3) by cessation of Deferrals under this Plan. 
 5.2.2 Distribution Due to Hardship. A Director may request a cash distribution due to a Hardship by submitting
a written request to the Plan Administrator accompanied by evidence to demonstrate that the circumstances being experienced qualify as a Hardship. The Plan Administrator shall have the authority to require such evidence as it deems necessary to
determine if a distribution is warranted. If an application for a distribution due to a Hardship is approved, the distribution is limited to an amount sufficient to meet the Hardship. The allowed distribution shall be payable in cash as soon as
practicable after approval of the distribution. 
 5.2.3 Commencement of Distribution. The
Distribution of benefits to a Director under this Plan shall be made no later than thirty (30) days after the end of the month of the Director’s Termination of Service, unless the Director makes a one-time irrevocable election to defer the
distribution of the benefits to a specified later date and the election is made at least thirty (30) days before the date of the Director’s Termination of Service. A Director may elect that a distribution of benefits be made on any
determinable future date as long as the distribution is made no later than thirty (30) days following the later of (a) the calendar year of the Director’s Termination of Service, or (b) the calendar year in which the Director
attains age seventy and one half (70 1/2) years. 
  

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 5.3 Form of Benefit Distributions. The Director will receive a single lump sum
cash distribution of their Deferred Cash Amount plus the balance of all other funds, if any, credited to the Director’s Account. 
 5.4 Beneficiary Information 
 5.4.1
Designation. A Director shall have the right to designate a Beneficiary, and amend or revoke that designation at any time, in writing. The designation, amendment or revocation shall be effective upon receipt by the Plan Administrator.

 5.4.2 Failure to Designate a Beneficiary. If a Director fails to designate a Beneficiary, or if
no designated Beneficiary survives the Director and the benefits are payable following the Director’s death, the Plan Administrator shall direct that payment of the benefits be made to the Director’s estate. 
 5.5 Accounts 
 5.5.1 Accounts. The Plan Administrator shall maintain a ledger account (the “Account”) on behalf of each Director. The Account shall be maintained to reflect the cumulative value
of the Account. Upon the written request by a Director, the Plan Administrator shall provide a written accounting of the Director’s Account within thirty (30) days of such written request. 
 5.5.2 Ownership of Accounts. All amounts deferred under this Plan shall remain, until made available to the
Director or Beneficiary, solely the property of the Company and shall be subject to the claims of the Company’s general creditors. 
 5.5.4 Grantor Trust. The Company may, but is not obligated to, establish at any time, in its sole discretion, a grantor trust to be utilized in conjunction with this Plan. 
 5.5.5 Nonqualified and Unfunded. This Plan is a nonqualified and unfunded deferred compensation plan. It is
intended to qualify for certain exemptions under Title I of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), provided for plans that are unfunded and maintained primarily for the purpose of providing deferred
compensation for a select group of management or highly compensated employees. 
 ARTICLE VI: PLAN ADMINISTRATION,
AMENDMENT OR TERMINATION 
 6.1 Plan Administration. The Board shall be responsible for appointing a Plan
Administrator to administer this Plan. The Plan Administrator may be any individual or a committee authorized to act collectively on behalf of this Plan. The Plan Administrator shall have sole discretionary responsibility for the operation,
interpretation and administration of this Plan. Any action taken on any matter within the discretion of the Plan Administrator shall be final, conclusive and binding on all parties. In order to discharge its duties under this Plan, the Plan
Administrator shall have the power and authority to adopt, interpret, alter, amend or revoke rules and regulations necessary to administer this Plan, to delegate ministerial duties and to employ such outside professionals as may be required for
prudent administration of this Plan. The Plan Administrator shall also have authority to enter into agreements on behalf of the Company necessary to implement this Plan. 
  

 4 

 6.2 Amendment of Plan. The Company shall have the right to amend this Plan, at
any time and from time to time, in whole or in part; however, (a) no amendment may decrease the amount credited to a Director’s Account prior to that amendment; and (b) no amendment shall be effective unless and until the same is
approved by the shareholders of the Company where the failure to obtain such approval would adversely affect the compliance of this Plan under applicable law. The Company shall notify each Director in writing of any Plan amendment.

 6.3 Termination of Plan. Although the Company has established this Plan with the intention and expectation
to maintain this Plan indefinitely, the Company may terminate or discontinue this Plan at any time without any liability for such termination or discontinuance. Upon Plan termination, all Deferrals shall cease. The Company shall retain each
Director’s Account balance until the distribution of the benefits has been completed. 
 ARTICLE VII: MISCELLANEOUS

 7.1 Assignment. Neither a Director, a Beneficiary nor their heirs shall have any right to commute,
encumber, dispose of, assign or transfer the right to the benefits under this Plan, except as expressly consented to by the Plan Administrator which consent may be withheld in its sole discretion. Any attempt to commute, encumber, dispose of, assign
or transfer such benefits in violation of this section is void. To the extent permitted by law, the right of any Director or Beneficiary in any benefit or to any payment under this Plan shall not be subject in any manner to attachment or other legal
process for the debts of that Director or Beneficiary. 
 7.2 Taxes and Withholding. Directors shall be
responsible for the payment of all applicable Federal, state and local taxes arising from the benefits hereunder, and if applicable, the Company shall withhold from the distribution of those benefits any and all taxes as required by law. 

7.3 Change of Control. In the event of a Change of Control, each Director shall have the right, in their sole discretion,
to request immediate distribution of their benefits under this Plan. For purposes of this Agreement, a “Change of Control” shall be deemed to have occurred if (i) any “person” or “group” (as such terms are used in
Section 13(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the
Company representing 50% or more of the combined voting power of the Company’s then outstanding securities and within one (1) year after such “person” or “group” acquires 50% or more of the combined voting power of the
Company (the “Trigger Date”) the members of the Board immediately prior to the Trigger Date cease to constitute a majority of the Board, (ii) there shall be consummated any consolidation or merger of the Company in which the Company
is not the surviving or continuing corporation or pursuant to which shares of the Company’s common stock would be converted into cash, securities or other property, other than a merger of the Company in which the holders of the Company’s
common stock immediately prior to the merger have (directly or indirectly) at least a 51% ownership interest in the outstanding common stock

  

 5 

 
of the surviving corporation immediately after the merger, or (iii) any sale, lease, exchange or other transfer (in one transaction or a series of related transactions) of all, or
substantially all, of the assets of the Company, except for any sale, lease exchange or transfer resulting from any action taken by any creditor of the Company in enforcing its rights or remedies against any assets of the Company in which such
creditor holds a security interest. 
 In the event of a Change of Control, this Plan shall continue in full force and effect
until terminated as provided herein. Upon termination of this Plan, all Deferrals shall cease; however, the surviving entity in the Change of Control shall retain each Director’s Account balance until the distribution of benefits has been
completed in the form determined under Article V of this Plan. 
 7.4 Entire Agreement. This Plan supersedes all
plans or agreements previously made between the Company and the Directors relating to its subject matter. 
 7.5 Sever
ability. Every part, term or provision of this Plan is severable from the others. Notwithstanding any possible future finding by duly constituted authority that a particular part, term or provision is invalid, void or unenforceable, this
Plan has been made with the clear intention that the validity and enforceability of the remaining parts, terms and provisions shall not be affected thereby. 
 7.6 Notice. Any notice to be delivered under this Plan shall be given in writing and delivered, personally or by certified mail, postage prepaid, addressed to the Company or the Director at
their last known address. 
 7.7 Governing Law. This Plan shall be construed in accordance with and governed by
the applicable Federal law and, to the extent otherwise applicable, the laws of the State of Virginia. 
 7.8
Headings. The headings in this Plan are for convenience only and shall not be used to interpret or construe the provisions. 
 7.9 No Right to Remain Director. Nothing in this Plan shall confer upon any Director the right to remain a member of the Board or affect any right which the Company or its shareholders may have to not renominate, re-elect or
to remove a Director as a member of the Board. 
 IN WITNESS WHEROF, the Company has caused this Plan to be executed and adopted
this 24th day of April, 2008. 
  

	
	 /s/ Curtis C.Kimbrell, III

	Curtis C.Kimbrell, III
	 President and CEO
 RoomStore,
Inc.

  

 6

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