Document:

Employment Agreement

 Exhibit 10.9 
 EMPLOYMENT AGREEMENT 
 This Employment Agreement (“Agreement”), made
effective as of the      day of                 , 2007 (the “Effective Date”), by and between CHAPARRAL STEEL
COMPANY, a Delaware corporation (hereinafter referred to as the “Company”), and TOMMY A. VALENTA (hereinafter referred to as the “Executive”). 
 WITNESSETH: 
 WHEREAS, Executive has been elected to the position of
President and Chief Executive Officer of the Company and as a member of its Board of Directors; 
 WHEREAS, the Company and Executive previously entered into an Employment Agreement effective January 13, 2006; 
 WHEREAS, such Employment Agreement was amended on two separate occasions, effective, respectively, April 11, 2006 and July 12, 2006; and 
 WHEREAS, the Company desires to modify certain of the terms and conditions of Executive’s employment as set forth herein in order to insure the retention of Executive’s services and Executive is
willing to render such services on the terms and conditions set forth herein: 
 NOW, THEREFORE, the Company and the Executive, in
consideration of the premises and promises each to the other herein contained, have agreed and do hereby agree and covenant as follows: 
  

	 1.
	 Employment and Term. 

 (a) Position and Term. The Company agrees to employ the Executive as the President and Chief Executive Officer of the Company, during the three (3) year period commencing on January 13, 2006 and
ending January 13, 2009 (the “Term”), and the Executive agrees to serve the Company in such capacity during such Term unless terminated earlier pursuant to Section 3 (the “Employment
Period”). Such Term will automatically be extended each day so that the unexpired term of the Agreement will always be three (3) years, unless either party gives written notice (the “Notice of Non-Renewal”)
to the other that the Term will not so automatically renew, and such written notice will be effective on the date of receipt by the recipient of the notice. The election by either party not to renew this Agreement pursuant to this
Section 1(a), in and of itself, will not be deemed to be a termination of Executive’s employment under Section 3 that triggers payment of the Non-Compete Payment under Section 4(f). Rather, under such
circumstances, Executive will only be entitled to payment of the Compensation set forth in Section 2 for the remainder of the Employment Period, unless during such Employment Period, the provisions of Section 3, regarding
early termination of this Agreement, become applicable. 
 (b) Duties. Executive will report to the
Board of Directors of the Company and will have general management over the business, affairs and property of the Company in the ordinary course of its business with all such powers with respect to such general management as may be reasonably
incident to such responsibilities. The Board of Directors may assign Executive additional duties during the Term; provided, that such duties are not inconsistent with those set forth in the preceding sentence. Executive agrees to devote all of his
time and attention during normal business hours during such term to the business and affairs of the Company, its subsidiaries and affiliates, subject to Section 1(d) hereof. 
 (c) Additional Duties for Company. Executive will serve as a Director of the Company and/or one or more of its
subsidiaries or affiliates if elected as such and will hold the offices with the Company and/or its subsidiaries or affiliates to which, from time to time, he may be elected or appointed during the Employment Period. Executive agrees that he will
not be entitled to receive any compensation for serving as a Director of the Company or, with respect to the subsidiaries or affiliates of the Company, in any capacity other than the compensation to be paid to Executive pursuant to this Agreement or
any other written agreement between the Company or any of its subsidiaries or affiliates and Executive. 

 (d) Additional Activities. During the Employment Period, Executive
may serve on charitable boards and other nonprofit organizations and attend to personal investments, provided, that such efforts involve a reasonable amount of time and do not detract from his duties with the Company and its subsidiaries and
affiliates. Further, with the approval of the Board of Directors, Executive may serve on the board of directors of unaffiliated “for profit” entities. 
 (e) Place of Performance. In connection with his employment under this Agreement, Executive will be based at 300 Ward Road, Midlothian, Texas 76065-9661. The Company will not, without the
written consent of Executive, relocate or transfer Executive’s place of performance to a location that increases Executive’s daily commute distance based on the location of Executive’s principal residence as of the Effective Date to
more than fifty (50) miles (one-way), except for reasonably required travel on Company business which is not materially greater than such travel requirements prior thereto. 
  

	 2.
	 Compensation. 

 (a) Base Annual Compensation. Executive will receive a base salary at the rate of Six Hundred Thousand Dollars ($600,000.00) per annum payable in periodic installments in accordance with the Company’s
payment practices and procedures or such greater amount as may be approved by the Company’s Board of Directors or the Compensation Committee of the Board of Directors. 
 (b) Incentive Compensation. Executive will receive incentive compensation in a manner (i) consistent with the
compensation philosophy and structure adopted by the Board of Directors on July 12, 2006 or (ii) consistent with such other philosophy and structure as may hereafter be approved by both the Board of Directors and the Executive. 

In the event that payment of any incentive compensation payable to Executive pursuant to this Section 2(b) would not be
deductible by the Company pursuant to section 162(m) of the Internal Revenue Code of 1986, as amended (the “Code”), then payment of the amount of such award which is not deductible will automatically be deferred, with
interest equivalent to U.S. Treasury Bills, up to the earliest of (i) April 30th of the first year in which the Company reasonably anticipates that the deduction of the payment of the amount will not be limited or eliminated by application
of section 162(m) of the Code or (ii) the date which is six (6) months and one (1) day following the Executive’s termination of employment. 
 (c) Participation in Equity and Non-Equity Plans. Executive will participate in all equity and non-equity plans made available to executive officers of the Company to enable them to
participate in the appreciation in value of the common stock of the Company. 
 (d) Other Benefits and
Perquisites. During the Employment Period, Executive will receive the following perquisites and other benefits: 
 (i) standard perquisites (e.g., company car or car allowance, club dues, professional association membership); 
 (ii) the reimbursement of or payment for business travel; 
 (iii) the
reimbursement for out of pocket expenses incurred by Executive in performing his duties under this Agreement; 
 (iv) vacation time and holidays in accordance with Company policy; 
 (v) the reimbursement of legal
fees incurred by Executive in connection with the review and negotiation of this Agreement up to a maximum of Ten Thousand Dollars ($10,000); 

 (vi) the reimbursement of legal fees incurred by Executive in seeking to
enforce this Agreement, provided that any enforcement actions taken by Executive are not frivolous or taken in bad faith and that such legal fees are incurred by Executive and submitted to the Company for reimbursement no later than December 31
of the second calendar year following the year in which Executive’s termination of employment occurs (i.e., pursuant to section 409A of the Code the reimbursement of such legal fees must occur by December 31 of the second calendar
year following Executive’s termination of employment); 
 (vii) the provision of a ten (10) year
level term life insurance policy of five (5) times Executive’s base salary. Executive will have the right to designate the beneficiary and the policy will be assigned to Executive on his termination of employment; 
 (viii) participation in the Financial Security Plan of Chaparral Steel Company (the “FSP”)
pursuant to the terms of the Executive’s “Election to Participate,” “Election Form” and “Plan Agreement,” as such documents are defined and described in the FSP; 
 (ix) participation in any other group life, health or similar insurance program made available to senior executives of the
Company; and 
 (x) participation in any retirement, pension plan or other benefit programs made available to
senior executives of the Company. 
 (e) Annual Review. Subject to the requirements of
Section 2(a) and 2(b), and provided further that Executive’s base salary may not be reduced, Executive’s total compensation (i.e., base salary and incentive plan payment opportunities) will be reviewed annually by the
Board of Directors of the Company. 
  

	 3.
	 Early Termination. 

 (a) Death. Upon the death of Executive during the Term of this Agreement, the Agreement will terminate and Executive will be entitled to payment of his base salary accrued up to the date of his death plus any
benefits payable pursuant to the terms of the benefit plans specified in Section 2 in which Executive is a participant (i.e., FSP benefits, transfer of the life insurance policy, group life insurance benefits, 401(k) etc.).

 (b) Disability. In the event of Executive’s “Disability” during the Term of the
Agreement, the Company may terminate Executive’s employment in which case this Agreement will terminate and Executive will be entitled to payment of the following benefits, the payment of which will be delayed for six (6) months and one
(1) day to the extent required by section 409A of the Code: (i) his base salary for the remainder of the Term of the Agreement (as if such termination had not occurred) at the rate in effect for the fiscal year of the Company in which such
Disability occurs, (ii) long-term disability benefits pursuant to the terms of any long-term disability policy provided to senior executives of the Company in which Executive has elected to participate, (iii) payment of any benefits
payable pursuant to the terms of the benefit plans in which Executive is a participant (e.g., FSP benefits, transfer of the life insurance policy, 401(k) etc), and (iv) payment (in a lump sum) (with respect to each fiscal year of the
Company that ends during the remaining Term of this Agreement) (as if such termination had not occurred) of incentive compensation in an amount, for each such fiscal year that ends during the remaining Term of this Agreement, equal to the highest
amount of incentive compensation paid or payable to the Executive (regardless of the form in which paid or payable) during any one of the three fiscal years of the Company immediately preceding such termination. 
 For purposes of this Agreement, “Disability” means Executive’s inability to perform with or without
reasonable accommodation the essential functions of his position for an aggregate of one hundred twenty (120) days during any period of one hundred eighty (180) consecutive days due to a mental or physical incapacity as determined by the
mutual agreement of a physician selected by the Company or its insurers 

 
(the “Company Physician”) and a physician selected by Executive (“Executive’s Physician”). In the event
that the Company Physician and the Executive’s Physician cannot agree on whether Executive is Disabled, such determination will be made by a third physician who is jointly selected by the Company Physician and the Executive’s Physician.

 (c) Breach of Agreement. If (i) the Company terminates Executive’s employment without
Cause (as defined below) or (ii) the Company otherwise materially breaches this Agreement during the Term and fails to cure such breach within thirty (30) days after written notice thereof by Executive and Executive terminates his
employment, Executive will be entitled to the payment of his base salary accrued up to the date of his termination plus any benefits payable pursuant to the terms of the benefit plans specified in Section 2 in which Executive is a
participant (i.e., FSP, transfer of the life insurance policy, 401(k) etc.). In addition, provided that Executive complies with the restrictions in Sections 4(a) and (c), Executive will be entitled to the Non-Compete Payment described
in Section 4(f) as liquidated damages with respect to such breach. The Non-Compete Payment described in Section 4(f) will be the only payment due Executive with respect to such breach and is conditioned upon Executive’s
compliance, in all material respects, with the restrictions in Sections 4(a) and (c). 
 (d)
Termination for Cause or Voluntary Resignation by Executive. If Executive’s employment is terminated during the Term of this Agreement for “Cause,” or Executive voluntarily resigns from the employment of the Company
(other than a resignation as provided in Section 3(e) and 3(f) below), the Company will pay Executive his base salary through the date of termination at the rate in effect at the time notice of termination is given. Such payments will
discharge the Company’s obligations hereunder. 
 For purposes of this Agreement, “Cause”
includes any of the following: 
 (i) a material breach by Executive of Section 4 of this
Agreement (regarding the noncompetition, confidentiality, nonsolicitation and nondisparagement provisions) which is not remedied within thirty (30) days after receipt of written notice to Executive from the Company; 
 (ii) the commission of a willful criminal act by Executive, such as fraud, embezzlement or theft; 
 (iii) the conviction, plea of no contest or nolo contendere, deferred adjudication or unadjudicated probation of Executive
for any felony or any crime involving moral turpitude; or 
 (iv) Executive’s failure or refusal to carry
out, or comply with, in any material respect, any lawful directive of the Board of Directors of the Company consistent with the terms of the Agreement which is not remedied within thirty (30) days after Executive’s receipt of written
notice from the Company; 
 provided, however, that no termination of Executive’s employment will be for Cause until
(A) there will have been delivered to Executive a written notice specifying in detail the particulars of Executive’s conduct which is described in either (i) or (iv) above, (B) Executive has been provided an opportunity to
be heard by the Board of Directors of the Company (with the assistance of Executive’s counsel if Executive so desires), and (C) a resolution is adopted in good faith by two thirds (2/3) of the full Board of Directors of the Company
confirming Executive’s conduct is within the scope of the conduct described in either (i) or (iv) above (excluding the vote of Executive). No act, nor failure to act, on Executive’s part, will be considered “willful”
unless he has acted or failed to act with an absence of good faith and without a reasonable belief that his action or failure to act was in the best interest of the Company. 
 (e) Early Termination of Agreement upon Notice of Non-Renewal. Executive may resign his employment at any time
during the remainder of the Term following his receipt of Notice of Non-Renewal, and effective immediately upon written notice of such resignation, or as may otherwise be agreed by Executive and the Company, and provided that Executive complies, in
all material respects, with the 

 
restrictions in Sections 4(a) and (c), Executive will be entitled to the Non-Compete Payment described in Section 4(f). The Non-Compete
Payment described in Section 4(f) is conditioned upon Executive’s compliance, in all material respects, with the restrictions in Sections 4(a) and (c). 
 (f) Early Termination of Agreement following Change of Control. Executive may resign his employment at any time
during the one year period following a “Change of Control” (as defined in Section 3(g)) of the Company upon his written notice to the Company for any of the reasons set forth as “Good Reason” (as defined in
Section 3(h)). Provided that Executive complies, in all material respects, with the restrictions in Sections 4(a) and (c), Executive will be entitled to the Non-Compete Payment described in Section 4(f). The
Non-Compete Payment described in Section 4(f) is conditioned upon Executive’s compliance, in all material respects, with the restrictions in Sections 4(a) and (c). 
 (g) Change of Control. For purposes of this Agreement, a “Change of Control” will be deemed
to have occurred if at any time during the Term any of the following events occur: 
 (i) The Company is
merged, consolidated, converted or reorganized into or with another corporation or other legal entity, and as a result of such merger, consolidation, conversion or reorganization less than a majority of the combined voting power of the then
outstanding equity interests in the Company or such corporation or other legal entity immediately after such transaction are held in the aggregate by the holders of Voting Stock (as hereinafter defined) of the Company immediately prior to such
transaction; 
 (ii) The Company sells (directly or indirectly, whether in a single transaction or series of
related transactions) all or substantially all of its assets (including, without limitation, by means of the sale of the assets of or equity interests in one or more direct or indirect subsidiaries of the Company) to any individual or to any
corporation or other legal entity, of which less than a majority of the combined voting power of the then outstanding voting interests (entitled to vote generally in the election of directors or persons performing similar functions on behalf of such
other corporation or legal entity) of such other corporation or legal entity is held in the aggregate by the holders of Voting Stock of the Company immediately prior to such sale; 
 (iii) Any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange
Act of 1934, as amended) (the “Exchange Act”)) becomes (subsequent to the Effective Date) the beneficial owner (as the term “beneficial owner” is defined under Rule 13d-3 or any successor rule or regulation
promulgated under the Exchange Act) of securities representing fifteen percent (15%) or more of the combined voting power of the then-outstanding securities entitled to vote generally in the election of directors of the Company (“Voting
Stock”); 
 (iv) The Company files a report or proxy statement with the Securities and Exchange
Commission pursuant to the Exchange Act disclosing in response to Form 8-K, Schedule 14A or Schedule 14C (or any successor schedule, form or report or item therein) that a change of control of the Company has occurred; or 
 (v) If during any one (1) year period, individuals who at the beginning of any such period constitute the directors
of the Company cease for any reason to constitute at least a majority thereof, unless the election, or the nomination for election by the Company’s stockholders, of each director of the Company first elected during such period was approved by a
vote of at least two-thirds of (x) the directors of the Company then still in office who were directors of the Company at the beginning of any such period or (y) directors of the Company whose nomination and/or election was approved by the
directors referenced in clause (x) immediately preceding. 
 (vi) Notwithstanding the foregoing
provisions of Section 3(g)(iii) or 3(g)(iv) hereof, a “Change of Control” will not be deemed to have occurred for purposes of this Agreement solely because (x) the Company, (y) a corporation or other legal entity in
which the Company directly or 

 
indirectly beneficially owns 100% of the voting securities of such entity, or (z) any employee stock ownership plan or any other employee benefit plan
of the Company or any wholly-owned subsidiary of the Company, either files or becomes obligated to file a report or a proxy statement under or in response to Schedule 13D, Schedule 14D-1, Form 8-K, Schedule 14A or Schedule 14C (or any successor
schedule, form or report or item therein) under the Exchange Act, disclosing beneficial ownership by it of shares of Voting Stock, of fifteen percent (15%) or more, or because the Company reports that a change of control of the Company has
occurred by reason of such beneficial ownership. As used in connection with the definition of “Change of Control,” references to the Company will be deemed to include any successor of the Company, references to directors of the Company
will be deemed to include any persons performing similar functions on behalf of any successor of the Company, references to the stockholders of the Company will be deemed to include holders of equity interests in any successor of the Company and
references to Voting Stock will be deemed to include voting equity interests in any successor of the Company. 
 (h) Good Reason. As used herein, “Good Reason” means: 
 (i) A
significant adverse change in the nature or scope of the authorities, powers, functions, responsibilities or duties attached to the position(s) with the Company which the Executive held immediately prior to the Change of Control, breach by the
Company of its obligations pursuant to Section 2, or the termination of the Executive’s rights to any employee benefits to which the Executive was entitled immediately prior to the Change of Control or a material reduction in scope
or value thereof without the prior written consent of the Executive, any of which is not remedied within ten (10) calendar days after receipt by the Company of written notice from the Executive of such change, reduction or termination, as the
case may be; 
 (ii) The liquidation, dissolution, merger, consolidation or reorganization of the Company or
transfer, directly or indirectly, of all or a significant portion of its business and/or assets (including, without limitation, by means of the sale of the capital stock or assets of one or more direct or indirect subsidiaries of the Company),
unless the successor (by liquidation, merger, consolidation, reorganization or otherwise) to which all or a significant portion of its business and/or assets have been transferred (directly or by operation of law) will have irrevocably assumed and
guaranteed all duties and obligations of the Company under this Agreement; 
 (iii) The Company will require
the Executive (without the consent of the Executive) to be based at any place which would increase his daily commute distance to more than fifty (50) miles (one-way) or to travel away from the Executive’s office in the course of
discharging the Executive’s responsibilities or duties hereunder significantly more (in terms of either consecutive days or aggregate days in any calendar year) than was required of the Executive prior to the Change of Control without, in
either case, the Executive’s prior consent; or 
 (iv) Any material breach of this Agreement by the
Company or any successor thereto which is not cured within thirty (30) days after written notice thereof by Executive. 
  

	 4.
	 Non-Competition, Confidentiality and Nondisparagement. 

 (a) Agreement not to Compete. In consideration of the Company’s promise to provide Executive with Confidential
Information defined in Section 4(b), the Non-Compete Payment provided for in Section 4(f), the other mutual promises contained herein, and Executive’s employment with the Company, and so as to enforce Executive’s
promises regarding Confidential Information contained in Section 4(b) of this Agreement, Executive agrees that (i) during the Term of this Agreement, Executive will not and (ii) in the event his employment with the Company is
terminated for any reason whatsoever other than Cause, Executive will not, for a period of three (3) years after the date of such termination of employment (the “Post Termination Non-Compete Period”), directly or
indirectly, carry on or conduct, in competition with the Company or its subsidiaries or affiliates, any business of the nature in which the Company or its subsidiaries or affiliates are then engaged in any geographical area in which the Company

 
or its subsidiaries or affiliates engage in business at the time of such termination or in which any of them, prior to termination of Executive’s
employment, evidenced in writing, at any time during the six (6) month period prior to such termination, an intention to engage in such business. Executive agrees that he will not so conduct or engage in any such business either as an
individual on his own account or as a partner or joint venturer or as an executive, agent, consultant or salesman for any other person or entity, or as an officer or director of a corporation or as a shareholder in a corporation of which he will
then own ten percent (10%) or more of any class of stock. The provisions of this Section 4(a) will supersede any and all non-compete provisions contained in any and all other agreements which have been entered into between Executive
and the Company and will survive the termination of this Agreement. 
 (b) Confidential Information.
The Company makes a binding promise not conditioned upon continued employment to provide Executive with certain Confidential Information above and beyond any Confidential Information Executive may have previously received. Executive will not,
directly or indirectly, at any time following termination of his employment with the Company, reveal, divulge or make known to any person or entity, or use for Executive’s personal benefit (including without limitation for the purpose of
soliciting business, whether or not competitive with any business of the Company or any of its subsidiaries or affiliates), any Confidential Information acquired during the Employment Period. Executive will, at any time requested by the Company
(either during his employment with the Company or during the Post Termination Non-Compete Period), promptly deliver to the Company all memoranda, notes, reports, lists and other documents (and all copies thereof) relating to the business of the
Company or any of its subsidiaries and affiliates which he may then possess or have under his control. 
 For purposes of this
Agreement, “Confidential Information” includes the following information with respect to the Company, and its subsidiaries and its affiliates: sales materials, technical information, processes and compilations of information,
records, specifications and information concerning customers or vendors, customer lists, and information regarding methods of doing business and the terms of this Agreement. As defined herein, Confidential Information does not include:
(i) information already in the public domain, (ii) information of a type not considered confidential by persons engaged in the same business or a business similar to that conducted by the Company or its subsidiaries and affiliates, or
(iii) information that Executive is required to disclose under the following circumstances: (A) at the express direction of any authorized governmental entity; (B) pursuant to a subpoena or other court process; (C) as otherwise
required by law or the rules, regulations, or orders of any applicable regulatory body; or (D) as otherwise necessary, in the opinion of counsel for Executive, to be disclosed by Executive in connection with any legal action or proceeding
involving Executive and the Company or any subsidiary or affiliate of the Company in his capacity as an employee, officer, director, or stockholder of the Company or any subsidiary or affiliate of the Company. 
 (c) Agreement not to Solicit Employees. Executive agrees that, during the Post Termination Non-Compete Period,
Executive will not solicit or induce, or in any manner attempt to solicit or induce, any person employed by, or any agent of, the Company or any of its subsidiaries or affiliates to terminate such employee’s employment or agency, as the case
may be, with the Company or any subsidiary or affiliate. 
 (d) Nondisparagement. Executive agrees that he
will not disparage the Company, the Board of Directors of the Company, the Company’s executives, the Company’s employees and the Company’s products or services during his Employment Period and thereafter. The Company likewise agrees
that it will not disparage Executive during Executive’s Employment Period or thereafter. For purposes of this Section 4(d), disparagement does not include (a) compliance with legal process or subpoenas to the extent only
truthful statements are rendered in such compliance attempt, (b) statements in response to an inquiry from a court or regulatory body, or (c) statements or comments in rebuttal of media stories or alleged media stories. 
 (e) Reasonableness of Restrictions. Executive acknowledges that the geographic boundaries, scope of prohibited
activities, and time duration set forth in this Section 4 are reasonable in nature and are no broader than are necessary to maintain the confidentiality and the goodwill of the Company and the 

 
confidentiality of its Confidential Information and to protect the legitimate business interests of the Company, and that the enforcement of such provisions
would not cause Executive any undue hardship nor unreasonably interfere with Executive’s ability to earn a livelihood. If any court determines that any portion of this Section 4 is invalid or unenforceable, the remainder of this
Section 4 will not thereby be affected and will be given full effect without regard to the invalid provisions. If any court construes any of the provisions of this Section 4, or any part thereof, to be unreasonable because of
the duration or scope of such provision, such court will have the power to reduce the duration or scope of such provision and to enforce such provision as so reduced but any such reduction will not affect the amount due under Section 4(f).

 (f) Non-Compete Payment. If Executive’s employment is terminated under circumstances
described in Section 3(c), or if Executive resigns his employment under the circumstances described in Section 3(e) or 3(f), the Company will pay, in the manner set forth below, to Executive an aggregate amount (the
“Non-Compete Payment”) provided, that Executive complies, in all material respects, with the restrictive Covenants set forth in Sections 4(a) and (c). The Non-Compete Payment will be delayed for six (6) months and
one (1) day following Executive’s “separation from service” as such term is used in section 409A of the Code and the guidance promulgated thereunder: 
 (i) The continued payment of Executive’s base salary (computed at the rate in effect for the fiscal year of the
Company in which such termination occurs) through the remainder of the Term of this Agreement (as if such termination had not occurred). Except as otherwise provided with respect to death or Substantial Disability (as defined below), such base
salary will be paid pursuant to the Company’s normal payroll practices, except that if payment of such base salary is delayed pursuant to section 409A of the Code, the first six months of such base salary will be paid in a lump sum on the day
that is six (6) months and one (1) day following Executive’s date of termination; 
 (ii) The
payment of incentive compensation (with respect to each fiscal year of the Company that ends during the remainder of the Term of this Agreement (as if such termination had not occurred)) in an amount, for each fiscal year that ends during the
remaining Term of this Agreement, equal to the highest amount of incentive compensation paid or payable to the Executive (regardless of the form in which paid or payable) during any one of the last three fiscal years preceding the termination of
Executive’s employment. Except as otherwise provided with respect to death or Substantial Disability (as defined below), such incentive compensation will be paid in equal installments payable on the Company’s normal payroll payment dates
through the remainder of the Term of this Agreement (as if such termination had not occurred) except that if payment of such incentive compensation is delayed pursuant to section 409A of the Code, the first six (6) months of such incentive
compensation will be paid in a lump sum on the day that is six (6) months and one (1) day following Executive’s date of termination; 
 (iii) Notwithstanding any provision to the contrary in any option agreement, restricted stock agreement, or other agreement relating to equity-type compensation that may be outstanding between
Executive and the Company, Executive will become one hundred percent (100%) vested in all units, stock options, incentive stock options, performance shares, stock appreciation rights, restricted stock and stock awards (collectively referred to
as “Stock Rights”) held by Executive immediately prior to the date of termination; and 
 (iv) Continued participation for the remainder of the Term of this Agreement (as if such termination had not occurred) in any medical, dental, or vision benefit plans in which Executive participated at the time of his termination of
employment (“Continued Medical”). Executive will be required to continue to pay his portion of the cost of any insured Continued Medical coverage on a pre-tax basis. However, to the extent that such Continued Medical is
self-funded by the Company, Executive will be required to pay the full cost of such coverages on an after-tax basis in order to ensure that the benefits payable to Executive are not includible in his gross income. Such Continued Medical is in
addition to any rights Executive may have to 

 
continue such coverages under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”). The pre-tax deduction
for the self-funded Continued Medical coverages described above will be taken from the payment of Executive’s base salary described in Section 4(f)(i); provided, however, that if the commencement of the payment of such base salary
is delayed for six (6) months and one (1) day, Executive will not be required to pay the cost of Continued Medical during such period and instead the Company will include the cost of such coverage in Executive’s income and report it
as wages on Form W-2. This clause will not prohibit the Company from changing the terms of such medical, dental or vision benefit plans provided that any such changes apply to all senior executives of the Company (e.g., the Company may switch
insurance carriers or preferred provider organizations). The Company’s obligation under this Agreement to provide Continued Medical will terminate if Executive obtains comparable coverage under a subsequent employer’s medical, dental or
vision benefit plans. Executive must advise the Company of the attainment of any such subsequent employer benefit coverages within thirty (30) days following such attainment. 
 Notwithstanding the foregoing, if at any time during the Post Termination Non-Compete Period Executive materially breaches the covenants
set forth in Sections 4(a) and (c), Executive will forfeit any remaining Non-Compete Payments and no further Non-Compete Payments will be made pursuant to this Section 4(f), provided that (x) Company will give Executive
written notice stating in reasonable detail the facts and circumstances of such alleged breach and, if Executive reasonably cures any such breach within thirty (30) days of receipt of such notice, the Non-Compete Payments will not be forfeited;
and (y) if Executive provides written notice that he disputes that he is not in breach of the provisions of Sections 4(a) and (c), the Company will deposit the remaining Non-Compete Payments in an interest bearing escrow account in a
financial institution mutually agreed by the parties or, in the absence of an agreement, Wells Fargo Bank, N.A. or one of its affiliates, to be held until entitlement to such Non-Compete Payment is finally determined. 
 Further, in the event of Executive’s death or Substantial Disability during the Post Termination Non-Compete Period, any remaining
Non-Compete Payments that have not been paid as of the date of such death or Substantial Disability will become immediately due and payable in a single lump sum and will be paid to Executive (or his estate) within thirty (30) days of such
event. “Substantial Disability” will mean Executive’s inability to perform any material business services of the type described in Section 4(a) for an aggregate of one hundred twenty (120) days during
any period of one hundred eighty (180) consecutive days due to a mental or physical incapacity as determined by the Company Physician and the Executive’s Physician. In the event that the Company Physician and the Executive’s Physician
cannot agree on whether Executive’s condition is such that he has a Substantial Disability, such determination will be made by a third physician who is jointly selected by the Company Physician and the Executive’s Physician. 
 (g) Enforcement. Upon Executive’s employment with an entity that is not a subsidiary or affiliate of the
Company (a “Successor Employer”) during the period that the provisions of this Section 4 remain in effect, Executive will provide such Successor Employer with a copy of this Agreement and will notify the Company
of such employment within thirty (30) days thereof. Executive agrees that in the event of a material breach of the terms and conditions of this Section 4 by Executive, the Company will be entitled, if it so elects, to institute and
prosecute proceedings, either in law or in equity, against Executive, to obtain damages for any such breach, or to enjoin Executive from any conduct in violation of this Section 4. Company and Executive both agree that in the event of a
material breach of the nondisparagement provisions of Section 4(d), the adversely affected party will be entitled, if it so elects, to institute and prosecute proceedings, either in law or in equity, against the other, to obtain damages
for any such breach, or to enjoin the other from engaging in such disparagement. 
  

	 5.
	 Certain Further Payments due Executive. 

 (a) Tax Reimbursement Payment. In the event that any amount or benefit paid or distributed to Executive pursuant to this Agreement and/or any amounts or benefits otherwise paid or
distributed to Executive by the Company that are treated as parachute payments under section 280G of the 

 
Code (such payments, collectively, the “Covered Payments”), are or become subject to the tax imposed under section 4999 of the Code
or any similar tax that may hereafter be imposed (the “Excise Tax”), the Company will pay to Executive an additional amount (the “Tax Reimbursement Payment”), such that the net amount retained by
Executive with respect to such Covered Payments, after deduction of any Excise Tax (including any penalties and interest thereon) on the Covered Payments and any Federal, state and local income tax, payroll tax, and Excise Tax on the Tax
Reimbursement Payment provided for by this Section 5, but before deduction for any Federal, state or local income or employment tax withholding on such Covered Payments, will be equal to the amount of the Covered Payments, together with
an amount equal to the product of any deductions disallowed to Executive for federal, state, or local income tax purposes because of the inclusion of the Tax Reimbursement Payment in Executive’s adjusted gross income multiplied by the highest
applicable marginal rate of federal, state, or local income taxation, respectively, for the calendar year in which the Tax Reimbursement Payment is to be made. The time for payment of the Tax Reimbursement Payment is set forth in
Section 5(e). The Tax Reimbursement Payment is intended to place the Executive in the same position he would have been in if the Excise Tax did not apply. 
 (b) Assumptions for Calculation. For purposes of determining whether any of the Covered Payments will be subject to
the Excise Tax and the amount of such Excise Tax, 
 (i) such Covered Payments will be treated as
“parachute payments” within the meaning of section 280G of the Code, and all “parachute payments” in excess of the “base amount” (as defined under section 280G(b)(3) of the Code) will be treated as subject to the Excise
Tax, unless, and except to the extent that, in the good faith judgment of a public accounting firm appointed by the Company or tax counsel selected by such accounting firm (the “Accountants”), the Company has a reasonable
basis to conclude that such Covered Payments (in whole or in part) either do not constitute “parachute payments” or represent reasonable compensation for personal services actually rendered (within the meaning of section 280G(b)(4)(B) of
the Code) in excess of the “base amount,” or such “parachute payments” are otherwise not subject to such Excise Tax; and 
 (ii) the value of any non-cash benefits or any deferred payment or benefit will be determined by the Accountants in accordance with the principles of section 280G of the Code. 
 (c) Assumed Tax Rates. For purposes of determining the amount of the Tax Reimbursement Payment, Executive will be
deemed to pay: 
 (i) Federal income taxes at the highest applicable marginal rate of Federal income taxation
for the calendar year in which the Tax Reimbursement Payment is to be made; and 
 (ii) any applicable state
and local income taxes at the highest applicable marginal rate of taxation for the calendar year in which the Tax Reimbursement Payment is to be made, net of the maximum reduction in Federal Income taxes which could be obtained from the deduction of
such state or local taxes if paid in such year. 
 (d) Subsequent Adjustment. In the event that the
Excise Tax is subsequently determined by the Accountants or pursuant to any proceeding or negotiations with the Internal Revenue Service to be less than the amount taken into account hereunder in calculating the Tax Reimbursement Payment made,
Executive will repay to the Company, at the time that the amount of such reduction in the Excise Tax is finally determined, the portion of such prior Tax Reimbursement Payment that would not have been paid if such Excise Tax had been applied
initially calculating such Tax Reimbursement Payment, plus interest on the amount of such repayment at the rate provided in section 1274(b)(2)(B) of the Code. Notwithstanding the foregoing, in the event any portion of the Tax Reimbursement Payment
to be refunded to the Company has been paid to any Federal, state or local tax authority, repayment thereof will not be required until actual refund or credit of such portion has been made to Executive, and interest payable to the Company will not
exceed interest received or credited to Executive by such tax authority for the period it held such portion. Executive and Company will mutually agree upon the course of action to be pursued 

 
(and the method of allocating the expenses thereof) if Executive’s good faith claim for refund or credit is denied (in whole or in part); provided that
Executive will remain responsible to repay the Company for any such unrefunded Tax Reimbursement Payments to the extent Executive ultimately prevails in such claim. 
 In the event that the Excise Tax is later determined by the Accountants or pursuant to any proceeding or negotiations with the Internal Revenue Service to exceed the amount taken into account
hereunder at the time the Tax Reimbursement Payment is made (including, but not limited to, by reason of any payment the existence or amount of which cannot be determined at the time of the Tax Reimbursement Payment), the Company will make an
additional Tax Reimbursement Payment in respect of such excess (plus any interest or penalty payable with respect to such excess) at the time that the amount of such excess is finally determined. 
 (e) Timing of Payments. The Tax Reimbursement Payment (or portion thereof) provided for in Section 5(a) above will be
paid to Executive on the day of the payment of the Covered Payments; provided, however, that if the amount of such Tax Reimbursement Payment (or portion thereof) cannot be finally determined on or before the date on which payment is due, the Company
will pay to Executive by such date an amount estimated in good faith by the Accountants to be the minimum amount of such Tax Reimbursement Payment and will pay the remainder of such Tax Reimbursement Payment (together with interest at the rate
provided in section 1274(b)(2)(B) of the Code) as soon as the amount thereof can be determined, but in no event later than forty-five (45) days after payment of the related Covered Payment. In the event that the amount of the estimated Tax
Reimbursement Payment exceeds the amount subsequently determined to have been due, subject to the provisions of Section 5(d), such excess will be payable by Executive to the Company on the fifth business day after written demand by the
Company for payment (together with interest at the rate provided in section 1274(b)(2)(B) of the Code). 
  

	 6.
	 Indemnification. 

 As required by the Company’s Bylaws, the Company will indemnify Executive for any liability, legal fees, and other expenses he incurs in the event that he is made a party to any legal proceeding by reason of his employment as President
and Chief Executive Officer of the Company or as a member of the Company’s Board of Directors. 
  

	 7.
	 Executive Acknowledgement. 

 Executive is entering into this Agreement of his own free will. Executive acknowledges that he has had adequate opportunity to review this Agreement and consult with counsel of his own choosing. Executive represents
that he has read and understands this Agreement, he is fully aware of this Agreement’s legal effect and has not acted in reliance upon any statements made by the Company other than those set forth in writing in the Agreement. 
  

	 8.
	 Miscellaneous Provisions. 

 (a) Successors and Assigns. The rights and obligations of the Company under this Agreement will inure to the benefit of and will be binding upon the successors and assigns of the Company. The Company will
require any successor (whether direct or indirect, by purchase, merger, consolidation, sale of assets or otherwise) to all or substantially all of the business and/or assets of the Company, by a written agreement in form and substance reasonably
satisfactory to Executive, to assume expressly and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place. This Agreement is personal to
Executive and without the prior written consent of the Company is not assignable by Executive otherwise than by will or the laws of descent and distribution. This Agreement will inure to the benefit of and be enforceable by Executive’s personal
and legal representatives, executors, administrators, heirs, distributes, devisees and legatees. 

 (b) Amendment. This Agreement will not be modified, changed or in
any way amended except by an instrument in writing approved by the Board of Directors of the Company and signed by the Company and Executive. 
 (c) Severability. Except as otherwise provided in Section 4(e), if any provision of this Agreement is held to be illegal, invalid or unenforceable under present or future laws
effective during the term of this Agreement, such provision will be fully severable; this Agreement will be construed and enforced as if such illegal, invalid or unenforceable provision had never comprised a portion of this Agreement; and the
remaining provisions of this Agreement will remain in full force and effect and will not be affected by the illegal, invalid or unenforceable provision or by its severance from this Agreement. Furthermore, except as otherwise provided in
Section 4(e), in lieu of such illegal, invalid or unenforceable provision, there will be added automatically as part of this Agreement a provision as similar in terms to such illegal, invalid or unenforceable provision as may be possible
and be legal, valid and enforceable. 
 (d) Integration. The provisions of this Agreement constitute
the entire and complete understanding and agreement between the parties with respect to the subject matter hereof, and supersede all prior and contemporaneous oral and written agreements, representations and understandings of the parties, which are
hereby terminated. 
 (e) Choice of Law. THIS AGREEMENT WILL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS WITHOUT REFERENCE TO PRINCIPLES OF CONFLICT OF LAWS OF TEXAS OR ANY OTHER JURISDICTION, AND, WHERE APPLICABLE, THE LAWS OF THE UNITED STATES. 
 (f) Survival. The provisions of Section 4, Section 5, Section 6 and this
Section 8 will survive the termination of this Agreement 
 (g) No Waiver. No waiver by
either party at any time of any breach by the other party of, or compliance with, any condition or provision of this Agreement to be performed by the other party will be deemed a waiver of similar or dissimilar provisions or conditions at any time.

 (h) Notice. All notices and other communications hereunder will be in writing and will be given by
hand delivery to the other party or by registered or certified mail, return receipt requested, postage prepaid, addressed as follows: 
  

					
	 If to Executive:
	  	  
	  	
		  	  
	  	
		  	  
	  	
		  	  
	  	
		  	 Telephone:
                                        
                            
	  	
		  	 Fax:
                                        
                                       
 
	  	

					
	         If to the Company:
	  	 Chaparral Steel Company.
	  	
		  	 300 Ward Road
	  	
		  	 Midlothian, TX 76065-9661
	  	
		  	 Attention:
                                        
                            
	  	
		  	 Telephone:
                                        
                            
	  	
		  	 Fax:
                                        
                                    
	  	

 or to such other address as either party will have furnished to the other in
writing in accordance herewith. Notice and communications will be effective when actually received by the addressee. 
 (i) Construction. This Agreement is deemed to be drafted equally by both Executive and the Company and will be construed as a whole and according to its fair meaning. Any presumption or principle that the language of this Agreement
is to be construed against any party will not apply. The headings in this Agreement are only for convenience and are not intended to affect construction or interpretation. Any references to paragraphs, subparagraphs, sections, subsections or clauses
are to those parts of this Agreement, unless the context clearly indicates to the contrary. Also, unless the context clearly indicates to the contrary, the plural includes the singular and the singular includes the plural; “and” and
“or” are each used both conjunctively and disjunctively; “any,” “all,” “each,” or “every” means “any and all”, and “each and every” “includes” and “including”
are each used without limitation; “herein,” “hereof,” “hereunder” and other similar compounds of the word “here” refer to the entire Agreement and not to any particular paragraph, subparagraph, section or
subsection; and all pronouns and any variations thereof will be deemed to refer to the masculine, feminine, neuter, singular or plural as the identity of the entities or persons referred to may require. 
 (j) No Mitigation. In no event will Executive be obligated to seek other employment or take any other action by way
of mitigation of the amounts payable to Executive under any of the provisions of this Agreement and except as provided in Section 4(f)(iv) (regarding Continued Medical) such amounts will not be reduced whether or not Executive obtains
other employment. Neither Executive nor the Company will be liable to the other party for any damages for breach of this Agreement in addition to the amounts payable under Section 4(f) arising out of the termination of Executive’s
employment prior to the end of the Term; provided, however, that the Company will be entitled to seek damages from Executive for any breach of Section 4 by Executive or for Executive’s criminal misconduct and Executive may seek to
enforce the provisions of Section 4(d) in the event of a breach of such provisions by the Company. 
 (k) Restatement of Prior Agreement. Upon the execution of this Agreement by Executive and the Company, this Agreement will restate and supersede the Employment Agreement dated as of January 13, 2006, by and between Executive and
the Company and the First and Second Amendments thereto (the “Prior Employment Contract”), and upon such execution hereof the Prior Employment Contract will be superseded in full hereby. Any provision contained in this
Agreement that refers to or is dependent upon the time period during which Executive has been employed by the Company will take into account and include periods prior to the date hereof during which Executive was employed by the Company, and the
termination of the Prior Employment Contract will not be deemed a termination or any cessation of Executive’s employment by the Company. 
  

			
	 CHAPARRAL STEEL COMPANY

		
	 By:
	 	  

		 	 J. Celtyn Hughes, Vice President and Chief Financial Officer

	
	
	 ATTEST:

	  
  

	 Robert E. Crawford, Jr.

	 Secretary

	
	 EXECUTIVE

	
	  

	 Tommy A. ValentaForm of Amended and Restated Change of Control

 Exhibit 10.23 
 AMENDED AND RESTATED 
 CHANGE OF CONTROL AGREEMENT 
 This AMENDED AND RESTATED CHANGE OF CONTROL AGREEMENT (“Agreement”), effective as of
                    ,
                    , by and between Chaparral Steel Company, a Delaware corporation (the “Company”), and
                             (the “Executive”), amends and restates in its
entirety and replaces that certain Change of Control/Severance Agreement, dated January 13, 2006 (as previously amended), by and between the Company and the Executive and evidences that; 
 1. Operation of Agreement: 
 (a) Sections 1 and 8 through 19 of this Agreement will be effective and binding as of the Effective Date, but, anything in this Agreement to the contrary notwithstanding,
Sections 2, 3, 4, 5, 6, 7 and 8 of this Agreement will not be effective and binding unless and until there will have occurred a Change of Control. For purposes of this Agreement, a “Change of Control” will be
deemed to have occurred if at any time during the Term (as hereinafter defined) any of the following events will occur: 
 (i) The Company is merged, consolidated, converted or reorganized into or with another corporation or other legal entity, and as a result of such merger, consolidation, conversion or reorganization less than a
majority of the combined voting power of the then outstanding equity interests in the Company or such corporation or other legal entity immediately after such transaction are held in the aggregate by the holders of Voting Stock (as hereinafter
defined) of the Company immediately prior to such transaction; 
 (ii) The Company sells (directly or
indirectly, whether in a single transaction or series of related transactions) all or substantially all of its assets (including, without limitation, by means of the sale of the assets of or equity interests in one or more direct or indirect
subsidiaries of the Company) to any individual or to any corporation or other legal entity, of which less than a majority of the combined voting power of the then outstanding voting interests (entitled to vote generally in the election of directors
or persons performing similar functions on behalf of such other corporation or legal entity) of such other corporation or legal entity is held in the aggregate by the holders of Voting Stock of the Company immediately prior to such sale; 

(iii) Any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities
Exchange Act of 1934, as amended) (the “Exchange Act”)) becomes (subsequent to the Effective Date) the beneficial owner (as the term “beneficial owner” is defined under Rule 13d-3 or any successor rule or regulation
promulgated under the Exchange Act) of securities representing fifteen percent (15%) or more of the combined voting power of the then-outstanding securities entitled to vote generally in the election of directors of the Company
(“Voting Stock”); 
 (iv) The Company files a report or proxy statement with the
Securities and Exchange Commission pursuant to the Exchange Act disclosing in response to Form 8-K, Schedule 14A or Schedule 14C (or any successor schedule, form or report or item therein) that a change in control of the Company has
occurred; or 
 (v) If during any one (1) year period, individuals who at the beginning of any such
period constitute the directors of the Company cease for any reason to constitute at least a majority thereof, unless the election, or the nomination for election by the Company’s stockholders, of each director of the Company first elected
during such period was approved by a vote of at least two-thirds of (i) the directors of the Company then still in office who were directors of the Company at the beginning of any such period or (ii) directors of the Company whose
nomination and/or election was approved by the directors referenced in clause (i) immediately preceding. 
 Notwithstanding the foregoing provisions of Section 1(a)(iii) or 1(a)(iv) hereof, a “Change of Control” will not be deemed to have occurred for purposes of this Agreement solely because (i) the Company,
(ii) a 

 
corporation or other legal entity in which the Company directly or indirectly beneficially owns 100% of the voting securities of such entity, or
(iii) any employee stock ownership plan or any other employee benefit plan of the Company or any wholly-owned subsidiary of the Company, either files or becomes obligated to file a report or a proxy statement under or in response to
Schedule 13D, Schedule 14D-1, Form 8-K, Schedule 14A or Schedule 14C (or any successor schedule, form or report or item therein) under the Exchange Act, disclosing beneficial ownership by it of shares of Voting Stock, of fifteen
percent (15%) or more, or because the Company reports that a change in control of the Company has occurred by reason of such beneficial ownership. As used in connection with the definition of “Change of Control,” references to the
Company will be deemed to include any successor of the Company, references to directors of the Company will be deemed to include any persons performing similar functions on behalf of any successor of the Company, references to the stockholders of
the Company will be deemed to include holders of equity interests in any successor of the Company and references to Voting Stock will be deemed to include voting equity interests in any successor of the Company. 
 (b) Upon occurrence of a Change of Control at any time during the Term (as hereinafter defined in Section 1(c)
hereof), Sections 2, 3, 4, 5, 6, 7 and 8 of this Agreement will become immediately binding and effective. 
 (c) The period during which this Agreement will be in effect (the “Term”) will commence as of the date hereof and will expire as of the later of (i) the close of business on
December 31, 2007 and (ii) the expiration of the Period of Employment (as hereinafter defined in Section 2 hereof); provided, however, that (A) subject to Section 9 hereof, if, prior to a Change of Control, the Executive
ceases for any reason to be an employee of the Company, thereupon the Term will be deemed to have expired and this Agreement will immediately terminate and be of no further effect and (B) commencing on December 31, 2007 and the last day of
each calendar year commencing thereafter, the Term will automatically be extended for an additional period of twelve (12) months unless, not later than the immediately preceding September 30, the Board of Directors of the Company or the
Compensation Committee of the Board of Directors of the Company, on the one hand, or the Executive, on the other hand, will have given notice that the Company or the Executive, as the case may be, does not wish to have the Term extended. 

2. Employment; Period of Employment: 
 (a) Subject to the terms and conditions of this Agreement, upon the occurrence of a Change of Control, the Company will continue the Executive in its employ and the Executive will remain in the
employ of the Company for the period set forth in Section 2(b) hereof (the “Period of Employment”), in the position and with substantially the same duties and responsibilities that the Executive had immediately
prior to the Change of Control, or to which the Company and the Executive may hereafter mutually agree in writing. Throughout the Period of Employment, the Executive will devote substantially all of the Executive’s time during normal business
hours (subject to vacations, sick leave and other absences in accordance with the policies of the Company as in effect for senior executives immediately prior to the Change of Control) to the business and affairs of the Company, but nothing in this
Agreement will preclude the Executive from devoting reasonable periods of time during normal business hours to (i) engaging in charitable and community activities, or (ii) managing the Executive’s personal investments. 
 (b) The Period of Employment will commence on the date on which a Change of Control occurs and, subject only to the
provisions of Section 4 hereof, will continue until the earlier of (i) the expiration of the second anniversary of the occurrence of the Change of Control or (ii) the Executive’s death. 
 3. Compensation During Period of Employment: 
 (a) During the Period of Employment, the Executive will receive (i) annual base salary at a rate not less than the
greater of (A) the Executive’s annual fixed or base compensation in effect on the date on which a Change of Control occurs or (B) such higher rate as may be determined from time to time thereafter by the Board of Directors of the
Company (the “Board”) or the Compensation Committee thereof (which base salary at such rate is herein referred to as “Base Pay”) and (ii) bonus, incentive or other 

 
payments of cash compensation (“Incentive Pay”) pursuant to any bonus, incentive, profit-sharing, performance, discretionary pay or
similar policy, plan, program or arrangement of the Company which is in effect on the date on which a Change of Control occurs (other than Employee Benefits (as hereinafter defined)) (hereinafter collectively referred to as “Incentive
Plans”) and which contemplates payment of Incentive Pay with respect to a time period ending during the Period of Employment. If any Incentive Plan in effect on the date on which a Change of Control occurs terminates prior to the expiration of
the Period of Employment, the Company agrees to adopt for the benefit of the Executive a replacement incentive plan with similar terms and conditions (modified to reflect the new time period during which the replacement Incentive Plan will be
effective), including, without limitation, similar measurement periods, bonus opportunities, payment dates and methods of calculating incentive compensation payable to the Executive. Upon adoption, such replacement incentive plan will be included
within the scope of the defined term “Incentive Plans.” The Executive’s Base Pay will be payable in accordance with the Company’s regular compensation practices, but will in no event be paid less frequently than once each
calendar month. The Executive’s Incentive Pay will be paid annually as soon as reasonably practicable following determination of the amount payable but in no event later than the date which is ninety (90) days following the last day of the
fiscal year during which the measurement period, if applicable, with respect to such Incentive Pay ends or the performance standard, if applicable, with respect to such Incentive Pay can first be calculated. 
 (b) During the Period of Employment the Executive will, if and on the same basis as the Executive participated therein
immediately prior to the Change of Control, be a full participant in, and will be entitled to the perquisites, benefits and service credit for benefits as provided under any and all employee retirement income and welfare benefit policies, plans,
programs or arrangements in which senior executives of the Company participate generally, including without limitation any stock option, stock purchase, stock appreciation, savings, pension, supplemental executive retirement or other retirement
income or welfare benefit, deferred compensation, incentive compensation, group and/or executive life, accident, health, dental, medical/hospital or other insurance (whether funded by actual insurance or self-insured by the Company), disability,
salary continuation, expense reimbursement and other employee benefit policies, plans, programs or arrangements that may exist immediately prior to the Change of Control or any equivalent successor policies, plans, programs or arrangements that may
be adopted thereafter by the Company (collectively, “Employee Benefits”); provided, however, the Executive’s rights thereunder will be governed by the terms thereof and will not be enlarged hereunder or otherwise
affected hereby. If and to the extent such perquisites, benefits or service credit for benefits are not payable or provided under any such policy, plan, program or arrangement as a result of the amendment or termination thereof subsequent to a
Change of Control, then the Company will itself pay or provide such Employee Benefits. Nothing in this Agreement will preclude improvement or enhancement of any such Employee Benefits, provided that no such improvement will in any way diminish any
other obligation of the Company under this Agreement. 
 4. Termination Following a Change of Control: 
 (a) In the event of the occurrence of a Change of Control, this Agreement may be terminated by the Company during the
Period of Employment only upon the occurrence of one or more of the following events: 
 (i) For
“Disability,” which for purposes of this Agreement will mean that the Executive is unable to perform the essential functions of the Executive’s job (with or without reasonable accommodation) because the Executive has
become permanently disabled within the meaning of, and actually begins to receive disability benefits pursuant to, a long-term disability plan maintained by or on behalf of the Company for senior executives generally or, if applicable, employees of
the Company immediately prior to the Change of Control; 
 (ii) For “Cause,” which for
purposes of this Agreement will mean that, prior to any termination pursuant to Section 4(b) hereof, the Executive will have committed: 
 (A) an intentional act of fraud, embezzlement or theft in connection with the Executive’s duties or in the course of the Executive’s employment with the Company; 

 (B) intentional wrongful damage to property of the Company; 

(C) intentional wrongful disclosure of secret processes or confidential information of the Company; or 
 (D) gross dereliction in the performance of the Executive’s obligations as an employee of the Company; and

 any such act will have been materially harmful to the Company. For purposes of this Agreement, no act, or failure to act,
on the part of the Executive will be deemed “intentional” or to be a “gross dereliction” if it was due primarily to an error in judgment or negligence, but will be deemed “intentional” or to be a “gross
dereliction” only if done, or omitted to be done, by the Executive not in good faith and without reasonable belief that the Executive’s action or omission was in the best interest of the Company or not opposed to the best interests of the
Company; or 
 (iii) For a reason other than Cause, Disability and the actual receipt by the Executive of
disability benefits in accordance with Section 4(a)(i) hereof or death, and payment to the Executive (in accordance with the terms and conditions of Section 5) of the Non-Compete Payment described in Section 5
provided that Executive complies, in all material respects, with the restrictive covenants set forth in Sections 5(b) and (d). 
 (b) In the event of the occurrence of a Change of Control, this Agreement may be terminated by the Executive at any time thereafter (without regard to the passage of time; provided the termination occurs during the
Period of Employment) with the right to the Non-Compete Payment described in Section 5 (provided that Executive complies, in all material respects, with the restrictive covenants set forth in Sections 5(b) and (d)) upon the
occurrence of one or more of the following events: 
 (i) Any termination by the Company of the employment of
the Executive for any reason other than (A) for Cause, (B) as a result of the death of the Executive, (C) by reason of the Executive’s Disability and the actual receipt of disability benefits in accordance with
Section 4(a)(i) hereof; or (D) in accordance with Section 4(a)(iii) hereof; 
 (ii) Termination by the Executive of the Executive’s employment with the Company during the Period of Employment upon the occurrence of any of the following events: 
 (A) A significant adverse change in the nature or scope of the authorities, powers, functions, responsibilities or duties
attached to the position(s) with the Company which the Executive held immediately prior to the Change of Control, a reduction in the aggregate of the Executive’s Base Pay and Incentive Pay to be received from the Company, or the termination of
the Executive’s rights to any Employee Benefits to which the Executive was entitled immediately prior to the Change of Control or a reduction in scope or value thereof without the prior written consent of the Executive, any of which is not
remedied within ten (10) calendar days after receipt by the Company of written notice from the Executive of such change, reduction or termination, as the case may be; 
 (B) The liquidation, dissolution, merger, consolidation or reorganization of the Company or transfer, directly or
indirectly, of all or a significant portion of its business and/or assets (including, without limitation, by means of the sale of the capital stock or assets of one or more direct or indirect subsidiaries of the Company), unless the successor (by
liquidation, merger, consolidation, reorganization or otherwise) to which all or a significant portion of its business and/or assets have been transferred (directly or by operation of law) will have irrevocably assumed and guaranteed all duties and
obligations of the Company under this Agreement; 

 (C) The Company will require the Executive (without the consent of the
Executive) to be based at any place which would increase his daily commute distance to more than fifty (50) miles (one-way) or to travel away from the Executive’s office in the course of discharging the Executive’s responsibilities or
duties hereunder significantly more (in terms of either consecutive days or aggregate days in any calendar year) than was required of the Executive prior to the Change of Control without, in either case, the Executive’s prior consent; or

 (D) Any material breach of this Agreement by the Company or any successor thereto. 
 5. Non-Compete Payment: 
 (a) Non-Compete Payment. If, following the occurrence of a Change of Control, the Company terminates the Executive’s employment during the Period of Employment other than
pursuant to Section 4(a)(i) or 4(a)(ii) hereof, or if the Executive terminates the Executive’s employment pursuant to Section 4(b) hereof (in each case the date of Executive’s termination will be referred to as the
“Termination Date”), the Company will pay, in the manner set forth below, to Executive an aggregate amount (the “Non-Compete Payment”) provided, that Executive complies, in all material respects, with
the restrictive covenants set forth in Sections 5(b) and (d). The Non-Compete Payment will be delayed for six (6) months and one (1) day following Executive’s “separation from service” as such term is used in section
409A of the Code and the guidance promulgated thereunder: 
 (i) Subject to Section 5(a)(viii)
below, the payment of Executive’s Base Salary pursuant to the Company’s normal payroll practices for a period of two (2) years following the Termination Date, except that if payment of such Base Salary is delayed pursuant to section
409A of the Code, the first six (6) months of such Base Salary will be paid in a lump sum on the day that is six (6) months and one (1) day following Executive’s date of termination. 
 (ii) Subject to Section 5(a)(viii) below, the payment of an amount equal to two hundred percent (200%) of
the highest amount of Incentive Pay paid or payable to the Executive during any one of the last three (3) fiscal years of the Company ending prior to the Termination Date (regardless of the form in which paid or payable). Such incentive
compensation will be paid in fifty-two (52) equal bi-weekly installments payable on the Company’s normal payroll dates except that if payment of such Incentive Pay is delayed pursuant to section 409A of the Code, the first six
(6) months of such Incentive Pay will be paid in a lump sum on the day that is six (6) months and one (1) day following Executive’s date of termination. 
 (iii) For a period of two years following the Termination Date, the Company shall arrange to continue the participation of
the Executive in any medical or dental benefit plans in which Executive participated on the Termination Date (“Continued Medical”). Executive will be required to continue to pay his portion of the cost of any insured Continued
Medical coverage on a pre-tax basis. However, to the extent that such Continued Medical is self-funded by the Company, Executive will be required to pay the full cost of such coverages on an after-tax basis in order to ensure that the benefits
payable to Executive are not includible in his gross income. Such Continued Medical is in addition to any rights Executive may have to continue such coverages under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended
(“COBRA”). The pre-tax deduction for the self-funded Continued Medical coverages described above will be taken from Executive’s Base Pay described in Section 5(a)(i); provided, however, that if the commencement of
the payment of such Base Pay is delayed for six (6) months and one (1) day, Executive will not be required to pay the cost of Continued Medical during such period and instead the Company will include the cost of such coverage in
Executive’s income and report it as wages on Form W-2. This clause will not prohibit the Company from changing the terms of such medical or dental benefit plans provided that any such changes apply to all senior executives of the Company
(e.g., the Company may switch insurance carriers or preferred provider organizations). 

 The Company’s obligation under this Agreement to provide Continued Medical will
terminate if Executive obtains comparable coverage under a subsequent employer’s medical or dental benefit plans. Executive must advise the Company of the attainment of any such subsequent employer benefit coverages within thirty (30) days
following such attainment. In addition, the Company will furnish the Executive with reasonable “out-placement” services for a period not to exceed two (2) years following the Termination Date; provided, however, nothing contained
herein will require the Company to expend more than an aggregate of ten percent (10%) of the annual Base Pay of the Executive in payment for such services. 
 (iv) Except as set forth in Section 5(a)(vii), there will be no right of set-off or counterclaim in respect of any claim, debt or obligation against any payment to or benefit
(including Employee Benefits) of the Executive provided for in this Agreement. 
 (v) All un-expired,
un-forfeited and un-exercised stock options held by the Executive immediately prior to such termination of employment will become immediately vested and exercisable pursuant to their terms, regardless of whether or not the vesting/performance
conditions set forth in the relevant Stock Option Agreements shall have been satisfied in full. The rights of the Executive pursuant to the terms and conditions of this Section 5(a)(v) will be in addition to any rights granted to the
Executive pursuant to the terms and conditions of any Stock Option Agreement evidencing the grant by the Company of stock options to the Executive, whether granted before or after the execution and delivery of this Agreement. 
 (vi) Without limiting the rights of the Executive at law or in equity, if the Company fails to make any payment required
to be made hereunder on a timely basis, the Company will pay interest on the amount thereof at an annualized rate of interest equal to the then-applicable Prime Rate (as hereinafter defined) or, if lesser, the highest rate allowed by applicable
usury laws. As used herein, the term “Prime Rate” means the rate of interest published from time to time by the Wall Street Journal, and designated as the Prime Rate in the “Money Rates” section of such publication.
If such publication describes the Prime Rate as a range of rates, for purposes of this Agreement, the Prime Rate will be the highest rate designated in such range. 
 (vii) Payment of the Non-Compete Payment is contingent upon Executive’s satisfying the covenants set forth in
Sections 5(b) and (d). If at any time during the Non-Compete Period Executive breaches the covenants set forth in Sections 5(b) and (d), Executive will forfeit any remaining Non-Compete Payments and no further Non-Compete Payments will
be made pursuant to this Section 5(a)), provided that (x) Company will give Executive written notice stating in reasonable detail the facts and circumstances of such alleged breach and, if Executive reasonably cures any such breach
within thirty (30) days of receipt of such notice, the Non-Compete Payments will not be forfeited; and (y) if Executive provides written notice that he disputes that he is not in breach of the provisions of Sections 5(b) and (d),
the Company will deposit the remaining Non-Compete Payments in an interest bearing escrow account in a financial institution mutually agreed by the parties or, in the absence of an agreement, JPMorgan Chase Bank, NA to be held until entitlement to
such Non-Compete Payment is finally determined. 
 (viii) In the event of Executive’s death or
Substantial Disability (as defined below) during the Non-Compete Period, any remaining Non-Compete Payments that have not been paid as of the date of such death or Substantial Disability will become immediately due and payable in a single lump sum
and will be paid to Executive (or his estate) within thirty (30) days of such event. “Substantial Disability” will mean Executive’s inability to perform any material business services of the type described in
Section 5(b) for an aggregate of one hundred twenty (120) days during any period of one hundred eighty (180) consecutive days due to a mental or physical incapacity as determined by the mutual agreement of a physician selected
by the Company or its insurers (the “Company Physician”) and a physician selected by Executive (Executive’s Physician). In the event that the Company Physician and the Executive’s Physician cannot
agree on whether Executive’s condition is such that he has a Substantial Disability, such determination will be made by a third physician who is jointly selected by the Company Physician and the Executive’s Physician. 

 (b) Agreement not to Compete. In consideration of the
Company’s promise to provide Executive with Confidential Information defined in Section 5(c), the Non-Compete Payment provided for in Section 5(a), the other mutual promises contained in this Agreement, and
Executive’s employment with the Company, and so as to enforce Executive’s promises regarding Confidential Information contained in Section 5(c) of this Agreement, Executive agrees that in the event his employment with the
Company is terminated following a Change in Control pursuant to Section 4(a)(iii) or Section 4(b), Executive will not, for a period of three (3) years after the date of such termination of employment (the
“Non-Compete Period”), directly or indirectly, carry on or conduct, in competition with the Company or its subsidiaries or affiliates, any business of the nature in which the Company or its subsidiaries or affiliates are then
engaged in any geographical area in which the Company or its subsidiaries or affiliates engage in business at the time of such termination or in which any of them, prior to termination of Executive’s employment, evidenced in writing, at any
time during the six (6) month period prior to such termination, an intention to engage in such business. Executive agrees that he will not so conduct or engage in any such business either as an individual on his own account or as a partner or
joint venturer or as an executive, agent, consultant or salesman for any other person or entity, or as an officer or director of a corporation or as a shareholder in a corporation of which he will then own ten percent (10%) or more of any class
of stock. The provisions of this Section 5(b) will supersede any and all non-compete provisions contained in any and all other agreements which have been entered into between Executive and the Company and will survive the termination of
this Agreement. 
 (c) Confidential Information. The Company makes a binding promise not conditioned
upon continued employment to provide Executive with certain Confidential Information above and beyond any Confidential Information Executive may have previously received. Executive will not, directly or indirectly, at any time following termination
of his employment with the Company, reveal, divulge or make known to any person or entity, or use for Executive’s personal benefit (including without limitation for the purpose of soliciting business, whether or not competitive with any
business of the Company or any of its subsidiaries or affiliates), any Confidential Information acquired during the Employment Period. Executive will, at any time requested by the Company (either during his employment with the Company or during the
Non-Compete Period), promptly deliver to the Company all memoranda, notes, reports, lists and other documents (and all copies thereof) relating to the business of the Company or any of its subsidiaries and affiliates which he may then possess or
have under his control. 
 For purposes of this Agreement, “Confidential Information”
includes the following information with respect to the Company, and its subsidiaries and its affiliates: sales materials, technical information, processes and compilations of information, records, specifications and information concerning customers
or vendors, customer lists, and information regarding methods of doing business and the terms of this Agreement. As defined herein, Confidential Information does not include: (i) information already in the public domain, (ii) information
of a type not considered confidential by persons engaged in the same business or a business similar to that conducted by the Company or its subsidiaries and affiliates, or (iii) information that Executive is required to disclose under the
following circumstances: (A) at the express direction of any authorized governmental entity; (B) pursuant to a subpoena or other court process; (C) as otherwise required by law or the rules, regulations, or orders of any applicable
regulatory body; or (D) as otherwise necessary, in the opinion of counsel for Executive, to be disclosed by Executive in connection with any legal action or proceeding involving Executive and the Company or any subsidiary or affiliate of the
Company in his capacity as an employee, officer, director, or stockholder of the Company or any subsidiary or affiliate of the Company. 
 (d) Agreement not to Solicit Employees. Executive agrees that, during the Non-Compete Period, Executive will not solicit or induce, or in any manner attempt to solicit or induce, any person employed by, or any
agent of, the Company or any of its subsidiaries or affiliates to terminate such employee’s employment or agency, as the case may be, with the Company or any subsidiary or affiliate. 

 (e) Nondisparagement. Executive agrees that he will not disparage
the Company, the Board of Directors of the Company, the Company’s executives, the Company’s employees and the Company’s products or services during his Period of Employment and thereafter. The Company likewise agrees that it will not
disparage Executive during Executive’s Period of Employment or thereafter. For purposes of this Section 5(e), disparagement does not include (a) compliance with legal process or subpoenas to the extent only truthful statements
are rendered in such compliance attempt, (b) statements in response to an inquiry from a court or regulatory body, or (c) statements or comments in rebuttal of media stories or alleged media stories. 
 (f) Reasonableness of Restrictions. Executive acknowledges that the geographic boundaries, scope of prohibited
activities, and time duration set forth in this Section 5 are reasonable in nature and are no broader than are necessary to maintain the confidentiality and the goodwill of the Company and the confidentiality of its Confidential
Information and to protect the legitimate business interests of the Company, and that the enforcement of such provisions would not cause Executive any undue hardship nor unreasonably interfere with Executive’s ability to earn a livelihood If
any court determines that any portion of this Section 5 is invalid or unenforceable, the remainder of this Section 5 will not thereby be affected and will be given full effect without regard to the invalid provisions. If any court
construes any of the provisions of this Section 5, or any part thereof, to be unreasonable because of the duration or scope of such provision, such court will have the power to reduce the duration or scope of such provision and to
enforce such provision as so reduced. 
 6. Certain Further Payments due Executive.  
 (a) Tax Reimbursement Payment. In the event that any amount or benefit paid or distributed to Executive pursuant to
this Agreement and/or any amounts or benefits otherwise paid or distributed to Executive by the Company that are treated as parachute payments under section 280G of the Code (such payments, collectively, the “Covered
Payments”), are or become subject to the tax imposed under section 4999 of the Code or any similar tax that may hereafter be imposed (the “Excise Tax”), the Company will pay to Executive an additional amount (the
“Tax Reimbursement Payment”), such that the net amount retained by Executive with respect to such Covered Payments, after deduction of any Excise Tax (including any penalties and interest thereon) on the Covered Payments and
any Federal, state and local income tax and Excise Tax on the Tax Reimbursement Payment provided for by this Section 6, but before deduction for any Federal, state or local income or employment tax withholding on such Covered Payments,
will be equal to the amount of the Covered Payments, together with an amount equal to the product of any deductions disallowed to Executive for Federal, state, or local income tax purposes because of the inclusion of the Tax Reimbursement Payment in
Executive’s adjusted gross income multiplied by the highest applicable marginal rate of Federal, state, or local income taxation, respectively, for the calendar year in which the Tax Reimbursement Payment is to be made. The time for payment of
the Tax Reimbursement Payment is set forth in Section 6(e). The Tax Reimbursement Payment is intended to place the Executive in the same position he would have been in if the Excise Tax did not apply. 
 (b) Assumptions for Calculation. For purposes of determining whether any of the Covered Payments will be subject to
the Excise Tax and the amount of such Excise Tax, 
 (i) such Covered Payments will be treated as
“parachute payments” within the meaning of section 280G of the Code, and all “parachute payments” in excess of the “base amount” (as defined under section 280G(b)(3) of the Code) will be treated as subject to the Excise
Tax, unless, and except to the extent that, in the good faith judgment of a public accounting firm appointed by the Company or tax counsel selected by such accounting firm (the “Accountants”), the Company has a reasonable
basis to conclude that such Covered Payments (in whole or in part) either do not constitute “parachute payments” or represent reasonable compensation for personal services actually rendered (within the meaning of section 280G(b)(4)(B) of
the Code) in excess of the “base amount,” or such “parachute payments” are otherwise not subject to such Excise Tax; and 

 (ii) the value of any non-cash benefits or any deferred payment or
benefit will be determined by the Accountants in accordance with the principles of section 280G of the Code. 
 (c) Assumed Tax Rates. For purposes of determining the amount of the Tax Reimbursement Payment, Executive will be deemed to pay: 
 (i) Federal income taxes at the highest applicable marginal rate of Federal income taxation for the calendar year in which the Tax Reimbursement Payment is to be made; and 
 (ii) any applicable state and local income taxes at the highest applicable marginal rate of taxation for the calendar year
in which the Tax Reimbursement Payment is to be made, net of the maximum reduction in Federal income taxes which could be obtained from the deduction of such state or local taxes if paid in such year. 
 (d) Subsequent Adjustment. In the event that the Excise Tax is subsequently determined by the Accountants or
pursuant to any proceeding or negotiations with the Internal Revenue Service to be less than the amount taken into account hereunder in calculating the Tax Reimbursement Payment made, Executive will repay to the Company, at the time that the amount
of such reduction in the Excise Tax is finally determined, the portion of such prior Tax Reimbursement Payment that would not have been paid if such Excise Tax had been applied initially calculating such Tax Reimbursement Payment, plus interest on
the amount of such repayment at the rate provided in section 1274(b)(2)(B) of the Code. Notwithstanding the foregoing, in the event any portion of the Tax Reimbursement Payment to be refunded to the Company has been paid to any Federal, state or
local tax authority, repayment thereof will not be required until actual refund or credit of such portion has been made to Executive, and interest payable to the Company will not exceed interest received or credited to Executive by such tax
authority for the period it held such portion. Executive and Company will mutually agree upon the course of action to be pursued (and the method of allocating the expenses thereof) if Executive’s good faith claim for refund or credit is denied
(in whole or in part); provided that Executive will remain responsible to repay the Company for any such unrefunded Tax Reimbursement Payments to the extent Executive ultimately prevails in such claim. 
 In the event that the Excise Tax is later determined by the Accountants or pursuant to any proceeding or negotiations with
the Internal Revenue Service to exceed the amount taken into account hereunder at the time the Tax Reimbursement Payment is made (including, but not limited to, by reason of any payment the existence or amount of which cannot be determined at the
time of the Tax Reimbursement Payment), the Company will make an additional Tax Reimbursement Payment in respect of such excess (plus any interest or penalty payable with respect to such excess) at the time that the amount of such excess is finally
determined. 
 (e) Timing of Payments. The Tax Reimbursement Payment (or portion thereof) provided for
in Section 6(a) above will be paid to Executive on the day of the payment of the Covered Payments; provided, however, that if the amount of such Tax Reimbursement Payment (or portion thereof) cannot be finally determined on or before the
date on which payment is due, the Company will pay to Executive by such date an amount estimated in good faith by the Accountants to be the minimum amount of such Tax Reimbursement Payment and will pay the remainder of such Tax Reimbursement Payment
(together with interest at the rate provided in section 1274(b)(2)(B) of the Code) as soon as the amount thereof can be determined, but in no event later than forty-five (45) days after payment of the related Covered Payment. In the event that
the amount of the estimated Tax Reimbursement Payment exceeds the amount subsequently determined to have been due, subject to the provisions of Section 6(d), such excess will be payable by Executive to the Company on the fifth business
day after written demand by the Company for payment (together with interest at the rate provided in section 1274(b)(2)(B) of the Code). 
 7. No Mitigation Obligation: The Company hereby acknowledges that it will be difficult, and may be impossible, for the Executive to find reasonably comparable employment following the Termination Date.
Accordingly, the parties hereto expressly agree that the payment of the severance compensation by the Company to the Executive in accordance with the terms of this Agreement will be liquidated damages, and that the Executive will not be required to
mitigate the amount of any payment provided for in this Agreement by seeking other 

 
employment or otherwise, nor, except as expressly set forth herein, will any profits, income, earnings or other benefits from any source whatsoever create
any mitigation, offset, reduction or any other obligation on the part of the Executive hereunder or otherwise. 
 8. Legal
Fees and Expenses: It is the intent of the Company that the Executive not be required to incur the expenses associated with the enforcement of the Executive’s rights under this Agreement by litigation or other legal action because the cost
and expense thereof would substantially detract from the benefits intended to be extended to the Executive hereunder. Accordingly, if it should appear to the Executive that the Company has failed to comply with any of its obligations under this
Agreement or in the event that the Company or any other person takes any action to declare this Agreement void or unenforceable, or institutes any litigation designed to deny, or to recover from, the Executive the benefits intended to be provided to
the Executive hereunder, the Company irrevocably authorizes the Executive from time to time to retain counsel of the Executive’s choice, at the expense of the Company as hereafter provided, to represent the Executive in connection with the
litigation or defense of any litigation or other legal action, whether by or against the Company or any director, officer, stockholder or other person affiliated with the Company, in any jurisdiction. The Company will pay or cause to be paid and
will be solely responsible for any and all reasonable attorneys’ and related fees and expenses incurred by the Executive pursuant to this Section 8. 
 9. Employment Rights: Nothing expressed or implied in this Agreement will create any right or duty on the part of the Company or the Executive to have the Executive remain in the
employment of the Company prior to any Change of Control; provided, however, that any termination of employment of the Executive (for any reason other than as described in Section 4(a)(i) or Section 4(a)(ii)) (i) following the
commencement of any discussion with a third person that ultimately results in a Change of Control or (ii) within the six (6) month period immediately prior to a Change of Control will be deemed to be a termination or removal of the
Executive after a Change of Control for purposes of this Agreement. 
 10. Withholding of Taxes: The Company may
withhold from any amounts payable under this Agreement all federal, state, city or other taxes as will be required pursuant to any law or government regulation or ruling. 
 11. Successors and Binding Agreement: 
 (a) The
Company will require any successor (whether direct or indirect, by purchase, merger, consolidation, reorganization or otherwise) to all or substantially all of the business and/or assets of the Company, to expressly assume and agree to perform this
Agreement in the same manner and to the same extent the Company would be required to perform if no such succession had taken place. This Agreement will be binding upon and inure to the benefit of the Company and any successor to the Company,
including without limitation any persons acquiring directly or indirectly all or substantially all of the business and/or assets of the Company whether by purchase, merger, consolidation, reorganization or otherwise (and such successor will
thereafter be deemed the “Company” for the purposes of this Agreement). This Agreement will not otherwise be assignable, transferable or delegable by the Company. 
 (b) This Agreement will inure to the benefit of and be enforceable by the Executive’s personal or legal
representatives, executors, administrators, successors, heirs, distributees and/or legatees. 
 (c) This
Agreement is personal in nature and neither of the parties hereto will, without the consent of the other, assign, transfer or delegate this Agreement or any rights or obligations hereunder except as expressly provided in Section 11(a)
hereof. Without limiting the generality of the foregoing, the Executive’s right to receive payments hereunder will not be assignable, transferable or delegable, whether by pledge, creation of a security interest or otherwise, other than by a
transfer by the Executive’s will or by the laws of descent and distribution and, in the event of any attempted assignment or transfer contrary to this Section 11(c), the Company will have no liability to pay any amount so attempted
to be assigned, transferred or delegated. 
 (d) The Company and the Executive recognize that neither party
will have an adequate remedy at law for breach by the other of any of the agreements contained herein and, in the event of any 

 
such breach, the Company and the Executive hereby agree and consent that the other will be entitled to a decree of specific performance, mandamus or other
appropriate remedy to enforce performance of this Agreement. 
 12. Applicable Law. THIS AGREEMENT WILL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS (EXCLUSIVE OF ANY CHOICE OF LAW OR CONFLICT OF LAW RULES OR PROVISIONS (WHETHER OF THE STATE OF TEXAS OR ANY OTHER JURISDICTION) THAT WOULD CAUSE THE APPLICATION OF THE LAWS
OF ANY JURISDICTION OTHER THAN THE STATE OF TEXAS) AND THE LAWS OF THE UNITED STATES OF AMERICA AND WILL, TO THE MAXIMUM EXTENT PRACTICABLE, BE DEEMED TO CALL FOR PERFORMANCE IN ELLIS COUNTY, TEXAS. COURTS WITHIN THE STATE OF TEXAS WILL HAVE
JURISDICTION OVER ANY AND ALL DISPUTES BETWEEN THE PARTIES HERETO, WHETHER IN LAW OR EQUITY, ARISING OUT OF OR RELATING TO THIS AGREEMENT. THE PARTIES CONSENT TO AND AGREE TO SUBMIT TO THE JURISDICTION OF SUCH COURTS. VENUE IN ANY SUCH DISPUTE,
WHETHER IN FEDERAL OR STATE COURT, WILL BE LAID IN ELLIS COUNTY, TEXAS. NOTHING CONTAINED HEREIN WILL BE DEEMED TO BE A WAIVER OF ANY RIGHT THAT MAY EXIST TO REMOVE AN ACTION FILED IN STATE COURT TO FEDERAL COURT. EACH OF THE PARTIES HEREBY WAIVES,
AND AGREES NOT TO ASSERT IN ANY SUCH DISPUTE, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY CLAIM THAT (i) SUCH PARTY IS NOT PERSONALLY SUBJECT TO THE JURISDICTION OF SUCH COURTS, (ii) SUCH PARTY AND SUCH PARTY’S PROPERTY IS
IMMUNE FROM ANY LEGAL PROCESS ISSUED BY SUCH COURTS OR (iii) ANY LITIGATION COMMENCED IN SUCH COURTS IS BROUGHT IN AN INCONVENIENT FORUM. 
 13. Notices. All notices, demands, requests or other communications that may be or are required to be given, served or sent by either party to the other party pursuant to this Agreement will be in writing and
will be mailed by first-class, registered or certified mail, return receipt requested, postage prepaid, or transmitted by hand delivery, telegram or facsimile transmission addressed as follows: 
  

					
	 (a)
	    	 If to the Company:
	  	 Chaparral Steel Company
 300 Ward Road
 Midlothian, Texas 76065
  

Facsimile Transmission No.:(972) 779-1944
  
 Attn: Corporate Secretary

			
	 (b)
	    	 If to the Executive:
	  	                                       
                                        
                                        
                         
  

                                      
                                        
                                        
                         
  

                                      
                                        
                                        
                         
  

                                      
                                        
                                        
                         
 Facsimile Transmission No.:
                                        
                                        
       
  
 Attn:
                                        
                                        
                                        
            

 Either party may designate by written notice a new address to which any notice, demand, request or
communication may thereafter be given, served or sent. Each notice, demand, request or communication that is mailed, delivered or transmitted in the manner described above will be deemed sufficiently given, served, sent and received for all purposes
at such time as it is delivered to the addressee with the return receipt, the delivery receipt, the affidavit of messenger or (with respect to a facsimile transmission) the answer back being deemed conclusive evidence of such delivery or at such
time as delivery is refused by the addressee upon presentation. 

 14. Gender. Words of any gender used in this Agreement will be held and construed
to include any other gender, and words in the singular number will be held to include the plural, unless the context otherwise requires. 
 15. Entire Agreement. This Agreement represents the parties’ entire agreement with respect to the subject matter hereof and supersedes and replaces any prior agreement or understanding with respect to that
subject matter. All prior and all oral representations, warranties and covenants with respect to the subject matter of this Agreement will be deemed to have been merged into and superseded by this Agreement. This Agreement may not be amended or
supplemented except pursuant to a written instrument signed by the party against whom such amendment or supplement is to be enforced. 
 16. Counterparts. This Agreement may be executed in multiple counterparts, each of which will be deemed to be an original and all of which will be deemed to be a single agreement. This Agreement will be
considered fully executed when all parties have executed an identical counterpart, notwithstanding that all signatures may not appear on the same counterpart. 
 17. Severability. If any of the provisions of this Agreement are determined to be invalid or unenforceable, such invalidity or unenforceability will not invalidate or render unenforceable
the remainder of this Agreement, but rather the entire Agreement will be construed as if not containing the particular invalid or unenforceable provision or provisions, and the rights and obligations of the parties will be construed and enforced
accordingly. The parties acknowledge that if any provision of this Agreement is determined to be invalid or unenforceable, it is their desire and intention that such provision be reformed and construed in such manner that it will, to the maximum
extent practicable, be deemed to be valid and enforceable. 
 18. Third Parties. Except as expressly set forth or
referred to in this Agreement, nothing in this Agreement is intended or will be construed to confer upon or give to any party other than the parties to this Agreement and their successors and permitted assigns, if any, any rights or remedies under
or by reason of this Agreement. 
 19. Waiver. No failure or delay in exercising any right hereunder will operate as a
waiver thereof, nor will any single or partial exercise thereof preclude any other or further exercise or the exercise of any other right. 
 20. Other Plans or Programs. The severance compensation payable under this Agreement is in addition to the compensation and benefits provided for the Executive under any other plan or program for employees of
the Company and this Agreement will supplement and will not supersede, modify or amend any other such plan or program except as may otherwise be expressly provided. 

 IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed and
delivered as of the date first above written. 
  

			
	 COMPANY:

	
	 CHAPARRAL STEEL COMPANY

		
	 By:
	 	  

	 Name:
	 	 Tommy A. Valenta

	 Title:
	 	 President-Chief Executive Officer

	
	 EXECUTIVE:

	
	

	 Name:

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