Document:

exv10w1

Exhibit 10.1

			
	 	 	 
	CONFIDENTIAL
	 	CONFIDENTIAL

SEPARATION AGREEMENT AND GENERAL RELEASE OF ALL CLAIMS

     This SEPARATION AGREEMENT AND GENERAL RELEASE OF ALL CLAIMS (“Agreement”) is made and entered
by and between Patrick B. Cline (“Employee”) and Quality Systems, Inc., a California
Corporation (the “Company”), as of July 29, 2011.

RECITALS

     WHEREAS, Employee has been employed by the Company since 1996 as an at-will employee serving
most recently in the position of President and Chief Strategy Officer; and

     WHEREAS, Employee’s employment with the Company and any of its affiliated entities for which
he provides services will terminate effective on December 1, 2011 as a result of Employee’s
resignation from employment with the Company.

     WHEREAS, the Company and Employee mutually desire to settle fully and finally any and all
obligations to Employee that the Company may have of any nature whatsoever, as well as any asserted
or unasserted claims that Employee may have arising out of his employment with the Company or the
separation of that employment pursuant to the terms of this agreement.

AGREEMENT

     NOW, THEREFORE, in consideration of the foregoing Recitals, the mutual covenants and
agreements and the terms and conditions set forth herein and other valuable consideration, the
parties agree as follows:

     1. Separation. Employee’s employment with the Company and any of its affiliated entities for
which he provides services will terminate effective on December 1, 2011 (the “Separation
Date”).

     2. Compensation Through Separation Date. On the Separation Date, Employee will be paid all
unpaid base salary, together with any accrued but unused vacation pay, less state and federal taxes
and other required withholding, for the period from the last regular pay day through the Separation
Date. Employee shall also be reimbursed for all business expenses incurred by Employee through the
Separation Date and ordinarily reimbursable pursuant to the Company’s prior reimbursement practices
with Employee. Employee agrees to present to the Company a claim for any such reimbursable
expenses in accordance with the Company’s normal procedures within a reasonable time not to exceed
sixty (60) days following the Separation Date. Except as provided for in this Agreement, Employee
acknowledges and agrees that upon the receipt of the foregoing payments, the Company will have paid
to him all salary, bonuses, benefits, accrued vacation pay, or other consideration owed to him at
any time and for any reason through the Separation Date. Employee further represents and agrees
that no further sums are or were due and owing to Employee either by the Company or by any
individual or entity related to the Company in any way, except as provided for in this Agreement.

     3. Duties. Employee shall continue in his full-time position as President and Chief Strategy
Officer of the Company and such other positions with the Company’s subsidiaries as he

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is occupying as of the date of this Agreement through and up to the Separation Date, report
directly to and be subject to the direction of the Company’s Chief Executive Officer, and perform
such services and duties for the Company as may from time to time be reasonably required by the
Company’s Chief Executive Officer.

     4. Pro-Rata Bonus Payment. In consideration of this Agreement, and provided that (i) this
Agreement has not been revoked by Employee pursuant to Paragraph 16, (ii) the Company does
not terminate Employee’s employment with the Company for cause and (iii) Employee executes and does
not rescind the Second Release (as defined in Paragraph 12 below), the Company shall pay
Employee a bonus payment (the “Pro-Rata Bonus Payment”) equal to two-thirds (2/3) of the
cash bonus amount the Company would have paid to Employee under the Company’s 2012 Compensation
Program (the “Program”) as if Employee had remained employed by the Company through the date
required under the Program for Employee to be eligible to receive such cash bonus amount. To make
clear, if Employee would have received one-hundred percent (100%) of his cash bonus target under
the 2012 Compensation Program, Employee’s Pro-Rata Bonus Payment shall be two-thirds (2/3) of such
amount. The Pro-Rata Bonus Payment shall be paid by Company to Employee on the same terms and at
the same time the other executives of the Company are paid their cash bonus payments, if any, under
the 2012 Compensation Program. The Company shall not be responsible to promote or facilitate the
achievement of any performance milestone which would result in a bonus payment to Employee. For
the purposes of this Paragraph 4, “cause” shall mean (i) the conviction of Employee of a
felony under state or federal criminal laws; (ii) the good faith determination of the Board of
Directors of the Company that Employee has become unable, as a result of alcohol or drug use, to
carry out the responsibilities of his employment; (iii) the commission by Employee of any act of
fraud, malfeasance, disloyalty, dishonesty or breach of trust against the Company or any of its
subsidiaries or affiliated companies; (iv) the failure of Employee to devote his full time efforts
to the responsibilities of President and Chief Strategy Officer of the Company, provided that
Employee will be entitled to utilize accrued vacation time in an amount consistent with his prior
use of accrued vacation time and the Company’s vacation policies; or (v) the repeated refusal to
carry out reasonable instructions of the Chief Executive Officer concerning the reasonable
performance of Employee’s work duties. Employee shall not be entitled to any bonus other than the
Pro-Rata Bonus Payment described in this Paragraph 4.

     5. Income Taxes. The following provisions shall govern all payments and benefits provided by
the Company to Employee pursuant to this Agreement:

     A. Tax Consequences. The Company makes no representations or warranties with
respect to the tax consequences of the payment of any sums or the provision of any benefits
to Employee under the terms of this Agreement. Employee agrees and understands that he is
responsible for payment, if any, of local, state and/or federal taxes on the sums paid
hereunder by the Company and any penalties or assessments thereon.

     B. Code Section 409A. The intent of the parties is that payments and benefits
under this Agreement comply with, or be exempt from, Internal Revenue Code Section 409A and
the regulations and guidance promulgated thereunder (collectively “Code Section
409A”) and, accordingly, to the maximum extent permitted, this Agreement shall be
interpreted to be in compliance therewith or exempt therefrom. If Employee notifies

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the Company (with specificity as to the reason therefor) that Employee believes that
any provision of this Agreement (or of any award of compensation, including equity
compensation or benefits) would cause Employee to incur any additional tax or interest under
Code Section 409A and the Company concurs with such belief or the Company independently
makes such determination, the Company shall, after consulting with Employee, reform such
provision to try to comply with Code Section 409A through good faith modifications to the
minimum extent reasonably appropriate to conform with Code Section 409A. To the extent that
any provision hereof is modified in order to comply with Code Section 409A, such
modification shall be made in good faith and shall, to the maximum extent reasonably
possible, maintain the original intent and economic benefit to Employee and the Company of
the applicable provision without violating the provisions of Code Section 409A. A
termination of employment shall not be deemed to have occurred for purposes of any provision
of this Agreement providing for the payment of any amounts or benefits upon or following a
termination of employment that are considered “nonqualified deferred compensation” under
Code Section 409A unless such termination is also a “separation from service” within the
meaning of Code Section 409A and, for purposes of any such provision of this Agreement,
references to a “termination,” “termination of employment” or like terms shall mean
“separation from service.” If Employee is deemed on the date of termination to be a
“specified employee” within the meaning of that term under Code Section 409A(a)(2)(B), then
with regard to any payment that is considered non-qualified deferred compensation under Code
Section 409A payable on account of a “separation from service,” such payment or benefit
shall be made or provided at the date which is the earlier of (A) the expiration of the six
(6)-month period measured from the date of such “separation from service” of Employee, and
(B) the date of Employee’s death (the “Delay Period”). Upon the expiration of the
Delay Period, all payments and benefits delayed pursuant to this Section (whether they would
have otherwise been payable in a single sum or in installments in the absence of such delay)
shall be paid or reimbursed to Employee in a lump sum with interest at the prime rate as
published in The Wall Street Journal on the first business day following the end of the
Delay Period, and any remaining payments and benefits due under this Agreement shall be paid
or provided in accordance with the normal payment dates specified for them herein. With
regard to any provision herein that provides for reimbursement of costs and expenses or
in-kind benefits, except as permitted by Code Section 409A, (i) the right to reimbursement
or in-kind benefits shall not be subject to liquidation or exchange for another benefit,
(ii) the amount of expenses eligible for reimbursement, or in-kind benefits, provided during
any taxable year shall not affect the expenses eligible for reimbursement, or in-kind
benefits to be provided, in any other taxable year, provided that the foregoing clause (ii)
shall not be violated with regard to expenses reimbursed under any arrangement covered by
Internal Revenue Code Section 105(b) solely because such expenses are subject to a limit
related to the period the arrangement is in effect and (iii) such payments shall be made on
or before the last day of Employee’s taxable year following the taxable year in which the
expense occurred. For purposes of Code Section 409A, Employee’s right to receive any
installment payments pursuant to this Agreement shall be treated as a right to receive a
series of separate and distinct payments. Whenever a payment under this Agreement specifies
a payment period with reference to a number of days (e.g., “payment shall be made within
thirty

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(30) days following the date of termination”), the actual date of payment within the
specified period shall be within the sole discretion of the Company.

     6. Nondisparagement. Employee agrees to refrain from any defamation, libel or slander of the
Company or its products, or any unlawful interference with the contracts and relationships of the
Company, its officers, directors and employees. Employee further agrees not to make any written or
oral statement that may defame, disparage or cast in a negative light so as to do harm to the
professional reputation of the Company. The Company agrees (i) not to make any written or oral
statement that may defame, disparage or cast in a negative light so as to do harm to the personal
or professional reputation of Employee, (ii) that all inquiries by potential future employers of
Employee will be directed exclusively to the Company’s Chief Executive Officer, and (iii) in
response to any inquiry so directed that the Company will confirm only Employee’s title, dates of
employment, and final salary. Company records and any press release or required public filing with
respect to Employee’s separation shall reflect that Employee’s employment with the Company was
terminated by the Employee’s resignation effective December 1, 2011.

     7. Return of Company Property. Employee represents that, as of the Separation Date, Employee
will have returned to the Company all property of the Company or any of its customers in his
possession or under his control, including but not limited to any equipment, supplies, credit
cards, and office machines, and also including any documents relating to the Company or copies
thereof in any form, except for such personnel and compensation records provided to Employee during
the course of his employment.

     8. Complete Release of Claims by Employee. In consideration for this Agreement, to the
fullest extent permitted by law, Employee hereby releases and forever discharges the Company and
each of its predecessors, successors, assigns, employees, officers, members, shareholders,
directors, agents, attorneys, subsidiaries, divisions or affiliated corporations or organizations,
whether previously or hereafter affiliated in any manner (collectively, “Released
Parties”), from any and all claims, demands, causes of action, charges of discrimination,
obligations, damages, attorneys’ fees, costs and liabilities of any nature whatsoever, including,
but not limited to, all claims of discrimination or harassment arising under any federal, state or
local statute, ordinance or common law, on the basis of race, sex, national origin, religion,
disability, age medical condition, marital status, veteran status, sexual orientation, or any other
basis under applicable law, whether or not now known, suspected or claimed, that Employee ever had,
now has, or may claim to have as of the date of this Agreement against the Released Parties
(whether directly or indirectly), or any of them, by reason of any act or omission concerning any
matter, cause or thing. This Release includes, without limiting the generality of the foregoing,
the waiver of any claims related to or arising out of Employee’s employment with the Company or his
separation from that employment. This Release specifically includes the waiver of any and all
claims under the Age Discrimination in Employment Act, 29 U.S.C. § 621 and sections following.

     9. Older Workers Benefit Protection Act. This Agreement is subject to the terms of the Older
Workers Benefit Protection Act of 1990 (the “OWBPA”). The OWBPA provides that an
individual cannot waive a right or claim under the Age Discrimination in Employment Act
(“ADEA”) unless the waiver is knowing and voluntary. Pursuant to the terms of the

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OWBPA, Employee acknowledges and agrees that he has executed this Agreement voluntarily, and
with full knowledge of its consequences.

     In addition, Employee hereby acknowledges and agrees that: (a) this Agreement has been written
in a manner that is calculated to be understood, and is understood, by Employee; (b) the release
provisions of this Agreement apply to rights and claims that Employee may have under the ADEA,
including the right to file a lawsuit against the Company or any other Released Party for age
discrimination; (c) the release provisions of this Agreement do not apply to any rights or claims
that Employee may have under the ADEA that arise after the date Employee executes this Agreement;
and (d) the Company does not have a preexisting duty to pay the special severance compensation
identified in this Agreement.

     10. General Nature of Release; Claims Not Released. The Release set forth above in
Paragraph 8 of this Agreement is a general release of all claims, demands, causes of
action, obligations, damages, and liabilities of any nature whatsoever that are described in the
Release and is intended to encompass all known and unknown, foreseen and unforeseen claims that
Employee may have against the Released Parties, or any of them, except for any claims that may
arise from the terms of this Agreement, or any claims which may not be released as a matter of law.
It is further understood by the Parties that nothing in this Agreement shall affect any rights
Employee may have under any Pension Plan and/or Savings Plan (i.e., 401(k) plan) provided by the
Company as of the Separation Date, or upon any rights Employee may have with respect to any grant
of restricted stock or stock options made by the Company to Employee during Employee’s service as
an employee, or as a member of the Company’s Board of Directors, or the vesting thereof, such items
to be governed exclusively by the terms of the applicable plan documents. Employee covenants and
agrees never to commence, aid in any way, prosecute or cause to be commenced or prosecuted any
action or other proceeding based upon any claims, demands, causes of action, obligations, damages
or liabilities which are the subject of this Agreement; provided however, that Employee does not
relinquish any protected rights to file a charge, testify, assist or participate in any manner in
an investigation, hearing or proceeding conducted by the Equal Employment Opportunity Commission,
the Office of Federal Contract Compliance or any similar state human rights agency. However,
Employee may not recover additional compensation or damages as a result of any such action.

     11. Release of Section 1542 Rights. Employee expressly waives and relinquishes all rights and
benefits he may have under Section 1542 of the California Civil Code or the law of any other state
or jurisdiction, or common law principle, to the same or similar effect. Section 1542 is intended
to protect against an inadvertent release of unknown or unsuspected claims that would be material
to this Agreement. This Paragraph 11 provides that Employee also is releasing any such
unknown or unsuspected claims. Section 1542 reads as follows:

     “Section 1542. [General Release; extent.] 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.”

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     12. Execution of Second Release. As a condition of Employee’s right to receive the Pro-Rata
Bonus Payment provided for in this Agreement, Employee must execute and not rescind the release
attached to this Agreement as Exhibit “A” (the “Second Release”). Employee
acknowledges he is receiving now, and will have had more than twenty-one (21) days after his
receipt of, the Second Release to consider whether to sign it. Employee agrees to execute the
Second release on or within ten (10) business days after December 1, 2011, the Separation Date.
The Employee’s failure to execute the Second Release, or Employee’s actual or attempted rescission
of the Second Release, shall relieve the Company of any duty to provide any of the Pro-Rata Bonus
Amount and any other consideration provided for in this Agreement.

     13. Non-Admission of Liability. Employee and the Company acknowledge and agree that this
Agreement is a settlement agreement and shall not in any way be construed as an admission by any of
the Released Parties of any wrongful act against, or any liability to, Employee or any other
person.

     14. Trade Secrets and Confidential Information; Board Resignation. Employee agrees to keep in
strict confidence, and will not, either directly or indirectly, make known, reveal, make available
or use, any Confidential and Trade Secret Information of the Company obtained by Employee during
Employee’s employment with the Company. Employee acknowledges and agrees that he has complied and
will continue to comply with the terms and provisions of the Quality Systems, Inc. Employee
Confidential Information, Non-Compete and Employee Works Agreement (the “Confidentiality
Agreement”) entered into by and between Employee and the Company, a copy of which is attached
to this Agreement as Exhibit “B”, and that Employee’s obligations under the Confidentiality
Agreement shall survive the termination of Employee’s employment with the Company. Employee
acknowledges and agrees that he will continue to be bound by the terms of that certain Agreement to
Resign from Board of Directors Upon Termination of Employment dated May 31, 2005 and, according
thereto, Employee shall be deemed to have resigned from the Company’s Board of Directors effective
as of December 1, 2011.

     15. Twenty-One Day Consideration Period. This Agreement is being given to Employee on July
29, 2011. Employee acknowledges that he is entitled to take up to twenty-one (21) calendar days to
consider whether to accept this Agreement; provided however, that if Employee chooses to
sign this Agreement before the end of this 21-day period, Employee acknowledges that he does so
knowingly and voluntarily and waives any claim that to the effect that he was not given the full 21
days to consider whether to sign this Agreement or did not use the entire period of time available
to consider this Agreement or to consult with an attorney. Employee agrees that any modifications,
material or otherwise, made to this Agreement do not restart or affect in any manner the original
twenty-one (21) calendar day consideration period.

     16. Seven Day Revocation Period. After signing this Agreement, Employee shall have a period
of seven (7) calendar days to revoke the Agreement by providing the Company with written notice of
his revocation. To be effective, such revocation must be in writing, must specifically revoke this
Agreement, and must be actually received by the Company’s Chief Executive Officer, Steve Plochocki,
at the Company’s Irvine, California headquarters offices, 18111 Von Karman, Suite 600, Irvine,
California 92612, prior to the eighth calendar day following Employee’s execution of this
Agreement. Unless timely revoked by Employee, this

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Agreement shall become effective, enforceable, and irrevocable on the eighth calendar day
following Employee’s execution of this Agreement (the “Effective Date”). In the event that
Employee revokes this Agreement, it shall be null and void and Employee will not receive any
payment or other benefit pursuant to this Agreement, including, but not limited to, the Pro-Rata
Bonus Payment provided in Paragraph 4 herein. Any revocation of this Agreement, however,
shall not affect the finality of the separation of Employee’s employment with the Company on the
Separation Date.

     17. Acknowledgment of Being Advised to Consult Legal Counsel. This Agreement is an important
legal document. Employee acknowledges that the Company hereby advises him to consult with an
attorney of his choice prior to signing this Agreement, and Employee represents that he has had the
opportunity to consult with an attorney to the extent he so desires.

     18. Confidentiality of Agreement. As a material inducement to the Company to enter into this
Agreement, Employee promises and agrees that this Agreement, including the Pro-Rata Bonus Payment
referred to in Paragraph 4 hereof, shall be and remain confidential. Employee promises and
covenants not to disclose, publicize, or cause to be publicized any of the terms and conditions of
this Agreement except to his immediate family, and to his attorney or accountant to the extent
reasonably necessary to obtain professional advice with respect to the parties’ rights and
obligations as stated herein. Employee further promises and covenants to use his best efforts to
prevent any further disclosure of this Agreement by any such persons to whom he does make
disclosure. Notwithstanding the foregoing, (i) Employee may disclose the terms of this Agreement
to persons to whom disclosure is ordered by a court of competent jurisdiction or otherwise required
by law and (ii) the restrictions included in this Section 18 shall not apply to the extent this
Agreement or any terms of this Agreement are publicly disclosed by the Company.

     19. Cooperation. Upon reasonable request, Employee shall make himself available to the
Company to furnish full and truthful information concerning any event that took place during
Employee’s employment with the Company. Upon reasonable request, as deemed necessary by the
Company, Employee shall make himself available to furnish full and truthful consultation concerning
any potential or actual litigation. Employee shall furnish the information as soon as is practical
after a request from the Company is received. The Company shall reimburse Employee for the
reasonable cost of any travel, lodging, meals, and any direct loss of compensation suffered by
Employee from Employee’s current employer as a result of time spent furnishing information under
this clause, upon presentation of evidence of such loss or expense satisfactory to the Company.
Employee further agrees that Employee shall provide advance written notice to the Company in the
event Employee is subpoenaed to testify, or provide documents at deposition or at trial, relating
to: (1) any actual, possible, or perceived violation by the Company or any other Released Party of
any federal, state, local, or administrative law, rule, or regulation; (2) the negotiations
relating to and the terms of, this Agreement; and (3) any acts or omissions by the Company or any
of the other Released Parties occurring prior to the Effective Date of this Agreement. Nothing in
this Paragraph is intended to interfere with any protected right of Employee to file charges,
testify, assist or participate in any manner in an EEOC or similar state agency investigation,
hearing or proceeding, and nothing in

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this paragraph is intended to influence the substance of such involvement by Employee which is
properly compelled by legal process

     20. Ambiguities. The parties and/or their attorneys have had a full opportunity to review the
terms and conditions of this Agreement. Accordingly, the parties expressly waive any common-law or
statutory rule of construction that ambiguities should be construed against the drafter of this
Agreement, and agree, covenant, and represent that the language in all parts of this Agreement
shall be in all cases construed as a whole, according to its fair meaning.

     21. Interpretation. Whenever possible, each provision of this Agreement shall be interpreted
in such a manner as to be valid and effective under applicable law. Therefore, each and every
provision of this Agreement shall be considered severable from, and shall in no way affect the
validity or enforceability of, the remaining provisions of this Agreement except for the release
provisions contained in Paragraphs 8 through 12 of this Agreement. If a court of competent
jurisdiction finds any release provisions contained in Paragraphs 8 through 12 of this
Agreement to be unlawful, void, or for any reason unenforceable or invalid, this Agreement shall
become null and void, and Employee shall repay the special severance compensation paid by the
Company pursuant to this Agreement within a reasonable period of time not to exceed fifteen (15)
days. If a court of competent jurisdiction finds any provision other than the release provisions
contained in Paragraphs 8 through 12 to be unlawful, void, or for any reason unenforceable
or invalid, that provision, or part thereof, shall remain in force and effect to the extent allowed
by law, and all of the remaining provisions of this Agreement shall remain in full force and effect
and enforceable, and the rights and obligations of the parties shall be enforced to the fullest
extent possible. All captions are for convenience of reference only and shall be disregarded in
interpreting this Agreement.

     22. Entire Agreement. Employee acknowledges that he is not relying, and has not relied, on
any representation or statement by the Company with regard to the subject matter or terms of this
Agreement, except to the extent set forth fully in this Agreement. This Agreement constitutes the
entire agreement between Employee and the Company with respect to the subject matter of this
Agreement, and supersedes any and all other agreements, understandings or discussions between
Employee and the Company with respect to the subject matter of this Agreement; provided,
however, that this Agreement does not supersede, and has no effect upon, the Confidentiality
Agreement attached hereto as Exhibit “B” and the Second Amended and Restated
Indemnification Agreement attached hereto as Exhibit “C.”

     23. Risk of New or Different Facts. Employee acknowledges that he may discover new
information different from or inconsistent with facts he presently believes to be true, and
expressly agrees to assume the risk of such new or different information.

     24. Modification. This Agreement cannot be modified or terminated, except by a writing signed
by the party against whom enforcement of the modification or termination is sought.

     25. Voluntary Agreement. This Agreement in all respects has been voluntarily and knowingly
executed by the parties hereto. Employee specifically represents that he has

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carefully read and fully understands all of the provisions of this Agreement, and that he is
voluntarily entering into this Agreement.

     26. Execution in Counterparts. This Agreement may be executed in any number of counterparts,
each of which shall be deemed an original, but all of which shall constitute one and the same
instrument.

     27. Governing Law. This Agreement is made and entered into in the State of California and
shall in all respects be interpreted and enforced pursuant to the laws of the State of California,
without regard to or application of any of California’s conflict of laws rules.

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     IN WITNESS WHEREOF, the parties hereto have executed this Separation Agreement and General
Release of All Claims, and have initialed each page hereof, on the dates set forth below.

	 	 	 	 	 
	 	Employee

 	 
	Dated: July 29, 2011 	/s/ Patrick B. Cline
 	 
	 	Patrick B. Cline 	 

	 	 	 	 	 
	 	Quality Systems, Inc.

 	 
	Dated: July 29, 2011 	By:  	/s/ James J. Sullivan
 	 
	 	 	James J. Sullivan 	 
	 	 	Its:  Secretary, Executive Vice President and
General Counsel 	 

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Exhibit A

Second Release

This Second Release is entered into by and between Quality Systems, Inc. (the “Company”)
and Patrick B. Cline (“Employee”), and amends the Separation Agreement and General Release
of Claims between those same parties (the “Agreement”) by extending the promise and
agreements of paragraphs 9 through 12 of the Agreement, through the last day of Employee’s
employment, December 1, 2011.

     1. Older Workers Benefit Protection Act. This Second Release is subject to the terms of the
Older Workers Benefit Protection Act of 1990 (the “OWBPA”). The OWBPA provides that an
individual cannot waive a right or claim under the Age Discrimination in Employment Act
(“ADEA”) unless the waiver is knowing and voluntary. Pursuant to the terms of the OWBPA,
Employee acknowledges and agrees that he has executed this Second Release voluntarily, and with
full knowledge of its consequences.

     In addition, Employee hereby acknowledges and agrees that: (a) this Second Release has been
written in a manner that is calculated to be understood, and is understood, by Employee; (b) the
release provisions of this Second Release apply to rights and claims that Employee may have under
the ADEA, including the right to file a lawsuit against the Company or any other Released Party for
age discrimination; and (c) the release provisions of this Second Release do not apply to any
rights or claims that Employee may have under the ADEA that arise after the date Employee executes
this Second Release.

     2. Seven Day Revocation Period. After signing this Second Release, Employee shall have a
period of seven (7) calendar days to revoke the Second Release by providing the Company with
written notice of his revocation. To be effective, such revocation must be in writing, must
specifically revoke this Second Release, and must be actually received by the Company’s Chief
Executive Officer, Steve Plochocki, at the Company’s Irvine, California headquarters offices, 18111
Von Karman, Suite 600, Irvine, California 92612, prior to the eighth calendar day following
Employee’s execution of this Second Release. Unless timely revoked by Employee, this Agreement
shall become effective, enforceable, and irrevocable on the eighth calendar day following
Employee’s execution of this Second Release (the “Effective Date”). In the event that
Employee revokes this Second Release, it shall be null and void and Employee will not receive any
payment or other benefit pursuant to the Agreement, including, but not limited to, the bonus
payment provided in Paragraph 4 therein. Any revocation of this Second Release, however,
shall not affect the finality of the separation of Employee’s employment with the Company on the
Separation Date.

	 	 	 	 	 
	 	  Employee

 	 
	Dated: __________________, 2011 	  	 	 
	 	 	Patrick B. Cline 	 
	 	 	 	 
	 

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ACKNOWLEDGEMENT

I, PATRICK B. CLINE, Employee, hereby acknowledge that I was given more than twenty-one (21) days
to consider the foregoing Second Release which extends the promises I made in the Agreement through
the last day of Employee’s employment, December 1, 2011, and I voluntarily chose to sign the Second
Release on the date indicated above. I was provided this Second Release July 29, 2011 but I
acknowledge it is not effective or enforceable unless I sign it on or after December 1, 2011.
Further, I have either consulted an attorney or knowingly declined my opportunity to do so.

I declare under penalty of perjury under the laws of the State of California that the foregoing is
true and correct.

EXECUTED this ______ day of ________________, 2011, at ________________, ___.

	 	 	 	 	 
	 	 	 
	 	 	 	 
	 	 	Patrick B. Cline, Employee 	 
	 	 	 	 
	 

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Exhibit B

Employee Confidential Information, Non-Compete and Employee Works Agreement

[Attached hereto]

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QUALITY SYSTEMS, INC.

EMPLOYEE CONFIDENTIAL INFORMATION, NON-COMPETE AND

EMPLOYEE WORKS AGREEMENT

(PENNSYLVANIA—OPTION GRANTEE)

          THIS CONFIDENTIAL INFORMATION, NON-COMPETE AND EMPLOYEE WORKS AGREEMENT (the “Agreement”)
is entered into by and between QUALITY SYSTEMS, INC., for and on behalf of itself and its present
and future affiliates and/or subsidiaries including but not limited to NextGen Healthcare
Information Systems, Inc. (collectively referred to as “QSI”), and the undersigned (“Employee”), to
be effective as of the date set forth herein. In consideration of the foregoing and the mutual
covenants and agreements contained in this Agreement, QSI and Employee covenant and agree as
follows:

RECITALS

          A. The successful operation of QSI’s business (the “Business”) requires that trade secrets and
other confidential information, which are valuable and unique assets, be maintained as secret and
confidential. QSI has disclosed and will be disclosing to Employee in the continued course of
Employee’s employment, certain trade secrets and other confidential business information of QSI for
the sole and exclusive benefit of QSI and with the express condition that Employee not disclose or
misuse such information.

          B. In connection with Employee’s continued employment, and the granting to Employee of certain
stock options (the “Options”), QSI and Employee are entering into this Agreement to memorialize
Employee’s continuing obligations to QSI with respect to such confidential and trade secret
information, Employee’s covenants not to compete with QSI nor solicit its employees, and Employee’s
assignment to QSI of all Employee Works as set forth herein. Employee acknowledges that QSI’s grant
of the Options represents sufficient consideration for Employee’s covenants contained herein.

          C. QSI and Employee acknowledge that (i) QSI’s grant of the Options to Employee is contingent
upon Employee entering into this Agreement; (ii) QSI is actively developing and marketing its
Business throughout the United States as well as internationally and that Employee plays a material
role in such efforts; and (iii) the restrictions contained in this Agreement are reasonable in
territorial scope and duration and are reasonably necessary to protect QSI’s interests in its
property, customer relationships and goodwill.

Confidential Information. The confidential information (“Confidential Information”)
addressed in this Agreement is defined as information relating to QSI, or any of its customers or
prospective customers, licensors and licensees, or their affiliates, and consultants, including but
not limited to: (1) business, financial and technical information, cost and price structure,
strategies and related data, product information, customer identification and lists, potential
customers, customers or prospective customer needs, suppliers, vendors or other information related
to QSI products, and (2) any intellectual property including, but not limited to, trade secrets,
software (including object and source code, templates, modifications and derivative works and
system infrastructure), formulas, test data and results, designs, know-how, inventions, marketing
ideas and plans, business plans and strategies, designs, manuals, and technical data and summaries.
Confidential Information does not include any of the foregoing items which have become publicly
known and made generally available through no wrongful act of Employee or of others who were under
confidentiality obligations as to the item or items involved or improvements or new versions
thereof.

Employee acknowledges that QSI desires to maintain the foregoing information so that it is not
known to its competitors or to the general public and the foregoing Confidential Information
matters: (a) are maintained by QSI in a manner not contemplated to be known to QSI’s competitors or
to the general public; (b) derive independent actual or potential economic value from the fact that
they are confidential; and (c) are the subject of efforts that are reasonable under the
circumstances to maintain their secrecy. Employee agrees that it is not necessary for QSI to label
or stamp information as “Confidential” or to enact express security systems (although QSI may do so
in its discretion) in order to maintain the confidential nature of such information, and that no
failure of QSI to do so shall be deemed to waive or

Initials:                    

                    

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	CONFIDENTIAL
	 	CONFIDENTIAL

otherwise impair the confidential nature of such information. Employee understands and agrees
that Employee has no right to modify or otherwise prepare derivative works, or reverse engineer or
to reverse assemble or decompile Confidential Information. Employee agrees to keep the Confidential
Information confidential, and not to disclose or make any use of the Confidential Information at
any time during or subsequent to Employee’s employment except for the benefit of QSI. Employee
further agrees not to deliver, cause to be delivered or otherwise transmit, reproduce or in any way
allow the Confidential Information to be used by any third parties without the prior written
consent of a duly authorized representative of QSI. Nothing in this provision shall restrict
Employee’s right to disclose information concerning Employee’s own compensation or working
conditions, to the extent such right exists pursuant to federal or applicable state laws.

Health Insurance Portability & Accountability Act (Privacy Act): Employee understands that as part
of his or her employment with QSI, Employee may come into contact with Protected Health Information
(including but not limited to patient health information ). Employee agrees to use appropriate
safeguards to prevent use or disclosure of any Protected Health Information other than as may be
allowed under an agreement in place with QSI or as may be required by law, including but not
limited to the Standards of Privacy of Individually Identifiable Health Information at 45 CFR part
160 and part 164, subparts A and E.

Conflicting Employment and Outside Activities. Employee agrees that during Employee’s employment
with QSI, Employee will not undertake, or conduct planning to undertake, any other employment,
self-employment, occupation, consulting or other activity which is competitive with the business in
which QSI is now or may hereafter become engaged (while Employee is employed at QSI) or which would
otherwise conflict with Employee’s obligations to QSI. Employee further agrees that during
Employee’s employment with QSI, Employee shall not, without the express written approval of the QSI
Board of Directors: (1) serve as a member or advisory member of any other Board of Directors or
similar governing or advisory body of a business entity; (2) engage in outside employment or
perform work as a consultant or independent contractor; or (3) accept any compensation, whether
direct, indirect, in-kind, current or deferred, in connection with any of the foregoing activities.
Nothing in this section shall prohibit Employee’s service on the Board of Directors of, or in any
other capacity for, a charitable organization formed pursuant to Internal Revenue Code Section
501(c)(3), provided that such activities do not interfere with the performance of Employee’s duties
to QSI.

Return of Documents/Materials. Employee agrees that all Confidential Information, together with any
other records, materials, equipment, drawings, documents and data of any nature, and all copies
thereof, made or obtained by Employee from QSI or from a third party on QSI’s behalf, are and shall
remain the property of QSI. In the event of termination of employment with QSI for any reason
whatsoever, Employee agrees to promptly surrender and deliver to QSI all such property, and all
copies thereof, to QSI at its place of business. The foregoing shall not apply to ordinary records
concerning employment, compensation or benefits received by Employee in connection with his or her
own employment.

Customers. During the period of his or her employment, and for one (1) year after employment
terminates for any reason, the Employee shall not, directly or indirectly, call on, solicit, take
away, or attempt to call on, solicit, or take away any of the customers or potential customers of
QSI, either for himself or herself or for any other person, firm, or corporation. For purposes of
this agreement, “potential customers” are companies and/or their representatives that have been
contacted by QSI for the purpose of making a sale of any of its products or services within the one
(1) year period preceding the cessation of the Employee’s employment at QSI.

Employees.
Employee acknowledges and agrees that QSI’s employment relationships and its information
about employees constitute a valuable asset and Confidential Information of QSI. Employee agrees
that he or she will not, during his or her employment by QSI and for a period of one (1) year after
employment terminates for any reason, directly or indirectly, for himself or on behalf of any other
person or entity, raid or solicit any of QSI’s employees for a competing business or otherwise
induce or attempt to induce any such employees to terminate their employment with QSI or to
otherwise disrupt or interfere or attempt to disrupt or interfere with QSI’s relationships with
such employees.

Employee Works. Employee hereby assigns to QSI all right, title and interest in any and all
inventions, ideas and works of authorship created by Employee using QSI’s resources, during
Employee’s work hours or related to any product, service, idea,

Initials:                    

                    

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	CONFIDENTIAL
	 	CONFIDENTIAL

invention or technology created or used by QSI (“Employee Works”), including all worldwide
copyrights, trade secrets, and all patent, proprietary and property rights therein. Employee agrees
to execute, without further consideration, such assignments, instruments and documents as QSI deems
necessary or desirable in order to effect the assignment of the Employee Works.

At will employment. Employee represents and warrants that Employee’s execution of and performance
of this Agreement will not violate or impair any other obligations of Employee, whether under an
employment or consulting agreement or otherwise. It is expressly understood and agreed that
Employee’s employment by QSI is at will and that either party to the employment relationship, may
terminate it and this Agreement at any time, with or without reason, with or without cause.
Employee further understands and agrees that this at will employment relationship can only be
changed by a writing signed by the Employee and the President of QSI.

Non-Competition. During the period of Employee’s employment with QSI and for a period of twelve
(12) months after the date of Employee’s separation from employment with QSI for any reason,
Employee will not directly or indirectly: as an individual proprietor, partner, stockholder,
officer, employee, director, joint venturer, investor, lender, or in any other capacity whatsoever
(other than as the holder of not more than two percent (2%) of the total outstanding stock of a
publicly held company), and in any city, county, state or other geographic area where QSI is then
marketing or selling its products or providing services, engage in the business of developing,
producing, marketing or selling products or providing services of the kind or type developed or
being developed or considered for development, produced, marketed, sold or provided by QSI while
Employee was employed by QSI.

If any restriction set forth in this section is found by any court of competent jurisdiction to be
unenforceable because it extends for too long a period of time or over too great a range of
activities or in too broad a geographic area, it shall be interpreted to extend only over the
maximum period of time, range of activities or geographic area as to which it may be enforceable.
The restrictions contained in this section are necessary for the protection of the business and
goodwill of QSI and are considered by Employee to be reasonable for such purpose. In addition,
Employee acknowledges that Employee’s education, background, skills, and experience are such that
the enforcement of the restrictions in this section will not unreasonably interfere with Employee’s
ability to earn a living.

Obligations Regarding Former Employers’ Trade Secrets and Confidential Information. QSI is
confident of its ability to compete on the basis of its own products and commitment to service, and
Employee understands that QSI does not desire to obtain or make use of any trade secrets or
confidential information (if any) that Employee may have acquired during any former employment. It
has been explained to Employee that any information needed to succeed in Employee’s position is
publicly available, readily known throughout the industry, or can be obtained without recourse to
trade secret or confidential information obtained through Employee’s prior employment. Employee
agrees that during his or her employment with QSI, Employee will not improperly disclose or use any
trade secrets or confidential information that Employee may have acquired from prior employment If
at any time Employee believes that his or her job duties would otherwise touch upon trade secrets
or confidential information obtained during prior employment Employee will refrain from any use or
disclosure of such information and let his or her supervisor or manager know immediately.

QSI has not asked Employee to provide it with any documents or records obtained from a “former
employer” (which for the purposes of this Agreement, includes any person or business entity for
which Employee has acted as an independent contractor or consultant). Employee has not brought and
will not bring with him or her to QSI, or use in his or her Employment, any materials or documents
of a former employer that are not generally available to the public, unless Employee has obtained
express written authorization from his or her former employer for their possession and use for
QSI’s benefit.

Employee also understands that in his or her service to QSI, Employee is not to breach any
obligation of confidentiality that Employee may have to a former employer or employers. Employee
represents that his or her performance of all the terms of this Agreement and his or her
performance as an employee of QSI does not and will not breach any agreement by him or her to
protect any trade secrets and confidential information Employee may have acquired prior to his or
her Employment with QSI. Employee has not entered into, and Employee agrees that Employee will not
enter into, any agreement either written or oral, which is in conflict with this Agreement Employee
has provided QSI with a copy of any and

Initials:                    

                    

-17-

 

			
	CONFIDENTIAL
	 	CONFIDENTIAL

all agreements with former employers concerning the confidentiality of proprietary information,
assignment of inventions, or any other related subject matter, which may affect his or her duties
as a QSI employee.

Injunctive Relief. The parties agree that in the event of any breach or threatened breach of any of
the Employee’s covenants or obligations in this Agreement, the damage or imminent damage to the
value and the goodwill of the Company’s business will be irreparable and extremely difficult to
estimate, making any remedy at law or in damages inadequate. Accordingly, the parties agree that
QSI shall be entitled to injunctive relief against Employee in the event of any breach or
threatened breach of any such provisions by Employee, in addition to any other relief (including
damages) available to QSI under this Agreement or under law.

Notification of Obligations. Employee recognizes and agrees that QSI may notify and provide a copy
of this Agreement to any person or entity it deems appropriate for the purpose of notifying such
person or entity of Employee’s obligations pursuant to this Agreement.

Waiver and Amendment. No waiver, amendment or modification of this Agreement shall be effective
unless in writing and signed by a duly authorized representative of the party against whom the
waiver, amendment or modification is sought to be enforced. No failure or delay by either party in
exercising any right, power or remedy under this Agreement shall operate as a waiver of the right,
power or remedy. No waiver of any term, condition or default of this Agreement shall be construed
as a waiver of any other term, condition, or default.

Successors and Assigns. This Agreement is intended to benefit and is binding on the successors and
assigns of QSI and the heirs and legal successors of Employee. The benefits of this Agreement may
be assigned by QSI to any person or entity succeeding to any portion of QSI’s business.

Severability. In the event that any paragraph or provision of this Agreement shall be held to be
illegal or unenforceable in any jurisdiction, such paragraph or provision shall, as to that
jurisdiction, be adjusted and reformed, if possible, in order to achieve the intent of the parties,
and if such paragraph or provision cannot be adjusted and reformed, such paragraph or provision
shall, for the purposes of that jurisdiction be voided and severed
from this Agreement, and the
entire Agreement shall not fail on account thereof but shall otherwise remain in full force and
effect.

Governing Law and Forum. QSI and the Employee agree that the validity, interpretation,
construction, and performance of this Agreement shall be governed by the laws of the Commonwealth
of Pennsylvania, without giving effect to conflict of laws or choice of law principles. Employee
hereby consents to the exclusive jurisdiction of the state and federal courts located in the
Commonwealth of Pennsylvania for any lawsuit filed there against Employee by QSI arising from or
relating to this Agreement.

Survival of Obligations. This Agreement shall continue in force and effect following any separation
of Employee’s employment with QSI for any reason, whether voluntary or involuntary.

Entire Agreement. This Agreement constitutes the complete and final agreement between the parties,
and supersedes all prior negotiations and agreements between the parties concerning its subject
matter. Any prior written agreement between the parties concerning the subject matter of this
Agreement shall remain effective with respect to any event occurring from the effective date of any
such prior agreement through the effective date of this Agreement.

In Witness Whereof, the parties have executed this Agreement the 11th day of July,
2009. The undersigned employee also acknowledges that consideration in such form as a job
offer, salary increase, implementation of a bonus or commission plan, or grant of stock options or
other equity has been given and accepted.

	 	 	 	 	 

	/s/ Patrick B. Cline

	 	 	/s/ Steven T. Plochocki	 
	 

	 	 	 	 
	Employee

	 	 	Quality Systems, Inc.	 
	 
	 	 	 	 
	Date 7-11-09

	 	 	Title CEO	 

Initials:                    

                    

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	CONFIDENTIAL
	 	CONFIDENTIAL
	 
	 	 

Exhibit C

Second Amended and Restated Indemnification Agreement

[Attached hereto]

Initials:                    

                    

-19-

 

QUALITY SYSTEMS, INC.

second amended and restated

indemnification Agreement

     This Second Amended and Restated Indemnification Agreement (this “Agreement”) is
effective as of January 27, 2010, by and between QUALITY SYSTEMS, INC., a California corporation
(the “Company”), and Patrick B. Cline (“Indemnitee”).

R E C I T A L S

     WHEREAS, the Company and Indemnitee recognize the increasing difficulty in obtaining quality
directors’ and officers’ liability insurance, the significant increases in the cost of such
insurance and the general reductions in the coverage of such insurance;

     WHEREAS, the Company and Indemnitee further recognize the substantial increase in corporate
litigation in general, subjecting officers and directors to expensive litigation risks at the same
time as the availability and coverage of cost effective liability insurance has been severely
limited; and

     WHEREAS, the Company desires to attract and retain the services of highly qualified
individuals, such as Indemnitee, to serve as officers and directors of the Company and to indemnify
its officers and directors so as to provide them with the maximum protection permitted by law.

     NOW, THEREFORE, in consideration for Indemnitee’s services as an officer or director of the
Company (as the case may be), the Company and Indemnitee hereby agree as follows:

     1. Indemnification.

          (a) Third Party Proceedings. The Company shall indemnify Indemnitee if Indemnitee is
or was a party or is threatened to be made a party to any threatened, pending or completed action,
suit, proceeding or any alternative dispute resolution mechanism, whether civil, criminal,
administrative or investigative (other than an action by or in the right of the Company) by reason
of the fact that Indemnitee is or was a director, officer, employee or agent of the Company, or any
subsidiary of the Company, or by reason of the fact that Indemnitee is or was serving at the
request of the Company as a director, officer, employee or agent of another corporation,
partnership, joint venture, trust or other enterprise, against expenses (including reasonable
attorneys’ fees and costs), judgments, fines and amounts paid in settlement (if such settlement is
approved in advance by the Company, which approval shall not be unreasonably withheld) actually and
reasonably incurred by Indemnitee in connection with such action, suit or proceeding if Indemnitee
acted in good faith and in a manner Indemnitee reasonably believed to be in the best interests of
the Company, and, with respect to any criminal action or proceeding, had no reasonable cause to
believe Indemnitee’s conduct was unlawful. The termination of any action, suit or proceeding by judgment,
order, settlement, conviction, or upon a plea of nolo contendere or its equivalent, shall not, of itself, create a presumption that Indemnitee did not
act

 

 

in good faith and in a manner which Indemnitee reasonably believed to be in the best interests
of the Company, and, with respect to any criminal action or proceeding, had reasonable cause to
believe that Indemnitee’s conduct was unlawful.

          (b) Proceedings By or in the Right of the Company. The Company shall indemnify
Indemnitee if Indemnitee is or was a party or is threatened to be made a party to any threatened,
pending or completed action or suit by or in the right of the Company or any subsidiary of the
Company to procure a judgment in its favor by reason of the fact that Indemnitee is or was a
director, officer, employee or agent of the Company, or any subsidiary of the Company, or by reason
of the fact that Indemnitee is or was serving at the request of the Company as a director, officer,
employee or agent of another corporation, partnership, joint venture, trust or other enterprise,
against expenses (including reasonable attorneys’ fees and costs) and, to the fullest extent
permitted by law, amounts paid in settlement actually and reasonably incurred by Indemnitee in
connection with the defense or settlement of such action or suit if Indemnitee acted in good faith
and in a manner Indemnitee reasonably believed to be in the best interests of the Company, except
that no indemnification shall be made in respect of any claim, issue or matter as to which
Indemnitee shall have been adjudged to be liable to the Company unless and only to the extent that
the Superior Court of the State of California or the court in which such action or suit was brought
shall determine upon application that, despite the adjudication of liability but in view of all the
circumstances of the case, Indemnitee is fairly and reasonably entitled to indemnity for such
expenses which the Superior Court of the State of California or such other court shall deem proper.

          (c) Mandatory Payment of Expenses. To the extent that Indemnitee has been successful
on the merits or otherwise in defense of any action, suit or proceeding referred to in subsections
(a) and (b) of this Section 1, or in defense of any claim, issue or matter therein,
Indemnitee shall be indemnified against expenses (including reasonable attorneys’ fees and costs)
actually and reasonably incurred by Indemnitee in connection therewith. For purposes of this
Agreement, and without limitation, the termination of any claim, issue or matter in any action,
suit or proceeding by dismissal with prejudice shall be deemed to be a successful result as to
such claim, issue or matter.

     2. Agreement to Serve. In consideration of the protection afforded by this Agreement,
if Indemnitee is a director of the Company he agrees to serve at least for the 90 days after the
effective date of this Agreement as a director and not to resign voluntarily during such period
without the written consent of a majority of the Board of Directors. If Indemnitee is an officer
of the Company not serving under an employment contract, he agrees to serve in such capacity at
least for the 90 days after the effective date of this Agreement and not to resign voluntarily
during such period without the written consent of a majority of the Board of Directors. Following
the applicable period set forth above, Indemnitee agrees to continue to serve in such capacity at
the will of the Company (or under separate agreement, if such agreement exists) so long as he is
duly appointed or elected and qualified in accordance with the applicable provisions of the Bylaws
of the Company or any subsidiary of the Company or until such time as he tenders his resignation in
writing. Nothing contained in this Agreement is intended to create in Indemnitee any right to
continued employment.

- 2 -

 

     3. Expenses; Indemnification Procedure.

          (a) Advancement of Expenses. The Company shall advance all expenses incurred by
Indemnitee in connection with the investigation, defense, settlement or appeal of any civil or
criminal action, suit or proceeding referenced in Section 1(a) or (b) hereof (but not
amounts actually paid in settlement of any such action, suit or proceeding). Indemnitee hereby
undertakes to repay such amounts advanced only if, and to the extent that, it shall ultimately be
determined that Indemnitee is not entitled to be indemnified by the Company as authorized hereby.
The advances to be made hereunder shall be paid by the Company to Indemnitee within thirty (30)
days following delivery of a written request therefor by Indemnitee to the Company.

          (b) Notice/Cooperation by Indemnitee. Indemnitee shall, as a condition precedent to
his or her right to be indemnified under this Agreement, give the Company written notice as soon as
practicable of any claim for which Indemnitee will or could seek indemnification under this
Agreement. In addition, Indemnitee shall give the Company such information and cooperation as it
may reasonably require and as shall be within Indemnitee’s power.

          (c) Procedure. Any indemnification and advances provided for in Section 1 and
this Section 3 shall be made no later than thirty (30) days after receipt of the written
request of Indemnitee. If a claim under this Agreement, under any statute, or under any provision
of the Company’s Articles of Incorporation or Bylaws providing for indemnification, is not paid in
full by the Company within thirty (30) days after a written request for payment thereof has first
been received by the Company, Indemnitee may, but need not, at any time thereafter bring an action
against the Company to recover the unpaid amount of the claim and, subject to Section 8 and
10(g) of this Agreement, Indemnitee shall also be entitled to be paid for the expenses
(including reasonable attorneys’ fees and costs) of bringing such action. It shall be a defense to
any such action (other than an action brought to enforce a claim for expenses incurred in
connection with any action, suit or proceeding in advance of its final disposition) that Indemnitee
has not met the standards of conduct which make it permissible under applicable law for the Company
to indemnify Indemnitee for the amount claimed. However, Indemnitee shall be entitled to receive
interim payments of expenses pursuant to Section 3(a) unless and until such defense may be
finally adjudicated by court order or judgment from which no further right of appeal exists. It is
the parties’ intention that if the Company contests Indemnitee’s right to indemnification, the
question of Indemnitee’s right to indemnification shall be for a court of competent jurisdiction to
decide, and neither the failure of the Company (including its Board of Directors, any committee or
subgroup of the Board of Directors, independent legal counsel, or its stockholders) to have made a
determination that indemnification of Indemnitee is proper in the circumstances because Indemnitee
has met the applicable standard of conduct required by applicable law, nor an actual determination
by the Company (including it Board of Directors, any committee or subgroup of the Board of
Directors, independent legal counsel, or its stockholders) that Indemnitee has not met such
applicable standard of conduct, shall create a presumption that Indemnitee has or has not met the
applicable standard of conduct.

          (d) Notice to Insurers. If, at the time of the receipt of a notice of a claim
pursuant to Section 3(b) hereof, the Company has director and officer liability insurance
in effect, the Company shall give prompt notice of the commencement of such proceeding to the

- 3 -

 

insurers in accordance with the procedures set forth in the respective policies. The Company
shall thereafter take all necessary or desirable action to cause such insurers to pay, on behalf of
the Indemnitee, all amounts payable as a result of such proceeding in accordance with the terms of
such policies.

          (e) Selection of Counsel. In the event the Company shall be obligated under
Section 3(a) hereof to pay the expenses of any proceeding against Indemnitee, the Company,
if appropriate, shall be entitled to assume the defense of such proceeding, with counsel approved
by Indemnitee (which approval shall not be unreasonably withheld), upon the delivery to Indemnitee
of written notice of its election to do so. After delivery of such notice, approval of such
counsel by Indemnitee and the retention of such counsel by the Company, the Company will not be
liable to Indemnitee under this Agreement for any fees of counsel subsequently incurred by
Indemnitee with respect to the same proceeding, provided that (i) Indemnitee shall have the right
to employ his counsel in any such proceeding at Indemnitee’s expense; and (ii) if (A) the
employment of counsel by Indemnitee has been previously authorized by the Company, (B) Indemnitee
shall have reasonably concluded that there may be a conflict of interest between the Company and
Indemnitee in the conduct of any such defense, or (C) the Company shall not, in fact, have employed
counsel to assume the defense of such proceeding, then the fees and expenses of Indemnitee’s
counsel shall be at the expense of the Company.

     4. Additional Indemnification Rights; Nonexclusivity; Contribution.

          (a) Scope. Notwithstanding any other provision of this Agreement, the Company hereby
agrees to indemnify the Indemnitee to the fullest extent permitted by the California General
Corporation Law (the “CGCL”), notwithstanding that such indemnification is not specifically
authorized by the other provisions of this Agreement, the Company’s Articles of Incorporation, the
Company’s Bylaws or by statute. In the event of any change, after the date of this Agreement, in
any applicable law, statute, or rule which expands the right of a California corporation to
indemnify a member of its board of directors or an officer, such changes shall be, ipso facto,
within the purview of Indemnitee’s rights and Company’s obligations, under this Agreement. In the
event of any change in any applicable law, statute or rule which narrows the right of a California
corporation to indemnify a member of its board of directors or an officer, such changes, to the
extent not otherwise required by such law, statute or rule to be applied to this Agreement shall
have no effect on this Agreement or the parties’ rights and obligations hereunder.

          (b) Nonexclusivity. The indemnification provided by this Agreement shall not be
deemed exclusive of any rights to which Indemnitee may be entitled under the Company’s Articles of
Incorporation, its Bylaws, any agreement, any vote of stockholders or disinterested Directors, the
CGCL, or otherwise, both as to action in Indemnitee’s official capacity and as to action in another
capacity while holding such office. The indemnification provided under this Agreement shall
continue as to Indemnitee for any action taken or not taken while serving in an indemnified
capacity even though he may have ceased to serve in such capacity at the time of any action, suit
or other covered proceeding.

          (c) Contribution. To the fullest extent permissible under applicable law, if the
indemnification provided for in this Agreement is unavailable to Indemnitee for any reason

- 4 -

 

whatsoever, the Company, in lieu of indemnifying Indemnitee, shall contribute (“Contribution”)
to the amount incurred by Indemnitee, whether for liabilities and/or for expenses, in connection
with any proceeding relating to an indemnifiable event under this Agreement, in such proportion as
is deemed fair and reasonable in light of all of the circumstances of such proceeding in order to
reflect (1) the relative benefits received by the Company and Indemnitee as a result of the
event(s) and/or transaction(s) giving rise to such proceeding; and (2) the relative fault of the
Company (and its directors, officers, employees and agents) and Indemnitee in connection with such
event(s) and/or transaction(s), provided, however, that no such Contribution shall be made
pursuant to this Section 4(c) with respect to any of the matters set forth in Section 8.

     5. Partial Indemnification. If Indemnitee is entitled under any provision of this
Agreement to indemnification by the Company for some or a portion of the expenses, judgments, fines
or penalties actually and reasonably incurred by him in the investigation, defense, appeal or
settlement of any civil or criminal action, suit or proceeding, but not, however, for the total
amount thereof, the Company shall nevertheless indemnify Indemnitee for the portion of such
expenses, judgments, fines or penalties to which Indemnitee is entitled.

     6. Mutual Acknowledgement. Both the Company and Indemnitee acknowledge that in
certain instances, Federal law or applicable public policy may prohibit the Company from
indemnifying its directors and officers under this Agreement or otherwise. Indemnitee understands
and acknowledges that the Company has undertaken or may be required in the future to undertake with
the Securities and Exchange Commission to submit the question of indemnification to a court in
certain circumstances for a determination of the Company’s right under public policy to indemnify
Indemnitee.

     7. Officer and Director Liability Insurance. The Company shall, from time to time,
make the good faith determination whether or not it is practicable for the Company to obtain and
maintain a policy or policies of insurance with reputable insurance companies providing the
officers and directors of the Company with coverage for losses from wrongful acts, or to ensure the
Company’s performance of its indemnification obligations under this Agreement. Among other
considerations, the Company will weigh the costs of obtaining such insurance coverage against the
protection afforded by such coverage. In all policies of director and officer liability insurance,
Indemnitee shall be named as an insured in such a manner as to provide Indemnitee the same rights
and benefits as are accorded to the most favorably insured of the Company’s directors, if
Indemnitee is a director; or of the Company’s officers, if Indemnitee is not a director of the
Company but is an officer. Notwithstanding the foregoing, the Company shall have no obligation to
obtain or maintain such insurance if the Company determines in good faith that such insurance is
not reasonably available, if the premium costs for such insurance are disproportionate to the
amount of coverage provided, if the coverage provided by such insurance is limited by exclusions so
as to provide an insufficient benefit, or if Indemnitee is covered by similar insurance maintained
by a subsidiary or parent of the Company.

     8. Exceptions. Any other provision herein to the contrary notwithstanding, the
Company shall not be obligated pursuant to the terms of this Agreement:

          (a) Claims Initiated by Indemnitee. To indemnify, provide Contribution or advance
expenses to Indemnitee with respect to proceedings or claims initiated or brought

- 5 -

 

voluntarily by Indemnitee and not by way of defense, except with respect to proceedings
brought to establish or enforce a right to indemnification under this Agreement or any other
statute or law or otherwise as required under Section 317 of the CGCL, but such indemnification,
Contribution or advancement of expenses may be provided by the Company in specific cases if the
Board of Directors has approved the initiation or bringing of such suit; or

          (b) Lack of Good Faith. To indemnify or provide Contribution to Indemnitee for any
expenses incurred by the Indemnitee with respect to any proceeding instituted by Indemnitee to
enforce or interpret this Agreement, if a court of competent jurisdiction determines that each of
the material assertions made by the Indemnitee in such proceeding was not made in good faith or was
frivolous; or

          (c) Insured Claims. To indemnify or provide Contribution to Indemnitee for expenses
or liabilities of any type whatsoever (including, but not limited to, judgments, fines, ERISA
excise taxes or penalties, and amounts paid in settlement) which have been paid directly to
Indemnitee by an insurance carrier under a policy of officers’ and directors’ liability insurance
maintained by the Company; or

          (d) Claims Under Section 16(b). To indemnify or provide Contribution to Indemnitee
for expenses and the payment of profits arising from the purchase and sale by Indemnitee of
securities in violation of Section 16(b) of the Securities Exchange Act of 1934, as amended, or any
similar successor statute.

     9. Construction of Certain Phrases.

          (a) For purposes of this Agreement, references to the “Company” shall include, in addition to
the resulting corporation, any constituent corporation (including any constituent of a constituent)
absorbed in a consolidation or merger which, if its separate existence had continued, would have
had power and authority to indemnify its directors, officers, and employees or agents, so that if
Indemnitee is or was a director, officer, employee or agent of such constituent corporation, or is
or was serving at the request of such constituent corporation as a director, officer, employee or
agent of another corporation, partnership, joint venture, trust or other enterprise, Indemnitee
shall stand in the same position under the provisions of this Agreement with respect to the
resulting or surviving corporation as Indemnitee would have with respect to such constituent
corporation if its separate existence had continued.

          (b) For purposes of this Agreement, references to “other enterprises” shall include employee
benefit plans; references to “fines” shall include any excise taxes assessed on Indemnitee with
respect to an employee benefit plan; and references to “serving at the request of the Company”
shall include any service as a director, officer, employee or agent of the Company which imposes
duties on, or involves services by, such director, officer, employee or agent with respect to an
employee benefit plan, its participants, or beneficiaries.

     10. Miscellaneous.

          (a) Choice of Law. This Agreement shall be governed by and its provisions construed
in accordance with the laws of the State of California , as applied to contracts between

- 6 -

 

California residents entered into and to be performed entirely within California without
regard to the conflict of law principles thereof.

          (b) Consent to Jurisdiction. The Company and Indemnitee each hereby irrevocably
consent to the jurisdiction of the courts of the State of California for all purposes in connection
with any action or proceeding which arises out of or relates to this Agreement and agree that any
action instituted under this Agreement shall be brought only in the state courts of the State of
California .

          (c) Amendment and Termination. No amendment, modification, termination or
cancellation of this Agreement shall be effective unless it is in writing signed by both the
parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall
constitute a waiver of any other provisions hereof (whether or not similar) nor shall such waiver
constitute a continuing waiver.

          (d) Entire Agreement. This Agreement sets forth the entire understanding between the
parties hereto and supersedes and merges all previous written and oral negotiations, commitments,
understandings and agreements relating to the subject matter hereof between the parties hereto.

          (e) Successors and Assigns. This Agreement shall be binding upon the Company and its
successors and assigns, and shall inure to the benefit of Indemnitee and Indemnitee’s estate, heirs
and legal representatives.

          (f) Severability. Nothing in this Agreement is intended to require or shall be
construed as requiring the Company to do or fail to do any act in violation of applicable law. The
Company’s inability, pursuant to court order, to perform its obligations under this Agreement shall
not constitute a breach of this Agreement. If this Agreement or any portion hereof shall be
invalidated on any ground by any court of competent jurisdiction, then the Company shall
nevertheless indemnify Indemnitee to the full extent permitted by any applicable portion of this
Agreement that shall not have been invalidated, and the balance of this Agreement not so
invalidated shall be enforceable in accordance with its terms.

          (g) Attorneys’ Fees. In the event that any action is instituted by Indemnitee under
this Agreement to enforce or interpret any of the terms hereof, Indemnitee shall be entitled to be
paid all court costs and expenses, including reasonable attorneys’ fees, incurred by Indemnitee
with respect to such action, unless as a part of such action, the court of competent jurisdiction
determines that each of the material assertions made by Indemnitee as a basis for such action were
not made in good faith or were frivolous. In the event of an action instituted by or in the name
of the Company under this Agreement or to enforce or interpret any of the terms of this Agreement,
Indemnitee shall be entitled to be paid all court costs and expenses, including reasonable
attorneys’ fees, incurred by Indemnitee in defense of such action (including with respect to
Indemnitee’s counterclaims and cross-claims made in such action), unless as a part of such action
the court determines that each of Indemnitee’s material defenses to such action were made in bad
faith or were frivolous.

- 7 -

 

          (h) Notice. All notices, requests, demands and other communications required or
permitted under this Agreement shall be in writing and shall be delivered personally by hand or by
courier, mailed by United States first-class mail, postage prepaid, sent by facsimile or sent by
electronic mail directed to the party to be notified at the address, facsimile number or electronic
mail address indicated for such person on the signature page hereof, or at such other address,
facsimile number or electronic mail address as such party may designate by ten (10) days’ advance
written notice to the other parties hereto. All such notices and other communications shall be
deemed given upon personal delivery, on the date of mailing, upon confirmation of facsimile
transfer or when directed to the electronic mail address set forth on signature page hereof.

          (i) Period of Limitations. No legal action shall be brought and no cause of action
shall be asserted by or in the right of the Company against Indemnitee, Indemnitee’s estate,
spouse, heirs, executors or personal or legal representatives after the expiration of two years
from the date of accrual of such cause of action, and any claim or cause of action of the Company
shall be extinguished and deemed released unless asserted by the timely filing of a legal action
within such two-year period; provided, however, that if any shorter period of limitations is
otherwise applicable to any such cause of action, such shorter period shall govern.

          (j) Subrogation. In the event of payment under this Agreement, the Company shall be
subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall
execute all documents required and shall do all acts that may be necessary to secure such rights
and to enable the Company effectively to bring suit to enforce such rights.

          (k) Counterparts. This Agreement may be executed in one or more counterparts, each of
which shall constitute an original.

[signature page follows]

- 8 -

 

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

	 	 	 	 	 
	 	QUALITY SYSTEMS, INC.

 	 
	 	By: 	 	 
	 	 	Steven T. Plochocki, Chief Executive Officer 	 
	 	 	 	 
	 

Address:

18111 Von Karman Avenue, Suite 600

Irvine, CA 92612

Facsimile #: 949-255-2600

Email: splochocki@qsii.com

AGREED TO AND ACCEPTED:

“Indemnitee”

 

Patrick B. Cline

Address:

 

 

 

Email: pcline@nextgen.com

-9-Exhibit 10.1

Exhibit 10.1

EMPLOYMENT AGREEMENT

This Employment Agreement (this “Agreement”) is entered into as of October 31, 2011,
to be effective as of December 1, 2011 (the “Effective Date”) between BLUELINX CORPORATION,
a Georgia corporation (the “Company”), and Ned M. Bassil (“Executive”).

RECITALS:

WHEREAS, the Executive agreed to provide services to the Company as Senior Vice-President and
Chief Supply Chain Officer and the Company agreed to provide certain compensation and benefits to
Executive; and

WHEREAS, the Company and executive mutually desire to memorialize the terms of Executive’s
employment as Senior Vice-President and Chief Supply Chain Officer.

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

1. Certain Definitions. Certain words or phrases with initial capital letters not
otherwise defined herein are to have the meanings set forth in Section 8.

2. Employment. The Company shall employ Executive, and Executive accepts employment
with the Company upon the terms and conditions set forth in this Agreement for the period beginning
on the Effective Date and ending as provided in Section 5 (the “Employment Period”).

3. Position and Duties.

(a) During the Employment Period, Executive shall serve as Senior Vice-President and Chief
Supply Chain Officer of the Company and shall have the normal duties, responsibilities and
authority of an executive serving in such position, including those duties set forth on Exhibit
A hereto, subject to the power of Chief Executive Officer to provide oversight and direction
with respect to such duties, responsibilities and authority, either generally or in specific
instances.

(b) During the Employment Period, Executive shall devote Executive’s reasonable best efforts
and Executive’s full professional time and attention (except for permitted vacation periods and
reasonable periods of illness or other incapacity) to the business and affairs of the Company and
its respective subsidiaries and affiliates, including specifically BlueLinx Holdings Inc. (“BHI”).
Executive shall perform Executive’s duties and responsibilities to the best of Executive’s
abilities in a diligent, trustworthy and business-like manner. During the Employment Period,
Executive shall not serve as a director or a principal of another company or any charitable or
civic organization without the prior consent of the Board of Directors of the Company (the
“Company Board”). Notwithstanding the foregoing, during the Employment Period,
Executive may render charitable and civic services so long as such services do not materially
interfere with Executive’s ability to discharge his duties hereunder.

 

 

 

(c) Executive shall perform Executive’s duties and responsibilities with his principal office
located in the Atlanta, Georgia metropolitan area.

4. Compensation and Benefits.

(a) Salary. The Company agrees to pay Executive a salary during the Employment Period
in installments based on the Company’s payroll practices as may be in effect from time to time.
The Executive’s salary is currently set at the rate of $400,000.00 per year (“Base
Salary”). The Base Salary may be increased at the sole discretion of the Company. The Company
will not decrease Executive’s base salary.

(b) Annual Bonus.

(i) Executive shall be eligible to receive an annual bonus, with the annual bonus target to
be 65% of Base Salary (i.e., 65% upon achievement of annual “target” performance goals) and a
maximum of 130% of Base Salary (i.e., 130% upon achievement of annual “maximum” performance goals),
with the “target” and “maximum” based upon satisfaction of performance goals and bonus criteria to
be defined and approved by the Compensation Committee of the BHI Board in advance for each fiscal
year. The Company shall pay any such annual bonus earned to Executive in accordance with the terms
of the applicable bonus plan, but in no event later than March 15 of the calendar year following
the calendar year in which such bonus is earned and vested.

(ii) During the Employment Period, the Executive will be eligible to participate in long term
incentive programs of the Company and BHI now or hereafter made available to similarly situated
executives, in accordance with the provisions thereof as in effect from time to time, and as deemed
appropriate by the Compensation Committee of the BHI Board (or the Chief Executive Officer if
applicable) to be applicable to this position.

(iii) Within 7 days of the Effective Date the Executive will receive a payment of $100,000
less applicable taxes, provided Executive actually commences employment on the Effective Date.
Upon one year anniversary of the Effective Date with the Company Executive will receive an
additional payment of $100,000 less applicable taxes, provided Executive is employed by the Company
on such one year anniversary.

(c) Restricted Stock. Upon commencement of Executive’s employment, the BHI Board
shall grant Executive 200,000 shares of restricted stock of BHI, which stock shall vest over a
three-year period commencing on the Effective Date in accordance with the terms of the applicable
Restricted Stock Award Agreement.

(d) Expense Reimbursement. The Company shall reimburse Executive for all reasonable
expenses incurred by Executive during the Employment Period in the course of performing Executive’s
duties under this Agreement in accordance with the Company’s policies in effect from time to time
with respect to travel,
entertainment and other business expenses, and subject to the Company’s requirements
applicable generally with respect to reporting and documentation of such expenses and subject to
the Reimbursement Rules. In order to be entitled to expense reimbursement, the Executive must be
employed as Senior Vice-President and Chief Supply Chain Officer on the date the Executive incurred
the expense.

 

- 2 -

 

(e) Standard Executive Benefits Package. Executive is entitled during the Employment
Period to participate, on the same basis as the Company’s other senior executives, in the Company’s
Standard Executive Benefits Package. The Company’s “Standard Executive Benefits Package”
means those benefits (including insurance, vacation and other benefits, but excluding, except as
hereinafter provided in Section 6, any severance pay program or policy of the Company) for which
substantially all of the executives of the Company are from time to time generally eligible, as
determined from time to time by the Board. A summary of such benefits available to Executive as in
effect on the date of this Agreement is attached hereto as Exhibit B. BHI will maintain
appropriate Directors and Officers Liability Coverage, and will afford Executive with the
Indemnification set forth in Article V of the Amendment and Restated Bylaws of BHI.

(f) Additional Compensation/Benefits. The Compensation Committee of the BHI Board (or
the Chief Executive Officer if applicable), in its sole discretion, will determine any compensation
or benefits to be provided to Executive during the Employment Period other than as set forth in
this Agreement, including, without limitation, any future grant of stock options or other equity
awards.

(g) Disgorgement of Compensation. If BHI or the Company is required to prepare an
accounting restatement due to material noncompliance by BHI or the Company, as a result of
misconduct, with any financial reporting requirement under the federal securities laws, to the
extent required by law Executive will reimburse the Company for (i) any bonus or other
incentive-based or equity-based compensation received by Executive from the Company (including such
compensation payable in accordance with this Section 4 and Section 6) during the 12-month period
following the first public issuance or filing with the Securities and Exchange Commission
(whichever first occurs) of the financial document embodying that financial reporting requirement;
and (ii) any profits realized by Executive from the improper or unlawful sale of BHI’s securities
during that 12-month period.

5. Employment Period.

(a) Subject to subsection 5(b), the Employment Period will commence on the Effective Date and
will continue until, and will end upon, the second anniversary of the Effective Date (the
“Initial Term”). The Agreement shall automatically be extended for successive one year
terms (each, a “Renewal Term”), unless either party shall have given the other written
notice of non-extension at least 90 days prior the expiration of the Initial Term or any Renewal
Term.

 

- 3 -

 

(b) Notwithstanding subsection 5(a), the Employment Period will end upon the first to occur of
any of the following events: (i) Executive’s death; (ii) the
Company’s termination of Executive’s employment on account of Disability; (iii) the Company’s
termination of Executive’s employment for Cause (a “Termination for Cause”); (iv) the
Company’s termination of Executive’s employment without Cause or expiration of this Employment
Period as a result of Company’s notification not to renew as provided in Section 5(a) above, (a
“Termination without Cause”); (v) Executive’s termination of Executive’s employment for
Good Reason (a “Termination for Good Reason”); or (vi) Executive’s termination of
Executive’s employment for any reason other than Good Reason (a “Voluntary Termination”).

(c) Any termination of Executive’s employment under subsection 5(b) (other than 5(b)(i)) must
be communicated by a Notice of Termination delivered by the Company or Executive, as the case may
be, to the other party.

(d) Executive will be deemed to have waived any right to a Termination for Good Reason based
on the occurrence or existence of a particular event or circumstance constituting Good Reason
unless Executive delivers a Notice of Termination within 45 days from the date the Chief Executive
Officer or the BHI Board first made Executive aware of the event or circumstance.

6. Post-Employment Period Payments.

(a) Except as otherwise provided in 6(c) below, at the Date of Termination, Executive will be
entitled to (i) any Base Salary that has accrued but is unpaid, any annual bonus that has been
earned for the fiscal year prior to the year in which the Date of Termination occurs, but is
unpaid, any reimbursable expenses that have been incurred but are unpaid, and any unexpired
vacation days that have accrued under the Company’s vacation policy but are unused, as of the end
of the Employment Period, which amount shall be paid in a lump sum in cash within 30 days of the
Date of Termination, in accordance with the Reimbursement Rules, where applicable, (ii) any plan
benefits that by their terms extend beyond termination of Executive’s employment (but only to the
extent provided in any such benefit plan in which Executive has participated as a Company employee
and excluding, except as hereinafter provided in Section 6, any Company severance pay program or
policy) and (iii) any benefits to which Executive is entitled in accordance with Part 6 of Subtitle
B of Title I of the Employee Retirement Income Security Act of 1974, as amended (“COBRA”).
Except as specifically described in this subsection 6(a) and in the succeeding subsections of this
Section 6 (under the circumstances described in those succeeding subsections), from and after the
Date of Termination Executive shall cease to have any rights to salary, bonus, expense
reimbursements or other benefits from the Company, BHI or any of their subsidiaries or affiliates.

(b) If Executive’s employment terminates on account of Executive’s death, Disability,
Voluntary Termination, or Termination for Cause in accordance with Section 5(a), the Company will
make no further payments to Executive except as contemplated in subsection 6(a).

 

- 4 -

 

(c) If Executive’s employment terminates on account of a Termination without Cause or a
Termination for Good Reason, Executive shall be entitled to the following:

(i) payment equal to one (1) time the Executive’s annual Base Salary in effect immediately
prior to the Date of Termination, plus one (1) time the cash bonus amount equal to the
Target Bonus set forth in clause (i) of subparagraph 4(b) hereof for the fiscal year prior to
the year of termination of Executive’s employment, payable in twelve equal monthly installments
commencing on the earlier to occur of the first business day of the seventh month after the
Date of Termination or Executive’s death;

(ii) the Company shall request that the Compensation Committee of the Board of Directors
of BHI approve vesting of all unvested restricted stock grants effective as of the Date of
Termination. In the event the Compensation Committee does not approve such vesting, all
unvested restricted stock grants shall be cancelled in accordance with the applicable award
agreement, and the Company shall pay out the Fair Market Value (as defined in the plan pursuant
to which each award was granted) as of the Date of Termination of the unvested restricted stock
grants;

(iii) continued participation in the Company’s medical and dental plans, on the same basis
as active employees participate in such plans, until the earlier of (1) Executive’s eligibility
for any such coverage under another employer’s or any other medical or dental insurance plans
or (2) the first anniversary of the Date of Termination; except that in the event that
participation in any such plan is barred, the Company shall reimburse Executive on a monthly
basis in accordance with the Reimbursement Rules for any premiums paid by Executive to obtain
benefits (for Executive and his dependents) equivalent to the benefits he is entitled to
receive under the Company’s benefit plans. Executive agrees that the period of coverage under
such plans (or the period of reimbursement if participation is barred) shall count against the
plans’ obligation to provide continuation coverage pursuant to COBRA;

(iv) up to $25,000 in aggregate outplacement services to be used within one year of the
Date of Termination, the scope and provider of which shall be selected by Executive in his sole
discretion; and

(v) to the extent not theretofore paid or provided, any other amounts or benefits required
to be paid or provided or which the Executive is eligible to receive under any plan, program,
policy or practice or contract or agreement of the Company (such other amounts and benefits
shall be hereinafter referred to as the “Other Benefits”).

(d) The Company shall have no obligation to make any payments in accordance with subsection
6(c) if Executive declines to sign and return a Release
Agreement or revokes the Release Agreement within the time provided in the Release Agreement.

 

- 5 -

 

(e) Executive is not required to mitigate the amount of any payment or benefit provided for in
this Agreement by seeking other employment or otherwise.

7. Competitive Activity; Confidentiality; Non-solicitation.

(a) Confidential Information and Trade Secrets.

(i) The Executive shall hold in a fiduciary capacity for the benefit of the Company Group
all Confidential Information and Trade Secrets. During his employment and for a period of two
(2) years following the termination of the Executive’s employment for any reason, the Executive
shall not, without the prior written consent of the Company or BHI or as may otherwise be
required by law or legal process, use, communicate or divulge Confidential Information other
than as necessary to perform his duties for the Company; provided, however, that if the
Confidential Information is deemed a trade secret under Georgia law, then the period for
nondisclosure shall continue for the applicable period under Georgia Trade Secret laws in
effect at the time of Executive’s termination. In addition, except as necessary to perform his
duties for the Company, during Executive’s employment and thereafter for the applicable period
under the Georgia Trade Secret laws in effect at the time of Executive’s termination, Executive
will not, directly or indirectly, transmit or disclose any Trade Secrets to any person or
entity, and will not, directly or indirectly, make use of any Trade Secrets, for himself or
herself or any other person or entity, without the express written consent of the Company.
This provision will apply for so long as a particular Trade Secret retains its status as a
trade secret under applicable law. The protection afforded to Trade Secrets and/or
Confidential Information by this Agreement is not intended by the parties hereto to limit, and
is intended to be in addition to, any protection provided to any such information under any
applicable federal, state or local law.

(ii) All files, records, documents, drawings, specifications, data, computer programs,
customer or vendor lists, specific customer or vendor information, marketing techniques,
business strategies, contract terms, pricing terms, discounts and management compensation of
the Company, BHI or any of their respective subsidiaries and affiliates, whether prepared by
the Executive or otherwise coming into the Executive’s possession, shall remain the exclusive
property of the Company, BHI or any of their respective subsidiaries and affiliates, and the
Executive shall not remove any such items from the premises of the Company, BHI or any of their
respective subsidiaries and affiliates, except in furtherance of the Executive’s duties.

 

- 6 -

 

(iii) It is understood that while employed by the Company, the Executive will promptly
disclose to the Company in writing, and assign to the Company the Executive’s interest in any
invention, improvement, copyrightable material or discovery made or conceived by the Executive,
either alone or jointly with
others, which arises out of the Executive’s employment (“Executive Invention”).
At the Company’s request and expense, the Executive will reasonably assist the Company, BHI or
any of their respective subsidiaries and affiliates during the period of the Executive’s
employment by the Company and thereafter in connection with any controversy or legal proceeding
relating to an Executive Invention and in obtaining domestic and foreign patent or other
protection covering an Executive Invention. As a matter of record, Executive hereby states
that he or she has provided below a list of all unpatented inventions in which Executive owns
all or partial interest. Executive agrees not to assert any right against BHI with respect to
any invention which is not patented or which is not listed.

(iv) As requested by the Company and at the Company’s expense, from time to time and upon
the termination of the Executive’s employment with the Company for any reason, the Executive
will promptly deliver to the Company, BHI or any of their respective subsidiaries and
affiliates all copies and embodiments, in whatever form, of all Confidential Information in the
Executive’s possession or within his control (including, but not limited to, memoranda,
records, notes, plans, photographs, manuals, notebooks, documentation, program listings, flow
charts, magnetic media, disks, diskettes, tapes and all other materials containing any
Confidential Information) irrespective of the location or form of such material. If requested
by the Company, the Executive will provide the Company with written confirmation that all such
materials have been delivered to the Company as provided herein.

(b) Non-Solicitation of Protected Customers. Executive understands and agrees that
the relationship between the Company Group and each of its Protected Customers constitutes a
valuable asset of the Company Group and may not be converted to Executive’s own use. Executive
hereby agrees that, during his employment with the Company and for a period of twelve (12) months
following the termination of the Executive’s employment for any reason, the Executive shall not,
directly or indirectly, on Executive’s own behalf or as a Principal or Representative of any other
Person, solicit, divert, take away, or attempt to solicit, divert, or take away a Protected
Customer with which the Executive had contact while employed with the Company for the purpose of
marketing, selling or providing to the Protected Customer any goods or services similar to the
goods or services provided by the Company Group.

(c) Non-Solicitation of Employees. Executive understands and agrees that the
relationship between the Company Group and each of its Protected Employees constitutes a valuable
asset of the Company Group and may not be converted to Executive’s own use. Executive hereby
agrees that, during his employment and for the twelve (12) months following the termination of
Executive’s employment for any reason, the Executive shall not, directly or indirectly, on
Executive’s own behalf or as a Principal or Representative of any other Person, solicit or induce,
or attempt to solicit or induce, any Protected Employee to terminate his employment with the
Company Group or to enter into employment with any other Person that is in competition with the
Company Group.

 

- 7 -

 

(d) Non-Competition. During Executive’s employment and, if the Executive is terminated
pursuant to Section 6(c) or in the event of Executive’s Voluntary Termination, for a period of
twelve (12) months following the termination of the Executive’s employment (the “Restricted
Period”), Executive shall not render services substantially the same as the services rendered
by Executive to the Company Group (including those described on Exhibit A) to any Person
that engages in or owns, invests in, operates, manages or controls any venture or enterprise which
engages or proposes to engage in the building products distribution business in the Restricted
Territory. Notwithstanding anything to the contrary herein, during the Restricted Period, in no
event shall Executive render services substantially the same as the services rendered by executive
to the Company Group (including those described on Exhibit A) to the Company’s competitors listed
on Exhibit B hereto or any of their subsidiaries or affiliates. Notwithstanding the
foregoing, nothing in this Agreement be deemed to prohibit the ownership by Executive of not more
than five percent (5%) of any class of securities of any corporation having a class of securities
registered pursuant to the Securities Exchange Act of 1934, as amended.

(e) Remedies; Specific Performance. The parties acknowledge and agree that the
Executive’s breach or threatened breach of any of the restrictions set forth in this Section 7 will
result in irreparable and continuing damage to the Company Group for which there may be no adequate
remedy at law. The parties further agree and acknowledge that the Company, and each member of the
Company Group, as applicable, shall be entitled to equitable relief, including specific performance
and injunctive relief, as a remedy for any such breach or threatened or attempted breach and shall
not be required to post bond in connection with obtaining such relief. Such equitable remedies
shall be in addition to any and all remedies, including damages, available to the Company, or any
member of the Company Group, as applicable, for such breaches or threatened or attempted breaches
by Executive. In addition, without limiting any of the foregoing remedies, and except as otherwise
required by law, Executive shall not be entitled to any payments set forth in Section 6 hereof if
the Executive breaches or attempts or threatens to breach any of the covenants set forth in this
Section 7.

(f) Communication of Contents of Agreement. During Executive’s employment and for two
years thereafter, Executive will communicate his obligations under this Section 7 to any person,
firm, association, partnership, corporation or other entity which Executive intends to be employed
by, associated with, or represent.

(g) The Company’s rights under this Agreement are in addition to, and not in lieu of, all
other rights the Company may have at law or in equity to protect its confidential information,
trade secrets and other proprietary interests.

 

- 8 -

 

8. Definitions.

(a) “Cause” means, as determined by the BHI Board in good faith:

(i) a Material Breach of the duties and responsibilities of Executive;

(ii) Executive’s (x) commission of a felony or (y) commission of any misdemeanor involving
willful misconduct (other than minor violations such as traffic violations) if such misdemeanor
causes material damage to the property, business or reputation of BHI or the Company or their
respective subsidiaries and affiliates;

(iii) acts of dishonesty by Executive resulting or intending to result in personal gain or
enrichment at the expense of the Company, BHI or their respective subsidiaries and affiliates;

(iv) Executive’s Material Breach of any provision of this Agreement;

(v) Executive’s willful failure to follow the lawful written directions of the Company
Board or the BHI Board;

(vi) conduct by Executive in connection with his duties hereunder that is fraudulent,
unlawful or willful and materially injurious to the Company, BHI or their respective
subsidiaries and affiliates;

(vii) Executive’s engagement in habitual insobriety or the use of illegal drugs or
substances;

(viii) Executive’s failure to cooperate fully, or failure to direct the persons under
Executive’s management or direction, or employed by, or consultants or agents to, the Company
(or its subsidiaries and affiliates) to cooperate fully, with all corporate investigations or
independent investigations by the Company Board or the BHI Board, all governmental
investigations of the Company or its subsidiaries and affiliates, and all orders involving
Executive or the Company (or its subsidiaries and affiliates) entered by a court of competent
jurisdiction;

(ix) Executive’s material violation of BHI’s Code of Conduct (including as applicable to
executive officers), or any successor codes;

(x) Executive’s engagement in activities prohibited by Section 7; or

(xi) Notwithstanding the foregoing, no termination of the Executive’s employment shall be
for Cause until (i) there shall have been delivered to the Executive a copy of a written notice
setting forth the basis for such termination in reasonable detail, and (ii) the Executive shall
have been provided an opportunity to be heard in person by the Board (with the assistance of
the Executive’s counsel if the Executive so desires). No act, or failure to act, on the
Executive’s part shall be considered “willful” unless the Executive has acted or failed to act
with a lack of good faith and with a lack of reasonable belief that the Executive’s action or
failure to act was in the best interests of the Company. Any act, or failure to act, based
upon authority given pursuant to a resolution duly adopted by the BHI Board or the Company
Board or based upon the advice of counsel for BHI or the Company shall
be conclusively presumed to be done, or omitted to be done, by the Executive in good faith
and in the best interests of the Company. Any termination of the Executive’s employment by the
Company hereunder shall be deemed to be a termination other than for Cause unless it meets all
requirements of this Section 8(a)(xi).

 

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(b) “Company Group” means the Company, BHI, or any of their respective subsidiaries
and affiliates.

(c) “Competitive Services” means selling, marketing or distributing products and/or
services substantially similar to any of those sold, marketed, distributed, furnished or supplied
by the Company during the term of Executive’s employment with the Company or managing, supervising
or otherwise participating in a management or sales capacity on behalf of an entity which
distributes home building products similar to those distributed by the Company.

(d) “Confidential Information” means knowledge or data relating to the Company Group
that is not generally known to persons not employed or otherwise engaged by the Company Group, is
not generally disclosed by the Company Group, and is the subject of reasonable efforts to keep it
confidential. Confidential Information includes, but is not limited to, information regarding
product or service cost or pricing, information regarding personnel allocation or organizational
structure, information regarding the business operations or financial performance of the Company
Group, sales and marketing plans, and strategic initiatives (independent or collaborative),
information regarding existing or proposed methods of operation, current and future development and
expansion or contraction plans, sale/acquisition plans and non-public information concerning the
legal or financial affairs of the Company Group. Confidential Information does not include
information that has become generally available to the public by the act of one who has the right
to disclose such information without violating any right or privilege of the Company Group. This
definition is not intended to limit any definition of confidential information or any equivalent
term under applicable federal, state or local law.

(e) “Date of Termination” means (i) if Executive’s employment is terminated by the
Company for Disability, 30 days after the Company gives Notice of Termination to Executive
(provided that Executive has not returned to the performance of Executive’s duties on a full-time
basis during this 30-day period), (ii) if Executive’s employment is terminated by Executive for
Good Reason, the date specified in the Notice of Termination (but in no event prior to 30 days
following the delivery of the Notice of Termination), and (iii) if Executive’s employment is
terminated by the Company for any other reason, the date on which a Notice of Termination is given;
except that if within 30 days after any Notice of Termination is given to Executive by the Company,
Executive notifies the Company that a dispute exists concerning the termination, the Date of
Termination is to be the date the dispute is finally determined, whether by mutual written
agreement of the parties or upon final judgment, order or decree of a court of competent
jurisdiction (the time for appeal thereof having expired and no appeal having been perfected). A
termination of employment shall not be deemed to have occurred for purposes of any provision of
this Agreement providing for the payment of any amounts
or benefits subject to Section 409A of the Internal Revenue Code of 1986, as amended (“Section
409A”) upon or following a termination of employment unless such termination is also a “separation
from service” within the meaning of Section 409A.

 

- 10 -

 

(f) “Disability” means the determination by the Company, in accordance with applicable
law, based on information provided by a physician selected by the Company or its insurers and
reasonably acceptable to Executive or Executive’s legal representative that, as a result of a
physical or mental injury or illness, Executive has been unable to perform the essential functions
of his job with or without reasonable accommodation for a period of (i) 90 consecutive days or (ii)
180 days in any one-year period. Notwithstanding the foregoing, in the event that as a result of
absence because of mental or physical incapacity the Executive incurs a “separation from service”
within the meaning of the term under Section 409A, the Executive shall on such date automatically
be terminated from employment because of Disability.

(g) “Good Reason” means, without the consent of Executive, (A) the assignment to
Executive of any duties inconsistent in any material adverse respect with Executive’s position
(including offices, titles and reporting requirements), authority, duties or responsibilities
immediately following the Effective Date, or any other action by the Company which results in a
material diminution in such position, authority, duties or responsibilities; (B) a material
reduction by the Company in Executive’s Base Salary of more then 15% or annual bonus opportunity,
other than pursuant to a reduction generally applicable to executives of the Company; (C) the
Company’s requiring Executive to be based at any office or location outside of the metropolitan
area of Atlanta, Georgia; or (D) any failure by the Company to comply with and satisfy the
requirements for any assignment of its rights and obligations under Section 13. Notwithstanding
the foregoing, “Good Reason” shall not be deemed to exist for purposes of (A) through (D) if the
event or circumstances are rescinded or remedied by the Company within thirty (30) days after
receipt of notice thereof given by Executive.

(h) “Material Breach” means an intentional act or omission by Executive which
constitutes substantial non-performance of Executive’s obligations under this Agreement and causes
material damage to the Company.

(i) “Notice of Termination” means a written notice that indicates those specific
termination provisions in this Agreement relied upon and that sets forth in reasonable detail the
facts and circumstances claimed to provide a basis for termination of Executive’s employment under
the provision so indicated. For purposes of this Agreement, no purported termination by either
party is to be effective without a Notice of Termination.

(j) “Person” means: any individual or any corporation, partnership, joint venture,
limited liability company, association or other entity or enterprise.

(k) “Principal or Representative” means a principal, owner, partner, shareholder,
joint venturer, investor, member, trustee, director, officer, manager, employee, agent,
representative or consultant.

 

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(l) “Protected Customers” means any then-existing customer to whom the Company Group
sold its products or services at any time during Executive’s employment and with respect to
whom Executive either (i) had business dealings on behalf of the Company Group; or (ii) supervised
or coordinated the dealings between the Company Group and the customer.

(m) “Protected Employees” means any employee of the Company Group who was employed
during Executive’s employment and with whom Executive either (i) had a supervisory
relationship; or (ii) worked or communicated on a regular basis regarding the Company Group’s
business.

(n) “Reimbursement Rules” means the requirement that any amount of expenses eligible
for reimbursement under this Agreement be made (i) in accordance with the reimbursement payment
date set forth in the applicable provision of the Agreement providing for the reimbursement or (ii)
where the applicable provision does not provide for a reimbursement date, thirty (30) calendar days
following the date on which Executive incurs the expense, but, in each case, no later than December
31 of the year following the year in which the Executive incurs the related expenses; provided,
that in no event shall the reimbursements or in-kind benefits to be provided by the Company in one
taxable year affect the amount of reimbursements or in-kind benefits to be provided in any other
taxable year, nor shall the Executive’s right to reimbursement or in-kind benefits be subject to
liquidation or exchange for another benefit.

(o) “Release Agreement” means an agreement, substantially in a form approved by the
Company, pursuant to which Executive releases all current or future claims, known or unknown,
arising on or before the date of the release against the Company, its subsidiaries and its
officers.

(p) “Restricted Territory” means continental United States of America.

(q) “Trade Secrets” means all secret, proprietary or confidential information
regarding the Company, BHI or any of their respective subsidiaries and affiliates or that meets the
definition of “trade secrets” within the meaning set forth in O.C.G.A. § 10-1-761.

9. Executive Representations. Executive represents to the Company that (a) the
execution, delivery and performance of this Agreement by Executive does not and will not conflict
with, breach, violate or cause a default under any contract, agreement, instrument, order, judgment
or decree to which Executive is a party or by which Executive is bound, (b) Executive is not a
party to or bound by any employment agreement, noncompete agreement or confidentiality agreement
with any other person or entity and (c) upon the execution and delivery of this Agreement by the
Company, this Agreement will be the valid and binding obligation of Executive, enforceable in
accordance with its terms.

 

- 12 -

 

10. Withholding of Taxes. The Company shall withhold from any amounts payable under
this Agreement all federal, state, city or other taxes that the Company is required to withhold
under any applicable law, regulation or ruling.

11.  Section 409A.

(a) Notwithstanding any provisions of this Agreement to the contrary, if the Executive is a
“specified employee” (within the meaning of Section 409A and determined pursuant to procedures
adopted by the Company) at the time of his separation from service (within the meaning of Section
409A) and if any portion of the payments or benefits to be received by the Executive upon
separation from service would be considered deferred compensation under Section 409A, amounts that
would otherwise be payable pursuant to this Agreement during the six-month period immediately
following the Executive’s separation from service (the “Delayed Payments”) and benefits
that would otherwise be provided pursuant to this Agreement (the “Delayed Benefits”) during
the six-month period immediately following the Executive’s separation from service (such period,
the “Delay Period”) shall instead be paid or made available on the earlier of (i) the first
business day of the seventh month following the date of the Executive’s separation from service or
(ii) Executive’s death (the applicable date, the “Permissible Payment Date”). The Company
shall also reimburse the Executive for the after-tax cost incurred by the Executive in
independently obtaining any Delayed Benefits (the “Additional Delayed Payments”).

(b) With respect to any amount of expenses eligible for reimbursement under Section 6(a), such
expenses shall be reimbursed by the Company within thirty (30) calendar days following the date on
which the Company receives the applicable invoice from the Executive but in no event later than
December 31 of the year following the year in which the Executive incurs the related expenses;
provided, that with respect to reimbursement relating to the Additional Delayed Payments, such
reimbursement shall be made on the Permissible Payment Date. In no event shall the reimbursements
or in-kind benefits to be provided by the Company in one taxable year affect the amount of
reimbursements or in-kind benefits to be provided in any other taxable year, nor shall the
Executive’s right to reimbursement or in-kind benefits be subject to liquidation or exchange for
another benefit.

(c) Each payment under this Agreement shall be considered a “separate payment” and not of a
series of payments for purposes of Section 409A.

(d) Any Delayed Payments shall bear interest at the United States 5-year Treasury Rate plus
2%, which accumulated interest shall be paid to the Executive on the Permissible Payment Date.

 

- 13 -

 

12. Excess Parachute Payments.

(a) In the event that it shall be determined, based upon the advice of the independent public
accountants for BHI or the Company (the “Accountants”), that any payment, benefit or
distribution by the Company, BHI or any of their respective
subsidiaries or affiliates (a “Payment”) constitute “parachute payments” under Section
280G(b)(2) of the Code, as amended, then, if the aggregate present value of all such Payments
(collectively, the “Parachute Amount”) exceeds 2.99 times the Executive’s “base amount”, as
defined in Section 280G(b)(3) of the Code (the “Executive Base Amount”), the amounts constituting
“parachute payments” which would otherwise be payable to or for the benefit of Executive shall be
reduced to the extent necessary so that the Parachute Amount is equal to 2.99 times the Executive
Base Amount (the “Reduced Amount”); provided that such amounts shall not be so reduced if
the Executive determines, based upon the advice of the Accountants, that without such reduction
Executive would be entitled to receive and retain, on a net after tax basis (including, without
limitation, any excise taxes payable under Section 4999 of the Code), an amount which is greater
than the amount, on a net after tax basis, that the Executive would be entitled to retain upon his
receipt of the Reduced Amount.

(b) If the determination made pursuant to clause (a) of this Section 12 results in a reduction
of the payments that would otherwise be paid to Executive except for the application of clause (a)
of this Section 12, Executive may then elect, in his sole discretion, which and how much of any
particular entitlement shall be eliminated or reduced and shall advise the Company in writing of
his election within ten days of the determination of the reduction in payments. If no such
election is made by Executive within such ten-day period, the Company may elect which and how much
of any entitlement shall be eliminated or reduced and shall notify Executive promptly of such
election.

(c) As a result of the uncertainty in the application of Section 280G of the Code at the time
of a determination hereunder, it is possible that payments will be made by the Company which should
not have been made under clause (a) of this Section 12 (“Overpayment”) or that additional
payments which are not made by the Company pursuant to clause (a) of this Section 12 should have
been made (“Underpayment”). In the event that there is a final determination by the
Internal Revenue Service, or a final determination by a court of competent jurisdiction, that an
Overpayment has been made, any such Overpayment shall be repaid by Executive to the Company
together with interest at the applicable Federal rate provided for in Section 7872(f)(2) of the
Code. In the event that there is a final determination by the Internal Revenue Service, a final
determination by a court of competent jurisdiction or a change in the provisions of the Code or
regulations pursuant to which an Underpayment arises, any such Underpayment shall be promptly paid
by the Company to or for the benefit of Executive, together with interest at the applicable Federal
rate provided for in Section 7872(f)(2) of the Code.

13. Successors and Assigns. This Agreement is to bind and inure to the benefit of and
be enforceable by Executive, the Company and their respective heirs, executors, personal
representatives, successors and assigns, except that neither party may assign any rights or
delegate any obligations hereunder without the prior written consent of the other party. Executive
hereby consents to the assignment by the Company of all of its rights and obligations under this
Agreement to any successor to the Company by merger or consolidation or purchase of all or
substantially all of the Company’s assets,
provided that the transferee or successor assumes the Company’s liabilities under this
Agreement by agreement in form and substance reasonably satisfactory to Executive.

 

- 14 -

 

14. Survival. Subject to any limits on applicability contained therein, Section 7
will survive and continue in full force in accordance with its terms notwithstanding any
termination of the Employment Period.

15. Choice of Law. This Agreement is to be governed by the internal law, and not the
laws of conflicts, of the State of Georgia.

16. Severability. Whenever possible, each provision of this Agreement is to be
interpreted in such manner as to be effective and valid under applicable law, but if any provision
of this Agreement is held to be invalid, illegal or unenforceable in any respect under any
applicable law or rule in any jurisdiction, that invalidity, illegality or unenforceability is not
to affect any other provision or any other jurisdiction, and this Agreement is to be reformed,
construed and enforced in the jurisdiction as if the invalid, illegal or unenforceable provision
had never been contained herein.

17. Notices. Any notice provided for in this Agreement is to be in writing and is to
be either personally delivered, sent by reputable overnight carrier or mailed by first class mail,
return receipt requested, to the recipient at the address indicated as follows:

Notices to Executive:

To the address listed in the personnel records of the Company.

Notices to the Company:

BlueLinx Corporation

4300 Wildwood Parkway

Atlanta, Georgia 30339

Attention: Legal Department

Facsimile: (770) 953-7008

or any other address or to the attention of any other person as the recipient party shall have
specified by prior written notice to the sending party. Any notice under this Agreement is to be
deemed to have been given when so delivered, sent or mailed.

18. Amendment and Waiver. The provisions of this Agreement may be amended or waived
only with the prior written consent of the Company and Executive, and no course of conduct or
failure or delay in enforcing the provisions of this Agreement is to affect the validity, binding
effect or enforceability of this Agreement.

19. Complete Agreement. This Agreement embodies the complete agreement and
understanding between the parties with respect to the subject matter hereof and effective as of its
date supersedes and preempts any prior understandings, agreements or representations by or between
the parties, written or oral, that may have related to the
subject matter hereof in any way, including, but not limited to, any prior agreements with
respect to Executive’s employment or termination of employment with the Company.

 

- 15 -

 

20. Counterparts. This Agreement may be executed in separate counterparts, each of
which are to be deemed to be an original and both of which taken together are to constitute one and
the same agreement.

The parties are signing this Agreement as of the Effective Date.

	 	 	 	 	 
	 	BLUELINX CORPORATION

 	 
	 	By:  	/s/ George R. Judd
 	 
	 	 	Name:  	George R. Judd 	 
	 	 	Title:  	President & CEO 	 
	 
	 	EXECUTIVE

 	 
	 	/s/ Ned M. Bassil
 	 
	 	NED M. BASSIL 	 
	 	 	 
	 

LIST OF UNPATENTED INVENTIONS

Executive represents that he or she has no such inventions by initialing below next to the word
“NONE.”

NONE: NEB

 

- 16 -

 

EXHIBIT A

EXECUTIVE’S DUTIES

JOB SUMMARY

Position Purpose Summary:

Executive team member, fully responsible for driving the assessment, planning and execution of plans for the Supply Chain
organization. Develops and runs the required end-to-end product supply chain capabilities in alignment with cost, customer
expectation, quality, reliability and other key company deliverables. Oversees operations and coordination between facilities
to maintain best-in-class service levels, optimized inventory management and efficiently utilized manufacturing resources.
Improves existing business systems and processes by working effectively across all functions, facilities and suppliers.
Provides direction and leadership in the continuing roll-out of the company’s articulated goals, values, vision and culture
while encouraging aggressive and prudent risk-oriented business activities by leaders and employees across the company.

KEY TASKS / RESPONSIBILITIES

	•	 	Understands the company’s vision, mission, and strategy; understands business unit objectives and sets/accomplishes
individual performance goals accordingly.

	•	 	Establishes personal credibility with the executive team and leaders throughout the organization, through a deep
understanding of the business and strategic levers.

	•	 	Partners with senior leadership team to build support for Supply Chain strategy and ensures alignment with overall
business plans.

	•	 	Develops and executes strategies and contracts to manage the Company’s spend in critical areas involving supply,
operations and maintenance.

	•	 	Oversees and improves national and international procurement strategies and optimize cost savings, delivery and
services.

	•	 	Ensures a system is in place that identifies and mitigates various supply chain risks. Ensures there is a robust
process in place to ensure the company’s supplier business practices policies are enforced.

	•	 	Establishes, measures, and monitors key metrics to evaluate the effectiveness of the Supply Chain organization.
Monitors core supply chain performance, including delivery against product and service level agreements and cost objectives.

	•	 	Leads team; selects/hires; develops objectives; coaches and evaluates performance. Ensures direct reports obtain
applicable training and development opportunities to enhance performance, development, and contributions to the company. Holds
direct reports accountable for individual and team performance. Addresses performance issues appropriately and timely.

 

- 17 -

 

EXHIBIT B

EXECUTIVE BENEFITS PACKAGE

The following benefits will be provided as for other salaried employees

Salaried 401(k) Plan

Medical and Dental Insurance

The following benefits will be provided to Mr. Bassil:

	 	•	 	Life Insurance — $800,000.00

	 
	 	•	 	Executive Annual Physical

	 
	 	•	 	Annual tax/accounting allowance — up to $3,500.00

Relocation

Household goods moved

Up to 3 months of temporary living expenses

Airfare of moving of family

Closing costs for purchase of home

 

- 18 -

 

EXHIBIT C

COMPANY’S COMPETITORS

Weyerhauser

Boise Cascade

Georgia-Pacific

Louisiana Pacific

Norbord

Beacon Roofing Supply

Huttig

Universal Forest Products

Builders Firstsource

Watsco

Interline Brands

 

- 19 -

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