Document:

EX-10.9

 Exhibit 10.9 
 EMPLOYMENT AGREEMENT 
 This Employment Agreement (the
“Agreement”) is entered into as of November 1, 2012 (the “Effective Date”), by and between Restoration Hardware, Inc., a Delaware corporation, with a business address of 15 Koch Road, Suite J, Corte Madera, CA
94925 (the “Company”), and Karen Boone, an individual (the “Executive”). 
  

	 	1.	Employment 

 (a)
Title. The Executive shall serve as Chief Financial Officer of the Company, reporting to the Chief Executive Officer. The Executive agrees to perform her duties for the Company diligently, competently, and in a good faith manner. 

(b) Exclusive Employment. While Executive is employed by the Company, the Executive shall devote her full business time to her
duties and responsibilities to the Company, and may not, without the prior written consent of the Company’s Board of Directors (the “Board”) or its designee, operate, participate in the management, board of directors,
operations or control of, or act as an employee, officer, consultant, agent or representative of, any type of business or service (other than as an employee of the Company); provided, however, that the Executive may (i) engage in
civic and charitable activities and (ii) make and maintain outside personal investments, provided that none of the foregoing activities interfere with the Executive’s performance of her duties hereunder or create a conflict of interest
with the Company. 
 (c) Place of Employment. The Executive’s primary workplace shall be the Company’s offices
in Corte Madera, California, except for usual and customary travel on the Company’s business. 
  

	 	2.	Compensation 

 (a) Base
Salary. The Executive shall receive a base salary from the Company at the rate of Four Hundred and Seventy-Five Thousand Dollars ($475,000) per year (“Base Salary”). The Executive’s Base Salary shall be reviewed from time
to time in accordance with the Company’s established procedures for adjusting salaries for similarly situated employees and may be adjusted in the Company’s discretion. 

(b) Bonus. 
 (i) The Executive will be eligible to participate in the Company’s Leadership Incentive Program (the “Bonus Plan”), with a target bonus amount equivalent to fifty percent
(50%) of her Base Salary. Actual bonus payments will be subject to achievement of performance objectives as determined in accordance with the Bonus Plan and will be prorated for a partial year of service. 

(ii) The Executive will receive a one-time cash bonus equal to One Hundred Thousand Dollars ($100,000) to be paid within 10 days of the
date on which Restoration Hardware Holdings, Inc. completes its firm commitment underwritten initial public offering (such date of completion, the “Effective Time”). 

  
 1 

 (c) Equity Incentive Compensation. On the date hereof, the Executive will receive an
option to purchase 230,000 shares of Restoration Hardware Holdings, Inc.’s common stock, at an exercise price equal to the initial public offering price of the shares sold in Restoration Hardware Holdings, Inc.’s initial public
offering, pursuant to the terms and conditions of the Restoration Hardware Holdings, Inc. 2012 Stock Incentive Plan and a stock option agreement to be entered into by and between the Executive and the Company. Subject to the terms of the
stock option agreement and the Restoration Hardware Holdings, Inc. 2012 Stock Incentive Plan, of the 230,000 shares subject to such stock option, (i) 206,000 of such shares shall be subject to long-term selling restrictions as set forth in the
stock option agreement, which selling restrictions shall lapse as follows: the long-term selling restrictions on 33,500 of such shares shall lapse on the first anniversary of the date Executive commenced employment with the Company (“Employment
Commencement Date”), and the long-term selling restrictions on the remaining 172,500 of such share shall lapse in equal installments of 57,500 shares each on the second, third and fourth anniversaries of the Employment Commencement Date; and
(ii) the remaining 24,000 of such shares subject to such stock option shall not be subject to long-term selling restrictions. 
  

	 	3.	Benefits 

 (a)
Benefits. The Executive shall be eligible to participate in health and other employee benefits (including but not limited to 401(k), health, medical, dental, supplemental health, travel accident, life, long-term disability, and directors and
officers insurance) on a basis comparable to the benefits provided by the Company from time to time to its other senior executives and commensurate with the Executive’s position in the Company. The Executive shall be bound by all of the written
policies and procedures established by the Company, as may be amended from time to time in the Company’s sole discretion. The Executive shall also be eligible for the associate discount, including forty percent (40%) off regularly priced
merchandise and twenty percent (20%) off sale priced items. 
 (b) Vacation. The Executive shall be eligible to
accrue up to Four (4) weeks of paid vacation time per year, in accordance with the Company’s vacation policy as may be amended from time to time in the Company’s sole discretion. 

(c) Reimbursement of Expenses. The Company shall promptly reimburse the Executive for all reasonable out of pocket travel,
entertainment, and other expenses incurred or paid by the Executive in connection with, or related to, the performance of her responsibilities or services under this Agreement upon the submission of appropriate documentation pursuant to the
Company’s policies in effect from time to time. 
 (d) Automobile Allowance. The Executive shall be entitled to
receive an automobile allowance of Nine Hundred Dollars ($900.00) per month, subject to customary Company policies for senior executives. 
  

	 	4.	Termination 

 (a)
At-Will Termination by the Company. The employment of the Executive shall be “at-will” at all times. The Company may terminate the Executive’s employment with 

  
 2 

 
the Company at any time without any advance notice (and the Executive may terminate her employment with the Company at any time upon providing thirty (30) days prior notice), in each case,
for any reason or no reason at all, notwithstanding anything to the contrary contained in or arising from any statements, policies or practices of the Company relating to the employment, discipline or termination of its employees. Upon and after
such termination, all obligations of the Company under this Agreement shall cease, except as otherwise provided below in this Section 4. 
 (b) Termination by the Company with Cause. Upon written notice to the Executive, the Company may terminate the Executive’s employment for Cause (as defined below). In the event that the
Executive’s employment is terminated for Cause, (i) the Executive shall receive from the Company payments for (A) any and all earned and unpaid portion of her then effective Base Salary (on or before the first regular payroll date
following the Date of Termination); (B) any and all accrued and unpaid vacation through the Date of Termination; (C) any and all unreimbursed business expenses (in accordance with the Company’s reimbursement policy); and (D) any
other benefits the Executive is entitled to receive as of the Date of Termination under the employee benefit plans of the Company, less standard withholdings for tax and social security purposes (items (A) through (D) are hereafter
referred to as “Accrued Benefits”), and (ii) except as required by law, after the Date of Termination, the Company shall have no obligation to make any other payment, including severance or other compensation of any kind, on
account of the Executive’s termination of employment or to make any payment in lieu of notice to the Executive. Except as required by law, all benefits provided by the Company to the Executive under this Agreement or otherwise shall cease as of
the Date of Termination. 
 (c) Termination by the Company Without Cause. The Company may, at any time and without prior
written notice, terminate the Executive’s employment without Cause. In the event that the Company terminates the Executive’s employment without Cause, the Executive shall receive the Accrued Benefits. In addition, the Executive shall be
eligible to receive from the Company the following severance benefits (collectively, the “Severance Benefits”): 
 (i) (A) if the termination occurs within one (1) year of the Effective Time, severance pay equivalent to Eighteen (18) months of the Executive’s final Base Salary, less standard
withholdings for tax and social security purposes, paid according to the Company’s regular payroll schedule over the Eighteen (18) months following the Date of Termination; or (B) if the termination occurs more than one (1) year
after the Effective Time, severance pay equivalent to Twelve (12) months of the Executive’s final Base Salary, less standard withholdings for tax and social security purposes, paid according to the Company’s regular payroll schedule
over the Twelve (12) months following the Date of Termination (collectively, the “Severance Period”); and 
 (ii) (A) if the termination occurs within one (1) year of the Effective Time and subject to the Executive’s timely election under COBRA, payment of a portion of the Executive’s COBRA
premiums for Eighteen (18) months following the Date of Termination (not to exceed the applicable continuation period) or, if earlier, until such time as the Executive becomes eligible for similar coverage through another employer, which
benefits shall be paid for by the Company to the same extent that the Company paid for health insurance for the Executive 

  
 3 

 
prior to termination; or (B) if the termination occurs more than one (1) year after the Effective Time and subject to the Executive’s timely election under COBRA, payment of a
portion of the Executive’s COBRA premiums for Twelve (12) months following the Date of Termination (not to exceed the applicable continuation period) or, if earlier, until such time as the Executive becomes eligible for similar coverage
through another employer, which benefits shall be paid for by the Company to the same extent that the Company paid for health insurance for the Executive prior to termination. The Executive will thereafter be responsible for the payment of COBRA
premiums (including, without limitation, all administrative expenses) for any remaining COBRA period. Notwithstanding the foregoing, in the event that the Company determines, in its sole discretion, that the Company may be subject to a tax or
penalty pursuant to Section 4980D of the Code as a result of providing some or all of the payments described in this Section 4(c)(ii), the Company may reduce or eliminate its obligations under this Section 4(c)(ii) to the extent it
deems necessary, with no offset or other consideration required. 
 The Executive’s entitlement to the Severance Benefits is conditioned on
(x) the Executive’s timely executing and delivering to the Company of a release of claims against the Company, in a form attached hereto as Exhibit A (the “Release”), and on such release becoming effective,
(y) the Executive not engaging in Conflicting Activities (as defined below) while receiving Severance Benefits from the Company, and (z) the Executive’s compliance with the Proprietary Information Agreements (as defined below).

 To be timely, the Release must become effective and irrevocable no later than sixty (60) days following the Date of Termination (the
“Release Deadline”). If the Release does not become effective and irrevocable by the Release Deadline, Executive will forfeit any rights to the severance benefits described in this Section 4(c). In no event will any severance
benefits be paid under this Section 4(c) until the Release becomes effective and irrevocable. Subject to Section 8(c) below, severance benefits will commence or be provided once the Release becomes effective and irrevocable. 

The Executive acknowledge that the Severance Benefits are being provided to assist in the Executive’s transition to other employment. Accordingly,
to the extent that the Executive begins to engage in Conflicting Activities during the Severance Period, the Executive shall be entitled to retain any severance payments received prior to the date she commences the Conflicting Activity but will
cease to be eligible to receive any further severance payments or other severance benefits under the terms of this Agreement or otherwise, and the Executive shall have no further claims, rights or entitlements to any severance payments or benefits
in any respect. The Executive agrees that the Company shall have a right of offset against all severance payments for amounts owed to the Company by the Executive (unless the amounts owed are subject to a good faith dispute) to the fullest extent
not prohibited by law. The Severance Benefits shall be in lieu of any other severance payments, severance benefits and severance protections to which the Executive may be entitled under any severance or termination policy, plan, program, practice or
arrangement of the Company and its affiliates. Except as specifically provided in this Section 4(c) or in another section of this Agreement, or except as required by law, all benefits provided by the Company to the Executive under this
Agreement or otherwise shall cease as of the Date of Termination. 

  
 4 

 (d) Termination by the Executive for Good Reason. The Executive may voluntarily
terminate her employment with the Company and receive the Severance Benefits detailed in Section 4(c) (subject to the same conditions set forth in Section 4(c)) following the occurrence of an event constituting Good Reason (as defined
below), provided that the Executive has provided written notice to the Company of the existence of the event constituting Good Reason within sixty (60) days following such event, the Company has had a period of thirty (30) days to cure the
Good Reason, the Company has failed to cure the Good Reason within that period, and the Executive terminates her employment within thirty (30) days following the expiration of such cure period. 

(e) Voluntary Termination. If the Executive terminates employment with the Company without Good Reason, the Executive agrees to
provide the Company with thirty (30) days’ prior written notice. In the event that the Executive’s employment is terminated under this Section 4(e), the Executive shall receive from the Company payment for all Accrued Benefits
described in Section 4(b) above at the times specified in Section 4(b) above. Except as required by law, after the Date of Termination, the Company shall have no obligation to make any other payment, including severance or other
compensation, of any kind, or provide any other benefits, to the Executive on account of the Executive’s termination of employment. 
 (f) Termination Upon Death or Disability. If the Executive’s employment is terminated as a result of death or Disability, the Executive (or Executive’s estate, or other designated
beneficiary(s) as shown in the records of the Company in the case of death) shall be entitled to receive from the Company payment for the Accrued Benefits described in Section 4(b) above at the times specified in Section 2(b) above. Except
as required by law, after the Date of Termination, the Company shall have no obligation to make any other payment, including severance or other compensation, of any kind, or provide any other benefits, to the Executive (or the Executive’s
estate, or other designated beneficiary(s), as applicable) upon a termination of employment by death or Disability 
 (g)
Certain Definitions. For purposes of this Agreement, the following terms shall have the meanings set forth below. 
 (i)
“Cause” shall mean 
 (A) the Executive has been convicted of (or has entered a plea of nolo
contendere to) a felony involving fraud, dishonesty, or physical harm to any person; 
 (B) the Executive
intentionally failed to substantially perform the Executive’s material duties (other than a failure resulting from the Executive’s incapacity due to physical or mental illness or from the Executive’s assignment of duties that would
constitute Good Reason), which failure lasted for a period of at least fifteen (15) days after a written notice of demand for substantial performance has been delivered to the Executive specifying the manner in which the Executive has failed
substantially to perform; 

  
 5 

 (C) the Executive intentionally engaged in conduct which is demonstrably
and materially injurious to the Company; or 
 (D) the Executive’s fraud, embezzlement or other act of
material dishonesty with respect to the Company. 
 For purposes of this Section 4(g)(i), no act, nor failure to act, on
the Executive’s part shall be considered “intentional” unless the Executive has acted, or failed to act, with a lack of reasonable belief that the Executive’s action or failure to act was in the best interest of Company.

 (ii) “Conflicting Activities” shall mean (a) directly or indirectly engaging or investing in, owning,
managing, operating, financing, controlling or participating in the ownership, management, operation, financing, or control of, being employed by, associated with, or in any manner connected with, lending any credit to, or rendering services or
advice to, any business, firm, corporation, partnership, association, joint venture or other entity that engages or conducts any competing business the same as or substantially similar to the business engaged in or proposed to be engaged in or
conducted by the Company or described in a written strategic plan of the Company at any time that the Executive was employed with the Company, anywhere within the United States of America; provided, however, that “Conflicting
Activities” shall exclude ownership of up to 5% of the outstanding shares of any class of securities of any enterprise (but without otherwise participating in the activities of such enterprise) if such securities are listed on any national or
regional securities exchange or have been registered under Section 12(g) of the Securities Exchange Act of 1934, as amended, and up to 5% of the voting stock or other securities of any privately-held company; (b) directly or indirectly
soliciting the business of any material customers of or suppliers to the Company, or encouraging any person or entity which is a customer of the Company to cease, reduce, limit or otherwise alter in a manner adverse to the Company its existing
business or contractual relationship with the Company; or (c) directly or indirectly soliciting, inducing, recruiting or encouraging any person employed or engaged by the Company to terminate her employment or engagement with the Company,
provided, however, that general solicitations not targeted to Company employees shall not be deemed to violate this clause (iii). 
 (iii) “Date of Termination” shall mean (i) if the Executive is terminated by the Company for Disability, thirty (30) days after written notice of termination is given to the
Executive (provided that the Executive shall not have returned to the performance of her duties on a full-time basis during such 30-day period); (ii) if the Executive’s employment is terminated by the Company for any other reason, the date
on which a written notice of termination is given; (iii) if the Executive terminates employment for Good Reason, the date of the Executive’s resignation; provided that the notice and cure provisions in the definition of Good Reason have
been complied with; (iv) if the Executive terminates employment for other than a Good Reason, the date specified in the Executive’s notice in compliance with Section 4(e); or (v) in the event of Executive’s death, the date
of death. 
 (iv) “Disability” shall (i) have the meaning defined under the Company’s then-current
long-term disability insurance plan, policy, program or contract as entitles the Executive to payment of disability benefits thereunder, or (ii) if there shall be no such plan, policy, program or contract, mean permanent and total disability as
defined in Section 22(e)(3) of the Internal Revenue Code of 1986, as amended. 

  
 6 

 (v) “Good Reason” shall mean the occurrence of any of the following events
or conditions that occur without the Executive’s consent: 
 (A) a material diminution in the
Executive’s authority, duties or responsibilities; provided that a change in the Executive’s authority, duties or responsibilities due to the fact that the Company or its successor becomes a stand-alone division or subsidiary of a
public or private company will not alone constitute Good Reason so long as the Executive continues as Chief Financial Officer of the Company (or successor or parent thereof, as the case may be) of such division or subsidiary; provided
further, that if after the date hereof the Executive is no longer serving as the Company’s “principal financial officer” and/or “principal accounting officer” within the meaning of Rule 16a-1 of the Securities Exchange
Act of 1934, as amended, such change shall not alone constitute Good Reason hereunder; 
 (B) a material
reduction in the Executive’s then effective Base Salary, except if the base salaries of a significant number of other executives and members of senior management of the Company also are proportionately reduced, whether or not such reduction is
voluntary on the part of the Executive or such other executives and senior management; and 
 (C) the
Company’s relocation of the Executive’s primary work location outside a 40-mile radius of Corte Madera, California that increases the Executive’s one-way driving distance by more than 40 miles. 

(h) Notice of Termination. Any termination of the Executive’s employment by the Company or by the Executive under this
Section 4 (other than in the case of death) shall be communicated by a written notice (the “Notice of Termination”) to the other party hereto, indicating the specific termination provision in this Agreement relied upon, and
specifying a Date of Termination; provided, however, that the Company may pay to the Executive all Base Salary, benefits and other rights due to the Executive during any applicable notice period required under this Section 4
instead of employing the Executive during such Notice Period. 
  

	 	5.	Other Covenants 

 (a)
Proprietary and Confidential Information. The Executive has signed and agrees to be bound by the terms of the Proprietary Information and Inventions Agreement, a copy of which is attached hereto as Exhibit B, and the Confirmation of
Confidential Information, a copy of which is attached hereto as Exhibit C (collectively, the “Proprietary Information Agreements”). 
 (b) Compliance with Company Policies. The Executive agrees that, during Executive’s employment with the Company, she shall comply with the Company’s employee manual and other policies and
procedures reasonably established by the Company from time to time, including but not limited to policies addressing matters such as management, supervision, recruiting and diversity. 

  
 7 

 (c) Non-Solicitation. The obligations set forth in this Section 5(c) apply in
addition to post-termination the obligations set forth in Section 4(c), if applicable. If both Section 4(c) and Section 5(c) are operative, and there is a conflict, then the obligations set forth in Section 4(c) will control.

 (i) Definition. For purposes of this Section 5(c), “Post-Termination Period” means either:

 (A) a period of Eighteen (18) months following the date of termination of Executive’s employment
for any reason if the termination occurs within one (1) year of the Effective Time; or 
 (B) a period of
Twelve (12) months following the date of the termination of Executive’s employment for any reason if the termination occurs more than one (1) year after the Effective Time. 

(ii) Solicitation of Employees. During the Executive’s employment with the Company and for the duration of the
Post-Termination Period, the Executive shall not, directly or indirectly, individually, or together with or through any other person, firm, corporation or entity: 

(A) solicit for hire any employee of the Company, provided, however, that general solicitations not targeted to Company
employees shall not be deemed to violate this clause (A), or 
 (B) cause any of the employee of the Company to
terminate his or her employment relationship with the Company. 
 (iii) Solicitation of Customers and Suppliers. During
the Executive’s employment with the Company and for the duration of the Post-Termination Period, the Executive shall not, directly or indirectly, individually, or together through any other person, firm, corporation or entity, use the
Company’s Proprietary Information (as defined in the Proprietary Information and Inventions Agreement attached hereto as Exhibit B): 
 (A) to solicit the business of any material customers of or suppliers to the Company, or 
 (B) to encourage any person or entity which is a customer of the Company to cease, reduce, limit or otherwise alter in a manner adverse to the Company its existing business or contractual relationship
with the Company. 
  

	 	6.	Termination Obligations 

(a) Resignation and Cooperation. Upon termination of the Executive’s employment, the Executive shall be deemed to have
resigned from all offices and directorships then held with the Company. Following any termination of employment, the Executive shall cooperate with the Company in the winding up of pending work on behalf of the Company and the orderly transfer of
work to other employees. The Executive shall also cooperate with the Company in the defense of any action brought by any third party against the Company that relates to Executive’s employment by the Company. 

  
 8 

 (b) Return of Business Records and Equipment. Upon termination of the
Executive’s employment hereunder, the Executive shall promptly return to the Company: (i) all documents, records, procedures, books, notebooks, and any other documentation in any form whatsoever, including but not limited to written,
audio, video or electronic, containing any information pertaining to the Company which includes Proprietary Information, including any and all copies of such documentation then in the Executive’s possession or control regardless of whether such
documentation was prepared or compiled by the Executive, Company, other employees of the Company, representatives, agents, or independent contractors, and (ii) all equipment or tangible personal property entrusted to the Executive by the
Company. The Executive acknowledges that all such documentation, copies of such documentation, equipment, and tangible personal property are and shall at all times remain the sole and exclusive property of the Company. 

 

	 	7.	Miscellaneous 

 (a)
Dispute Resolution; Forum Selection 
 The Company and the Executive agree that, to the fullest extent permitted by law,
any and all claims or controversies between them shall be resolved by final and binding arbitration pursuant to the Arbitration Agreement, which is attached as Exhibit D. Notwithstanding the foregoing, to the extent any claims or
controversies between the Parties are not covered by and subject to arbitration according to the terms of the Arbitration Agreement in the form attached hereto as Exhibit D, the Company and the Executive mutually agree that any such claims
shall be brought exclusively in a court in the city and county of San Francisco, California or, if federal jurisdiction exists, the United States District Count for the Northern District of California, and both parties submit and consent to
jurisdiction of such courts and waive any objection to venue and/or any claim that the aforementioned forums are inconvenient. 

(b) Governing Law 
 This Agreement and any disputes or controversies arising hereunder shall be construed and enforced in accordance with and governed by the internal laws of the State of California, without reference to
principles of law that would apply the law of another jurisdiction. 
 (c) Entire Agreement 

This Agreement, together with the Proprietary Information Agreements, constitutes the entire agreement between the parties hereto with
respect to the subject matter hereof and thereof and supersedes and cancels any and all previous agreements, written and oral, regarding the subject matter hereof between the parties hereto. This Agreement shall not be changed, altered, modified or
amended, except by a written agreement that (i) explicitly states the intent of both parties hereto to supplement this Agreement and (ii) is signed by both parties hereto. This Agreement replaces and supersedes the Offer Letter dated as of
April 22, 2012 by and between the parties hereto. 

  
 9 

 (d) Notices 
 All notices, requests, demands and other communications called for or contemplated hereunder shall be in writing and shall be deemed to have been sufficiently given if personally delivered or if sent by
registered or certified mail, return receipt requested to the parties, their successors in interest, or their assignees at the following addresses, or at such other addresses as the parties may designate by written notice in the manner aforesaid,
and shall be deemed received upon actual receipt: 
  

	 	(i)	to the Company at: 

 Restoration
Hardware, Inc. 
 15 Koch Road, Suite J 
 Corte Madera, CA 94925 
 Attention: Chief Executive Officer 

Facsimile: (415) 927-7083 
  

	 	(ii)	to the Executive at: 

[                    ] 

(e) Severability 
 If any term or provision of this Agreement, or the application thereof to any person or under any circumstance, shall to any extent be invalid or unenforceable, the remainder of this Agreement, or the
application of such terms to the persons or under circumstances other than those as to which it is invalid or unenforceable, shall be considered severable and shall not be affected thereby, and each term of this Agreement shall be valid and
enforceable to the fullest extent permitted by law. 
 (f) Waiver 

The failure of any party to insist in any one instance or more upon strict performance of any of the terms and conditions hereof, or to
exercise any right or privilege herein conferred, shall not be construed as a waiver of such terms, conditions, rights or privileges, but same shall continue to remain in full force and effect. Any waiver by any party of any violation of, breach of
or default under any provision of this Agreement by the other party shall not be construed as, or constitute, a continuing waiver of such provision, or waiver of any other violation of, breach of or default under any other provision of this
Agreement. 
 (g) Exclusive Remedy 
 The Executive’s right to the compensation and benefits to which she may become entitled pursuant to this Agreement and pursuant to any other written agreement between the Executive and the Company
shall be the Executive’s sole and exclusive remedy for any termination of the Executive’s employment. 

  
 10 

 (h) Successors and Assigns 

The performance of Executive is personal hereunder, and Executive agrees that Executive shall have no right to assign and shall not
assign or purport to assign any rights or obligations under this Agreement. This Agreement may be assigned or transferred by the Company; and nothing in this Agreement shall prevent the consolidation, merger or sale of the Company or a sale of any
or all or substantially all of its assets. 
 (i) Counterparts 

This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, and all of which together shall
constitute one and the same instrument. 
 (j) Headings 

Headings in this Agreement are for reference only and shall not be deemed to have any substantive effect. 

(k) Opportunity to Seek Advice; Warranties and Representations 

The Executive acknowledges and confirms that she has had the opportunity to seek such legal, financial and other advice and
representation as she has deemed appropriate in connection with this Agreement. The Executive hereby represents and warrants to the Company that she is not under any obligation of a contractual or quasi-contractual nature known to him that is
inconsistent or in conflict with this Agreement or that would prevent, limit or impair the performance by the Executive of her obligations hereunder. 
  

	 	8.	Taxes 

 (a) Withholding
and Payroll Practices 
 All salary, severance payments, bonuses or benefits provided by the Company under this Agreement
shall be net of any tax or other amounts required to be withheld by the Company under applicable law and shall be paid in the ordinary course pursuant to the Company’s then existing payroll practices or as otherwise specified in this Agreement.

 (b) Section 280G Excise Tax Matters 
 (i) Golden Parachute Excise Tax Payments. In the event that any payment or benefit (within the meaning of Section 280G(b)(2) of the Code) to the Executive or for the Executive’s benefit,
paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise in connection with, or arising out of, the Executive’s employment with the Company or a change in control in the Company (a
“Payment” or “Payments”), would be subject to the excise tax imposed by Code Section 4999, or any interest or penalties are incurred by the Executive with respect to such excise tax (such excise tax, together
with any such interest and penalties, are hereinafter collectively referred to as the “Excise Tax”), the Payments shall be reduced (but not below zero) if and to the extent necessary so that no Payment to be made or benefit to be
provided to the Executive shall be subject to the Excise Tax (such reduced 

  
 11 

 
amount is hereinafter referred to as the “Limited Payment Amount”). To effectuate the Limited Payment Amount, the Company shall reduce or eliminate the Payments by (i) first
reducing or eliminating those payments or benefits which are payable in cash and (ii) then reducing or eliminating non-cash payments, in each case in reverse order beginning with payments or benefits which are to be paid the furthest in time
from the Determination (as hereinafter defined). 
 (ii) Initial Determination. An initial determination as to whether
the Payments shall be reduced to the Limited Payment Amount and the amount of such Limited Payment Amount shall be made, at the Company’s expense, by the accounting firm that is the Company’s independent accounting firm as of the date of
the change in control (the “Accounting Firm”). The Accounting Firm shall provide its determination (the “Determination”), together with detailed supporting calculations and documentation, to the Company and the
Executive within five (5) days after the Date of Termination, if applicable, or such other time as requested by the Company or by the Executive (provided the Executive reasonably believes that any of the Payments may be subject to the Excise
Tax) and, if the Accounting Firm determines that no Excise Tax is payable by the Executive with respect to a Payment or Payments, it shall furnish the Executive with an opinion reasonably acceptable to the Executive that no Excise Tax will be
imposed with respect to any such Payment or Payments. Within ten (10) days after the delivery of the Determination to the Executive, the Executive shall have the right to dispute the Determination (the “Dispute”). If there is
no Dispute, the Determination shall be binding, final and conclusive upon the Company and the Executive. 
 (iii)
Underpayment. As a result of the uncertainty in the application of Sections 4999 and 280G of the Code, it is possible that the Payments to be made to, or provided for the benefit of, the Executive will be either greater (an
“Excess Payment”) or less (an “Underpayment”) than the amounts provided for by the limitations contained in paragraph (1) above. 

(A) If it is established, pursuant to a final determination of a court or an Internal Revenue Service (the
“IRS”) proceeding which has been finally and conclusively resolved, that an Excess Payment has been made, the Executive must repay such Excess Payment to the Company; provided that no Excess Payment will be repaid by the Executive
to the Company unless, and only to the extent that, the repayment would either reduce the amount on which the Executive is subject to tax under Code Section 4999 or generate a refund of tax imposed under Code Section 4999. 

(B) In the event that it is determined (i) by the Accounting Firm, the Company (which shall include the position
taken by the Company, or together with its consolidated group, on its federal income tax return) or the IRS, (ii) pursuant to a determination by a court, or (iii) upon the resolution to the Executive’s satisfaction of the Dispute,
that an Underpayment has occurred, the Company shall pay an amount equal to the Underpayment to the Executive within ten (10) days after such determination or resolution, together with interest on such amount at the applicable federal rate
under Code Section 7872(f)(2) from the date such amount would have been paid to the Executive until the date of payment. 

  
 12 

 (c) Section 409A 

(i) Notwithstanding anything to the contrary in the Agreement, no severance pay or benefits to be paid or provided to the Executive, if
any, pursuant to the Agreement that, when considered together with any other severance payments or separation benefits, are considered deferred compensation under Section 409A of the Internal Revenue Code of 1986, as amended, and the final
regulations and any guidance promulgated thereunder (“Section 409A”) (together, the “Deferred Payments”) will be paid or otherwise provided until the Executive has had a “separation from service” within the meaning of
Section 409A. Similarly, no severance payable to the Executive, if any, that otherwise would be exempt from Section 409A pursuant to Treasury Regulation Section 1.409A-1(b)(9) will be payable until the Executive has had a
“separation from service” within the meaning of Section 409A. Each payment and benefit payable under the Agreement is intended to constitute a separate payment for purposes of Section 1.409A-2(b)(2) of the Treasury Regulations.

 (ii) Any severance payments or benefits under the Agreement that would be considered Deferred Payments will be paid or will
commence on the sixtieth (60th) day following the Executive’s separation from service (with the first payment equal to the unpaid amounts of severance that accrued during the sixty (60) days following the Date of Termination), or, if
later, such time as required by the next paragraph. 
 (iii) Notwithstanding anything to the contrary in the Agreement, if the
Executive is a “specified employee” within the meaning of Section 409A at the time of the Executive’s termination (other than due to death), then the Deferred Payments that would otherwise have been payable within the first six
(6) months following the Executive’s separation from service, will be paid on the first payroll date that occurs on or after the date six (6) months and one (1) day following the date of the Executive’s separation from
service, but in no event later than seven months after the date of such separation from service. All subsequent Deferred Payments, if any, will be payable in accordance with the payment schedule applicable to each payment or benefit. Notwithstanding
anything herein to the contrary, if the Executive dies following the Executive’s separation from service, but prior to the six (6) month anniversary of the separation from service, then any payments delayed in accordance with this
paragraph will be payable in a lump sum as soon as administratively practicable after the date of the Executive’s death and all other Deferred Payments will be payable in accordance with the payment schedule applicable to each payment or
benefit. 
 (iv) Any amount paid under the Agreement that satisfies the requirements of the “short-term deferral”
rule set forth in Section 1.409A-1(b)(4) of the Treasury Regulations will not constitute Deferred Payments. Any amount paid under the Agreement that qualifies as a payment made as a result of an involuntary separation from service pursuant to
Section 1.409A-1(b)(9)(iii) of the Treasury Regulations that does not exceed the Section 409A Limit (as defined below) will not constituted Deferred Payments. For this purpose, the “Section 409A Limit” will mean two
(2) times the lesser of: (i) the Executive’s annualized compensation based upon the annual rate of pay paid to him during the Executive’s taxable year preceding her taxable year of her separation from service as determined under
Treasury Regulation Section 1.409A-1(b)(9)(iii)(A)(1) and any Internal Revenue Service guidance issued with respect thereto; or (ii) the maximum amount that may be taken into account under a qualified plan pursuant to
Section 401(a)(17) of the Internal Revenue Code for the year in which the Executive’s separation from service occurred. 

  
 13 

 (v) To the extent that the reimbursement of any expenses or the provision of any in-kind
benefits pursuant to this Agreement is subject to Section 409A, (i) the amount of such expenses eligible for reimbursement, or in-kind benefits to be provided hereunder during any one calendar year shall not affect the amount of such
expenses eligible for reimbursement or in-kind benefits to be provided hereunder in any other calendar year; (ii) all such expenses eligible for reimbursement hereunder shall be paid to the Executive as soon as administratively practicable
after any documentation required for reimbursement for such expenses has been submitted, but in any event by no later than December 31 of the calendar year following the calendar year in which such expenses were incurred; and (iii) the
Executive’s right to receive any such reimbursements or in-kind benefits shall not be subject to liquidation or exchange for any other benefit. 
 (vi) The foregoing provisions are intended to comply with the requirements of Section 409A so that none of the severance payments and benefits to be provided hereunder will be subject to the
additional tax imposed under Section 409A, and any ambiguities herein will be interpreted to so comply. Employer and the Executive agree to work together in good faith to consider amendments to the Agreement and to take such reasonable actions
which are necessary, appropriate or desirable to avoid imposition of any additional tax or income recognition prior to actual payment to the Executive under Section 409A. 

  
 14 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date.

  

			
	 RESTORATION HARDWARE INC.,
 a Delaware company

		
	By:	 	 /s/ Carlos Alberini

	Name:	 	Carlos Alberini
	Title:	 	Chief Executive Officer
	
	KAREN BOONE
	
	 /s/ Karen Boone

 Acknowledged and Agreed as of the Effective Date: 

 

			
	 RESTORATION HARDWARE HOLDINGS INC.,
 a Delaware company

		
	By:	 	 /s/ Carlos Alberini

	Name:	 	Carlos Alberini
	Title:	 	Chief Executive Officer

  
 15 

 EXHIBIT A 

Form of General Release 
 This Separation and General Release Agreement (the “Agreement”) is entered into by and between Restoration Hardware, Inc. (the “Company”) and Karen Boone (the “Executive”)
(collectively, “Parties”). 
 RECITALS 
 WHEREAS, the Executive was employed by the Company on an at-will basis; 
 WHEREAS,
the Company and the Executive have mutually agreed that the Executive will resign as of                      (“Resignation Date”) in
accordance with the terms of this Agreement; and 
 WHEREAS, capitalized terms used but not defined herein shall have the
meanings ascribed to such terms in the Employment Agreement dated as of                          , 20    , by
and between the Company and the Executive (the “Employment Agreement”). 
 ACCORDINGLY, the Parties agree as follows:

 1. Severance Benefit. The Company hereby agrees to provide the Executive with the payments and benefits set forth in
Section 4(c) of the Employment Agreement with respect to a termination by the Company without Cause, on the terms and subject to the conditions set forth in such Section 4(c) of the Employment Agreement. 

2. Resignation. The Executive hereby resigns from her employment with the Company and any other position held with the Company or
any Affiliate, effective as of the Resignation Date. “Affiliate” means any entity that directly or indirectly controls, is controlled by, or is under common control with the Company. 

3. General Release. The Executive and her representatives, heirs, successors, and assigns do hereby completely release and forever
discharge the Company, any Affiliate, and its and their present and former shareholders, officers, directors, agents, employees, attorneys, successors, and assigns (collectively, “Released Parties”) from all claims, rights, demands,
actions, obligations, liabilities, and causes of action of every kind and character, known or unknown, which the Executive may have now or in the future arising from any act or omission or condition occurring on or prior to the Effective Date
(including, without limitation, the future effects of such acts, omissions, or conditions), whether based on tort, contract (express or implied), or any federal, state, or local law, statute, or regulation (collectively, the “Released
Claims”). By way of example and not in limitation of the foregoing, Released Claims shall include any claims arising under the Fair Labor Standards Act, the National Labor Relations Act, the Family and Medical Leave Act, the Executive
Retirement Income Security Act of 1974, the Americans with Disabilities Act, Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act, the California Fair Employment and Housing Act, and the California Family Rights Act,
as well as any claims asserting wrongful termination, breach of 

  
 16 

 
contract, breach of the covenant of good faith and fair dealing, negligent or intentional infliction of emotional distress, negligent or intentional misrepresentation, negligent or intentional
interference with contract or prospective economic advantage, defamation, invasion of privacy, and claims related to disability. Released Claims shall also include, but not be limited to, any claims for severance pay, bonuses, sick leave, vacation
pay, life or health insurance, or any other benefit. The Executive likewise releases the Released Parties from any and all obligations for attorneys’ fees incurred in regard to the above claims or otherwise. Notwithstanding the foregoing,
Released Claims shall not include (i) any claims based on obligations created by or reaffirmed in this Agreement; (ii) any vested retirement benefits or vested stock option rights, or (iii) any claims which by law cannot be released,
including without limitation unemployment compensation claims and workers’ compensation claims (the settlement of which would require approval by the California Workers’ Compensation Appeals Board), (iv) any claim for indemnification
under the Employment Agreement, the Company’s bylaws or certificate of incorporation, or any agreement providing for indemnification of the Executive. 
 4. Section 1542 Waiver. The Executive understands and agrees that the Released Claims include not only claims presently known to the Executive, but also include all unknown or unanticipated
claims, rights, demands, actions, obligations, liabilities, and causes of action of every kind and character that would otherwise come within the scope of the Released Claims as described in Section 3, above. The Executive understands that she
may hereafter discover facts different from what she now believes to be true, which if known, could have materially affected this Agreement, but she nevertheless waives any claims or rights based on different or additional facts. The Executive
knowingly and voluntarily waives any and all rights or benefits that she may now have, or in the future may have, under the terms of Section 1542 of the California Civil Code, which provides as follows: 

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF
EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR. 

5. Covenant Not to Sue. The Executive shall not bring a civil action in any court (or file an arbitration claim) against the
Company or any other Released Party asserting claims pertaining in any manner to the Released Claims. The Executive understands that this Section 5 does not prevent the Executive from filing a charge with or participating in an investigation by
a governmental administrative agency; provided, however, that Executive hereby waives any right to receive any monetary award resulting from such a charge or investigation. 
 6. Age Discrimination Claims. The Executive understands and agrees that, by entering into this Agreement, (i) she is waiving any rights or claims she might have under the Age Discrimination in
Employment Act, as amended by the Older Workers Benefit Protection Act; (ii) she has received consideration beyond that to which she was previously entitled; (iii) she has been advised to consult with an attorney before signing this
Agreement; and (iv) she has been offered the opportunity to evaluate the terms of this Agreement for not less than twenty-one (21) days prior to her execution of the Agreement. The Executive may revoke this Agreement

  
 17 

 
(by written notice to the Company’s Chief Executive Officer at the Company’s notice address set forth in the Employment Agreement) for a period of seven (7) days after her
execution of the Agreement, and it shall become enforceable (and payment of the payments and benefits by the Company to the Executive in accordance with Section 1 above only shall be made) only upon the expiration of this revocation period
without prior revocation by the Executive. 
 7. Confidentiality. The Parties understand and agree that this Agreement
and each of its terms, and the negotiations surrounding it, are confidential and shall not be disclosed by the Executive without the prior written consent of the Company, unless required by law. Notwithstanding the foregoing, the Executive may
disclose the terms of this Agreement to her spouse, and for legitimate business reasons, to legal, financial, and tax advisors, provided such individuals agree to maintain the confidentiality of such information. 

8. Non-admission. The Parties understand and agree that the furnishing of the consideration for this Agreement shall not be deemed
or construed at any time or for any purpose as an admission of liability by the Company. The liability for any and all claims is expressly denied by the Company. 
 9. Arbitration. Any and all disputes arising out of the terms of this Agreement, their interpretation, or any of the Released Claims shall be resolved by final binding arbitration in San Francisco,
California, before the Judicial Arbitration and Mediation Services under the JAMS Employment Arbitration Rules and Procedures then in effect. Either party may bring an action in court to compel arbitration under this Agreement, to enforce an
arbitration award, or to obtain temporary injunctive relief pending a judgment. Otherwise, neither party shall initiate or prosecute any legal action against the other. The prevailing party in the arbitration shall be entitled to recover its
attorneys’ fees and costs (at reasonable, regular hourly rates), in addition to any other relief to which it may be entitled by law.  
 10. Entire Agreement. This Agreement constitutes the complete, final and exclusive embodiment of the entire agreement among the Parties hereto with regard to the subject matter hereof and
thereof. This Agreement is entered into without reliance on any promise or representation, written or oral, other than those expressly contained or referenced herein.
 11. Amendments; Waivers. This Agreement may not be amended except by an instrument in writing, signed by each of the Parties. No failure to exercise and no delay in exercising any right, remedy, or
power under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, or power under this Agreement preclude any other or further exercise thereof, or the exercise of any other right, remedy, or
power provided herein or by law or in equity. 
 12. Successors and Assigns. The Executive represents that she has not
previously assigned or transferred any claims or rights released by him pursuant to this Agreement. This Agreement shall be binding upon and shall inure to the benefit of the Parties and their respective heirs, successors, attorneys, and permitted
assigns. This Agreement shall also inure to the benefit of any Released Party. 

  
 18 

 13. Governing Law. This Agreement shall be governed by and construed in accordance
with the law of the State of California, without regard to conflict of laws provisions. 
 14. Interpretation. This
Agreement shall be construed as a whole, according to its fair meaning, and not in favor of or against any Party. By way of example and not in limitation, this Agreement shall not be construed in favor of the Party receiving a benefit nor against
the Party responsible for any particular language in this Agreement. Captions are used for reference purposes only and should be ignored in the interpretation of the Agreement. 

15. Representation by Counsel. The Parties acknowledge that (i) they have had the opportunity to consult counsel in regard to
this Agreement; (ii) they have read and understand the Agreement and they are fully aware of its legal effect; and (iii) they are entering into this Agreement freely and voluntarily, and based on each Party’s own judgment and not on
any representations or promises made by the other Party, other than those contained in this Agreement. 
 16.
Counterparts. This Agreement may be executed in counterparts. True copies of such executed counterparts may be used in lieu of an original for any purpose. 
 17. Effective Date. This Agreement shall become effective as of seven (7) days after the date executed by the Executive (“Effective Date”), but only if the Agreement is not revoked
as provided in Section 6. If the Agreement is revoked, it shall be null and void. 
 The Parties have duly executed this
Agreement as of the dates noted below. 
  

									
	  
	 		 	Date:	 	  

	Executive	 		 		 	
				
	Restoration Hardware, Inc.	 		 		 	
					
	By:	 	  
	 		 	Date:	 	  

	Its:	 	  
	 		 		 	

  
 19 

 EXHIBIT B 

Proprietary Information and Inventions Agreement 

  
 20 

  
 

 
 Proprietary Information and Inventions Agreement 

I am entering into this Proprietary Information and Inventions Agreement (the “Agreement”) with Restoration Hardware, Inc. (the
“Company”) for the purpose of protecting the trade secrets of the Company and prohibiting the unauthorized use of confidential information by me. 
 In consideration of my employment or continued employment by the Company, and the compensation now and hereafter paid to me, I hereby agree as follows: 

 

	1)	Recognition of Company’s Rights: Nondisclosure, At all times during the term of my employment and thereafter, I will hold in strictest confidence and will
not disclose, use, lecture upon or publish any of the Company’s Proprietary Information (defined below), except as such disclosure, use or publication may be required in connection with my work for the Company, or unless an officer of the
Company expressly authorizes such in writing. I hereby assign to the Company any rights I may have or acquire in such Proprietary Information and recognize that all Proprietary Information shall be the sole property of the Company and its assigns
and that the Company and its assigns shall be the sole owner of all patent rights, copyrights, trade secret rights and all other rights throughout the world (collectively, “Proprietary Rights”) in connection therewith.

 The term “Proprietary Information” shall mean trade secrets confidential knowledge, data or any other
proprietary information of the Company. Proprietary Information includes, but is not limited to, (a) inventions, trade secrets, ideas, data, other works of authorship, know-how, improvements, discoveries, developments, designs and techniques
(hereinafter collectively referred to as “Inventions”); and (b) information regarding plans for research, development, new products, branding, marketing and selling business plans, budgets and unpublished financial statements,
licenses, prices and costs, suppliers and customers, details of contracts; and information regarding the skills and compensation of other associates of the Company. 
  

	2)	Third Party Information, I understand, in addition, that the Company has received and in the future will receive from third parties confidential or proprietary
information (“Third Party Information”) subject to a duty on the Company’s part to maintain the confidentiality of such information and to use it only for certain limited purposes. During the term of my employment and thereafter, I
will hold Third Party Information in the strictest confidence and will not disclose (to anyone other than Company personnel who need to know such information in connection with their work for the Company) or use, except in connection with my work
for the Company, Third Party Information unless expressly authorized by an officer of the Company in writing. 

  

	3)	Assignment of Inventions I shall promptly disclose to the Company any and all inventions that I may conceive or develop, alone or with others, during the term of
my employment, and I agree that all inventions belong to and be the exclusive property of the Company. I agree to assign, and upon their creation do hereby automatically assign, all of my right, title and interest (in the United States and other
countries) in and to all Inventions (and all Proprietary Rights with respect thereto) whether or not patentable or registerable under copyright or similar statutes, made or conceived or reduced to practice or learned by me, either alone or jointly
with others, during the period of my employment with the Company. I recognize that this Agreement does not require assignment of any invention which qualifies fully for protection under Section 2870 of the California Labor Code (hereinafter
“Section 2870”), which provides as follows: 

  

	 	a)	Any provision in an employment agreement which provides that an associate shall assign, or offer to assign, any of his or her rights in an invention to his or her
employer shall not apply to an invention that the associate developed entirely on his or her own time without using the employer’s equipment, supplies, facilities, or trade secret information except for those inventions that either:

  

	 	i)	Relate at the time of conception or reduction to practice of the invention to the employer’s business, or actual or demonstrably anticipated research or
development of the employer. 

  

	 	ii)	Result from any work performed by the associate for the employer. 

  

	 	iii)	To the extent a provision in an employment agreement purports to require an associate to assign an invention otherwise excluded from being required to be assigned under
subdivision (I), the provision is against the public policy of this state and is unenforceable. 

  
 21 

	 	b)	I also assign to or as directed by the Company all my right, title and interest in and to any and all Inventions, full title to which is required to be in the United
States by a contract between the Company and the United States or any of its agencies. 

  

	 	c)	I acknowledge that all original works of authorship which are made by me (solely or jointly with others) within the scope of my employment and which are protectable by
copyright are “works made for hire”, as that term is defined in the United States Copyright Act (17 U.S.C., Section 101). Inventions assigned to or as directed by the Company by this paragraph 3 are hereinafter referred to as
“Company Inventions”. 

  

	4)	Prior Inventions, Inventions, if any patented or unpatented, which I made prior to the commencement of my employment with the Company are excluded from the scope
of this Agreement. To preclude any possible uncertainty, I have set forth on Exhibit A attached hereto a complete list of all Inventions that I have, alone or jointly with others, conceived, developed or reduced to practice prior to commencement of
my employment with the Company, that I consider to be my property or the property of third parties and that I wish to have excluded from the scope of this Agreement. If disclosure of any such Invention on Exhibit A would cause me to violate any
prior confidentiality agreement, I understand that I am not to list such Inventions in Exhibit A but am to inform the Company that all Inventions have not been listed for that reason. 

 

	5)	No Improper Use of materials, During my employment by the Company I will not improperly use or disclose any confidential information or trade secrets, if any, of
any former employer or any other person to whom I have an obligation of confidentiality, and I will not bring onto the premises of the Company any unpublished documents or any property belonging to any former employer or any other person to whom I
have an obligation of confidentiality unless consented to in writing by that former employer or person. 

  

	6)	No Conflicting Obligation, I represent that my performance of all the terms of this Agreement and as an associate of the Company does not breach any agreement to
keep in confidence information acquired by me in confidence or in trust prior to my employment by the Company. I have not entered into, and I agree I will not enter into, any agreement either in written or oral in conflict herewith.

  

	7)	Right to Inspection, I agree that any property situated on the Company’s premises and owned by the Company, including disks and other storage media, filing
cabinets or other work areas, is subject to inspection by Company personnel at any time with or without notice. Prior to leaving, I will cooperate with the Company in completing and signing the Company’s termination statement for technical and
management personnel. 

  

	8)	Legal and Equitable Remedies, Because my services are personal and unique and because I may have access to and become acquainted with the Proprietary Information
of the Company, the Company shall have the right to enforce this Agreement and any of its provisions by injunction, specific performance or other equitable relief, without bond, without prejudice to any other rights and remedies that the Company may
have for a breach of this Agreement; provided that the limitations on such rights and remedies other stated in Executive’s Employment Agreement executed concurrently herewith shall equally apply hereunder. 

 

	9)	Notices, Any notices required or permitted hereunder shall be given to the appropriate party at the address specified below or at such other address as the party
shall specify in writing. Such notice shall be deemed given upon personal delivery to the appropriate address or if sent by certified or registered mail, three days after the date of mailing. 

 

	10)	General Provisions,  

  

	 	a)	Governing Law, This Agreement shall be governed by and construed in accordance with the laws of the State of California. 

  
 22 

	 	b)	Entire Agreement, This Agreement sets forth the entire agreement and understanding between the Company and me relating to the subject matter hereof and
supersedes and merges all prior discussions between us. No modification of or amendment to this Agreement, nor any waiver of any rights under this Agreement will be effective unless in writing signed by the party to be charged. Any subsequent change
or changes in my duties, salary or compensation will not affect the validity or scope of this Agreement. As used in this Agreement, the period of my employment includes any time during which I may be retained by the Company as a consultant.

  

	 	c)	Severability, If one or more of the provisions in this Agreement are deemed unenforceable by law, then the remaining provisions will continue in full force and
effect. 

  

	 	d)	Successors and Assigns, This Agreement will be binding upon my heirs, executors, administrators and other legal representatives and will be for the benefit of
the Company, its successors and assigns. 

  

	 	e)	Survival, The provisions of the Agreement shall survive the termination of my employment and the assignment of this Agreement by the Company to any successor in
interest or other assignee. 

  

	 	f)	Employment, I agree and understand that nothing is this Agreement shall confer any right with respect to continuation of employment with the Company, nor shall
it interfere in any way with my right or the Company’s right to terminate my employment at any time, with or without cause. 

  

	 	g)	Waiver, No waiver by the Company of any breach of this Agreement shall be a waiver of any preceding or succeeding breach. No waiver by the Company of any right
under this Agreement shall be construed as a waiver of any other right. The Company shall not be required to give notice to enforce strict adherence to all terms of this Agreement. 

I UNDERSTAND THAT THIS AGREEMENT AFFECTS MY RIGHTS TO INVENTIONS I MAKE DURING MY EMPLOYMENT, AND RESTRICTS MY RIGHT TO DISCLOSE OR USE THE
COMPANY’S PROPRIETARY INFORMATION DURING OR SUBSEQUENT TO MY EMPLOYMENT. 
 I HAVE READ THIS AGREEMENT CAREFULLY AND UNDERSTAND ITS TERMS.
I HAVE COMPLETELY FILLED OUT EXHIBIT A TO THIS AGREEMENT. 
  

							
	Dated as of             , 2012	 		 		 	
		 		 		 	Signature
				
		 		 		 	Name of Associate
				
		 		 		 	Address

 ACCEPTED AND AGREED TO: 
  

			
	Restoration Hardware, Inc.
		
	By:	 	
		 	Name:
		 	Title:

  
 23 

 Exhibit A to Proprietary Information and Inventions Agreement 

Schedule of Inventions 

  
 24 

 EXHIBIT C 

Confirmation of Confidential Treatment 

  
 25 

  
 

 
 Confirmation of Confidential Treatment 
 This shall confirm that as an associate of Restoration Hardware, Inc. (the “Company”), and in accordance with the Proprietary Information and Inventions Agreement (the “Confidentiality
Agreement”) entered into between me and the Company, understand, agree and acknowledge that all information and materials relating to my work on the Company’s development of new retail concepts, new merchandise programs and new brands
(including without limitation all information and materials related to the development of new Company brands, logos and corporate identities), shall be treated as Proprietary Information (as that term is defined under the Confidentiality Agreement).
Without limiting the generality of the foregoing, and for the avoidance of doubt, I hereby agree to hold all ideas, data, documents, drawings, notes, memoranda, and other information and materials regarding Company’s new retail concepts, new
merchandise programs and new brands including branding plans, brand development and branding strategy, in strictest confidence, and will not disclose, lecture upon or publish any such information or materials unless an officer of the Company
expressly authorizes such in writing, and will not use such information and materials for any purpose other than in furtherance of the business of the Company as directed by the Company. 
 Because I may have access to and become acquainted with such information and materials, the Company shall have the right to enforce my duties of confidentiality by injunction, specific performance or
other equitable relief, without bond, without prejudice to any other rights and remedies that the Company may have. 
 I HAVE READ THIS DOCUMENT
CAREFULLY AND UNDERSTAND ITS TERMS. 
  

							
	Dated:	 		 		 	
		 		 		 	Signature
				
		 		 		 	Associate Name

  
 26 

 EXHIBIT D 

Arbitration Agreement 
 Restoration Hardware, Inc. (the “Company”) and Karen Boone (the “Executive”) hereby agree, effective as of November 1, 2012, that, to the fullest extent permitted by law, any and
all claims or controversies between them (or between the Executive and any present or former officer, director, agent, or employee of the Company or any parent, subsidiary, or other entity affiliated with the Company) relating in any manner to the
employment or the termination of employment of the Executive shall be resolved by final and binding arbitration. Except as specifically provided herein, any arbitration proceeding shall be conducted by the Judicial Arbitration and Mediation Services
(“JAMS”) under the JAMS Employment Arbitration Rules and Procedures then in effect (the “JAMS Rules”). 

Claims subject to arbitration shall include, without limitation: contract claims, tort claims, claims relating to compensation, as well
as claims based on any federal, state, or local law, statute, or regulation, including but not limited to any claims arising under Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act, the Americans with Disabilities
Act, the California Fair Employment and Housing Act, equity purchases or repurchases, and any and all claims for any other compensation, wages and/or benefits of any type, including any claims arising from the Executive’s Employment Agreement
with the Company. However, claims for unemployment benefits, workers’ compensation claims, and claims under the National Labor Relations Act shall not be subject to arbitration. 

A neutral and impartial arbitrator shall be chosen by mutual agreement of the parties; however, if the parties are unable to agree upon
an arbitrator within a reasonable period of time, then a neutral and impartial arbitrator shall be appointed in accordance with the arbitrator nomination and selection procedure set forth in the JAMS Rules. The arbitrator shall prepare a written
decision containing the essential findings and conclusions on which the award is based so as to ensure meaningful judicial review of the decision. The arbitrator shall apply the same substantive law, with the same statutes of limitations and same
remedies, that would apply if the claims were brought in a court of law. 
 Either the Company or the Executive may bring an
action in court to compel arbitration under this Agreement and to enforce an arbitration award. Otherwise, neither party shall initiate or prosecute any lawsuit of claim in any way related to any arbitrable claim, including without limitation any
claim as to the making, existence, validity, or enforceability of the agreement to arbitrate. Nothing in this Agreement, however, precludes a party from filing an administrative charge before an agency that has jurisdiction over an arbitrable claim.
Moreover, nothing in this Agreement prohibits either party from seeking provisional relief pursuant to Section 1281.8 of the California Code of Civil Procedure. 
 All arbitration hearings under this Agreement shall be conducted in San Francisco, California, unless otherwise agreed by the parties. The arbitration provisions of this Arbitration Agreement shall be
governed by the Federal Arbitration Act. In all other respects, this Arbitration Agreement shall be construed in accordance with the laws of the State of California, without reference to conflicts of law principles. 

  
 27 

 Each party shall pay its own costs and attorney’s fees, unless a party prevails on a
statutory claim, and the statute provides that the prevailing party is entitled to payment of its attorneys’ fees. In that case, the arbitrator may award reasonable attorneys’ fees and costs to the prevailing party as provided by law.

 This Agreement does not alter the Executive’s at-will employment status. Accordingly, the Executive understands that the
Company may terminate the Executive’s employment, as well as discipline or demote the Executive, at any time, with or without prior notice, and with or without cause. The parties also understand that the Executive is free to leave the Company
at any time and for any reason, with or without cause and with or without advance notice. 
 If any provision of this Agreement shall be held by
a court or the arbitrator to be invalid, unenforceable, or void, such provision shall be enforced to the fullest extent permitted by law, and the remainder of this Agreement shall remain in full force and effect. The parties’ obligations under
this Agreement shall survive the termination of the Executive’s employment with the Company and the expiration of this Agreement. 
 The Company and the Executive understand and agree that this Arbitration Agreement contains a full and complete statement of any agreements and understandings regarding resolution of disputes between the
parties, and the parties agree that this Arbitration Agreement supersedes all previous agreements, whether written or oral, express or implied, relating to the subjects covered in this agreement. The parties also agree that the terms of this
Arbitration Agreement cannot be revoked or modified except in a written document signed by both the Executive and an officer of the Company. 
 THE PARTIES ALSO UNDERSTAND AND AGREE THAT THIS AGREEMENT CONSTITUTES A WAIVER OF THEIR RIGHT TO A TRIAL BY JURY OF ANY CLAIMS OR CONTROVERSIES COVERED BY THIS AGREEMENT. THE PARTIES AGREE THAT NONE OF
THOSE CLAIMS OR CONTROVERSIES SHALL BE RESOLVED BY A JURY TRIAL. 

  
 28 

 THE PARTIES FURTHER ACKNOWLEDGE THAT THEY HAVE BEEN GIVEN THE OPPORTUNITY TO DISCUSS THIS
AGREEMENT WITH THEIR LEGAL COUNSEL AND HAVE AVAILED THEMSELVES OF THAT OPPORTUNITY TO THE EXTENT THEY WISH TO DO SO. 
  

			
	RESTORATION HARDWARE, INC.
		
	By:	 	  

	
	  

	Karen Boone

  
 29EX-10.2

 Exhibit 10.2 
 AMERICAN RESIDENTIAL PROPERTIES, INC. 
 AMENDED AND RESTATED
EMPLOYMENT AGREEMENT 
 STEPHEN G. SCHMITZ 
 Reference is made to that certain Employment Agreement (the “Initial Employment Agreement”) entered into by and between AMERICAN RESIDENTIAL PROPERTIES, INC., a Maryland corporation
(hereinafter referred to as the “Company”), and STEPHEN G. SCHMITZ (hereinafter referred to as the “Executive”), dated and effective as of the Effective Date defined in Section 1 below. 

This agreement, entered into this day of April 19, 2013 by and between the Company and the Executive for good and valuable
consideration, the receipt of which is mutually agreed and acknowledged by the Company and the Executive, amends and restates the Initial Agreement in its entirety solely to revise Sections 3.2 and 7.18 with respect to the Target Level (as defined
below) and the parachute payment provisions, respectively, and is effective as of the Effective Date (this “Agreement”). 
 WHEREAS, the Company has completed a private offering of shares of its common stock (the “Offering”); and 
 WHEREAS, the Company wishes to offer employment to the Executive, and the Executive wishes to accept such offer, on the terms set forth below. 

Accordingly, the parties hereto agree as follows: 
 1. Term. The Company hereby employs the Executive and the Executive hereby accepts such employment for an initial term commencing as of May 11, 2012 (the “Effective
Date”) and ending on December 31, 2015, unless sooner terminated in accordance with the provisions of Section 4 (the period during which the Executive is employed hereunder being hereinafter referred to as the
“Term”). The Term shall be subject to automatic one (1) year renewals unless notice of non-renewal is provided between the parties in accordance with the notice provisions of Section 7.6, at least ninety (90) days
prior to the end of any such Term (a “Non-Renewal”). 
 2. Duties. The Executive, in his capacity
as Chief Executive Officer of the Company, shall faithfully perform for the Company the duties of said office and shall perform such other duties of an executive, managerial or administrative nature as shall be specified and designated from time to
time by the Board of Directors of the Company (the “Board”). Such duties may include, without limitation, the performance of services for, and serving on the board of directors of, any subsidiary of the Company without any
additional compensation. The Executive shall devote substantially all of the Executive’s business time and effort to the performance of the Executive’s duties hereunder; provided that the Executive will be permitted to spend a portion of
his or her time and efforts assisting ARP Phoenix Fund I GP, LLC in the performance of its duties to ARP Phoenix Fund I, L.P. Provided that the following activities do not interfere with the Executive’s duties to the Company and provided that
the following 

  
 1 

 
activities do not violate the Executive’s covenant against competition as described at Section 6.2 hereof, during the Term the Executive may perform personal, charitable and other
business activities, including, without limitation, serving as a member of one or more boards of directors of charitable or other professional organizations, and may serve on the boards of directors of other business organizations that are not
engaged in any aspect of the multi-family residential industry, provided, however, that service on the boards of directors of other business organizations shall require the consent of the Board. The Company acknowledges that the Executive
currently serves as a director of the Company. The Company agrees that the Executive shall be nominated by the Nominating and Corporate Governance Committee of the Board for re-election to the Board of Directors at each annual meeting of the
Company’s shareholders for so long as the Executive serves as the Chief Executive Officer of the Company; provided that, at the time of each annual meeting, (a) if the Executive is unable to perform his duties hereunder due to a
disability or other incapacity, it is reasonably certain that the Executive will be able to resume his duties on a regular full-time basis prior to such time as the Executive’s employment hereunder may be terminated by the Company due to
disability, (b) the Company has not notified the Executive of its intention to terminate the Executive’s employment for cause, and (c) the Executive has not notified the Company of his intention resign from his or her position of
Chief Executive Officer of the Company. 
 3. Compensation. 

3.1 Salary. The Company shall pay the Executive during the Term a salary at the rate of Five Hundred Thousand and No/00 Dollars
($500,000) per annum (the “Annual Salary”), in accordance with the customary payroll practices of the Company applicable to senior executives generally. The Annual Salary may be increased from time to time by an amount and on such
conditions as may be approved by the Board or the Compensation Committee of the Board (the “Compensation Committee”), and upon such increase, the increased amount shall thereafter be deemed to be the Annual Salary. Annual Salary
will be paid in monthly or bi-monthly installments as determined by the Board, and no Annual Salary will be paid later than 75 days after the conclusion of any calendar year in which such Annual Salary is deemed earned and payable to the Executive.

 3.2 Cash and Equity Bonus Compensation; Initial Awards. 

(a) The Executive will be eligible to receive annual cash bonuses (each an “Annual Bonus”) upon approval by the
Compensation Committee in its discretion. The Compensation Committee shall approve a target level (the “Target Level”) each year for the Annual Bonus within 60 days after the beginning of the applicable year. The initial Target
Level will be equal to 100% of the Annual Salary, subject to approval by the Compensation Committee in its discretion. Each Annual Bonus will be paid within 60 days after the end of the fiscal year to which such Annual Bonus relates. Additionally,
the Executive will be eligible to participate in the Company’s 2012 Equity Incentive Plan, as amended (the “2012 Equity Incentive Plan”) and any subsequent equity incentive plan approved by the Board (each and any of the
foregoing is a “Company Incentive Plan”) for equity bonus compensation (any equity compensation granted to the Executive by the Company, whether under this Agreement, a Company Incentive Plan or otherwise approved by the Board, and
whether in the form of restricted stock, stock options, long-term incentive plan units, stock appreciation rights or other equity or equity-linked awards, is, collectively, “Equity Compensation”). The terms of any Annual Bonus, any
other bonus or Equity Compensation will be established by the Compensation Committee. 

  
 2 

 (b) In addition, the Executive will be entitled to be paid a special cash bonus of $250,000
if, before April 30, 2013, the Company files with the SEC a shelf registration statement relating to the registration of the registrable shares (the “Registrable Shares”) for resale in accordance with the terms set forth in the
registration rights agreement to be entered on the date hereof. Such bonus shall be payable within 15 days after such filing. In addition, the Executive will be entitled to be paid an additional special cash bonus of $250,000 if, before
October 29, 2013 (or 60 days later if deferred pursuant to Section 2(b)(iii) of the registration rights agreement), the Registrable Shares become registered with the SEC and the Company’s common stock becomes listed on a national
securities exchange. Such bonus shall be payable within 15 days after the Registrable Shares become registered with the SEC and the Company’s common stock becomes listed on a national securities exchange. The Company does not guarantee,
represent or warrant any particular or favorable tax result, including, but not limited to, in connection with Code Section 409A, in relation to any and all payments pursuant to this Section 3.3(b). 

(c) Immediately following the Effective Date, the Company will grant the Executive: 

(i) 88,486 LTIP Units under the 2012 Equity Incentive Plan. These LTIP Units will be subject to forfeiture restrictions that will lapse
in equal 1/3 installments on each of the first three anniversaries of the date of grant; 
 (ii) 125,986 LTIP Units under the
2012 Equity Incentive Plan. These LTIP units will be subject to forfeiture restrictions that will lapse upon the first to occur of the registration and listing on a national securities exchange of the Company’s common stock, a Change in Control
of the Company, as defined in the 2012 Equity Incentive Plan, or the third anniversary of the date of grant; and 
 (iii)
10,489 LTIP Units under the 2012 Equity Incentive Plan. One half of these LTIP Units will not be subject to any forfeiture restrictions. The other half of these LTIP Units will be subject to forfeiture restrictions that will lapse upon the first to
occur of the registration and listing on a national securities exchange of the Company’s common stock, a Change in Control of the Company, as defined in the 2012 Equity Incentive Plan, or the third anniversary of the date of grant. 

(d) In the event of any exercise of the initial purchaser/placement agent’s additional allotment option in the Offering following
the Effective Date (the “Remaining Option Shares”), immediately following the closing of the issuance and sale of the Remaining Option Shares, the Company will grant the Executive: 

(i) an additional number of LTIP Units under the 2012 Equity Incentive Plan equal to 1.125% of the Remaining Option Shares. These LTIP
Units will be subject to forfeiture restrictions that will lapse in equal 1/3 installments on each of the first three anniversaries of the date of grant; 

  
 3 

 (ii) an additional number of LTIP Units under the 2012 Equity Incentive Plan equal to
1.125% of the Remaining Option Shares. These LTIP units will be subject to forfeiture restrictions that will lapse upon the first to occur of the registration and listing on a national securities exchange of the Company’s common stock, a Change
in Control of the Company, as defined in the 2012 Equity Incentive Plan, or the third anniversary of the date of grant; and 

(iii) an additional number of LTIP Units equal to (x) 0.875% of the number of shares sold in the Offering (including all
shares sold pursuant to any exercise of the initial purchaser/placement agent’s additional allotment option in the Offering) exceeding 10,000,000 minus (y) 10,489. One half of these LTIP Units will not be subject to any forfeiture
restrictions. The other half of these LTIP Units will be subject to forfeiture restrictions that will lapse upon the first to occur of the registration and listing on a national securities exchange of the Company’s common stock, a Change in
Control of the Company, as defined in the 2012 Equity Incentive Plan, or the third anniversary of the date of grant. 
 3.3
Benefits - In General. The Executive shall be permitted during the Term to participate in any group life, hospitalization or disability insurance plans, health programs, pension and profit sharing plans, relocation programs and similar
benefits that may be available to other senior executives of the Company generally, on the same terms as may be applicable to such other executives (except as otherwise provided in this Section 3), in each case to the extent that the Executive
is eligible under the terms of such plans or programs. 
 3.4 Paid Time Off. The Executive shall be entitled to no
fewer than twenty-five (25) days of paid time off per year, plus Company-scheduled holidays. Any unused days of paid time off will be forfeited at the end of the year. 
 3.5 Disability Benefits and Life Insurance. To the extent the Company’s group life and disability insurance plans do not provide this level of benefits, the Executive shall be entitled
to additional benefits so that his long-term disability coverage provides benefits (to continue for such period as is provided in the applicable disability plan or program, as amended from time to time, and with waiting periods and pre-existing
condition exceptions waived to the extent such coverage is available on commercially reasonable terms) equal seventy-five percent (75%) of his Annual Salary in the case of a covered disability, and life insurance coverage with a face amount
equal to $1,000,000. Premiums on all primary or supplemental disability and life insurance policies provided by the Company under this Agreement shall be paid by the Company, provided that the value of such premiums shall be taxed as income to the
Executive. 
 3.6 Expenses. The Company shall pay or reimburse the Executive for all ordinary and reasonable
out-of-pocket expenses actually incurred and, in the case of reimbursement, actually paid by the Executive during the Term in connection with the performance of the Executive’s services under this Agreement, provided that the Executive shall
submit such expenses in accordance with the policies applicable to senior executives of the Company generally. 
 3.7
Earned and Accrued Bonus. For purposes of this Agreement, with respect to “Earned and Accrued Bonus” payments to be made to the Executive in connection 

  
 4 

 
with the termination of his employment, Annual Bonus payments and other cash bonus payments and Equity Compensation awards shall be deemed to be “earned and accrued” (a) if
the Executive is employed with the Company as of the date of the last day of the period for which a bonus payment shall be made or for which Equity Compensation is vested, if the Executive is employed with the Company as of the date such vested
award or vesting is scheduled to occur; and (b) to the extent that the criteria or performance goals for determining the amount of such payment or award are objective and measurable criteria, and such objective and measurable criteria have been
satisfied or achieved. Earned and Accrued Bonus specifically includes, without limitation, any bonus payments payable to Executive under any approved bonus plan or arrangement and any Equity Compensation that is awarded and vested. A pro rated
portion of any Annual Bonus for the year in which termination occurs based on the Target Level for the year in which the termination occurs and the portion of the year that has elapsed as of the date of termination shall be deemed to be “earned
and accrued” in the event of any termination of the Executive’s employment, other than termination by the Company for “Cause” (as defined below) or resignation by the Executive without “Good Reason” (as defined below).

 3.8 Acceleration of Rights upon Change in Control. Upon the occurrence of a “Change in
Control” (as such term is defined in the 2012 Equity Incentive Plan, as amended and in effect as of the Effective Date hereof), all Equity Compensation awarded to the Executive under this Agreement, to the extent not vested as of the date
of the Change in Control or to the extent that any such award is subject to forfeiture restrictions as of the date of the Change in Control, shall, immediately prior to the effectiveness of the Change in Control, be deemed vested and all forfeiture
restrictions shall lapse (treating any applicable performance criteria as fully satisfied). Notwithstanding the foregoing, to the extent necessary for the Executive to avoid taxes and/or penalties under Section 409A of the Internal Revenue Code
of 1986, as amended (the “Tax Code”), a Change in Control shall not be deemed to occur unless it constitutes a “change in control event” within the meaning of Section 1.409A-3(i)(5) of the Treasury Regulations
promulgated under Section 409A of the Tax Code. 
 4. Termination of Employment. The Company may terminate
the Executive’s employment for any reason or for no reason and with or without Cause (as defined herein below). The Executive may terminate the Executive’s employment with the Company for Good Reason (as defined herein below) or without
Good Reason. The Company or the Executive may terminate the Executive’s employment upon the Executive’s disability as provided in Section 4.1, or by Non-Renewal. The survival provisions of this Agreement described at Section 7.15
contemplate without limitation that upon the termination of his or her employment the Executive shall be subject to the provisions of the Covenant Against Competition set forth in Section 6.2. 

4.1 Termination upon the Executive’s Death or Disability. 

(a) If the Executive dies during the Term, the obligations of the Company to or with respect to the Executive shall terminate in their
entirety except as otherwise provided in this Section 4.1 and except for the surviving provisions of this Agreement as described at Section 7.15. 

  
 5 

 (b) If the Executive becomes eligible for disability benefits under the Company’s
long-term disability plans and arrangements (or, if none apply, would have been so eligible under a competitive plan as reasonably determined by the Compensation Committee), the Company or the Executive shall have the right, to the extent permitted
by law, to terminate the employment of the Executive upon at least ninety (90) days’ prior written notice to the other party, provided that the Company shall not have the right to terminate the Executive’s employment in accordance
with this Section 4.1(b) if, (i) in the opinion of a qualified physician reasonably acceptable to both parties, it is reasonably certain that the Executive will be able to resume his or her duties on a regular full-time basis within one
hundred eighty (180) days of the date that the notice of such termination is delivered, and (ii) upon the expiration of such one hundred eighty (180) day period, the Executive has resumed his or her duties on a regular full-time
basis. 
 (c) Upon the Executive’s death or the termination of the Executive’s employment by virtue of disability,
all of the following shall apply: 
 (i) the Executive, or the Executive’s estate or beneficiaries in the case of the
death of the Executive, shall have no right to receive any compensation or benefit hereunder on and after the effective date of the termination of employment, except that the Company shall reimburse Executive’s COBRA premium under the
Company’s major medical group health and dental plan (including the costs of Executive’s premium required to maintain coverage for his dependents), and the Company will continue to provide such additional continuing benefits (including
without limitation life insurance benefits) as the Executive and his dependents would have been entitled to under this Agreement, as on a monthly basis for a period of eighteen (18) months after the termination, and the Executive, or the
Executive’s estate or beneficiaries in the case of the death of the Executive, shall be entitled to receive the Executive’s Annual Salary and other benefits that are earned and accrued under this Agreement prior to the date of termination,
the Executive’s Earned and Accrued Bonuses, vesting of or lapsing of any forfeiture restrictions on any Equity Compensation as provided in clause (ii) below, reimbursement under this Agreement for expenses incurred prior to the date of
such termination; provided, that if the Executive is a “specified employee” within the meaning of Section 409A of the Tax Code, any payments of “deferred compensation” (as defined under Treasury Regulation
Section 1.409A-1(b)(1), after giving effect to the exemptions in Treasury Regulation Sections 1.409A-1(b)(3) through (b)(12)), shall not commence until the first day of the seventh month beginning after the date of the Executive’s
“separation from service” (as defined under Treasury Regulation Section 1.409A-1(h), or, if earlier, within 15 days after the appointment of the personal representative or executor of the Executive’s estate following his or her
death if a delay in payment is required, to avoid the imposition of the additional 20% tax under Section 409A of the Tax Code (and in the case of installment payments, the first payment shall include all installment payments required by this
subsection that otherwise would have been made during such period). If no deferral is required pursuant to the preceding sentence, the payment will be made within five (5) business days after the Date of Termination; 

(ii) all of the Equity Compensation previously awarded to the Executive, to the extent not vested or to the extent subject to forfeiture
restrictions, as of the date of the termination of the Executive’s employment, shall immediately be deemed vested and all forfeiture restrictions shall immediately lapse (treating any applicable performance criteria as

  
 6 

 
fully satisfied), and any outstanding options to acquire shares of Company stock shall immediately be vested and shall be, as determined in the discretion of the Board, either
(A) exercisable by the Executive or, in the case of the Executive’s death, by the beneficiaries of Executive’s estate, for one (1) year following the termination (or, if shorter, the balance of the regular term of the options),
or (B) cashed out or cancelled, as if in accordance with a Change in Control event, pursuant to the terms set forth in Section 15.03 of the 2012 Equity Incentive Plan as in effect on the Effective Date hereof; and 

(iii) this Agreement shall otherwise terminate and there shall be no further rights with respect to the Executive hereunder except for
the surviving provisions of this Agreement as provided in Section 7.15. The payments to be made in this Section 4.1(c) shall be in addition to, rather than in lieu of, the entitlement of Executive or his estate to any other insurance or
benefit proceeds as a result of his death or disability. 
 4.2 Termination by the Company for Cause. The Company
may terminate the Executive’s employment at any time for “Cause” if any of the following have occurred: 

(a) the Executive’s conviction for (or pleading guilty or nolo contendere to) any felony, or a misdemeanor involving moral
turpitude; 
 (b) the Executive’s indictment for any felony or misdemeanor involving moral turpitude, if such indictment
is not discharged or otherwise resolved within eighteen (18) months; 
 (c) the Executive’s commission of an act of
fraud, theft, dishonesty or breach of fiduciary duty related to the Company, its Business (as defined in Section 6.1) or the performance of the Executive’s duties hereunder; 

(d) the continuing failure or habitual neglect by the Executive to perform the Executive’s duties hereunder, except that, if such
failure or neglect is curable, the Executive shall have thirty (30) days from his receipt of a notice of such failure or neglect to cure such condition and, if the Executive does so to the reasonable satisfaction of the Board (such cure
opportunity being available only once), then such failure or neglect shall not constitute Cause hereunder; 
 (e) any violation
by the Executive of the Restrictive Covenants set forth in Section 6 except that, if such violation is not willful and is curable, the Executive shall first have thirty (30) days from his receipt of notice of such violation to cure such
condition and, if the Executive does so to the reasonable satisfaction of the Board, such violation shall not constitute Cause hereunder; or 
 (f) the Executive’s material breach of this Agreement, except that, if such breach is curable, the Executive shall first have thirty (30) days from his receipt of such notice of such breach to
cure such breach and, if the Executive does so to the reasonable satisfaction of the Board, such breach shall not constitute Cause hereunder. 

If the Company terminates the Executive’s employment for Cause, the Executive shall have no right to receive any compensation or benefit hereunder
on and after the effective date of the 

  
 7 

 
termination of employment, except that the Executive shall be entitled to receive the Executive’s Annual Salary, and other benefits that are earned and accrued under this Agreement prior to
the date of termination, any Earned and Accrued Bonus, and reimbursement under this Agreement for expenses incurred prior to the date of termination, provided, however, that if the Company terminates the Executive’s employment for Cause
specifically pursuant to Section 4.2(a), (b), or (c) above, then no Earned and Accrued Bonus shall be payable hereunder. This Agreement shall otherwise terminate upon such termination of employment and the Executive shall have no further
rights or obligations hereunder except for the surviving provisions of this Agreement as described at Section 7.15. 

4.3 Termination by the Company without Cause. The Company may terminate the Executive’s employment at any time without
Cause upon sixty (60) days prior written notice to the Executive. If the Company terminates the Executive’s employment without the occurrence of any of the events constituting Cause and the termination is not due to the Executive’s
death or disability or is not a Non-Renewal, then the termination by the Company is without Cause. If the Company terminates the Executive’s employment without Cause, then the Severance Package provisions of Section 5 shall apply, and this
Agreement shall otherwise terminate and the Executive shall have no further rights or obligations hereunder except for the surviving provisions of this Agreement as described at Section 7.15. 

4.4 Termination of Employment by the Executive for Good Reason. Subject to the notice and cure provisions set forth below,
the Executive may terminate the Executive’s employment with the Company for Good Reason and receive the Severance Package provisions of Section 5 if any of the following have occurred without the Executive’s written consent
(“Good Reason”): 
 (a) any material diminution in the Executive’s title, authorities, duties or
responsibilities (including without limitation the assignment of duties inconsistent with his position, or a significant adverse alteration of the nature or status of his responsibilities, or a significant adverse alteration of the conditions of his
employment), including any failure of the Nominating and Corporate Governance Committee of the Board to nominate the Executive for re-election to the Board of Directors at any annual meeting of the Company’s shareholders while the Executive
serves as the Chief Executive Officer of the Company, provided that, at the time of each annual meeting, (i) if the Executive is unable to perform his duties hereunder due to a disability or other incapacity, it is reasonably certain that the
Executive will be able to resume his duties on a regular full-time basis prior to such time as the Executive’s employment hereunder may be terminated by the Company due to disability, (ii) the Company has not notified the Executive of its
intention to terminate the Executive’s employment for cause, and (iii) the Executive has not notified the Company of his intention resign from his or her position of Chief Executive Officer of the Company; 

(b) any material diminution in the title, authority, duties, or responsibilities of the supervisor to whom the Executive is required to
report, specifically including a requirement that the Executive report to a corporate officer or employee instead of reporting directly to the Board, or any or significant adverse change of the supervisor to whom the Executive is required to report
(including assignment to a new supervisor which results in a material adverse alteration of the nature or conditions of Executive’s employment); 

  
 8 

 (c) after there has occurred a Change in Control, any of the following has occurred:
(i) a duplication with other Company personnel of the Executive’s title, authorities, duties or responsibilities; (ii) a significant adverse alteration of the budget over which the Executive retains authority; (iii) or a
duplication with other Company personnel of the title, authority, duties, or responsibilities of the supervisor to whom the Executive is required to report, specifically including a requirement that the Executive report to a corporate officer or
employee instead of reporting directly to the Board; 
 (d) any material reduction of the Executive’s Annual Salary;

 (e) the Company’s material breach of this Agreement; or 

(f) a determination by the Company to relocate its corporate headquarters to a new location that is more than fifty (50) miles from
the current address of the Company’s corporate headquarters in Scottsdale, Arizona. 
 Notwithstanding the forgoing, the Executive shall
not be deemed to have terminated this Agreement for Good Reason unless: (y) the Executive terminates this Agreement no later than six (6) months following the initial existence of the above referenced event or condition which is the basis
for such termination (it being understood that each instance of any such event shall constitute a separate basis for such termination and a separate event or condition occurring on the date of such instance for purposes of calculating the six-
(6)-month period); and (z) the Executive provides to the Company a written notice of the existence of the above referenced event or condition which is the basis for the termination within sixty (60) days following the initial existence of
such event or condition, and the Company fails to remedy such event or condition within 30 days following the receipt of such notice. This Agreement shall otherwise terminate upon such termination of employment and the Executive shall have no
further rights or obligations hereunder except for the surviving provisions of this Agreement as described at Section 7.15. 
 4.5 Termination of Employment by the Executive without Good Reason. The Executive may terminate the Executive’s employment with the Company at any time without Good Reason. If the
Executive terminates his employment without the occurrence of any of the events constituting “Good Reason” and the termination is not due to the Executive’s death or disability, then the termination by the Executive is without
Good Reason. If the Executive terminates the Executive’s employment with the Company without Good Reason, the Executive shall have no right to receive any compensation or benefit hereunder on and after the effective date of the termination of
employment, except that the Executive shall be entitled to receive the Executive’s Annual Salary, and other benefits that are earned and accrued under this Agreement or under applicable Company benefit plans prior to the date of termination and
reimbursement under this Agreement for expenses incurred prior to the date of termination. This Agreement shall otherwise terminate upon such termination of employment and the Executive shall have no further rights or obligations hereunder except
for the surviving provisions of this Agreement as described at Section 7.15. 
 4.6 Termination upon Company
Non-Renewal of Agreement. If the Company provides notice of Non-Renewal in accordance with the provisions of Section 1 and 

  
 9 

 
Section 7.6 hereof and the Executive resigns within ninety (90) days after receipt of the notice of Non-Renewal, the applicable Severance Package provisions of Section 5 shall
apply. This Agreement shall otherwise terminate upon the termination of the Executive’s employment, and the Executive shall have no further rights or obligations hereunder except for the surviving provisions of this Agreement as described at
Section 7.15. 
 5. Severance Package for Certain Terminations of Employment. The Executive shall be entitled
to certain rights and shall be bound by certain obligations as described in this Section 5 (the “Severance Package”) if the Executive’s employment terminates under any of the following conditions: (x) if the Executive
resigns within ninety (90) days following receipt of a Non-Renewal by the Company; (y) if the Company terminates the Executive’s employment without Cause, or (z) if the Executive terminates the Executive’s employment for
Good Reason. For purposes of this Agreement, the “Severance Package” shall consist of all of the following rights and obligations: 
 (a) The Executive shall be entitled to receive the Executive’s Annual Salary, and other benefits that are earned and accrued under this Agreement and under applicable Company benefit plans prior to
the date of termination, any Earned and Accrued Bonus, and reimbursement under this Agreement for expenses incurred prior to the date of termination; 
 (b) If the Executive signs the general release of claims in favor of the Company in the form set forth in Attachment “A” and the general release becomes irrevocably effective not later
than forty-five (45) days after the date of the termination event, the Executive shall also be entitled to all of the following: 
 (i) if (A) the Company terminates the Executive’s employment without Cause or (B) the Executive terminates the Executive’s employment for Good Reason, a cash payment equal to three
(3) times the sum of the Executive’s Annual Salary (as in effect on the effective date of such termination excluding any reduction not permitted by this Agreement), plus the greater of (A) the Annual Bonus compensation most recently
earned by the Executive for a full year, whether paid or unpaid, and (B) the average Annual Bonus (with any partial years annualized) actually paid for the last three fiscal years (“Average Annual Bonus”), payable in equal
installments over the period that corresponds to the period during which the covenants provided in Section 6.2 hereof are to be applicable in accordance with the Company’s usual and customary salary payroll practices. If, at the time of a
termination to which this sub-subparagraph b(i) applies, at least three full fiscal years have not occurred, then to the extent necessary to calculate the Average Annual Bonus for the last three years as set forth above, the initial Target Level
shall be used for the missing years). If the Executive resigns within ninety (90) days following receipt of notice of Non-Renewal by the Company, such payments shall equal two (2) times the sum of (AA) the Executive’s Annual Salary
(as in effect on the effective date of such termination excluding any reduction not permitted by this Agreement) plus (BB) the Executive’s Average Annual Bonus compensation, which together shall be payable in equal installments over a twelve
(12) month period in accordance with the Company’s usual and customary salary payroll practices (and made payable to the Executive’s estate in the event that the Executive dies prior to the expiration of such period). Notwithstanding
the foregoing, if the Executive is a “specified employee” within the meaning of Section 409A of the Tax Code, any payments of “deferred compensation” (as defined under Treasury Regulation
Section 1.409A-

  
 10 

 
1(b)(1), after giving effect to the exemptions in Treasury Regulation Sections 1.409A-1(b)(3) through (b)(12)), shall not commence until the first day of the seventh month beginning after the
date of the Executive’s “separation from service” (as defined under Treasury Regulation Section 1.409A-1(h)) to avoid the imposition of the additional 20% tax under Section 409A of the Tax Code (and in the case of
installment payments, the first payment shall include all installment payments required by this subsection that otherwise would have been made during such period); and 
 (ii) for a period of eighteen (18) months after termination of employment, the Company shall reimburse Executive’s COBRA premium under the Company’s major medical group health and dental
plan (including the costs of Executive’s premium required to maintain coverage for his dependents), and the Company will provide such additional continuing health, dental, disability and life insurance benefits applicable to senior executives
of the Company generally as the Executive and his dependents would have received under this Agreement (and for such additional benefits, at such costs to the Company, provided that the value of premiums on all primary or supplemental disability
policies shall be taxed as income to the Executive) as would have applied in the absence of such termination or expiration (but not taking into account any post-termination increases in Annual Salary that may otherwise have occurred without regard
to such termination and that may have favorably affected such benefits), it being expressly understood and agreed that nothing in this clause (b)(ii) shall restrict the ability of the Company to generally amend or terminate such plans and programs
from time to time in its sole discretion; provided, however, that the Company shall in no event be required to provide such reimbursements or coverage after such time as the Executive becomes entitled to receive health benefits from another employer
or recipient of the Executive’s services (and provided, further, that such entitlement shall be determined without regard to any individual waivers or other arrangements); 

(iii) all of the Equity Compensation awarded to the Executive, to the extent not vested or to the extent subject to forfeiture
restrictions as of the date of the termination of the Executive’s employment, shall immediately be deemed vested and any forfeiture restrictions shall immediately lapse (treating the performance criteria for the year of termination as fully
satisfied), and any outstanding options to acquire shares of Company stock shall immediately be vested and shall be, as determined in the discretion of the Board, either (A) exercisable by the Executive or, in the case of the Executive’s
death, by the beneficiaries of Executive’s estate, for one (1) year following the termination (or, if shorter, the balance of the regular term of the options), or (B) cashed out or cancelled, as if in accordance with a Change in
Control event, pursuant to the terms set forth in Section 15.03 of the 2012 Equity Incentive Plan as in effect on the Effective Date hereof. 
 Unless a later payment date is required under Code section 409A (as described above or pursuant to Section 7.20 of this Agreement), payments due under the Severance Package shall be paid to the
Executive (or installment payments shall commence) on the fiftieth (50th) day following the date of the termination event. This Agreement shall otherwise terminate upon such termination of employment and the Executive shall have no further
rights hereunder except for surviving provisions of this Agreement as provided in Section 7.15. 

  
 11 

 6. Covenants of the Executive. 

6.1 General Covenants of the Executive. The Executive acknowledges that (a) the principal business of the Company is
the acquisition, rental and management of single-family residential properties (such business, and any and all other businesses that after the date hereof, and from time to time during the Term, become material with respect to the Company’s
then-overall business, herein being collectively referred to as the “Business”) (for purposes of this Agreement, “Single-family Residential REIT” shall mean a company that invests in primarily single-family
residential properties and that is qualified as a real estate investment trust for purposes of federal income taxation); (b) the Company knows of a limited number of persons who have developed the Business; (c) the Business is, in part,
national in scope; (d) the Executive’s work for the Company and its subsidiaries has given and will continue to give the Executive access to the confidential affairs and proprietary information of the Company and to “trade
secrets,” (as defined under the laws of the State of Arizona) of the Company and its subsidiaries; (e) the covenants and agreements of the Executive contained in this Section 6.1 are essential to the business and goodwill of the
Company; and (f) the Company would not have entered into this Agreement but for the covenants and agreements set forth in this Section 6.1. 
 6.2 Covenant Against Competition. The covenant against competition herein described shall apply as follows: 
 (a) during the Term; 
 (b) for a period of one (1) year following a
termination of the Executive’s employment by the Company without Cause, by the Executive with Good Reason or by either party after Non-Renewal; 
 (c) for a period of one-hundred eighty (180) days following a termination of the Executive’s employment by the Company for Cause or by the Executive without Good Reason; provided, however, that
the Company shall have the option to extend the period for up to an additional one-hundred eighty (180) days if the Company pays the Executive his or her Annual Salary and a pro rated portion of his or her Annual Bonus at the then applicable
Target Level as in effect on the date of termination during such extended period; and 
 (d) as to Section 6.2(bb) and
(dd), at any time during and after the Executive’s employment with the Company and its subsidiaries (and the predecessors of either). 

During the time periods for described hereinabove, the Executive covenants as follows: 

(aa) The Executive shall not, directly or indirectly, own, manage, control or participate in the ownership, management, or control of, or
be employed or engaged by or otherwise affiliated or associated as an employee, employer, consultant, agent, principal, partner, stockholder, corporate officer, director or in any other individual or representative capacity, engage or participate in
any Single-family Residential REIT or other financial investment business which owns single-family residential properties as its primary business and that has assets in excess of Two Hundred Million and No/00 Dollars ($200,000,000), if such business
is in competition in any manner whatsoever with the Business of the Company in any state or country or other jurisdiction in which the Company conducts its Business as of the date of 

  
 12 

 
termination; provided, however, that, notwithstanding the foregoing, (i) the Executive may own or participate in the ownership of any entity which he owned or managed or participated in the
ownership or management of prior to the Effective Date which ownership, management or participation has been disclosed to the Company; and (ii) the Executive may invest in securities of any entity, solely for investment purposes and without
participating in the business thereof, if (A) such securities are traded on any national securities exchange or the National Association of Securities Dealers Automated Quotation System or equivalent non-U.S. securities exchange, (B) the
Executive is not a controlling person of, or a member of a group which controls, such entity and (C) the Executive does not, directly or indirectly, own one percent (1%) or more of any class of securities of such entity. 

(bb) Except in connection with the business and affairs of the Company and its affiliates: the Executive shall keep secret and retain in
strictest confidence, and shall not use for his benefit or the benefit of others, all confidential matters relating to the Business and the business of any of its affiliates and to the Company and any of its affiliates, learned by the Executive
heretofore or hereafter directly or indirectly from the Company or any of its subsidiaries (or any predecessor of either) (the “Confidential Company Information”), including, without limitation, information with respect to the
Business and any aspect thereof, profit or loss figures, and the Company’s or its affiliates’ (or any of their predecessors) properties, and shall not disclose such Confidential Company information to anyone outside of the Company except
with the Company’s express written consent and except for Confidential Company Information which (i) at the time of receipt or thereafter becomes publicly known through no wrongful act of the Executive; (ii) is clearly obtainable in
the public domain; (iii) was not acquired by the Executive in connection with the Executive’s employment or affiliation with the Company; (iv) was not acquired by the Executive from the Company or its representatives or from a
third-party who has an agreement with the Company not to disclose such information; (v) was legally in the possession of or developed by the Executive prior to the Effective Date; or (vi) is required to be disclosed by rule of law or by
order of a court or governmental body or agency. For purposes of this Agreement, “affiliate” means, with respect to the Company, any person, partnership, corporation or other entity that controls, is controlled by or is under common
control with the Company within the meaning of Rule 405 of Regulation C under the Securities Act of 1933, as now in effect or as hereafter amended. 
 (cc) The Executive shall not, without the Company’s prior written consent, directly or indirectly, (i) knowingly solicit or knowingly encourage to leave the employment or other service of the
Company or any of its affiliates, any employee employed by the Company at the time of the termination thereof or knowingly hire (on behalf of the Executive or any other person or entity) any employee employed by the Company at the time of the
termination who has left the employment or other service of the Company or any of its affiliates (or any predecessor of either) within one (1) year of the termination of such employee’s or independent contractor’s employment or other
service with the Company and its affiliates; or (ii) whether for the Executive’s own account or for the account of any other person, firm, corporation or other business organization, intentionally interfere with the Company’s or any
of its affiliates, relationship with, or endeavor to entice away from the Company or any of its affiliates, any person who during the Executive’s employment with the Company is or was a customer or client of the Company or any of its affiliates
(or any predecessor of either). Notwithstanding the above, nothing shall prevent the Executive from soliciting loans, investment capital, or the provision of management services from third parties engaged in the Business if the activities of the
Executive facilitated thereby do not otherwise adversely interfere with the operations of the Business. 

  
 13 

 (dd) All memoranda, notes, lists, records, property and any other tangible product and
documents (and all copies thereof) made, produced or compiled by the Executive or made available to the Executive during the Term concerning the Business of the Company and its affiliates shall be the Company’s property and shall be delivered
to the Company at any time on request. Notwithstanding the above, the Executive’s contacts and contact data base shall not be the Company’s property. Notwithstanding the above, software, methods and material developed by the Executive
prior to the Term of the Agreement shall not be the Company’s property. 
 6.3 Rights and Remedies upon
Breach. The Executive acknowledges and agrees that any breach by him of any of the provisions of Sections 6.1 or 6.2 (the “Restrictive Covenants”) would result in irreparable injury and damage for which money damages would
not provide an adequate remedy. Therefore, if the Executive breaches, or threatens to commit a breach of, any of the Restrictive Covenants, the Company and its affiliates shall have the right and remedy to have the Restrictive Covenants specifically
enforced (without posting bond and without the need to prove damages) by any court having equity jurisdiction, including, without limitation, the right to an entry against the Executive of restraining orders and injunctions (preliminary, mandatory,
temporary and permanent) against violations, threatened or actual, and whether or not then continuing, of such covenants. This right and remedy shall be in addition to, and not in lieu of, any other rights and remedies available to the Company and
its affiliates under law or in equity (including, without limitation, the recovery of damages). The existence of any claim or cause of action by the Executive, whether predicated on this Agreement or otherwise, shall not constitute a defense to the
enforcement of the Restrictive Covenants. The Company has the right to cease making the payments provided as part of the Severance Package in the event of a material breach of any of the Restrictive Covenants that, if capable of cure and not
willful, is not cured within thirty (30) days after receipt of notice thereof from the Company. 
 7. Other
Provisions. 
 7.1 Severability. The Executive acknowledges and agrees that the Executive has had an
opportunity to seek advice of counsel in connection with this Agreement and that the Restrictive Covenants are reasonable in geographical and temporal scope and in all other respects. If it is determined that any of the provisions of this Agreement,
including, without limitation, any of the Restrictive Covenants, or any part thereof, is invalid or unenforceable, the remainder of the provisions of this Agreement shall not thereby be affected and shall be given full affect, without regard to the
invalid portions. 
 7.2 Duration and Scope of Covenants. If any court or other decision maker of competent
jurisdiction determines that any of the Executive’s covenants contained in this Agreement, including, without limitation, any of the Restrictive Covenants, or any part thereof, are unenforceable because of the duration or geographical scope of
such provision, then, after such determination has become final and unappealable, the duration or scope of such provision, as the case may be, shall be reduced so that such provision becomes enforceable and, in its reduced form, such provision shall
then be enforceable and shall be enforced. 

  
 14 

 7.3 Enforceability of Restrictive Covenants; Jurisdictions. The Company and
the Executive intend to and hereby consent to jurisdiction to enforce the Restrictive Covenants upon the courts of any jurisdiction within the geographical scope of the Restrictive Covenants. If the courts of any one or more of such jurisdictions
hold the Restrictive Covenants wholly unenforceable by reason of breadth of scope or otherwise it is the intention of the Company and the Executive that such determination not bar or in any way affect the Company’s right, or the right of any of
its affiliates, to the relief provided above in the courts of any other jurisdiction within the geographical scope of such Restrictive Covenants, as to breaches of such Restrictive Covenants in such other respective jurisdictions, such Restrictive
Covenants as they relate to each jurisdiction’s being, for this purpose, severable, diverse and independent covenants, subject, where appropriate, to the doctrine of res judicata. 

7.4 Arbitration. Except with respect to any claims or disputes arising from or relating to the Restrictive Covenants or
arising after a Change in Control, any disputes arising under or in connection with this Agreement shall be resolved by binding arbitration, to be held in Phoenix, Arizona in accordance with the Commercial Arbitration Rules, as amended from time to
time, of the American Arbitration Association (the “AAA”). The Company and the Executive will each select an arbitrator, and a third arbitrator will be selected jointly by the arbitrators selected by the Company and the Executive
within 15 days after demand for arbitration is made by a Party. If the arbitrators selected by the Company and the Executive are unable to agree on a third arbitrator within that period, then either the Company or the Executive may request that the
AAA select the third arbitrator. The arbitrators will possess substantive legal experience in the principle issues in dispute and will be independent of the Company and the Executive. To the extent permitted by applicable law and not prohibited by
the Company’s certificate of incorporation and bylaws, the Company will pay all expenses (including the reasonable expenses of the Executive, including his reasonable legal fees, if the Executive is the prevailing party in such arbitration)
incurred in connection with arbitration and the fees and expenses of the arbitrators and will advance such expenses from time to time as required. Except as may otherwise be agreed in writing by the parties or as ordered by the arbitrators upon
substantial justification shown, the hearing for the dispute will be held within 60 days of submission of the dispute to arbitration. The arbitrators will render their final award within 30 days following conclusion of the hearing and any required
post-hearing briefing or other proceedings ordered by the arbitrators. The arbitrators will state the factual and legal basis for the award. The decision of the arbitrators will be final and binding and not subject to judicial review and final
judgment may be entered upon such an award in any court of competent jurisdiction, but entry of such judgment will not be required to make such award effective. 
 7.5 Attorneys’ Fees. If litigation after a Change in Control shall be brought to enforce or interpret any provision contained herein, the Company, to the extent permitted by applicable
law and not prohibited by the Company’s certificate of incorporation and bylaws, shall indemnify the Executive for the Executive’s reasonable attorneys’ fees and disbursements incurred in such litigation if the Executive is the
prevailing party in such litigation. 
 7.6 Notices. Any notice, consent or other communication required or
permitted hereunder shall be in writing and shall be delivered personally, telegraphed, telexed, sent by facsimile transmission or sent by certified, registered or express mail, postage prepaid. Any such notice, consent or other communication shall
be deemed given when so delivered 

  
 15 

 
personally, delivered by overnight courier, telexed or sent by facsimile transmission or, if mailed, five days after the date of deposit in the United States mails as follows: 

 

					
		 	(a)	  	If to the Company, to:
			
		 		  	American Residential Properties, Inc.
		 		  	7047 East Greenway Parkway, Suite 350
		 		  	Scottsdale, Arizona 85254
		 		  	Attention: Board of Directors.
		 		  	Fax:
		 		  	Email:
			
		 		  	with copies, in the case of notice, to:
			
		 		  	Hunton & Williams LLP
		 		  	Riverfront Plaza, East Tower
		 		  	951 East Byrd Street
		 		  	Richmond, Virginia 23219
		 		  	Attention: Daniel M. LeBey, Esq.
		 		  	Fax: (804) 788-8218
		 		  	Email: dlebey@hunton.com
			
		 	(b)	  	If to the Executive, to:
			
		 		  	American Residential Properties, Inc.
		 		  	7047 East Greenway Parkway, Suite 350
		 		  	Scottsdale, Arizona 85254
		 		  	Attention: Board of Directors
		 		  	Fax: (480) 264-2943
		 		  	Email: laurie.hawkes@americanresidentialproperties.com
			
		 		  	with a copy in either case to:
			
		 		  	Hunton & Williams LLP
		 		  	Riverfront Plaza, East Tower
		 		  	951 East Byrd Street
		 		  	Richmond, Virginia 23219
		 		  	Attention: Daniel M. LeBey, Esq.
		 		  	Fax: (804) 788-8218
		 		  	Email: dlebey@hunton.com

 Any such person may by notice given in accordance with this Section to the other parties hereto designate another
address or person for receipt by such person of notices hereunder. 
 7.7 Entire Agreement. This Agreement
contains the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements, written or oral, with the Company or its subsidiaries (or any predecessor of either). 

  
 16 

 7.8 Waivers and Amendments. This Agreement may be amended, superseded,
canceled, renewed or extended, and the terms hereof may be waived, only by a written instrument signed by the parties or, in the case of a waiver, by the party waiving compliance. No delay on the part of any party in exercising any right, power or
privilege hereunder shall operate as a waiver thereof, nor shall any waiver on the part of any party of any such right, power or privilege nor any single or partial exercise of any such right, power or privilege, preclude any other or further
exercise thereof or the exercise of any other such right, power or privilege. 
 7.9 GOVERNING LAW. THIS AGREEMENT
SHALL BE GOVERNED BY AND CONSTRUED EXCLUSIVELY IN ACCORDANCE WITH THE LAWS OF THE STATE OF ARIZONA WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW. Subject to the parties’ obligations under Section 7.4, the Executive and the Company each
hereby expressly consents to the exclusive venue and jurisdiction of the state and federal courts located in Phoenix, Arizona, for any lawsuit arising from or relating to this Agreement. 

7.10 Assignment. This Agreement shall be binding upon and inure to the benefit of the executors, administrators, heirs,
successors and assigns of the parties; provided, however, that except as herein expressly provided, this Agreement shall not be assignable either by the Company (except to an affiliate of the Company, in which event the Company shall remain liable
if the affiliate fails to meet any of the Company’s obligations hereunder, including without limitation to provide the employment opportunities offered hereby and to make payments or provide benefits or otherwise) or by the Executive. In the
event that the Executive consents to the assignment of this Agreement to a successor in interest of the Company upon a Change in Control, such consent shall not be deemed to waive or diminish the Executive’s rights under Section 3.8.

 7.11 Withholding. The Company shall be entitled to withhold from any payments or deemed payments any amount of
withholding required by law. In the event that the Company determines that any federal, state, local or foreign tax or withholding payment is required relating to the vesting in or delivery of any Equity Compensation, the Company shall have the
right to require such payments from the Executive or withhold such amounts from other payments due to the Executive from the Company or any affiliate, or to withhold such Equity Compensation that would otherwise have been issued to the Executive.
The Executive shall have the right to recommend the manner in which such payments shall be made or withheld. No other taxes, fees, impositions, duties or other charges or offsets of any kind shall be deducted or withheld from amounts payable
hereunder, unless otherwise required by law. 
 7.12 No Duty to Mitigate. The Executive shall not be required to
mitigate damages or the amount of any payment provided for under this Agreement by seeking other employment or otherwise, nor will any payments hereunder be subject to offset in the event the Executive does mitigate. 

7.13 Binding Effect. This Agreement shall be binding upon and inure to the benefit of the parties and their respective
successors, permitted assigns, heirs, executors and legal representatives. 

  
 17 

 7.14 Counterparts. This Agreement may be executed by the parties hereto in
separate counterparts, each of which when so executed and delivered shall be an original but all such counterparts together shall constitute one and the same instrument. Each counterpart may consist of two copies hereof each signed by one of the
parties hereto. 
 7.15 Survival. The rights and obligations of the parties under this Agreement, which by their
nature would continue beyond the termination or expiration of this Agreement, shall survive the termination or expiration of this Agreement. The Company’s obligations hereunder shall not be terminated by reason of any liquidation, dissolution,
bankruptcy, cessation of business, or similar event relating to the Company. This Agreement shall not be terminated by any merger or consolidation or other reorganization of the Company. In the event any such merger, consolidation or reorganization
shall be accomplished by transfer of stock or by transfer of assets or otherwise, the provisions of this Agreement shall be binding upon and inure to the benefit of the surviving or resulting corporation or person. 

7.16 Existing Agreements. Executive represents to the Company that the Executive is not subject or a party to any
employment or consulting agreement, non-competition covenant or other agreement, covenant or understanding which might prohibit the Executive from executing this Agreement or limit the Executive’s ability to fulfill the Executive’s
responsibilities hereunder. 
 7.17 Headings. The headings in this Agreement are for reference only and shall not
affect the interpretation of this Agreement. 
 7.18 Parachute Provisions. If any amount payable to, or other
benefit receivable by the Executive pursuant to this Agreement (taking into account payments and benefits under other agreements, plans and agreements) is deemed to constitute a “parachute payment” as defined in Section 280G of the
Tax Code, then such payment or benefit shall be reduced in accordance with, and to the extent required by, the provisions of the 2012 Equity Incentive Plan. 
 7.19 Indemnification; Directors and Officer’s Insurance. The Executive shall be entitled to indemnification in all instances in which the Executive is acting within the scope of his
authority to the fullest extent permitted by applicable law and not prohibited by the Company’s charter and bylaws, from and against any damages or liabilities, including reasonable attorney’s fees; provided, however, that the Executive
shall not be entitled to indemnification for damages or liabilities which result from or arise out of the Executive’s willful misconduct or gross negligence. During the Term, the Company will maintain directors’ and officers’
liability insurance in a coverage amount of not less than Ten Million and No/00 Dollars ($10,000,000). 
 7.20
409A. This Agreement and the amounts payable and other benefits hereunder are intended to comply with, or otherwise be exempt from, Section 409A of the Tax Code. This Agreement shall be administered, interpreted and construed in a
manner consistent with Section 409A. If any provision of this Agreement is found not to comply with, or otherwise not to be exempt from, the provisions of Section 409A, it shall be modified and given effect, in the sole discretion of the
Board or Compensation Committee thereof and without requiring the Executive’s consent, in such manner as the Board or Compensation Committee determines to be 

  
 18 

 
necessary or appropriate to comply with, or to effectuate an exemption from, Section 409A. Each payment under this Agreement shall be treated as a separate identified payment for purposes of
Section 409A. The preceding provisions shall not constitute or be construed as a guarantee, representation or warranty by the Company of any particular favorable tax effect or result to the Executive of the payments and other benefits under
this Agreement. 
 With respect to any reimbursement of expenses of, or any provision of in-kind benefits to, the Executive, as specified under
this Agreement, such reimbursement of expenses or provision of in-kind benefits shall be subject to the following conditions: (a) the expenses eligible for reimbursement or the amount of in-kind benefits provided in one taxable year shall not
affect the expenses eligible for reimbursement or the amount of in-kind benefits provided in any other taxable year, except for any medical reimbursement arrangement providing for the reimbursement of expenses referred to in Section 105(b) of
the Tax Code; (b) the reimbursement of an eligible expense shall be made no later than the end of the year after the year in which such expense was incurred; and (c) the right to reimbursement or in-kind benefits shall not be subject to
liquidation or exchange for another benefit. 
 If a payment obligation under this Agreement arises on account of the Executive’s
termination of employment and if such payment is subject to Section 409A, the payment shall be paid only in connection with the Executive’s “separation from service” (as defined in Treas. Reg. Section 1.409A-1(h)). If a
payment obligation under this Agreement arises on account of the Executive’s “separation from service” (as defined under Treas. Reg. Section 1.409A-1(h)) while the Executive is a “specified employee” (as defined under
Treas. Reg. Section 1.409A-1(h)), any payment of “deferred compensation” (as defined under Treasury Regulation Section 1.409A-1(b)(1), after giving effect to the exemptions in Treasury Regulation Sections 1.409A-1(b)(3) through
(b)(12)) that is scheduled to be paid within six months after such separation from service shall accrue without interest and shall be paid on the first day of the seventh month beginning after the date of the Executive’s separation from service
or, if earlier, within 15 days after the appointment of the personal representative or executor of the Executive’s estate following his death. 
 [Signature page follows.] 

  
 19 

 IN WITNESS WHEREOF, the parties hereto have signed their names to this Amended and Restated
Employment Agreement as of the day and year set forth below. 
  

					
		 	COMPANY:
		
		 	 AMERICAN RESIDENTIAL PROPERTIES, INC.,
 a Maryland corporation:

			
	Date: April 19, 2013	 	By:	 	 /s/ Laurie A. Hawkes

		 	Name:	 	Laurie A. Hawkes
		 	Title:	 	President and Chief Operating Officer

  

					
		 	EXECUTIVE:
			
	Date: April 19, 2013	 	By:	 	 /s/ Stephen G. Schmitz

		 	Name:	 	Stephen G. Schmitz

 ATTACHMENT “A” 

to 

AMERICAN RESIDENTIAL PROPERTIES, INC. 
 EMPLOYMENT AGREEMENT 
 Stephen G. Schmitz 

General Release of Claims 
 Consistent with Section 5 of the Employment Agreement effective May 11, 2012, between AMERICAN RESIDENTIAL PROPERTIES, INC. (the “Company”) and me (the “Employment
Agreement”) and in consideration for and contingent upon my receipt of the Severance Package set forth in Sections 5(b) of the Employment Agreement, I, for myself, my attorneys, heirs, executors, administrators, successors, and assigns, do
hereby fully and forever release and discharge the Company and its affiliated entities (as defined in the Employment Agreement), as well as their predecessors, successors, assigns, and their current or former directors, officers, partners, agents,
employees, attorneys, and administrators from all suits, causes of action, and/or claims, demands or entitlements of any nature whatsoever, whether known, unknown, or unforeseen, which I have or may have against any of them arising out of or in
connection with my employment by the Company, the Employment Agreement, the termination of my employment with the Company, or any event, transaction, or matter occurring or existing on or before the date of my signing of this General Release, except
that I am not releasing any (a) right to indemnification that I may otherwise have, (b) right to Annual Salary and benefits under applicable benefit plans that are earned and accrued but unpaid as of the date of my signing this General
Release, (c) right to reimbursement for business expenses incurred and not reimbursed as of the date of my signing this General Release, (d) right to any bonus payment(s) or other compensation due under the Employment Agreement, the Bonus
Plan, any Company Incentive Plan that is earned and accrued for the most recent completed calendar year for which a bonus payment has not then been paid as of the date of my signing this General Release, or (e) claims arising after the date of
my signing this General Release. I agree not to file or otherwise institute any claim, demand or lawsuit seeking damages or other relief and not to otherwise assert any claims, demands or entitlements that are lawfully released herein. I further
hereby irrevocably and unconditionally waive any and all rights to recover any relief or damages concerning the claims, demands or entitlements that are lawfully released herein. I represent and warrant that I have not previously filed or joined in
any such claims, demands or entitlements against the Company or the other persons released herein and that I will indemnify and hold them harmless from all liabilities, claims, demands, costs, expenses and/or attorneys’ fees incurred as a
result of any such claims, demands or lawsuits. 
 Except as otherwise expressly provided above, this General Release
specifically includes, but is not limited to, all claims of breach of contract, employment discrimination (including any claims coming within the scope of Title VII of the Civil Rights Act, the Age Discrimination in Employment Act, the Older Workers
Benefit Protection Act, the Equal Pay Act, the Americans with Disabilities Act, the Family and Medical Leave Act, and any comparable Arizona law, all as amended, or any other applicable federal, state, or local law), claims under the Employee

  
 A-1

 
Retirement Income Security Act, as amended, claims under the Fair Labor Standards Act, as amended (or any other applicable federal, state or local statute relating to payment of wages), claims
concerning recruitment, hiring, termination, salary rate, severance pay, stock options, wages or benefits due, sick leave, holiday pay, vacation pay, life insurance, group medical insurance, any other fringe benefits, worker’s compensation,
termination, employment status, libel, slander, defamation, intentional or negligent misrepresentation and/or infliction of emotional distress, together with any and all tort, contract, or other claims which might have been asserted by me or on my
behalf in any suit, charge of discrimination, or claim against the Company or the persons released herein. 
 I acknowledge that
I have been given an opportunity of twenty-one (21) days to consider this General Release and that I have been encouraged by the Company to discuss fully the terms of this General Release with legal counsel of my own choosing. Moreover, for a
period of seven (7) days following my execution of this General Release, I shall have the right to revoke the waiver of claims arising under the Age Discrimination in Employment Act, a federal statute that prohibits employers from
discriminating against employees who are age 40 or over. If I elect to revoke this General Release within this seven-day period, I must inform the Company by delivering a written notice of revocation to the Company’s Director of Human
Resources,                     , no later than 11:59 p.m. on the seventh calendar day after I sign this General Release. I understand that, if I
elect to exercise this revocation right, this General Release shall be voided in its entirety and the Company shall be relieved of all obligations to make the portion of the Severance Package described in Section 5(b) of the Employment
Agreement. I may, if I wish, elect to sign this General Release prior to the expiration of the 21-day consideration period, and I agree that if I elect to do so, my election is made freely and voluntarily and after having an opportunity to consult
counsel. 
  

							
	AGREED:	 		 		 	
				
	[Form of Agreement Only - Do Not Execute]	 		 		 	

							
	  
	 		 		 	  

	  
	 		 		 	Date

  
 A-2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00216-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00216-of-00352.parquet"}]]