Document:

Exhibit 10.17

 EXHIBIT 10.17 
 Note: 
 Amended and restated to include certain clawback provisions designed to be
consistent with the requirements of Section 954 of Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. 

LUMBER LIQUIDATORS HOLDINGS, INC. 
 Annual Bonus Plan for Executive Management 
  

	1.	PURPOSE OF THE PLAN 

 The
purposes of the Plan are to promote the success of the Company; to provide members of the executive management group of the Company with an opportunity to receive incentive compensation dependent upon that success and to attract, retain and motivate
such individuals. The Plan is intended to be a straightforward and flexible program that provides non-equity incentive compensation based upon the executive’s individual performance and the Company’s financial performance. 

 

	2.	DEFINTIONS 

Award means an incentive award made pursuant to the Plan. 

Award Formula means one or more objective formulas or standards established by the Committee for purposes of determining an
Award based on the level of performance with respect to one or more Performance Goals. Award Formulas may vary from Performance Period to Performance Period and from Participant to Participant. 

Award Schedule means the Award Schedule established pursuant to Section 4.1. 

Board means the Board of Directors of the Company. 

Committee means the Compensation Committee of the Board. 

Company means Lumber Liquidators Holdings, Inc. and its successors and direct and indirect subsidiaries. 

Participant means a member of the executive management group selected from time to time by the Committee to participate in
the Plan. 
 Performance Goal means the level of performance or matrix of levels of performance established by the
Committee as the Performance Goal with respect to a Performance Measure. A Performance Goal may be an absolute goal or a goal relative to the performance of a peer group selected by the Committee. Performance Goals may vary from Performance Period
to Performance Period and from Participant to Participant and may be established on a stand-alone basis, in tandem or in the alternative. 

 LUMBER LIQUDATORS HOLDINGS, INC. 

Annual Bonus Plan for Executive Management 
  

 Performance Measure means one or more of the following selected by the
Committee to measure Company performance for a Performance Period: (a) cash flow and/or free cash flow (before or after dividends), (b) earnings per share as defined by the Company, (c) EBITDA (as defined by the Company), (d) the
price of Common Stock, (e) return on equity, (f) total shareholder return, (g) return on capital (including return on total capital or return on invested capital), (h) return on assets or net assets, (i) market
capitalization, (j) total enterprise value (market capitalization plus debt), (k) economic value added (or equivalent metric), (l) debt leverage (debt to capital), (m) revenue, (n) income (including net income, operating
income, pre or after-tax income or income from continuing operations), (o) operating profit or net operating profit, (p) operating margin or profit margin, (q) return on operating revenue, (r) cash from operations,
(s) operating ratio, (t) cash flow per share, (u) market share (v) sales growth (on a gross or net basis), (w) expense levels, (x) store openings, (y) comparable store sales growth, and (z) performance of
non-comparable stores. Performance Measures shall be determined in accordance with generally accepted accounting principles, where applicable, as consistently applied by the Company. Performance Measures may be established on a Company-wide basis,
with respect to one or more business units, divisions or subsidiaries; and in either absolute terms or relative to the performance of one or more comparable companies or an index covering multiple companies. Performance Measures may vary from
Performance Period to Performance Period and from Participant to Participant and may be established on a stand-alone basis, in tandem or in the alternative. 
 Performance Period means the calendar year. 
 Plan
means the Lumber Liquidators Holdings, Inc. Annual Bonus Plan for Executive Management. 
  

	3.	ELIGIBILITY  

Participants shall be selected by the Committee from among the executive management group of the Company. The selection of an executive as
a Participant for a Performance Period shall not entitle such individual to be selected as a Participant with respect to any other Performance Period. Participants may be added during the course of a Performance Period, in which case any Award to
such Participant will be prorated based upon the portion of the Performance Period during which the Participant was included in the Plan. 
  

	4.	AWARDS 

 4.1 Award
Schedules. Each Performance Period, the Committee shall establish in writing an Award Schedule for each Participant. Award Schedules may vary from Performance Period to Performance Period and from Participant to Participant. 

  
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 LUMBER LIQUIDATORS HOLDINGS, INC. 

Annual Bonus Plan for Executive Management 
  

 4.2 Determination of Awards. A Participant shall be eligible
to receive payment in respect of an Award to the extent that the Performance Goal(s) for such Award are achieved in accordance with the Award Formula for the Performance Period. In addition, an Award to a Participant may also be based in part
on satisfaction of objective or subjective individual performance criteria established for the Participant. The Committee shall determine the actual amount of the Award to be paid to each Participant based upon information provided to the Committee
by Management. 
 4.3 Payment of Awards. Awards will be paid in cash. Payments shall be made as soon
as practicable after the end of the Performance Period, but in no event later than May 15 following the end of the Performance Period. 
 4.4 Termination of Employment. Except as otherwise determined by the Committee, no Award with respect to a Performance Period will be payable to any Participant who is not an employee of the
Company on the date of payment. 
 4.5 Repayment Provisions. 

4.5.1 If the Committee determines, in its sole discretion, that all or any portion of any Award issued under the Plan was earned based on
financial objectives, performance data, metrics or other information later determined by the Committee, in its sole discretion, to be inaccurate, the Participant who received such Award shall repay to the Company such portion of the Award to the
extent required by the Committee. Repayment will not be required unless the Committee has made its determinations under this Section within three (3) years of the date the Award was earned or, if later, paid. Repayment required under this
Section shall be enforced by the Board or its delegate, in the manner the Board or its delegate determines to be appropriate. A Participant’s acceptance of any Award under the Plan constitutes acceptance of the repayment provisions described in
this Section. 
 4.5.2 If the Committee determines, in its sole discretion, that a Participant, at any time, willfully engaged
in conduct that is harmful to the Company, the Participant shall repay to the Company all or any portion of any Award issued under the Plan to the extent required by the Committee. Repayment required under this Section shall be enforced by the Board
or its delegate, in the manner the Board or its delegate determines to be appropriate. A Participant’s acceptance of any Award under the Plan constitutes acceptance of the repayment provisions described in this Section. 

4.5.3 If, as a result of material non-compliance with any financial information required to be reported under securities laws, the
Company is required to prepare a restatement of its financial statements, then the Company will, with the approval of the Committee, require each Participant or former Participant who received an Award during the three fiscal year-period preceding
the date of such restatement to repay to the Company all or a portion of such Awards. The repayment amount shall equal the difference between the amount paid under the Award or Awards and the amount, if any, that would have been paid based on the
restated financial statements. The Committee shall determine and approve the amount of such forfeited or 

  
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 LUMBER LIQUIDATORS HOLDINGS, INC. 

Annual Bonus Plan for Executive Management 
  

 
repayment amount. Repayment required under this Section shall be enforced by the Board or its delegate, in the manner the Board or its delegate determines to be appropriate. A Participant’s
acceptance of any Award under the Plan constitutes acceptance of the repayment provisions described in this Section. 
 This
Section 4.5.3 is intended to comply with Section 954 of Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 and all regulations and rulemaking thereunder and should be interpreted accordingly. 

 

	5.	ADMINISTRATION 

 The
Committee shall have full and complete authority, in its sole and absolute discretion, (i) to exercise all of the powers granted to it under the Plan, (ii) to construe, interpret and implement the Plan and any related document,
(iii) to prescribe, amend and rescind rules relating to the Plan, (iv) to make all determinations necessary or advisable in administering the Plan, and (v) to correct any defect, supply any omission and reconcile any inconsistency in
the Plan. 
  

	6.	MISCELLANEOUS 

 6.1
Withholding Taxes. Whenever payments under the Plan are to be made or deferred, the Company will withhold therefrom, or from any other amounts payable to or in respect of the Participant, an amount sufficient to satisfy any applicable
governmental withholding tax requirements related thereto. 
 6.2 Amendment or Termination of the Plan. The
Committee may, at any time, amend or discontinue the Plan in any respect. 
 6.3 Unfunded Plan. Nothing in this
Plan will require the Company to purchase assets or place assets in a trust or other entity to which contributions are made or otherwise to segregate any assets for the purpose of satisfying any obligations under the Plan. Participants will have no
rights under the Plan other than as unsecured general creditors of the Company. 
 6.4 No Right of Employment.
Nothing in this Plan will be construed as creating any contract of employment or conferring upon any Participant any right to continue in the employ or other service of the Company or limit in any way the right of the Company to change such
person’s compensation or other benefits or to terminate the employment or other service of such person with or without cause and with or without notice. 
 6.5 Applicable Law. The Plan and all Awards and actions taken thereunder shall be governed by the laws of the Commonwealth of Virginia, applied without regard to conflict-of-law principles.

  
 4Exhibit 10.18

 EXHIBIT 10.18 

 

			
	

	 	 3000 John Deere Road, Toano, VA 23168
 Phone: (757) 259-4280. — Fax (757) 259-7293

www.lumberliquidators.com
  

	 	 

                    ,
             
 [Name] 

[Street] 
 [City, State] 

Dear [Name]: 
 Lumber
Liquidators Holdings, Inc. (the “Company”) has designated you to be a recipient of a non-statutory stock option to purchase shares of the common stock of the Company, par value $.001 per share (“Stock”), subject to the
employment-based vesting restrictions and other terms set forth in this Award Agreement and in the Lumber Liquidators Holdings, Inc. 2011 Equity Compensation Plan (the “Plan”). 

The grant of this stock option is made pursuant to the Plan. The Plan is administered by the Compensation Committee (the
“Committee”) of the Company’s Board of Directors (the “Board”). The terms of the Plan are incorporated into this Award Agreement and in the case of any conflict between the Plan and this Award Agreement, the terms of the
Plan shall control. A copy of the Plan will be provided to you upon request. 
 1. Grant. In consideration of your
agreements contained in this Award Agreement, the Company hereby grants to you a non-statutory option (“NSO”) to purchase from the Company             shares of common
stock of the Company (the “Company Stock”) at $        per share. The exercise price of the NSO is equal to the closing price of the Company Stock on the New York Stock Exchange on
[                    ] (the “Grant Date”), the date on which the Committee met and approved the granting of the NSO award.

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

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

			
	Vesting Date	  	 Number of Shares That May Be Exercised

(Vested Portion of NSO)

		
	  	  	 
		
	  	  	 

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

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

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

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

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

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

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

  
 3 

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

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

 13. Acceptance of NSO. This Award Agreement deals only with the NSO you have been granted and not its exercise. Your
acceptance of the NSO, which shall be deemed to take place when you sign this Award Agreement, places no obligation or commitment on you to exercise the NSO. By signing this Award Agreement, you indicate your acceptance of the NSO and your agreement
to the terms and conditions set forth in this Award Agreement, which, together with the terms of the Plan, shall become the Company’s Stock Option Agreement with you. You also hereby acknowledge that a copy of the Plan has been made available
and agree to all of the terms and conditions of the Plan, as it may be amended from time to time. Unless the Company otherwise agrees in writing, the NSO reflected in this Award Agreement will not be exercisable as a Stock Option Agreement if you do
not accept this Award Agreement within thirty days of the Grant Date. 
 14. Clawback. If, as a result of material
non-compliance with any financial information required to be reported under securities laws, the Company is required to prepare a restatement of its financial statements, then you will, with the approval of the Committee, forfeit or repay the
proceeds of all or a portion of the Award under this Agreement if it was awarded within the three fiscal year-period preceding the date of such restatement. The forfeited or repayment amount shall equal the difference between the Award reflected in
this Agreement and the amount, if any, that would have been granted based on the restated financial statements. The Committee shall determine and approve the amount of such forfeited or repayment amount. Repayment required under this Section shall
be enforced by the Board or its delegate, in the manner the Board or its delegate determines to be appropriate. Your acceptance of the Award reflected in this Award Agreement constitutes acceptance of the repayment provisions described in this
Section. 
 This Section 14 is intended to comply with Section 954 of Dodd-Frank Wall Street Reform and Consumer
Protection Act of 2010 and all regulations and rulemaking thereunder and should be interpreted accordingly. 
 [SIGNATURE PAGE
FOLLOWS] 

  
 4 

 IN WITNESS WHEREOF, the Company has caused this Stock Option Agreement to be signed, as of
this          date of                     ,
            . 
  

			
	LUMBER LIQUIDATORS HOLDINGS, INC.
		
	By:	 	  

	Name:	 	  

	Its:	 	  

  

	
	Agreed and Accepted:
	
	  

	[Name of Grant Recipient]
	
	  

	[Date]

  
 5

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