Document:

Form of Option Award Agreement

 Exhibit 10.2 

 

			
	

	  	 3000 John Deere Road, Toano, VA 23168
 Phone: (757) 259-4280.• Fax
(757) 259-7293
 www.lumberliquidators.com

                    ,
         
 [Name] 
 [Street] 
 [City, State] 
 Dear [Name]: 
 Lumber Liquidators Holdings, Inc. (the “Company”) has
designated you to be a recipient of a non-statutory stock option to purchase shares of the common stock of the Company, par value $.001 per share (“Stock”), subject to the employment-based vesting restrictions and other terms set forth in
this Award Agreement and in the Lumber Liquidators Holdings, Inc. 2011 Equity Compensation Plan (the “Plan”). 
 The
grant of this stock option is made pursuant to the Plan. The Plan is administered by the Compensation Committee (the “Committee”) of the Company’s Board of Directors (the “Board”). The terms of the Plan are incorporated into
this Award Agreement and in the case of any conflict between the Plan and this Award Agreement, the terms of the Plan shall control. A copy of the Plan will be provided to you upon request. 

1. Grant. In consideration of your agreements contained in this Award Agreement, the Company hereby grants to you a non-statutory
option (“NSO”) to purchase from the Company              shares of common stock of the Company (the “Company Stock”) at
$             per share. The exercise price of the NSO is equal to the closing price of the Company Stock on the New York Stock Exchange on
[                    ] (the “Grant Date”), the date on which the Committee met and approved the granting of the NSO award.

 2. Vesting. The grant of the NSO is subject to the following terms and conditions: 

(a) The shares covered by the NSO shall vest, and shall be exercisable, upon your continued employment with the Company
(or any Related Company) through the following Vesting Dates: 
  

			
	 Vesting Date
	  	 Number of Shares That May Be Exercised

(Vested Portion of NSO)

		  	
		  	

 (b) The shares covered by the NSO shall also 100% vest upon a Change in
Control of the Company (as defined in the Plan) to the extent not already exercisable. 
 (c) Notwithstanding the
foregoing, you must be employed by the Company (or any Related Company) on the relevant date for any shares to vest. If your employment with the Company (or any Related Company) terminates for any reason, any rights you may have under the NSO and
this Award Agreement with regard to unvested shares shall be null and void. 
 3. Exercise. 

(a) Except as otherwise stated in this Award Agreement and in the Plan, the NSO may be exercised, in whole or in part,
from the Vesting Date described above until the earliest of (i) ten years and one day following the Grant Date, or (ii) the end of the applicable period set forth in subsection (b) below. Any portion of the NSO that is not exercised
prior to its expiration shall be forfeited. 
 (b) Except as otherwise stated in this section, the NSO may be
exercised only while you are employed by the Company (or any Related Company). The exercisability of the NSO after you have ceased to be employed by the Company (or any Related Company) is subject to the following terms and conditions: 

(i) If your employment by the Company (or any Related Company) is terminated by you or the Company (or any Related
Company) for any reason other than your death or Disability, you may exercise any or all of the NSO that is then fully vested and exercisable within three months after your employment by the Company (or any Related Company) terminates. 

(ii) If you become Disabled while employed by the Company (or any Related Company), you may exercise any or all of the NSO
that is then fully vested and exercisable within one year after your employment by the Company (or any Related Company) terminates on account of Disability. The Committee shall, in its discretion, determine whether you are Disabled. 

(iii) If you die while you are employed by the Company (or any Related Company), the person to whom your rights under the
NSO shall have passed by will or by the laws of distribution may exercise any or all of the NSO that is then fully vested and exercisable within one year after your death. 
 4. Payment Under NSO. You may exercise the NSO in whole or in part, but only with respect to whole shares of Company Stock. You may make payment of the NSO price in cash, in shares of Company Stock
that you already own, or in any combination thereof. If you deliver shares of Company Stock to make any such payment, the shares shall be valued at the Fair Market Value (as defined in the Plan) thereof on the date you exercise the NSO. 

  
 2 

 5. Transferability of NSO. The NSO is not transferable by you (other than by will or
by the laws of descent and distribution) and, except as otherwise stated in this Award Agreement, may be exercised during your lifetime only by you. 
 6. Fractional Shares. A fractional share of Company Stock will not be issued and any fractional shares may be disregarded by the Company. 

7. Adjustments. If the number of outstanding shares of Company Stock is increased or decreased as a result of a stock dividend,
stock split or combination of shares, recapitalization, merger in which the Company is the surviving corporation, or other change in the Company’s capitalization without the receipt of consideration by the Company, the number and kind of shares
with respect to which you have an unexercised NSO and the exercise price shall be proportionately adjusted by the Committee, whose determination shall be binding. 
 8. Exercise. To exercise the NSO, you must deliver to the Corporate Secretary of the Company written notice stating the number of shares you have elected to purchase and arrange for payment to the
Company as described in Section 4 above. Notwithstanding the provisions of Section 9, such notice may be sent to the Corporate Secretary via e-mail. 
 9. Notice. Any notice to be given to the Company under the terms of this Award Agreement shall be addressed to the Corporate Secretary at Lumber Liquidators Holdings, Inc., 3000 John Deere Road,
Toano, Virginia 23168. Any notice to be given to you shall be addressed to you at the address set forth above or your last known address at the time notice is sent. Notices shall be deemed to have been duly given if mailed first class, postage
prepaid, addressed as above. 
 10. Forfeiture and Repayment Provision. If the Committee determines, in its sole
discretion, that you have, at any time, willfully engaged in conduct that is harmful to the Company (or any Related Company), the Committee may declare that all or a portion of the NSO is immediately forfeited. If the Committee determines, in its
sole discretion, that you have willfully engaged in conduct that is harmful to the Company (or any Related Company), you shall repay to the Company all or any shares of Common Stock acquired through the exercise of the NSO or all or any of the
amount realized as a result of the sale of Common Stock acquired through the exercise of the NSO, to the extent required by the Committee. Repayment or forfeiture required under this Section shall be enforced by the Board or its delegate, in the
manner the Board or its delegate determines to be appropriate. Your acceptance of the award reflected in this Award Agreement constitutes acceptance of the forfeiture and repayment provisions of this Section. 

  
 3 

 11. Applicable Withholding Taxes. By your acceptance of this Award Agreement, you
agree to pay to the Company the amount that must be withheld under federal, state and local income and employment tax laws or to make arrangements satisfactory to the Company for the payment of such taxes. 

12. Applicable Securities Laws. You may be required to execute a customary written indication of your investment intent and such
other agreements the Company deems necessary or appropriate to comply with applicable securities laws. The Company may delay delivery of the shares purchased pursuant to the exercise of the NSO until you have executed such indication or agreements.

 13. Acceptance of NSO. This Award Agreement deals only with the NSO you have been granted and not its exercise. Your
acceptance of the NSO, which shall be deemed to take place when you sign this Award Agreement, places no obligation or commitment on you to exercise the NSO. By signing this Award Agreement, you indicate your acceptance of the NSO and your agreement
to the terms and conditions set forth in this Award Agreement, which, together with the terms of the Plan, shall become the Company’s Stock Option Agreement with you. You also hereby acknowledge that a copy of the Plan has been made available
and agree to all of the terms and conditions of the Plan, as it may be amended from time to time. Unless the Company otherwise agrees in writing, the NSO reflected in this Award Agreement will not be exercisable as a Stock Option Agreement if you do
not accept this Award Agreement within thirty days of the Grant Date. 
 IN WITNESS WHEREOF, the Company has caused this Stock
Option Agreement to be signed, as of this      date of                     ,
        . 
  

			
	 LUMBER LIQUIDATORS HOLDINGS, INC.

		
	 By:
	 	  

	 Name:
	 	  

	 Its:
	 	  

 

	
	 Agreed and Accepted:

	
	  

	 [Name of Grant Recipient]

	
	  

	 [Date]

  
 4SonoSite, Inc. FY2011 Variable Incentive Bonus Plan

 Exhibit 10.1 
 SonoSite, Inc. 
 FY2011 Variable Incentive Bonus Plan
(162(m) Qualified) 
 1. Purpose 
 The SonoSite, Inc FY2011 Variable Incentive Bonus Plan (the “Plan”) is intended to: (i) enhance shareholder value by promoting strong linkages between employee contributions and company
performance; (ii) support achievement of the business objectives of SonoSite, Inc. and its subsidiaries (the “Company”); and (iii) promote retention of participating employees. The Plan is intended to achieve these objectives
through the payment of “Cash Awards” or “Stock Awards” pursuant to the SonoSite, Inc. Amended and Restated 2005 Stock Incentive Plan, as approved by the Company’s stockholders on April 22, 2008 (the “SIP”). If
there is any conflict between the Plan and the SIP, the SIP will prevail. 
 2. Effective Date 

This Plan is only effective for the Company’s 2011 fiscal year beginning January 1, 2011, through December 31, 2011 (the “Plan
Year”). This Plan is limited in time and will expire automatically on December 31, 2011 (“Expiration Date”). This Plan also supersedes all prior bonus or commission incentive plans, whether with the Company or any subsidiary or
affiliate thereof, or any written or verbal representations regarding the subject matter of this Plan. 
 3. Administration 

 

	(a)	The Plan shall be administered by the Compensation Committee of the Board of Directors of the Company (the “Administrator”). The Administrator shall have all
powers and discretion necessary or appropriate to administer the Plan and to control its operation, including, but not limited to, the power to (a) determine which employees are eligible to participate in the Plan, (b) prescribe the terms
and conditions of the variable incentive plan payouts hereunder (as further defined in Section 5 below, the “VIP Payouts”), (c) certify the applicable Matrix Percentage Factors (as defined in Section 5 below) after the
completion of the Plan Year, (d) interpret the Plan and the VIP Payouts, (e) adopt rules for the administration, interpretation and application of the Plan as are consistent therewith, and (f) interpret, amend or revoke any such
rules. The Company’s CEO and its Vice President, Human Resources will be responsible for implementing the Plan. 

  

	(b)	All determinations and decisions made by the Administrator, the Board, and any delegate of the Administrator pursuant to the provisions of the Plan shall be final,
conclusive, and binding on all persons, and shall be given the maximum deference permitted by law. 

  

	(c)	Subject, where applicable, to the requirements of Section 162(m)(4)(C) of the Internal Revenue Code of 1986, as amended (the “Code”), the Administrator,
in its sole discretion and on such terms and conditions as it may provide, may delegate all or part of its authority and powers under the Plan to one or more directors and/or officers of the Company. 

 

	(d)	The Company shall provide a copy of the Plan to each Participant (as defined in Section 4 below) and communicate to each Participant his or her Individual Award
Percentage as well as provide information about the Performance Graph (as each such term is defined in Section 5 below). 

4. Eligibility 
 Any full-time regular
employee of the Company may be eligible to participate in this Plan, provided he or she is designated by the Administrator as a participant and as to whom the Administrator has not, in its sole discretion, withdrawn such designation (a
“Participant”) and provided he or she meets all the following conditions: 
  

	(a)	He or she has signed the individualized Executive Compensation Summary Document to which this Plan is attached; 

 

	(b)	He or she is a full-time regular employee of the Company as of both (1) the last day of the Plan Year, and (2) the date the payment is made (subject to
Section 6 below); 

  

	(c)	He or she is not concurrently participating in a sales incentive or commission plan, or in any other bonus plan operated by or bonus contract with the Company, unless
specifically permitted by the Administrator; 

  

	(d)	He or she has not entered into an agreement relating to termination of his or her employment with the Company (other than an employment agreement or offer letter,
change of control agreement, or equity compensation agreement that provides for certain benefits in connection with the Participant’s future termination of employment); 

	(e)	Unless otherwise specified or determined by the Administrator in its sole discretion, he or she has not transferred to a position with the Company that either
(1) is not eligible for participation in this Plan, or (2) is eligible for participation in another annual bonus program offered by the Company; and 

 

	(f)	He or she is not subject to a Performance Improvement Plan or other disciplinary action, including not having engaged in any activity that the Administrator determines
to be competitive with the Company and its business. 

 5. Plan Metrics 

 

	(a)	Each Participant shall be designated in writing as a Participant. Subject to Section 5(b), the VIP Payout under this Plan for each Participant will be calculated
based upon the following formula (the “Payout Formula”): 

  

									
	 Individual Incentive Target
 Dollars
	  	×	  	 Matrix Percentage
 Factor
	  	=	  	VIP Payout

 The
“Matrix Percentage Factor” is a percentage set forth in a graph (the “Performance Graph”) approved by the Administrator. One axis reflects the Revenue Factor and the other axis reflects the EBITDAS Factor. In calculating actual
VIP Payout, determination of the applicable Matrix Percentage Factor for the above formula shall be made with reference to actual Company annual results with respect to each of the Revenue Factor and the EBITDAS Factor. 

The “Revenue Factor” is determined based upon the achievement by the Company of annual corporate revenue targets established by
the Administrator in writing not later than 90 days after the commencement of the Plan Year. The Administrator shall certify the actual Revenue Factor in writing after the close of the Plan Year. Revenue shall be measured in accordance with
generally accepted accounting principles, excluding certain one-time extraordinary charges, as permitted under the SIP and as determined by the Administrator, set forth in written resolutions. 

The “EBITDAS Factor” is determined based upon the achievement by the Company of annual corporate EBITDAS targets established by
the Administrator in writing not later than 90 days after the commencement of the Plan Year. The Administrator shall certify the actual EBITDAS Factor in writing after the close of the Plan Year. EBITDAS shall be measured in accordance with
generally accepted accounting principles, including the accrual of the aggregate VIP Payout and excluding certain one-time extraordinary charges, as permitted under the SIP and as determined by the Administrator, set forth in written resolutions.

 The “Individual Incentive Target Dollars” are the dollars to be paid to a Participant upon 100% achievement on the
Matrix Performance Graph. The Individual Incentive Target Dollars are determined at the beginning of the Plan Year by the Administrator, and will be based on the prior year’s performance, expected contributions, and scope of responsibility of
the Participant for the Plan Year. 
 The “VIP Payout” is determined by multiplying the Individual Incentive Target
Dollars by the Matrix Percentage Factor. The aggregate amount of the VIP Payout (as to all Participants) shall not exceed the aggregate amount accrued by the Company for the VIP Payout for the Plan Year. 

 

	(b)	Notwithstanding anything to the contrary contained herein, the Administrator has the discretion to determine to pay less than the full amount (including to pay zero
percent) of the VIP Payout to which any Participant would otherwise be entitled, which determination shall be based upon such factors as the Administrator determines appropriate (including without limitation as a result of the Company’s or a
Participant’s failing to achieve one or more objectives with respect to the Plan Year, as a result of which it would be against the best interests of the Company and its shareholders to pay all or any portion of such VIP Payout).

  

	(c)	All awards granted under the Plan shall be subject to any Company recoupment or clawback policy, as in effect from time to time, including any required by
Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

  

	(d)	VIP Payouts shall be unsecured, unfunded obligations of the Company and shall be paid from the general assets of the Company. To the extent they have any rights under
this Plan, Participants’ rights shall be those of general unsecured creditors of the Company. 

  

	(e)	In the event of a Participant’s termination of employment prior to the date on which VIP Payouts are made (other than as a result of his or her death),
participation in the Plan will cease and the Participant will not be entitled to any VIP Payout. In the event of a Participant’s death, participation in the Plan will cease. Earned prorated VIP Payouts (including VIP Payouts where the
Participant was employed as of the end, but dies following completion, of the Plan Year) will be paid to the employee’s estate after the end of the Plan Year (as provided in Section 6 below) but only to the extent VIP Payouts are made to
other Plan Participants. 

	(f)	VIP Payouts for Participants designated for participation by the Administrator after the beginning of the Plan Year will be prorated to reflect actual length of service
during the Plan Year (with such proration occurring either through the amount of the Individual Incentive Target Dollars reflected in the Payout Formula or otherwise in order to reflect the appropriate amount of VIP Payout given actual length of
service). Proration shall be based upon number of full months worked, with credit being given for a full month of service if the Participant worked for at least 15 calendar days of any month. 

 

	(g)	VIP Payouts for Participants with unpaid leaves of absence (other than FMLA or leaves of absence required under federal, state or local law or regulations) exceeding 90
days during the Plan Year (not including PTO used or eligible medical/family leave) will be prorated to exclude the entire leave of absence. VIP Payouts for Participants with leaves of absence less than or equal to 90 days during the Plan Year will
not be prorated to exclude the leave of absence. 

 6. Timing and Form of Payment of VIP Payouts 

Subject to the terms and conditions of this Plan, VIP Payouts shall be made on an annual basis by March 1 following the end of the Plan Year, but
only after the Administrator has certified the Revenue Factor and EBITDAS Factor for the Plan Year in writing. VIP Payouts may be made in the form of “Cash Awards” under the SIP, in the form of “Stock Awards” under the SIP, or in
any combination of both, as determined by the Administrator. 
 7. Plan Changes; No Entitlement 

Subject, where applicable, to the requirements of Section 162(m)(4)(C) of the Code, the Administrator may at any time amend, suspend or terminate
this Plan, including amending any aspect of the Payout Formula or the Performance Graph, and may amend the Plan so as to ensure that no amount paid or to be paid hereunder shall be subject to the provisions of Section 409A(a)(1)(B) of the Code;
provided that no amendment of this Plan, the Payout Formula or the Performance Graph shall have the effect of increasing any VIP Payment. Nothing in this Plan is intended to create an entitlement to any employee for any incentive payment hereunder.

 8. General Provisions 
  

	(a)	Tax Matters. The Company shall withhold all applicable taxes from any VIP Payout, including any federal, state and local taxes. It is intended that VIP Payouts
granted under this Plan will be exempt from the requirements of Code Section 409A, and this Plan and awards granted hereunder will be interpreted consistently with that intent. 

 

	(b)	No Effect on Employment or Service. Nothing in the Plan shall interfere with or limit in any way the right of the Company to terminate any Participant’s
employment or service at any time, with or without cause. Employment with the Company is on an at-will basis only. The Company expressly reserves the right, which may be exercised at any time, to terminate any individual’s employment with or
without cause without regard to the effect it might have upon him or her as a Participant under this Plan. 

  

	(c)	Nontransferability of Awards. No award granted under the Plan may be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by
will or by the laws of descent and distribution. All rights with respect to an award granted to a Participant shall be available during his or her lifetime only to the Participant. 

 

	(d)	Severability. In the event any provision of the Plan shall be held illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining
parts of the Plan, and the Plan shall be construed and enforced as if the illegal or invalid provision had not been included. 

  

	(e)	Governing Law. The Plan and all awards shall be construed in accordance with and governed by the laws of the State of Washington, but without regard to its
conflict of law provisions.

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