Document:

Exhibit
10.20

 

SEPARATION AGREEMENT AND GENERAL
RELEASE OF ALL CLAIMS

 

This Separation Agreement
and General Release of all Claims (the “Agreement”) is entered into by
and between Interline Brands, Inc. (the “Company”) and Charles
Blackmon (the “Executive”) and is dated as of March 17, 2005 (the “Effective
Date”).

 

In consideration of the
promises set forth in the Agreement, the Executive and the Company (the “Parties”)
hereby agree as follows:

 

1.                                       Entire
Agreement.

 

The Agreement is the entire agreement between the Parties with respect
to the subject matter hereof and contains all agreements, whether written,
oral, express or implied, between the Parties relating thereto and supersedes
and extinguishes any other agreement relating thereto, whether written, oral,
express or implied, between the Parties, including, without limitation, the
Employment Agreement between the Parties, dated as of June 18, 2004 (the “Employment
Agreement”); provided  however, that those certain
Nonqualified Stock Option Agreements entered into by and between the Company
and the Executive, dated December 16, 2004 (the “Option Agreements”)
are hereby explicitly preserved without any amendment or modification
thereto.  Other than the Agreement and
the Option Agreements, there are no agreements of any nature whatsoever between
the Executive and the Company that survive the Agreement.  The Agreement may not be modified or amended,
nor may any rights under it be waived, except in a writing signed and agreed to
by the Parties.

 

2.                                       Termination
of Employment.

 

The Executive and the Company hereby agree that Executive’s employment
and any and all appointments he holds with the Company and any of its
affiliates or subsidiaries (collectively, the “Company Group”), whether
as officer, director, employee, consultant, fiduciary, agent or otherwise shall
cease as of March 17, 2005 (the “Termination Date”).  Effective as of the Termination Date, the
Executive shall have no authority to act on behalf of the Company or any other
member of the Company Group, and shall not hold himself out as having such
authority or otherwise act in an executive or other decision making capacity.

 

3.                                       Entitlements.

 

In consideration for the
Executive’s entering into the Agreement, the Company will provide the Executive
with the following:

 

A.                                   Benefits
Generally. As of and after the Termination Date, the Executive shall no
longer participate in, accrue service credit or have contributions made on his
behalf under any employee benefit plan sponsored by the Company or any other member
of the Company Group in respect of periods commencing on and following the
Termination Date, including without limitation, any plan which is intended to
qualify under Section 401(a) of the Internal Revenue Code of 1986, as
amended.  The Executive shall be entitled
to all benefits accrued up to the Termination Date, to the extent vested, under
all employee benefit plans of the Company, in accordance with the terms of such
plans.

 

 

B.                                     Company
Paid COBRA Premiums.

 

The Company understands
that the Executive intends to elect, as soon as practicable following the
Termination Date, to continue medical coverage in accordance with the
Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”)
and the Company will provide, or cause to be provided, to the Executive all the
necessary and appropriate forms for the Executive to make such election to the
Executive’s home at 155 Violet Place, Eufaula, Alabama 36027.  Coincident with the receipt of the Executive’s
completed election forms, the Company shall pay the COBRA premiums (including
with respect to medical, dental and prescription drug coverage) on behalf of
the Executive and his covered dependents for the period commencing on the
Termination Date and ending on the earlier of (i) March 31, 2006 or (ii) the
date the Executive is eligible for substantially similar coverage from another
employer and provided the Executive agrees that he shall undertake a reasonable
effort to procure such coverage when eligible.

 

C.                                     Severance.

 

The Executive shall be
entitled to receive severance payments totaling $67,500 (the “Severance Pay”).  On the Company’s first regularly scheduled
payroll date following the eighth (8th) day following the execution of the
Agreement and provided the Executive has not revoked the Agreement pursuant to Section 8E
hereof, payment of the Severance Pay shall commence and shall continue in equal
installments in accordance with the Company’s regular payroll practices such
that the last payment shall be made no later than September 30, 2005.

 

D.                                    Vacation.

 

As soon as practicable
following the Termination Date, the Executive shall be paid a lump sum in cash
equal to $15,200 which amount is equal to all of the Executive’s unused but
accrued vacation accrued through the Termination Date in accordance with the
Company’s regular policies.

 

4.                                       Return
of Company Property.

 

No later than the seventh business day following the Termination Date,
the Executive shall return to the Company all originals and copies of papers,
notes and documents (in any medium, including computer disks), whether property
of any member of the Company Group or not, prepared, received or obtained by
the Executive during the course of, and in connection with, his employment with
the Company or any member of the Company Group, and all equipment and property
of any member of the Company Group which may be in the Executive’s possession
or under his control, whether at the Company’s offices, the Executive’s home or
elsewhere, including all such papers, work papers, notes, documents and
equipment in the possession of the Executive. 
The Executive agrees that he and his family shall not retain copies of
any such papers, work papers, notes and documents.  Notwithstanding the foregoing, the Executive
may retain copies of any employment, compensation, benefits or shareholders
agreements between the Executive and the Company, the Agreement and any
employee benefit plan materials distributed generally to participants in any
such plan by the Company.  In addition,
as soon as practicable following the Termination Date, the Company shall permit
the

 

2

 

Executive access to the office the Executive occupied
immediately prior to the Termination Date so that the Executive may remove his
personal belongings and personal files which include files the Executive has
maintained on the Company’s computer system and the Executive shall be
permitted to copy and/or remove such files; provided that such files do
not contain any material confidential information regarding the Company.  In addition, the Company acknowledges that
the Executive may retain copies (electronically or in hard copy) of his files
related to Concurrent Computer Corporation and his electronic or hard copy
rolodex.  On the Termination Date, all
telephone and other accounts being paid by the Company on the Executive’s
behalf shall be terminated and company credit cards, if any, shall be returned
to the Company and canceled.

 

5.                                       Confidentiality.

 

A.                                   The
Executive acknowledges and agrees that all memoranda, notes, records and other
materials made or compiled by the Executive, or made available to him, in
connection with, and during his employment by, the Company remain the sole and
exclusive property of the Company.  The
Executive acknowledges and agrees that all confidential information acquired
about any member of the Company Group and each of their officers, directors,
employees and agents, and all material reflecting such confidential
information, is highly confidential and that disclosure of such information or
material could cause serious and irreparable injury to the Company.  The Executive agrees that he will not
hereafter disclose any such information or make any such material available to
anyone without the written consent of the Company, whether or not such
information subsequently becomes publicly known, other than as required
pursuant to an order of a court, governmental agency or other authorized
tribunal; provided that upon receipt of such an order, the Executive shall
promptly notify the Company thereof and, at the request of the Company and at
the Company’s expense, the Executive shall assist the Company in obtaining a
protective or similar order in respect of such confidential information.

 

B.                                     The
Executive hereby further agrees that he will not directly or indirectly
disclose, discuss or disseminate, be the source of or otherwise publish or
communicate in any manner to any person or entity any confidential information
concerning the personal, social or business activities of the Company Group or
any of its officers, directors, employees and agents, other than as required
pursuant to an order of a court, government agency or other authorized
tribunal; provided that upon receipt of such an order, the Executive shall
promptly notify the Company thereof and, at the request of the Company and at
the Company’s expense, the Executive shall assist the Company in obtaining a
protective or similar order in respect of such confidential information.  The Company on behalf of its Board of Directors
(the “Board”), and senior most executives agrees not to directly or
indirectly disclose, discuss or disseminate, be the source of or otherwise
publish or communicate in any manner to any person or entity any confidential
information concerning the personal, social or business activities of the
Executive, other than as required by applicable law as determined in good faith
by the Company or its counsel.

 

6.                                       Non-Competition.

 

A.                                   The
Executive acknowledges and recognizes the highly competitive nature of the
businesses of the Company and the other members of the Company Group, the
valuable confidential business information in such Executive’s possession and
the customer goodwill

 

3

 

associated with the ongoing business practice of the Company, and
accordingly agrees as follows:

 

(i)                                     For a period beginning on the Effective Date
and ending on the expiration of one year following the Termination Date (the “Restricted
Period”), the Executive will not directly or indirectly, (i) engage in
any business for the Executive’s own account that competes with the business of
the Company, (ii) enter the employ of, or render any services to, any
person engaged in any business that competes with the business of the Company, (iii) acquire
a financial interest in, or otherwise become actively involved with, any person
engaged in any business that competes with the business of the Company,
directly or indirectly, as an individual, partner, shareholder, officer,
director, principal, agent, trustee or consultant, or (iv) interfere with
business relationships (whether formed before or after the date of this
Agreement) between any member of the Company Group and customers or suppliers
of the Company Group.

 

(ii)                                  Notwithstanding anything to the contrary in
this Agreement, the Executive may directly or indirectly own, solely as a
passive investment, securities of any person engaged in the business of the
Company which are publicly traded on a national or regional stock exchange or
on the over-the-counter market if the Executive (A) is not a controlling
person of, or a member of a group which controls, such person and (B) does
not, directly or indirectly, own one percent (1%) or more of any class of
securities of such person.

 

(iii)                               During the Restricted Period, the Executive
will not, directly or indirectly, (A) without the written consent of the
Company, solicit or encourage any employee of the Company or any member of the
Company Group to leave the employment of the Company or the Company
Group, or (B) without the written consent of the Company
(which shall not be unreasonably withheld), hire any such employee who has left
the employment of the Company or any other member of the Company Group (other
than as a result of the termination of such employment by the Company Group
within one year after the termination of such employee’s employment with the
Company or any other member of the Company Group).

 

(iv)                              During the Restricted Period, the Executive
will not, directly or indirectly, solicit or
encourage to cease to work with any member of the Company Group any consultant
then under contract with the Company or any other member of the Company Group.

 

It is expressly
understood and agreed that although the Executive and the Company consider the
restrictions contained in this Section 6 to be reasonable, if a final
judicial determination is made by a court of competent jurisdiction that the
time or territory or any other restriction contained in this Agreement is an
unenforceable restriction against the Executive, the provisions of this
Agreement shall not be rendered void but shall be deemed amended to apply as to
such maximum time and territory and to such maximum extent as such court may
judicially determine or indicate to be enforceable. Alternatively, if any court
of competent jurisdiction finds that any restriction contained in this
Agreement is unenforceable, and such restriction cannot be amended so as to
make it enforceable, such finding shall not affect the enforceability of any of
the other restrictions contained herein.

 

4

 

7.                                       Nondisparagement
and Cooperation.

 

A.                                   The
Executive hereby agrees not to defame, disparage or criticize any member of the
Company Group or any of their products, services, finances, financial
condition, capabilities or other aspect of or any of their business, or any
former or existing employees, managers, directors, officers or agents of, or
contracting parties with, any member of the Company Group in any medium to any
person or entity without limitation in time. 
Notwithstanding this provision, the Executive may confer in confidence
with his legal representative and make truthful statements as required by law.  The Company agrees to instruct the members of
the Board and its senior executive officers not to defame, disparage or
criticize the Executive in any medium to any person or entity without
limitation in time.

 

B.                                     The
Executive shall continue to make himself available at reasonable times, so as
not to unreasonably interfere with his ongoing business activities, to the
Company Group and to advise the Company Group, at their request, about disputes
with third parties as to which the Executive has knowledge, and, the Executive
agrees to cooperate fully with the Company Group in connection with litigation,
arbitration and similar proceedings (collectively “Dispute Proceedings”)
and to provide testimony with respect to the Executive’s knowledge in any such
Dispute Proceedings involving the Company and or any member of the Company
Group.  In the event that the Executive
is requested by the Company or the Company Group to cooperate as required in
this Section 7B, the Company shall (i) compensate the Executive at a
rate of $1,000 per day and (ii) reimburse the Executive for his reasonable
out-of-pocket travel and lodging expenses.

 

8.                                       Acknowledgment
and Release. 

 

A.                                   In
consideration of the Company’s execution of the Agreement, and except with
respect to the Company’s obligations arising under or preserved in the
Agreement and the Option Agreements, the Executive, for and on behalf of
himself and his heirs and assigns, hereby waives and releases any common law,
statutory or other complaints, claims, charges or causes of action arising out
of or relating to the Executive’s employment or termination of employment with,
or his serving in any capacity in respect of, any member of the Company Group,
both known and unknown, in law or in equity, which the Executive may now have
or ever had against any member of the Company Group or any shareholder,
employee, director or officer of any member of the Company Group (collectively,
the “Releasees”), including, without limitation, any claim for any
severance benefit which but for the Agreement might have been due the Executive
under any previous agreement, including the Employment Agreement, executed by
and between any member of the Company Group and the Executive, and any
complaint, charge or cause of action arising out of his employment with the
Company Group under the Age Discrimination in Employment Act of 1967 (“ADEA,”
a law which prohibits discrimination on the basis of age), the National Labor
Relations Act, the Civil Rights Act of 1991, the Americans With Disabilities
Act of 1990, Title VII of the Civil Rights Act of 1964, the Employee
Retirement Income Security Act of 1974, all as amended; and all other federal,
state and local laws.  By signing the
Agreement the Executive acknowledges that he intends to waive and release any
rights known or unknown he may have against the Releasees under these and any
other laws; provided, that the Executive does not waive or release
claims with respect to the right to enforce the Agreement.

 

5

 

B.                                     The
Executive acknowledges that he has not filed any complaint, charge, claim or
proceeding against any of the Releasees before any local, state or federal
agency, court or other body relating to his employment or the resignation
thereof (each individually a “Proceeding”).  The Executive represents that he is not aware
of any basis on which such a Proceeding could reasonably be instituted.

 

C.                                     The
Executive (i) acknowledges that he will not initiate or cause to be
initiated on his behalf any Proceeding and will not participate in any
Proceeding, in each case, except as required by law; and (ii) waives any
right he may have to benefit in any manner from any relief (whether monetary or
otherwise) arising out of any Proceeding, including any Proceeding conducted by
the Equal Employment Opportunity Commission (“EEOC”).  Further, the Executive understands that by
entering into the Agreement, he will be limiting the availability of certain
remedies that he may have against the Company and also limiting his ability to
pursue certain claims against the Releasees. 
Notwithstanding the above, nothing in this Section 8 shall prevent
the Executive from (i) initiating or causing to be initiated on his behalf
any complaint, charge, claim or proceeding against the Company before any
local, state or federal agency, court or other body challenging the validity of
the waiver of his claims under ADEA contained in Section 8 of the
Agreement (but no other portion of such waiver); or (ii) initiating or
participating in an investigation or proceeding conducted by the EEOC with
respect to ADEA.

 

D.                                    The
Executive acknowledges that he has been given twenty-one (21) days from the
date of receipt of the Agreement to consider all the provisions of the
Agreement and he does hereby knowingly and voluntarily waive said given
twenty-one day period.  THE EXECUTIVE FURTHER ACKNOWLEDGES THAT HE HAS READ THE AGREEMENT
CAREFULLY, HAS BEEN ADVISED BY THE COMPANY TO CONSULT AN ATTORNEY, AND FULLY
UNDERSTANDS THAT BY SIGNING BELOW HE IS GIVING UP CERTAIN RIGHTS WHICH HE MAY HAVE
TO SUE OR ASSERT A CLAIM AGAINST ANY OF THE RELEASEES, AS DESCRIBED IN THIS SECTION 8
AND THE OTHER PROVISIONS HEREOF.  THE
EXECUTIVE ACKNOWLEDGES THAT HE HAS NOT BEEN FORCED OR PRESSURED IN ANY MANNER
WHATSOEVER TO SIGN THE AGREEMENT AND THE EXECUTIVE AGREES TO ALL OF ITS TERMS
VOLUNTARILY.

 

E.                                      The
Executive shall have seven days from the date of his execution of the Agreement
to revoke the Agreement, including the release given under this Section 8
with respect to all claims referred to herein (including, without limitation,
any and all claims arising under ADEA). 
If the Executive revokes the Agreement including, without limitation,
the release given under this Section 8, the Executive will be deemed not
to have accepted the terms of the Agreement, including any action required of
the Company by any Section of the Agreement.

 

F.                                      Notwithstanding
the foregoing, the Executive does not release, discharge or waive any rights to
indemnification that he may have under the By-Laws of the Company, the laws of
the State of Delaware, any indemnification agreement between the Executive and
the Company or any insurance coverage maintained by or on behalf of the
Company.

 

G.                                     Except
as expressly set forth in this Agreement, the Company on behalf of itself and
the members of the Company Group hereby release, remise and acquit the
Executive and his

 

6

 

successors, assigns, heirs and advisers (collectively, the “Executive
Releasees”), jointly and severally, from (i) any and all claims, known
or unknown, which the Company Group has or may have against any of such
Executive Releasees based upon any matter or thing occurring on or prior to the
date of this Agreement; and (ii) any and all liabilities which any of such
Executive Releasees may have to the Company Group arising from or relating to:
the Executive’s employment relationship with or services in any and all
capacities to the Company Group (collectively “Company Claims”).  The Company Group further agrees that neither
the Company nor any member of the Company Group will file or permit to be filed
any such claim.  Notwithstanding the
foregoing, this Section 8G (the Company Group Release) shall not apply to
any Company Claim that the Company Group may have against any of the Executive
Releasees: (i) for the performance by the Executive of his agreements and
other obligations under this Agreement; or (ii) as a result of any
criminal conduct, including any act of fraud, theft or violation of any
governmental regulations or law, committed by the Executive that, individually
or in the aggregate, results, or in the good faith judgment of the Board could
result in material monetary damage to the Company or any member of the Company
Group.

 

9.                                       Availability
of Relief.

 

A.                                   In
the event that the Executive fails to abide by any of the terms of the
Agreement, the Company may, in addition to any other remedies it may have,
terminate any benefits or payments that are subsequently due under the
Agreement, without waiving the release granted herein.

 

B.                                     The
Executive acknowledges and agrees that the remedy at law available to the
Company for breach of any of his post-termination obligations under the
Agreement, including but not limited to his obligations under Sections 5, 6 and
7 of the Agreement, would be inadequate and that damages flowing from such a
breach may not readily be susceptible to being measured in monetary terms.  Accordingly, the Executive acknowledges,
consents and agrees that, in addition to any other rights or remedies which the
Company may have at law, in equity or under the Agreement, upon adequate proof
of his violation of any such provision of the Agreement, the Company shall be
entitled to immediate injunctive relief and may obtain a temporary order
restraining any threatened or further breach, without the necessity of proof of
actual damage and without the requirement of posting a bond.

 

10.                                 Miscellaneous.

 

A.                                   Notices.  Any notice given pursuant to the Agreement to
any party hereto shall be deemed to have been duly given when mailed by
registered or certified mail, return receipt requested, or by overnight
courier, or when hand delivered as follows:

 

If to the Company:

 

Interline Brands, Inc.

801 W Bay Street 

Jacksonville, Florida 
32204

Attention:                 Laurence Howard, Esq.

General Counsel

 

7

 

with a copy to:

 

Paul, Weiss, Rifkind, Wharton & Garrison LLP

1285 Avenue of the Americas

New York, New York 
10019-6064

Attention:                 John Kennedy

 

If to the Executive, to:

 

Mr. Charles Blackmon

155 Violet Place

Eufaula, Alabama 
36027

 

or at such other address as either party shall from time to time
designate by written notice, in the manner provided herein, to the other party
hereto.  The Company agrees that, in
connection with the execution of this Agreement, it will update its books and
records to reflect the above-referenced address as the Executive’s address for
all purposes.

 

B.                                     Successors.  The Agreement shall be binding upon and inure
to the benefit of the Parties, their respective heirs, successors and assigns.

 

C.                                     Taxes.  The Executive shall be responsible for the
payment of any and all required federal, state, local and foreign taxes
incurred, or to be incurred, in connection with any amounts payable to the
Executive under the Agreement. 
Notwithstanding any other provision of the Agreement, the Company may
withhold from amounts payable under the Agreement all federal, state, local and
foreign taxes, including without limitation any applicable employment taxes
that are required to be withheld by applicable laws and regulations.

 

D.                                    Severability.  In the event that any provision of the
Agreement is determined to be invalid or unenforceable, the remaining terms and
conditions of the Agreement shall be unaffected and shall remain in full force
and effect.  In addition, if any
provision is determined to be invalid or unenforceable due to its duration
and/or scope, the duration and/or scope of such provision, as the case may be,
shall be reduced, such reduction shall be to the smallest extent necessary to
comply with applicable law, and such provision shall be enforceable, in its
reduced form, to the fullest extent permitted by applicable law.

 

E.                                      Non-Admission.  Nothing contained in the Agreement shall be
deemed or construed as an admission of wrongdoing or liability on the part of
the Executive or on the part of the Company.

 

F.                                      No
Mitigation.  The Executive shall not
be required to mitigate the amount of any payment provided for pursuant to the
Agreement by seeking other employment and, to the extent that the Executive
obtains or undertakes other employment, the payment will not be reduced by the
earnings of the Executive from the other employment.

 

8

 

G.                                     Governing
Law/Venue.  The Agreement shall be
governed by, and construed in accordance with the internal laws of the State of
Florida, without regard to principles of conflicts of laws.

 

H.                                    Counterparts.  The Agreement may be executed by one or more
of the Parties hereto on any number of separate counterparts and all such
counterparts shall be deemed to be one and the same instrument.  Each party hereto confirms that any facsimile
copy of such party’s executed counterpart of the Agreement (or its signature page thereof)
shall be deemed to be an executed original thereof.

 

[REMAINDER OF THE PAGE LEFT
INTENTIONALLY BLANK]

 

9

 

IN WITNESS WHEREOF, the
undersigned have executed the Agreement on the date first written above.

 

 

	
   

  	
  INTERLINE BRANDS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
     /s/ Michael J. Grebe

  	
   

  
	
   

  	
  Title:

  	
  President and Chief Executive Officer

  	
   

  	
   

  
	
   

  	
  Date:

  	
  03/17/2005

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
       /s/ Charles Blackmon

  	
   

  
	
   

  	
  CHARLES BLACKMON

  
	
   

  	
   

  	
   

  
	
   

  	
  Date:

  	
  03/17/2005

  	
   

  	
   

  
						

 

10Exhibit 10.34

 

AMENDED AND
RESTATED EMPLOYMENT AGREEMENT

 

THIS AMENDED AND RESTATED
EMPLOYMENT AGREEMENT (the “Agreement”) is effective as of May 12,
2004 by and between Interline Brands, Inc., a New Jersey corporation
(f/k/a Wilmar Industries, Inc.) (the “Company”) and Thomas J.
Tossavainen (the “Executive”).

 

WHEREAS, the Executive and
the Company entered into an Agreement of Confidentiality and Covenant Not to
Compete, dated as of July 11, 2001(the “Original Agreement”);

 

WHEREAS, the Company
considers it essential to its best interests and the best interests of its
stockholders to provide for the continued employment of the Executive by the
Company in view of the Company’s anticipated hiring of a new Chief Financial
Officer (the “CFO”); and

 

WHEREAS, the Executive is
willing to accept and continue his employment on the terms hereinafter set
forth in this Agreement;

 

NOW, THEREFORE, in
consideration of the premises and mutual covenants herein and for other good
and valuable consideration and intending to be legally bound hereby, the
parties agree as follows:

 

1.                                  Term of Employment. The Executive’s term of employment with the
Company under this Agreement shall begin on the effective date hereof, and
unless sooner terminated as hereafter provided, shall continue for two (2) years
from such effective date (the “Initial Term”); provided that the
term of employment shall automatically be extended for successive one-year
periods (the Initial Term plus any additional extension terms shall be the “Employment
Term”), unless either party gives ninety (90) days prior written notice of
such party’s intention not to renew the Employment Term.

 

2.                                  Position.

 

(a)                                  The Executive shall serve as Vice President
of Finance & Treasurer of the Company. In such position, the Executive
shall have such duties and authority as are customarily associated with such
position and agrees to perform such duties and functions as shall from time to
time be assigned or delegated to him by the CFO of the Company or his designee.

 

(b)                                 During the Employment Term, the Executive
will devote substantially all of his business time and best efforts to the
performance of his duties hereunder and will not engage in any other business,
profession or occupation for compensation or otherwise which would conflict
with the rendition of such services, either directly or indirectly, without the
prior written consent of the Company.

 

 

3.                                  Base Salary. During the Employment Term, the Company shall pay the Executive an
annual base salary (the “Base Salary”) at the annual rate of $149,268,
payable in regular installments in accordance with the Company’s usual payroll
practices. Such base salary may, at the sole discretion of the Company, be
upwardly adjusted.

 

4.                                  Bonus. With respect to each calendar year during the Employment Term, the
Executive shall be eligible to earn an annual bonus award of up to forty
percent (40%) of the Base Salary (the “Maximum Bonus”), based upon bonus
plans to be established and determined by the Company from time to time.

 

5.                                  Employee Benefits and Perquisites. During the Employment Term, the Executive
shall be eligible to participate in the Company’s employee benefit plans
(including, without limitation, its health insurance and short term and long
term disability insurance plans) on the same basis as those benefits are
generally made available to other executives of the Company. All of the
benefits described in this Section 5 shall hereafter be referred to collectively
as the “Benefits”.

 

6.                                  Business Expenses. During the Employment Term, reasonable
business expenses incurred by Executive in the performance of his duties
hereunder shall be reimbursed by the Company in accordance with the Company’s
policies on expense reimbursement in effect from time to time.

 

7.                                  Housing Allowance. During the Employment Term, as long as the Executive
shall maintain his primary residence in the Jacksonville, Florida metropolitan
area, the Company shall pay the Executive a housing allowance at an annual rate
of $24,000, payable in regular installments in accordance with the Company’s
usual payroll practices.

 

8.                                  Termination. Notwithstanding any other provision of this Agreement:

 

(a)                           For Cause by the Company. The Employment Term and the Executive’s
employment hereunder may be terminated by the Company for “Cause.” For purposes
of this Agreement, “Cause” shall mean (i) the Executive’s gross
neglect of, or willful and continued failure to substantially perform, his
duties hereunder (other than as a result of total or partial incapacity due to
physical or mental illness), (ii) a willful act by the Executive against the
interests of the Company or which causes or is intended to cause harm to the
Company or its stockholders, (iii) the Executive’s conviction, or plea of
no contest or guilty, to a felony under the laws of the United States or any
state thereof or of a lesser offense involving dishonesty, the theft of Company
property or moral turpitude, or (iv) a material breach of the Agreement by
the Executive which is not cured by the Executive within twenty (20) days (where
the breach is curable) following written notice to the Executive by the Company
of the nature of the breach. Upon termination of the Executive’s employment for
Cause pursuant to this Section 8(a), the Executive shall be paid (i) any
accrued and unpaid Base Salary, Benefits and Housing Allowance through the date
of termination and shall have no additional rights to any compensation or any other
benefits under this Agreement or otherwise.

 

(b)                          Disability or Death. The Employment Term and the Executive’s employment
hereunder shall terminate upon his death or if the Executive is unable for an

 

2

 

aggregate of six (6) months
in any twelve (12) consecutive month period to perform his duties due to the
Executive’s physical or mental incapacity, as reasonably determined by the
Company (such incapacity is hereinafter referred to as “Disability”).
Upon termination of the Executive’s employment hereunder for either Disability
or death, the Executive or his estate (as the case may be) shall be entitled to
receive (i) any accrued and unpaid Base Salary, Benefits and Housing
Allowance and (ii) a bonus for the calendar year in which termination
occurs, equal to the bonus which the Executive would have been entitled to if
he had remained employed by the Company at the end of such calendar year,
multiplied by a fraction, the numerator of which is the number of days in such
calendar year preceding the date of death or termination of employment and the
denominator of which is 365 (a “Pro Rata Bonus”), payable when bonuses
for such calendar year are paid to other employees of the Company. Upon
termination of the Executive’s employment due to Disability or death pursuant
to this Section 8(b), the Executive shall have no additional rights to any
compensation or any other benefits under this Agreement. All other benefits, if
any, due the Executive following his termination for Disability or death shall
be determined in accordance with the plans, policies and practices of the Company.

 

(c)                          Without Cause by the Company. The Employment Term and the Executive’s
employment hereunder may be terminated by the Company without Cause. If the Executive’s
employment is terminated by the Company without Cause (other than by reason of Disability
or death) the Executive shall be entitled to receive (i) any accrued and
unpaid Base Salary, Benefits and Housing Allowance, (ii) Severance
Payments, as defined below, for the Severance Period, as defined below, (iii) a
Pro Rata Bonus, payable when bonuses for the applicable calendar year are paid
to other employees of the Company, and (iv) the Relocation Allowance. Upon
termination of Executive’s employment by the Company without Cause pursuant to
this Section 8(c), Executive shall have no additional rights to any
compensation or any other benefits under this Agreement. All other benefits, if
any, due Executive following Executive’s termination of employment by the
Company without Cause shall be determined in accordance with the plans,
policies and practices of the Company.

 

(d)                         Voluntary Termination by Executive. The Executive shall provide the Company
ninety (60) days’ advance written notice in the event the Executive terminates
his employment other than for Good Reason (as hereinafter defined); provided
that the Company may, in its sole discretion, terminate the Executive’s
employment with the Company prior to the expiration of the ninety-day notice
period. In such event and upon the expiration of such sixty-day period (or such
shorter time as the Company in its sole discretion may determine), the Executive’s
employment under this Agreement shall immediately and automatically terminate, and
the Executive shall be entitled to receive (i) any accrued and unpaid Base
Salary and Housing Allowance, (ii) the Relocation Allowance, and (iii) if
the Executive has terminated his employment during the Initial Term (but not
otherwise), Severance Payments for the shorter of the periods of (x) one year
after the date of termination or (y) the remainder of the Initial Term; provided
that notwithstanding anything to the contrary in this Section 8(d), the
Executive shall be entitled to Severance Payments set forth in the foregoing
clause (iii) only if (x) the effective date of the Executive’s termination
is not less than six (6) months after the new CFO’s commencement of
employment with the Company and (y) the Executive has given sixty (60) days
advance written notice of his termination (and, if requested by the Company,
has continued to fulfill his duties during such ninety-day period.)

 

3

 

(e)                          Termination for Good Reason. The Executive may terminate his employment
hereunder for “Good Reason” at any time during the Employment Term. For purposes
of the Agreement, “Good Reason” shall mean (i) a material breach of
the terms of this Agreement by the Company, (ii) the Company requiring the
Executive to move his primary place of employment more than thirty-five (35)
miles from the then current place of employment, if such move materially
increases his commute, or (iii) a material diminution of the Executive’s responsibilities
as such responsibilities are constituted after hiring of the new CFO, and where
any diminution of duties resulting from the hiring of the new CFO and the
consequential expansion of the CFO’s duties shall not constitute a material
diminution, provided that any of the foregoing is not cured by the
Company within twenty (20) days following receipt of written notice by the
Executive to the Company of the specific nature of the breach. No termination
for Good Reason shall be permitted unless the Company shall have first received
written notice from the Executive describing the basis of such termination for
Good Reason. A termination of the Executive’s employment for Good Reason
pursuant to this Section 8(e) shall be treated for purposes of this
Agreement as a termination by the Company without Cause and the provisions of Section 8(c) relating
to the payment of compensation and benefits shall apply.

 

(f)                            Benefits/Release. In addition to any amounts which may be payable
following a termination of employment pursuant to one of the paragraphs of this
Section 8, the Executive or his beneficiaries shall be entitled to receive
any benefits that may be provided for under the terms of an employee benefit
plan in which the Executive is participating at the time of termination.
Notwithstanding any other provision of this Agreement to the contrary, the Executive
acknowledges and agrees that any and all payments, other than the payment of
any accrued and unpaid Base Salary, Benefits and Housing Allowance, to which
the Executive is entitled under this Section 8 are conditioned upon and
subject to the Executive’s execution of a general waiver and release, in such
form as may be prepared by the Company’s attorneys, of all claims and issues
arising under the Employment Agreement, except for such matters covered by provisions
of this Agreement which expressly survive the termination of this Agreement.

 

(g)                         Except as provided in this Section 8, the
Company shall have no further obligation or liability under this Agreement
following a termination of employment by the Executive.

 

(h)                         Notice of Termination. Any purported termination of employment by
the Company or by the Executive shall be communicated by written notice of
termination to the other party hereto in accordance with Section 13(h) hereof.

 

(i)                              Definitions. As used herein, “Severance Payments” means payments made equal
to the sum of the Executive’s Base Salary and Housing Allowance, payable in
regular installments in accordance with the Company’s usual payroll practices. “Severance
Period” means (i) in the case of a termination of the Executive’s
employment by the Company without Cause during the Initial Term, a period of
time commencing on the date of termination and ending on the earlier of (x) January 1,
2007 and (y) the date two (2) years after the date of termination; or (ii) in
all other cases where Severance Payments are to be made, a period of time
commencing on the date of termination of the Executive’s employment and ending
one year after such date. “Relocation Allowance” means an amount in cash
sufficient to

 

4

 

reimburse the Executive for
his reasonable, out-of-pocket expenses in moving out of the Jacksonville,
Florida metropolitan area within six (6) months following termination of
the Executive’s employment with the Company (but only to the extent such
expenses are submitted in writing to the Company for approval and are not
otherwise reimbursed), provided that such amount shall not exceed
$75,000 in the aggregate.

 

9.                                 Non-Competition.

 

(a)                                  During the Employment Term and, for a period
ending on the expiration of one year following the termination of the Executive’s
employment (or such longer period as the Company is paying any Severance
Payments) (the “Restricted Period”), the Executive will not directly or
indirectly, (i) engage in any business for the Executive’s own account
that competes with the business of the Company, (ii) enter the employ of,
or render any services to, any person engaged in any business that competes
with the business of the Company, (iii) acquire a financial interest in, or
otherwise become actively involved with, any person engaged in any business
that competes with the business of the Company, directly or indirectly, as an
individual, partner, shareholder, officer, director, principal, agent, trustee
or consultant, or (iv) interfere with business relationships (whether
formed before or after the date of this Agreement) between the Company or any
of its affiliates that are engaged in a business similar to the business of the
Company (the “Company Affiliates”) and customers or suppliers of the
Company or the Company Affiliates.

 

(b)                                 Notwithstanding anything to the contrary in
this Agreement, the Executive may directly or indirectly own, solely as a
passive investment, securities of any person engaged in the business of the
Company which are publicly traded on a national or regional stock exchange or
on the over-the-counter market if the Executive (i) is not a controlling
person of, or a member of a group which controls, such person and (ii) does
not, directly or indirectly, own one percent (1%) or more of any class of
securities of such person.

 

(c)                                  During the Restricted Period, and for an
additional one year after the end of the Restricted Period, the Executive will
not, directly or indirectly, (i) without the written consent of the
Company, solicit or encourage any employee of the Company or the Company
Affiliates to leave the employment of the Company or the Company Affiliates, or
(ii) without the written consent of the Company (which shall not be
unreasonably withheld), hire any such employee who has left the employment of
the Company or the Company Affiliates (other than as a result of the
termination of such employment by the Company or the Company Affiliates) within
one year after the termination of such employee’s employment with the Company
or the Company Affiliates.

 

(d)                                 During the Restricted Period, the Executive
will not, directly or indirectly, solicit or encourage to cease to work with
the Company or the Company Affiliates any consultant then under contract with
the Company or the Company Affiliates.

 

(e)                                  It is expressly understood and agreed that
although the Executive and the Company consider the restrictions contained in
this Section 9 to be reasonable, if a final judicial determination is made
by a court of competent jurisdiction that the time or territory or any other
restriction contained in this Agreement is an unenforceable restriction against
the

 

5

 

(a)                                  Governing Law. This Agreement shall be governed by and
construed in accordance with the laws of the State of Florida without regard to
its conflicts of law doctrine.

 

(b)                                 Entire Agreement/Amendments. This Agreement contains the entire
understanding of the parties with respect to the employment of the Executive by
the Company. There are no restrictions, agreements, promises, warranties,
covenants or undertakings between the parties with respect to the subject
matter herein other than those expressly set forth herein. This Agreement may
not be altered, modified, or amended except by written instrument signed by the
parties hereto.

 

(c)                                  No Waiver. The failure of a party to insist upon strict adherence to any term of
this Agreement on any occasion shall not be considered a waiver of such party’s
rights or deprive such party of the right thereafter to insist upon strict
adherence to that term or any other term of this Agreement.

 

(d)                                 Severability. In the event that any one or more of the
provisions of this Agreement shall be or become invalid, illegal or
unenforceable in any respect, the validity, legality and enforceability of the
remaining provisions of this Agreement shall not be affected thereby.

 

(e)                                  Assignment. This Agreement shall not be assignable by the Executive. This
Agreement may be assigned by the Company to a company which is a successor in
interest to substantially all of the business operations of the Company or to
the financial institution(s) providing the Company’s senior credit facility.
Such assignment shall become effective when the Company notifies the Executive
of such assignment or at such later date as may be specified in such notice. Upon
such assignment, the rights and obligations of the Company hereunder shall
become the rights and obligations of such successor company, provided
that any assignee expressly assumes the obligations, rights and privileges of
this Agreement.

 

(f)                                    No Mitigation. The Executive shall not be required to
mitigate the amount of any payment provided for pursuant to this Agreement by
seeking other employment and, to the extent that the Executive obtains or
undertakes other employment, the payment will not be reduced by the earnings of
the Executive from the other employment.

 

(g)                                 Successors; Binding Agreement. This Agreement shall inure to the benefit
of and be binding upon personal or legal representatives, executors,
administrators, successors, heirs, distributes, devises and legatees.

 

(h)                                 Notice. For the purpose of this Agreement, notices and all other
communications provided for in the Agreement shall be in writing and shall be
deemed to have been duly given when delivered or mailed by United States
registered mail, return receipt requested, postage prepaid, addressed, in the
case of the Executive, to the Executive’s address on file with the Company; all
notices to the Company shall be directed to the attention of the President or
to such other address as either party may have furnished to the other in
writing in accordance herewith, except that notice of change of address shall
be effective only upon receipt.

 

6

 

IN WITNESS WHEREOF, the
parties hereto have duly executed this Agreement as of the day and year first
above written.

 

 

	
   

  	
  /s/ Thomas J. Tossavainen

  	
   

  
	
   

  	
  Thomas J. Tossavainen

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  INTERLINE BRANDS, INC. 

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael J. Grebe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Michael J. Grebe

  
	
   

  	
   

  	
  Title:

  	
  President & CEO

  
						

 

7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00082-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00082-of-00352.parquet"}]]