Document:

Employment Agreement between Restoration Hardware Inc. and Carlos Alberini

 Exhibit 10.2 
 EMPLOYMENT AGREEMENT 
 This Employment Agreement (the
“Agreement”) is entered into as of May 12, 2010 (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 Carlos Alberini, an individual with a residence address of [                    ] (the
“Executive”). 
 INTRODUCTION 
 1. The Company wishes to employ the Executive as its Co-Chief Executive Officer pursuant to the terms and conditions set forth herein. 

2. The Executive desires to be employed by the Company, pursuant to the terms and conditions set forth herein. 

AGREEMENT 

In consideration of the premises and mutual promises herein below set forth, the parties hereby agree as follows: 

 

	 	1.	Employment. 

 (a)
Title; Duties; Board Membership. The Executive shall serve as Co-Chief Executive Officer of the Company, and the Executive hereby accepts such employment. The duties assigned and authority granted to the Executive shall initially be
consistent with those duties set forth in Schedule A attached hereto. The duties of Executive may change from time to time by mutual agreement of the Executive, on the one hand, and the other Co-Chief Executive Officer, on the other hand, and
such agreement or understanding to be memorialized in writing including by email. The Executive shall report to the Company’s Chairman of the Board. The Executive also shall serve as a member of the Board and a member of the Board of Managers
of Home Holdings, LLC (the Company’s parent) while Executive serves as Co-Chief Executive Officer of the Company. The Executive agrees to perform his 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 his full business time to his
duties and responsibilities set forth above, and may not, without the prior written consent of 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 to the extent they do not
materially interfere with the Executive’s performance of his duties hereunder, (ii) make and maintain outside personal investments, and (iii) serve on the board of directors of other companies subject to the prior written consent of
the Board or its designee (which consent is deemed granted with respect to service on the Guess? Inc. Board of Directors), which consent shall not be unreasonably withheld, provided that none of the foregoing activities and service materially
interfere with the Executive’s performance of his duties hereunder. 

  
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 (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. 
 (d)
Certain Terms Related to Commencement of Employment. Executive shall commence employment, and begin to accrue salary and benefits as a full time employee, on June 1, 2010 (the “Commencement Date”). Notwithstanding the
foregoing, Executive and the Company may complete prior to the Commencement Date (i) the grant of profits interest to Executive under the Grant Letter, (ii) the purchase and sale of Class A-1 Units and Class A-2 Units under the
Restricted Unit Purchase Agreement, (iii) the issuance of the Promissory Note, and (iv) the appointment of Executive as a member of the Board of Directors of the Company and the Board of Managers of Home Holdings, LLC. In the event that
Executive does not commence full time employment for any reason whatsoever on or prior to the Commencement Date, including by reason of his death, disability, or inability to serve from and after the Commencement Date, then without any further
action on the part of the Executive, (i) Executive shall be deemed to have automatically and immediately on June 1, 2010 resigned from the Board of Directors of the Company and the Board of Managers of Home Holdings, LLC, (ii) the
grant of profits interest to Executive under the Grant Letter shall be deemed immediately and automatically cancelled and rescinded and of no further force and effect, (iii) the purchase and sale of Class A-1 Units and Class A-2 Units
under the Restricted Unit Purchase Agreement shall be deemed immediately and automatically cancelled and rescinded and of no further force and effect, and (iv) the issuance of the Promissory Note shall be deemed immediately and automatically
cancelled and rescinded and of no further force and effect. For the avoidance of doubt, in the event of any conflict between the preceding Section 1(d) of this Employment and the terms of the Plan, the LLC Agreement, the Grant Letter, the
Restricted Unit Purchase Agreement or the Proprietary Information Agreements, the terms of this Section 1(d) shall prevail over any other inconsistent provision. 
  

	 	2.	Compensation. 

 (a)
Base Salary. The Executive shall be entitled to receive a base salary from the Company at the rate of Eight Hundred Thousand Dollars ($800,000.00) per year. The Executive’s base salary shall be reviewed annually on or about each
anniversary date of this Agreement by the Compensation Committee of the Board (the “Committee”), which shall consider appropriate factors, including, without limitation, the Executive’s performance and the Company’s
financial condition. 
 (b) Bonus. The Executive will be eligible to earn annual cash bonus compensation (the
“Annual Bonus”) for each fiscal year based on the level of achievement of performance goals established by the Board or the Committee following consultation with the Executive. If, and only if, the minimum performance threshold
required in order to earn a bonus is attained, then the bonus payable to the Executive will be between 85% and 125% of the Executive’s then effective base salary on a pro rata basis depending on the actual level of achievement of the goals as
confirmed by the Board or the Committee; provided, however, that the Annual Bonus for fiscal year 2010 shall be pro rated based on a factor of 80% of the bonus that Executive would otherwise be eligible to earn for fiscal year 2010 assuming that he
had served for the full fiscal year 2010. The performance goals established as provided above shall 

  
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be based upon financial performance metrics for the Company and shall be set for each fiscal year at approximately the same time that the Company’s annual budget for such fiscal year is
established, but in no event later than April 30th of
such fiscal year. For fiscal 2010, Executive’s performance goals shall be established within 45 days of his commencement of employment. Payment of the Annual Bonus for any fiscal year generally shall be made thirty (30) days following the
date on which the audited financial results for such fiscal year and the amount of the bonus for such fiscal year are determined, but in no case later than the 15th day of the third month following the end of the applicable fiscal year. 

(c) Equity Incentive Compensation. Effective on the first day of the Executive’s employment with the Company, Home Holdings,
LLC shall grant to Executive 4,225,554 Class B-1 Units of Home Holdings, LLC which are intended to qualify as profits interests. Such profits interests shall be granted under the Home Holdings, LLC 2008 Team Resto Ownership Plan (the
“Plan”), and shall be governed by the terms and conditions of the Plan and the applicable grant letter which is attached hereto as Exhibit A (the “Grant Letter”). Of the foregoing Class B-1 Units, 2,112,777
Class B-1 Units shall be Time-Based Units granted pursuant to Section 6(b)(i) of the Plan, 704,259 Class B-1 Units shall be Performance-Based Units granted pursuant to Section 6(b)(ii)(A) of the Plan, and 1,408,518 Class B-1 Units shall be
Performance-Based Units granted pursuant to Section 6(b)(ii)(B) of the Plan. 
 (d) Class B-2 Contingent Payment Profits
Interest. Effective on the first day of the Executive’s employment with the Company, Home Holdings, LLC shall grant to Executive one (1) Class B-2 Unit of Home Holdings, LLC which is intended to qualify as profits interests. Such
profits interests shall be governed by the terms and conditions of the applicable Grant Letter which is attached hereto as Exhibit A. 
  

	 	3.	Other Benefits; Indemnification. 

 (a) Benefits. The Executive (and his spouse and dependents) shall be covered by health and other employee benefits (including but not limited to health, medical, dental, supplemental health, travel
accident, life, long-term disability, and directors and officers insurance) on a basis no less favorable than such benefits are provided by the Company from time to time to its other Co-Chief Executive Officer 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 from time to time. 
 (b) Vacation. The Executive shall be entitled to an annual vacation of four (4) weeks per calendar year, pro rated for any partial year during Executive’s employment with the Company.
During any vacation period, the Executive will continue to receive his salary, compensation, and benefits, without interruption. 
 (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 his responsibilities or services under this Agreement upon the submission of appropriate documentation pursuant to the Company’s policies in effect from time to time. 

  
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 (d) Automobile Allowance. The Executive shall be entitled to receive an automobile
allowance in the same amount as the other co-Chief Executive Officer of the Company. 
 (e) Relocation Program. The
Company agrees to reimburse Executive for actual expenses reasonably incurred by the Executive in order to relocate to the San Francisco Bay Area as provided in the Company’s relocation policies as follows: (i) actual moving and relocation
expenses of family and possessions to the San Francisco Bay Area, (ii) transactions and closing costs in connection with the acquisition of a new home in the San Francisco Bay Area and the sale of a prior home in the Los Angeles area (but only
including real estate brokerage fees for sale of Executive’s home in the Los Angeles area), (iii) a housing stipend of up to $20,000 per month for up to 12 months in order to cover rental of an additional residence in the San Francisco Bay
Area, (iv) reimbursement of travel expenses of the Executive and his spouse and offspring for up to the first 12 months of employment with the Company to allow the Executive to travel back and forth to Los Angeles on a once per week basis, and
(v) a tax adjustment “gross up” payment in an amount equal to the entire amount of all income taxes imposed with respect to the reimbursement payments in clauses (i) through (v) of this Section 3(e) (including any
income taxes imposed upon the “gross up” payment itself under this clause (v)), such that the Executive’s receipt of the reimbursement payments under this Section 3(e) is “tax neutral” to Executive from an income tax
perspective. 
 (f) Reimbursement of Legal Fees. Upon commencement of Executive’s employment, the Company shall
reimburse the Executive for a flat amount equal to $25,000 in respect of legal fees related to the negotiation and preparation of this Agreement. 
 (g) Indemnification. The Company and the Executive acknowledge and agree that the Executive is covered as a Member (as such term is defined in the Fourth Amended and Restated Limited Liability
Company Operating Agreement of Home Holdings, LLC (as amended from time to time, the “LLC Agreement”)) under the indemnification provisions set forth under Article 15 of the LLC Agreement. The Company agrees that the scope of
indemnification regarding the Executive’s acts or omissions in his capacity as an officer or director of the Company or Home Holdings, LLC shall not be materially reduced from that provided under the LLC Agreement (except to the extent that
such indemnification shall be prohibited in the future by an amendment to applicable law, including the laws of the jurisdiction in which the Company or Home Holdings, LLC, as applicable, is then domiciled) without the Executive’s prior
consent. The Executive’s right to indemnification shall survive any termination of his employment with the Company in accordance with the LLC Agreement, irrespective of the reason for the termination to the extent not prohibited by law. The
Company shall indemnify the Executive to the fullest extent permitted by applicable law in the event that he was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, by reason of the
fact that the Executive is or was a director, officer, employee or agent of the Company or any of its affiliates or performs his required services under this Agreement. Reasonable expenses incurred by the Executive in defending any such claim,
action, suit or proceeding shall accordingly be paid by the Company in advance of the final disposition of such claim, action, suit or proceeding upon receipt of an undertaking by or on behalf of the Executive to repay such amount if it shall
ultimately be determined that he is not entitled to be indemnified by the Company as authorized in this Section 3(g). In addition, the Company shall use its 

  
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commercially reasonable efforts to purchase and maintain a directors’ and officers’ liability insurance policy (or policies) (i) during the Executive’s employment with the
Company providing coverage to the Executive that is no less favorable to him in any respect (including with respect to scope, exclusions, amounts, and deductibles) than the coverage then being provided by the Company with respect to its other senior
officers and directors, and (ii) after Executive’s employment with the Company for so long as the Company is making such insurance coverage available to its other senior officers and directors. 

 

	 	4.	Equity Purchase. 

 In
connection with this Agreement, Home Holdings, LLC has entered into that certain Restricted Unit Purchase Agreement dated as of the date hereof in the form attached hereto as Exhibit B (the “Restricted Unit Purchase
Agreement”). Upon Executive’s commencement of employment by the Company, Home Holdings, LLC shall issue and Executive shall purchase in accordance with the terms of the Restricted Unit Purchase Agreement 888,889 Class A-1 Units
and 888,889 Class A-2 Units of Home Holdings, LLC at a price of U.S. $4.50 for each pair of securities consisting of one Class A-1 Unit and one Class A-2 Unit for an aggregate cash purchase price of U.S. $4,000,000.50 except that
Executive may at his option elect to purchase such Units with a promissory note in the form attached to the Restricted Unit Purchase Agreement. The Class A-1 Units and Class A-2 Units shall be subject to transfer and other restrictions
including vesting and certain repurchase rights as set forth in the Restricted Unit Purchase Agreement and the LLC Agreement. 
  

	 	5.	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 the Company at any time without any advance notice (and the
Executive may terminate his 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 5. 
 (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, (A) the Executive shall receive from the Company payments for (i) any and all
earned and unpaid portion of his then effective base salary (on or before the first regular payroll date following the Date of Termination) or Annual Bonus (at the time the Annual Bonus otherwise is paid); (ii) any and all accrued and unpaid
vacation through the Date of Termination (on or before the first regular payroll date following the Date of Termination); (iii) any and all unreimbursed business expenses (in accordance with the Company’s reimbursement policy); and
(iv) 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 (i) through (iv) are
hereafter referred to as “Accrued Benefits”), and (B) except as required by law, 

  
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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 (including for any further vesting for any Class B-1 Units) or
otherwise shall cease as of the Date of Termination. The Class A-1 Units and the Class A-2 Units acquired by Executive pursuant to the Restricted Unit Purchase Agreement shall be subject to all of the terms and conditions of the Restricted
Unit Purchase Agreement (including with respect to vesting and repurchase), and the Class B-1 Units granted to Executive under the Plan shall be subject to all of the terms and conditions of the Plan and the applicable grant letter with respect to
such Class B-1 Units (including with respect to vesting, cancellation and repurchase). 
 (c) Termination by the Company
Without Cause. The Company may, at any time and without prior written notice, terminate the Executive without Cause. In the event that the Executive’s employment with the Company is terminated without Cause, the Executive shall receive the
Accrued Benefits. In addition, the Executive shall be entitled to receive from the Company the following: (i) severance payments totaling $1.5 million, 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 (the “Severance Period”), (ii) a pro-rata amount of the Annual Bonus that the Executive would have been eligible to
receive had he remained employed by the Company for the remainder of the year in which the Executive’s termination occurs (determined by multiplying the amount the Executive would have received based upon the actual level of achievement of the
applicable performance goals had employment continued through the end of the performance year by a fraction, the numerator of which is the number of days during the performance year of termination that the Executive is employed by the Company and
the denominator of which is 365), such pro-rata amount to be paid at the same time and in the same form as the Annual Bonus otherwise would be paid (but in no event later than 30 days after the end of the Company’s fiscal year to which such
bonus relates), (iii) subject to the Executive’s timely election under COBRA, continuation of health insurance benefits for twenty four (24) months following the Date of Termination, 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, and (iv) vesting of Executive’s Time-Based Units shall accelerate as to the number of Time-Based Units that would have vested through the
Date of Termination and for an additional 24-month period following the Date of Termination (assuming, for purposes of this Section 5(c)(iv) only, that such Time-Based Units vest on the first day of each month rather than in annual installments
but the rate of such monthly vesting shall correspond to the annual vesting schedule, i.e., 15% in years one and two (1.25% each month), 20% in year three (1.66% per month) and 25% in years four and five (2.0833% per month)), and the
Executive’s Performance-Based Units shall remain outstanding and vest according to their terms for a period of 24 months following the Date of Termination (after which time such Performance-Based Units, to the extent unvested, shall expire and
be cancelled for no consideration); provided, however, that the Executive’s entitlement to the severance payments in this Section 5(c) is conditioned on (y) the Executive’s executing and delivering to the Company of a release of
claims against the Company, in a form attached hereto as Exhibit C, and on such release becoming effective, and (z) the Executive’s compliance with the restrictive covenants set forth in Sections 6 and 8(a), (b),(d) and (e) and
the Proprietary Information Agreements (as defined below). The Executive agrees that the Company shall have a right of offset against all severance payments for amounts 

  
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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. Except as specifically provided in this
Section 5(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. In the event that
Executive’s employment is terminated without Cause, the Class A-1 Units and the Class A-2 Units acquired by Executive pursuant to the Restricted Unit Purchase Agreement shall be subject to all of the terms and conditions of the
Restricted Unit Purchase Agreement (including with respect to vesting and repurchase), and the Class B-1 Units granted to Executive under the Plan shall be subject to all of the terms and conditions of the Plan and the applicable grant letter with
respect to such Class B-1 Units (including with respect to vesting, cancellation and repurchase). 
 (d) Termination by the
Executive for Good Reason. The Executive may voluntarily terminate his employment with the Company and receive the severance payments, bonus payments, and other benefits detailed in Section 5(c) (subject to the same conditions set forth in
Section 5(c)) following the occurrence of an event constituting Good Reason (as defined below) that has not been cured by the Company within the timeframe specified in the definition of Good Reason. In the event of any such termination of
employment by the Executive, the Class A-1 Units and the Class A-2 Units acquired by Executive pursuant to the Restricted Unit Purchase Agreement shall be subject to all of the terms and conditions of the Restricted Unit Purchase Agreement
(including with respect to vesting and repurchase), and the Class B-1 Units granted to Executive under the Plan shall be subject to all of the terms and conditions of the Plan and the applicable grant letter with respect to such Class B-1 Units
(including with respect to vesting, cancellation and repurchase). 
 (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 5(e), the Executive shall receive from the Company payment for all Accrued Benefits described in Section 5(b) above at the times specified in Section 5(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 (including for any further vesting for any Class B-1 Units), to the Executive on account of the
Executive’s termination of employment. In the event of Executive terminates employment with the Company without Good Reason, the Class A-1 Units and the Class A-2 Units acquired by Executive pursuant to the Restricted Unit Purchase
Agreement shall be subject to all of the terms and conditions of the Restricted Unit Purchase Agreement (including with respect to vesting and repurchase), and the Class B-1 Units granted to Executive under the Plan shall be subject to all of the
terms and conditions of the Plan and the applicable grant letter with respect to such Class B-1 Units (including with respect to vesting, cancellation and repurchase). 
 (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 (i) the Accrued Benefits described in Section 5(b) above at the times specified in Section 5(b)
above and (ii) a pro-rata amount of the Annual Bonus that the Executive would have been eligible to receive had he remained employed by the 

  
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Company for the remainder of the year in which the Executive’s termination occurs (determined by multiplying the amount the Executive would have received based upon the actual level of
achievement of the applicable performance goals had employment continued through the end of the performance year by a fraction, the numerator of which is the number of days during the performance year of termination that the Executive is employed by
the Company and the denominator of which is 365), such pro-rata amount to be paid in the same time and the same form as the Annual Bonus otherwise would be paid (but in no event later than 75 days after the end of the Company’s fiscal year to
which such bonus relates). 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 (including for
any further vesting for any Class B-1 Units), to the Executive (or the Executive’s estate, or other designated beneficiary(s), as applicable) upon a termination of employment by death or Disability. In the event that the Executive’s
employment is terminated as a result of death or Disability, the Class A-1 Units and the Class A-2 Units acquired by Executive pursuant to the Restricted Unit Purchase Agreement shall be subject to all of the terms and conditions of the
Restricted Unit Purchase Agreement (including with respect to vesting and repurchase), and the Class B-1 Units granted to Executive under the Plan shall be subject to all of the terms and conditions of the Plan and the applicable grant letter with
respect to such Class B-1 Units (including with respect to vesting, cancellation and repurchase). 
 (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; 
 (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 as determined by a court of competent jurisdiction or by arbitration pursuant to the Arbitration Agreement attached as Exhibit F hereto. 

For purposes of this Section 5(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 

  
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reasonable belief that the Executive’s action or failure to act was in the best interest of Company. No termination for Cause may occur pursuant to Section 5(g)(i)(B) or
Section 5(g)(i)(C) unless a written notice setting forth the conduct allegedly constituting “Cause” and specifying the particulars thereof in reasonable detail has been delivered to the Executive, and the Executive has been provided
an opportunity to be heard in person by the Board (with the assistance of the Executive’s counsel). 
 (ii) “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 his 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 5(e); or (v) in the event of Executive’s death, the date of death. 

(iii) “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. 
 (iv) “Good Reason” shall mean the
occurrence of any of the events or conditions described in subsections (A) through (E) hereof that occur without the Executive’s consent, and within 90 days following the end of the Notice Period (as defined below) the Executive
terminates his employment with the Company: 
 (A) a material diminution in the Executive’s authority,
duties or responsibilities including an adverse change in the Executive’s reporting relationship, or the assignment to the Executive by the Company of duties materially inconsistent with his status as Co-Chief Executive Officer as set forth in
this Agreement (it being understood that the two Co-Chief Executives may have changes in the personnel and functions within the Company that report to each of them from time to time and mutually agreed changes in some of those responsibilities that
report to Executive alone shall not constitute Good Reason so long as the authority and responsibility of the Executive within the organization is not materially diminished or materially inconsistent with the status of Co-Chief Executive Officer as
set forth in this Agreement); 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 Co-Chief Executive Officer of the Company (or successor or parent thereof, as the case may be) or such division or subsidiary; and provided further that (for avoidance of doubt) a
change in the Executive’s authority, duties or responsibilities in connection with the termination of the Executive’s employment for Disability, Cause, as a result of the Executive’s death, or by the Executive other than for Good
Reason shall not constitute Good Reason; 

  
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 (B) a material reduction in the Executive’s then effective base
salary, annual bonus opportunity or benefits, except if the base salaries, annual bonus opportunities or benefits 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; 

(C) any material breach by the Company or any of its successors and assigns of this Agreement; provided, however, that
once the Executive has relocated his family to the San Francisco Bay Area a breach of this Agreement involving the Executive’s office location only shall be deemed to be material in the event that the Executive is thereafter required to be
based outside a 40-mile radius of Corte Madera, California; 
 (D) removal of the Executive, or failure to cause
the reappointment or election of the Executive, as the Co-Chief Executive Officer of the Company, as a member of the Board or as a member of the Board of Managers of Home Holdings, LLC; and 

(E) the failure of the Company’s successors and assigns to assume the obligations of the Company under this
Agreement, either by written agreement or by operation of law. 
 The Executive’s right to terminate his employment in
connection with an event of Good Reason shall not be affected by the Executive’s incapacity due to physical or mental illness. The Executive must provide notice to the Company of the existence of a condition described in clauses
(A) through (E) above within sixty (60) days of his knowledge of the initial existence of the condition, upon the notice of which the Company shall have a period (the “Notice Period”) of 30 days during which it may
remedy the condition so that it shall not constitute a “Good Reason.” If more than one change or event shall occur which alone or in the aggregate constitutes Good Reason, then for purposes hereof, Good Reason shall be deemed to have
occurred on the last such change or event to occur. 
 (h) Notice of Termination. Any termination of the Executive’s
employment by the Company or by the Executive under this Section 5 (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 which notice shall be delivered within the time periods set forth in the various subsections of this Section 5, as applicable (the “Notice
Period”); provided, however, that the Company may pay to the Executive all base salary, benefits and other rights due to the Executive during the Notice Period instead of employing the Executive during such Notice Period. 

  
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	 	6.	Non-Competition; General Provisions Applicable to Restrictive Covenants. 

 (a) Covenant not to Compete. For the duration of Executive’s employment with the Company and throughout the duration of the Severance Period, the Executive shall not, directly or indirectly,
engage or invest in, own, manage, operate, finance, control or participate in the ownership, management, operation, financing, or control of, be employed by, associated with, or in any manner connected with, lend any credit to, or render 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 the Executive may own
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. At any time after the termination of his employment with the Company for any
reason, Executive will not engage in competition with the Company while making use of the trade secrets of the Company. 
 (b)
Specific Performance. The Executive recognizes and agrees that a violation by him of his obligations under this Section 6, or under Section 8, or under the Proprietary Information Agreements may cause irreparable harm to the Company
that would be difficult to quantify and that money damages may be inadequate. As such, the Executive agrees that the Company shall have the right to seek injunctive relief (in addition to, and not in lieu of any other right or remedy that may be
available to it) to prevent or restrain any such alleged violation without the necessity of posting a bond or other security and without the necessity of proving actual damages. However, the foregoing shall not prevent the Executive from contesting
the Company’s request for the issuance of any such injunction on the grounds that no violation or threatened violation of the aforementioned Sections has occurred and that the Company has not suffered irreparable harm. If an arbitrator or court
of competent jurisdiction determines that the Executive has violated the obligations of any covenant for a particular duration, then the Executive agrees that such covenant will be extended by that duration. 

(c) Scope and Duration of Restrictions. The Executive expressly agrees that the character, duration and geographical scope of the
restrictions imposed under this Section 6, and under Section 8 and under the Proprietary Information Agreements are reasonable in light of the circumstances as they exist at the date upon which this Agreement has been executed. However,
should a determination nonetheless be made by an arbitrator or a court of competent jurisdiction at a later date that the character, duration or geographical scope of any of the covenants contained herein is unreasonable in light of the
circumstances as they then exist, then it is the intention of both the Executive and the Company that such covenant shall be construed by an arbitrator or the court in such a manner as to impose only those restrictions on the conduct of the
Executive which are reasonable in light of the circumstances as they then exist and necessary to assure the Company of the intended benefit of such covenant. Except insofar as claims involving the prohibited disclosure, misuse or misappropriation of
the Company’s trade secrets, return of the Company’s property or assignment of inventions are involved, to the extent Executive engages in any action(s) after termination of his employment in violation of the restrictions imposed under
this Section 6, under Sections 8(a) and (b) and/or under the 

  
 11 

 
Proprietary Information Agreements, the Company’s only right of action and remedy hereunder shall be to immediately terminate any and all severance payment that still may be due and owing
hereunder as well as for any further vesting for any Class B-1 Units; the parties otherwise acknowledge that Executive is not limited hereby from engaging in such action(s) after his employment termination except insofar as the prohibited
disclosure, misuse or misappropriation of trade secrets or breach of any other statutory or common law duties (including any fiduciary duties) may be involved. 
  

	 	7.	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 C, and the Confirmation of
Confidential Information, a copy of which is attached hereto as Exhibit D (collectively, the “Proprietary Information Agreements”). 
  

	 	8.	Other Covenants. 

 (a)
Solicitation of Employees. During the Executive’s employment with the Company and for the duration of any Severance Period thereafter, the Executive shall not, directly or indirectly, individually, or together with or through any other
person, firm, corporation or entity, (i) hire any member of senior management of the Company (defined as an officer with a title of vice president or higher) who is then in the employ of the Company, (ii) 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 (ii), or (iii) cause any of the foregoing persons to terminate their employment relationship with the
Company. 
 (b) Solicitation of Customers and Suppliers. During Executive’s employment with the Company and for the
duration of any Severance Period, the Executive shall not, directly or indirectly, individually, or together through any other person, firm, corporation or entity (i) use the Company’s Proprietary Information (as defined in the Proprietary
Information and Inventions Agreement attached hereto as Exhibit C) to solicit the business of any material customers of or suppliers to the Company, or (ii) 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. 
 (c) Compliance with Company Policies. The Executive agrees that, during Executive’s employment with the Company, he 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. 

(d) Cooperation. The Executive shall, upon the Company’s reasonable request and in good faith and with the Executive’s
commercially reasonable efforts and subject to the Executive’s reasonable availability, (i) during the Severance Period, cooperate and assist the Company (a) in connection with any Sale of the Company or proposed Sale of the Company,
(b) in connection with all material matters relating to the Executive’s employment with the Company, and (c) in transitioning the Executive’s responsibilities to the Executive’s

  
 12 

 
replacement; and (ii) for a period of two years following termination of the Executive’s employment under this Agreement, cooperate and assist the Company in any dispute, controversy,
or litigation in which the Company may be involved and with respect to which the Executive obtained knowledge while employed by the Company or any of its affiliates, successors, or assigns, including, but not limited to, participation in any court
or arbitration proceedings, giving of testimony, signing of affidavits, or such other personal cooperation as counsel for the Company shall request, with the Company paying (a) the Executive’s reasonable travel and incidental out-of-pocket
expenses incurred in connection with any such cooperation, (b) the reasonable attorney’s fees and costs incurred in connection with a joint representation and (c) the reasonable fees and costs of an attorney the Executive engages to
advise him in connection with the foregoing, but only if there is a conflict of interest that would prevent the Company’s own outside or inside legal counsel from adequately representing the Executive’s interests as well as the
Company’s interests). 
 (e) 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. 

(f) Nondisparagement. The Executive and the Company mutually agree that, while the Executive is employed by the Company and at any
time thereafter, in any communication with the press or other media or any customer or client of or supplier to the Company or any of its affiliates, or any customer or client of or supplier to the Executive or of any business with which the
Executive then is affiliated, each of the Executive and the Company shall not (and the Company shall cause each of its officers, directors and other affiliates not to) criticize, ridicule or make any statement which reasonably could be concluded to
be disparaging or derogatory towards the other, including, in the case of the Company or any of its affiliates, any of their officers or directors, and including, in the Executive’s case, any business with which he then is affiliated and any
affiliate, officer or director of such business or its affiliates. Notwithstanding the foregoing, nothing in this Section 8(f) shall prevent any person from (x) responding publicly to incorrect, disparaging or derogatory public statements
to the extent reasonably necessary to correct or refute such public statement or (y) making any truthful statement to the extent (i) necessary with respect to any litigation, arbitration or mediation involving this Agreement, including,
but not limited to, the enforcement of this Agreement or (ii) required by law or by any court, arbitrator, mediator or administrative or legislative body (including any committee thereof) with apparent jurisdiction over such person. 

  
 13 

	 	9.	Interaction with Other Benefit Policies. 

 The severance payments, severance benefits and severance protections provided to the Executive in this Agreement 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. The Executive’s entitlement to any other compensation or benefits from the
Company shall be determined in accordance with the Company’s employee benefit plans and other applicable programs, policies and practices then in effect. Nothing in this Agreement shall alter the Executive’s status as an “at
will” employee of the Company. Notwithstanding the foregoing, nothing in this Agreement shall prevent or limit the Executive’s continuing or future participation in, or reduce the Executive’s rights under (i) any benefit, bonus,
incentive or other plan or program provided by the Company (except for any severance or termination policy, plan, program, practice, or arrangement) and for which the Executive may qualify, or (ii) any other agreement with the Company or Home
Holdings, LLC. Amounts which are vested or accrued benefits or which the Executive is otherwise entitled to receive under any plan or program of the Company shall be payable in accordance with such plan or program, except as explicitly modified by
this Agreement. 
  

	 	10.	Forum Selection. 

 Subject
to compliance with dispute resolution procedure set forth in Section 25 below, the Company and the Executive mutually agree that any and all claims or controversies arising out of this Agreement, or any breach thereof, or otherwise arising out
of or relating to the Executive’s employment, compensation, and benefits with the Company or the termination thereof, to the extent they are not covered by and subject to arbitration according to the terms of the Arbitration Agreement in the
form attached hereto as Exhibit F, 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. 
  

	 	11.	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. 
  

	 	12.	Entire Agreement. 

 This
Agreement, together with the Plan, the LLC Agreement, the Grant Letter, the Restricted Unit Purchase Agreement and 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. 

  
 14 

	 	13.	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:

 (a) to the Company at: 
 Restoration Hardware, Inc. 
 15 Koch Road, Suite J 

Corte Madera, CA 94925 
 Attention: Chief Executive Officer 
 Facsimile: (415) 927-7083 

with a copy to: 

Morrison & Foerster LLP 
 425 Market Street 
 San Francisco, CA 94402 

Attention: Gavin B. Grover 
 Facsimile: (415) 268-7522 
 (b) to the Executive at: 

[                    ] 

[                    ] 

with a copy to: 

Fried, Frank, Harris, Shriver & Jacobson LLP 
 One New York Plaza 
 New York, NY 10004-1980 

Attention: Donald P. Carleen, Esq. 
 Facsimile: (212) 859-4000 
  

	 	14.	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.

  
 15 

	 	15.	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. 
  

	 	16.	Exclusive Remedy. 

 The
Executive’s right to the compensation and benefits to which he may become entitled pursuant to this Agreement and pursuant to any other written agreement between the Executive and the Company and/or Home Holdings, LLC shall be the
Executive’s sole and exclusive remedy for any termination of the Executive’s employment. 
  

	 	17.	Successors and Assigns. 

This Agreement shall be binding upon the Company and any successors and assigns of the Company, including any corporation with which, or
into which, the Company may be merged or which may succeed to the Company’s assets or business. In the event that the Company sells or transfers all or substantially all of the assets of the Company, or in the event of any merger or
consolidation of the Company, the Company shall use reasonable efforts to cause such assignee, transferee, or successor to assume the liabilities, obligations and duties of the Company hereunder. Neither this Agreement nor any right or obligation
hereunder may be assigned by the Executive; provided, however, that this provision shall not preclude the Executive from designating one or more beneficiaries to receive any amount that may be payable after his death and shall not preclude his
executor or administrator from assigning any right hereunder to the person or persons entitled hereto. 
  

	 	18.	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. 
  

	 	19.	Headings. 

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

	 	20.	Opportunity to Seek Advice; Warranties and Representations. 

 The Executive acknowledges and confirms that he has had the opportunity to seek such legal, financial and other advice and representation as he has deemed appropriate in connection with this Agreement.
The Executive hereby represents and warrants to the Company that he is 

  
 16 

 
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 his obligations hereunder. 
  

	 	21.	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. 
  

	 	22.	Section 280G Excise Tax Matters. 

 (a) Golden Parachute Excise Tax Payments. In the event that any payment in the nature of compensation (within the meaning of Section 280G(b)(2) of the Internal Revenue Code of 1986, as amended
(the “Code”)) to Executive or for Executive’s benefit, paid or payable or distributed or distributable pursuant to the terms of this Agreement, the LLC Agreement or otherwise in connection with, or arising out of, Executive’s
employment with 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 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”), then Executive will be entitled to receive an additional payment (a “Gross-Up Payment”) in an amount such that
after payment by Executive of all taxes (including any interest or penalties (other than interest and penalties imposed by reason of Executive’s failure to file timely a tax return or pay taxes shown due on Executive’s return) imposed with
respect to such taxes and the Excise Tax), including any Excise Tax imposed upon the Gross-Up Payment, Executive retains an amount of the Gross-Up Payment equal to the Excise Tax imposed upon the Payments. 

(b) Initial Determination. An initial determination as to whether a Gross-Up Payment is required pursuant to this Agreement and
the amount of such Gross-Up Payment shall be made by the Company. The Company shall provide its determination (the “Determination”), together with detailed supporting calculations and documentation, to Executive within fifteen
(15) days of the Termination Date, if applicable, or such other time as requested by Executive (provided Executive reasonably believes that any of the Payments may be subject to the Excise Tax). If requested by Executive, the Company shall
furnish Executive, at the Company’s expense, with an opinion reasonably acceptable to Executive from the Company’s accounting firm (or an accounting firm of equivalent stature reasonably acceptable to Executive) that there is a reasonable
basis for the Determination. Any Gross-Up Payment determined pursuant to this Section 22(b) shall be paid by the Company to Executive within five (5) days of receipt of the Determination, and in no event later than the last day of the
calendar year following the calendar year in which Executive remits the subject taxes. 
 (c) Underpayment. As a result
of the uncertainty in the application of Sections 4999 and 280G of the Code, it is possible that a Gross-Up Payment (or a portion thereof) will be paid which should not have been paid (an “Excess Payment”) or a Gross-Up Payment which
should have been paid will not have been paid (an “Underpayment”). 

  
 17 

 (i) An Underpayment shall be deemed to have occurred (i) upon notice
(formal or informal) to Executive from any governmental taxing authority that Executive’s tax liability (whether in respect of Executive’s current taxable year or in respect of any prior taxable year) may be increased by reason of the
imposition of the Excise Tax on a Payment or Payments with respect to which the Company has failed to make a sufficient Gross-Up Payment, (ii) upon a determination by a court, or (iii) by reason of determination by the Company (which shall
include the position taken by the Company, together with its consolidated group, on its federal income tax return). If an Underpayment occurs, Executive shall promptly notify the Company and the Company shall promptly, but in any event at least five
(5) days prior to the date on which the applicable government taxing authority has requested payment, pay to Executive an additional Gross-Up Payment equal to the amount of the Underpayment plus any interest and penalties (other than interest
and penalties imposed by reason of Executive’s failure to file timely a tax return or pay taxes shown due on Executive’s return) imposed on the Underpayment. 

(ii) An Excess Payment shall be deemed to have occurred upon a Final Determination (as hereinafter defined) that the
Excise Tax shall not be imposed upon a Payment or Payments (or portion thereof) with respect to which Executive had previously received a Gross-Up Payment. A “Final Determination” shall be deemed to have occurred when Executive has
received from the applicable government taxing authority a refund of taxes or other reduction in Executive’s tax liability by reason of the Excise Payment and upon either (i) the date a determination is made by, or an agreement is entered
into with, the applicable governmental taxing authority which finally and conclusively binds Executive and such taxing authority, or in the event that a claim is brought before a court of competent jurisdiction, the date upon which a final
determination has been made by such court and either all appeals have been taken and finally resolved or the time for all appeals has expired or (ii) the statute of limitations with respect to Executive’s applicable tax return has expired.
If an Excess Payment is determined to have been made, the amount of the Excess Payment shall be treated as a loan by the Company to Executive, which loan Executive must repay to the Company together with interest at the applicable federal rate under
Code Section 7872(f)(2); provided, that no loan shall be deemed to have been made and no amount will be payable by Executive to the Company unless, and only to the extent that, the deemed loan and payment would either reduce the amount on which
Executive is subject to tax under Code Section 4999 or generate a refund of tax imposed under Code Section 4999. 

(d) Notwithstanding anything contained in this Agreement to the contrary, in the event that, according to the Determination, an Excise
Tax will be imposed on any Payment or Payments, the Company shall pay to the applicable government taxing authorities, as Excise Tax withholding, the amount of the Excise Tax that the Company has actually withheld from the Payment or Payments.

  
 18 

 (e) Notwithstanding the foregoing Sections 22(a) through 22(d), if, at the time it is
determined by the Board that the Payments would or reasonably could be subject to the Excise Tax, (i) the Company is a corporation no stock in which is readily tradable on an established securities market (or otherwise) within the meaning of
Code Section 280G(b)(5)(A)(ii)(I), (ii) Catterton Partners and Tower Three Partners or any of their respective affiliates (collectively, the “Current Owners”) control, in the aggregate, more than 75% of the voting power of the
Company, and (iii) Executive, as a member of the Board, has voted in favor of the transaction giving rise to the Excise Tax, then, Executive shall not be entitled to receive a Gross-Up Payment but rather shall be required to cause his receipt
of the Payments, to the extent that the aggregate value of the Payments, determined in accordance with Code Section 280G and the applicable regulations thereunder, equals or exceeds three times Executive’s average annual compensation
during the preceding five-year period as calculated in accordance with Code Section 280G, to be subject to the approval of the Current Owners in accordance with Code Section 280G(b)(5)(B); provided, however, that if Executive unreasonably
withholds his vote in favor of the transaction giving rise to the Excise Tax, then clause (iii) in this Section 22(e) shall not be given any force or effect. 
 (f) Notwithstanding anything contained in this Agreement to the contrary, in no event shall any Gross-Up Payment or additional Gross-up Payment required to be made by the Company pursuant to this
Section 22 be made later than December 31 of Executive’s taxable year next following his taxable year in which the related taxes are remitted by him or on his behalf to the applicable taxing authorities. 

 

	 	23.	Section 409A. 

 The
parties intend that any compensation, benefits and other amounts payable or provided to Executive under this Agreement be paid or provided in compliance with Section 409A of the Internal Revenue Code and all regulations, guidance, and other
interpretative authority issued thereunder (collectively, “Section 409A”) such that there will be no adverse tax consequences, interest, or penalties for the Executive under Section 409A as a result of the payments and benefits
so paid or provided to him. The parties agree to modify this Agreement, or the timing (but not the amount) of the payment hereunder of severance or other compensation, or both, to the extent necessary to comply with and to the extent permissible
under Section 409A. In addition, notwithstanding anything to the contrary contained in any other provision of this Agreement, the payments and benefits to be provided the Executive under this Agreement shall be subject to the provisions set
forth below. 
 (a) The date of the Executive’s “separation from service,” as defined in the regulations issued
under Section 409A, shall be treated as Executive’s Date of Termination for purpose of determining the time of payment of any amount that becomes payable to Executive pursuant to Section 5 hereof upon the termination of his employment
and that is treated as an amount of deferred compensation for purposes of Section 409A. 
 (b) In the case of any amounts
that are payable to the Executive under this Agreement, or under any other “nonqualified deferred compensation plan” (within the meaning of Section 409A) maintained by the Company in the form of installment payments, (i) the
Executive’s right to receive such payments shall be treated as a right to receive a series of 

  
 19 

 
separate payments under Treas. Reg. §1.409A-2(b)(2)(iii), and (ii) to the extent any such plan does not already so provide, it is hereby amended as of the date hereof to so provide,
with respect to amounts payable to the Executive thereunder, 
 (c) If the Executive is a “specified employee” within
the meaning of Section 409A at the time of his “separation from service” within the meaning of Section 409A, then any payment otherwise required to be made to him under this Agreement on account of his separation from service, to
the extent such payment (after taking in to account all exclusions applicable to such payment under Section 409A) is properly treated as deferred compensation subject to Section 409A, shall not be made until the first business day after
(i) the expiration of six months from the date of Executive’s separation from service, or (ii) if earlier, the date of Executive’s death (the “Delayed Payment Date”). On the Delayed Payment Date, there shall be
paid to the Executive or, if the Executive has died, to the Executive’s estate, in a single cash lump sum, an amount equal to aggregate amount of the payments delayed pursuant to the preceding sentence. 

(d) 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; provided, however, that the foregoing shall not apply to any limit on the amount of any expenses incurred by the Executive that may be reimbursed or paid under the terms of the
Company’s medical plan, if such limit is imposed on all similarly situated participants in such plan; (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. 
  

	 	24.	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, and the amount of any payment provided for under this Agreement shall not be reduced or
offset by any compensation earned by the Executive or by any retirement benefits received by the Executive as a result of employment by another employer after the Date of Termination. The provisions of this Agreement, and any payment provided for
hereunder, shall not reduce any amounts otherwise payable, or in any way diminish the Executive’s then existing rights, or rights which would accrue solely as a result of the passage of time, under any Company benefit plan or other contract,
plan or arrangement. 
  

	 	25.	Dispute Resolution. 

 The
Executive has signed and agrees to be bound by the terms of the Arbitration Agreement, which is attached as Exhibit F. 

  
 20 

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

  

			
	 RESTORATION HARDWARE, INC.,
 a Delaware company

		
	By:	 	 /s/ Chris Newman

	
	CARLOS ALBERINI
	
	 /s/ Carlos Alberini

 Acknowledged and Agreed: 
  

			
	HOME HOLDINGS, LLC.,
	a Delaware limited liability company
		
	By:	 	 /s/ J. Michael Chu

  
 21 

 SCHEDULE A 

Initial Duties 
 Initial Functions and Officers Reporting to Executive 
 Chief Financial
Officer 
 Chief Operating Officer 
 Senior Vice President Stores 
 Senior Vice President and Chief
Information Officer 
 Senior Vice President Inventory 

Senior Vice President Human Resources 
 Senior Vice President Real Estate and Construction 

 EXHIBIT A 

Form of Grant Letter 

 EXHIBIT B 

Form of Restricted Unit Purchase Agreement 

 EXHIBIT C 

Form of General Release 
 This Separation and General Release Agreement (the “Agreement”) is entered into by and between Restoration Hardware, Inc. (the “Company”) and Carlos Alberini (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              , 2010, by and between the Company and the Executive (the “Employment Agreement”). 
 ACCORDINGLY, the Parties agree as follows: 
 Severance Benefit. The Company
hereby agrees to provide the Executive with the payments and benefits set forth in Section 5(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 5(c) of the Employment Agreement (including the Executive’s compliance with the restrictive covenants set forth in Sections 6 and 8 of the Employment Agreement and the Proprietary Information Agreements). 

2. Resignation. The Executive hereby resigns his employment with the Company and any Affiliate, and his position as a member of
the Board of Directors and/or Board of Managers of 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. The Executive Release. The Executive and his 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 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 fringe benefit, or any claims relating to any bona fide disputes or controversies (other than a dispute or controversy regarding the determination of fair market value that in
accordance with the applicable arrangement is to be, or may be, determined by an independent appraiser) concerning (i) awards made to the Executive under the Team Resto Ownership Plan or similar plan, (ii) the repurchase of any such awards
by Home Holdings, LLC or the Company, or (iii) the investment made by the Executive in Home Holdings, LLC. 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,
(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, the LLC Agreement or any agreement providing for the indemnification of Executive, or (v) any
rights not in dispute that Executive might have (x) under the Team Resto Ownership Plan or similar plan or arrangement regarding equity awards to Executive or equity interests owned by Executive or (y) the repurchase of any such awards or
interests by Home Holdings, LLC or the Company. 
 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 he may hereafter discover facts different from what he now believes to be true, which if known, could have materially
affected this Agreement, but he 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 he 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 FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR. 

 5. Covenant Not to Sue. The Executive shall not bring a civil action in any court (or
file an administrative complaint or arbitration) against the Company or any other Released Party asserting claims pertaining in any manner to the Released Claims. 
 6. Age Discrimination Claims. The Executive understands and agrees that, by entering into this Agreement, (i) he is waiving any rights or claims he might have under the Age Discrimination in
Employment Act, as amended by the Older Workers Benefit Protection Act; (ii) he has received consideration beyond that to which he was previously entitled; (iii) he has been advised to consult with an attorney before signing this
Agreement; and (iv) he has been offered the opportunity to evaluate the terms of this Agreement for not less than twenty-one (21) days prior to his execution of the Agreement. the Executive may revoke this Agreement (by written notice to
Company) for a period of seven (7) days after his 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 his 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. All claims that the Executive may have against the Company or any other Released Party, or which the Company may
have against the Executive, of any kind, including, but not limited to, all claims in any way related to (i) the subject matter, interpretation, application, or alleged breach of this Agreement, (ii) the employment or termination of the
Executive, or (iii) the Executive’s efforts to find subsequent employment (collectively, “Arbitrable Claims”) shall be resolved by arbitration pursuant to the terms of the Arbitration Agreement attached as Exhibit F to the
Employment Agreement. 
 10. Entire Agreement. This Agreement and
                     constitute 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 he 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. 
 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:	 	  
	 		 		 	

 EXHIBIT D 

 
 

 
 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. 

  

	 	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 form 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. 

 

	 	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. 

This Agreement shall be effective as of the first day of my employment with the Company, namely: June 1, 2010 

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              , 2010	 		 	  

		 		 	Signature
			
		 		 	 Carlos Alberini

		 		 	Name of Associate
			
		 		 	  

		 		 	Address

 ACCEPTED AND AGREED TO: 
  

			
	Restoration Hardware, Inc.
		
	By:	 	  

		 	Name:
		 	Title:

 Exhibit A to Proprietary Information and Inventions Agreement 

Schedule of Inventions 

 EXHIBIT E 

 
 

 
 Confirmation of Confidential Treatment 
 This shall confirm that, I, Carlos Alberini, 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
					
		 		 		 		 	 Carlos Alberini

		 		 		 		 	Associate Name
					
		 		 		 		 	  

 EXHIBIT F 

Arbitration Agreement 
 Restoration Hardware, Inc. (the “Company”), Home Holdings, LLC (“Home Holdings”) and Carlos Alberini (the “Executive”) hereby agree, effective as of
            , 2010, 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 (including the award to Executive under the Team
Resto Ownership Plan or the investment by Executive in Home Holdings) 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 as such terms are used in 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. 

 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. 

 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:	 	  

	
	HOME HOLDINGS, LLC
		
	By:	 	  

	
	  

	ExecutiveAmended and Restated Offer Letter between Restoration Hardware and Ken Dunaj

 Exhibit 10.3 
 May 5, 2006 
 Ken Dunaj 
 [                    ] 
 [                    ] 
 Dear Ken: 
 I am pleased to offer you the position of Chief Operating Officer at Restoration
Hardware, Inc. (the “Company”). I’m confident that you will find our Company to be an exciting and challenging environment in which to work. This letter will confirm the most important details of our offer to you. 

 

			
	Title	  	Chief Operating Officer, reporting to the Chief Executive Officer.
		
	Salary	  	$450,000 per year, paid bi-weekly.
		
	Bonus	  	 You will receive a signing bonus of $100,000, which will be payable on the first payroll following your date of hire. If you
voluntarily resign or are terminated for “Cause” (as defined in Attachment A) on or prior to the one year anniversary of your first date of employment, you agree that you will reimburse the Company for a pro-rated share of the
signing bonus, which shall be calculated by dividing the number of days you were employed by the Company by 365.
  
 You also will be guaranteed a minimum bonus of $200,000 for Fiscal Year 2006, provided your employment does not terminate due to your voluntary resignation or a termination before the distribution of
bonuses for Fiscal Year 2006. Such bonus will be payable when the Company distributes its annual incentive bonuses to other senior officers for such fiscal year.

		
	Management Incentive Program	  	For each fiscal year from and including Fiscal Year 2006, you will be eligible to participate in the Management Incentive Program. Your eligibility range will be up to 100% of
your base pay. Your guaranteed bonus amount (other than your signing bonus) for Fiscal Year 2006 referred to above will be credited against your actual bonus for Fiscal Year 2006. You will receive full plan details after your arrival at the
Company.

			
	Stock Option Grant	  	 Subject to the approval of the Compensation Committee of the Board of Directors of the Company, you will receive 400,000 stock
options at the fair market value of our common stock on the grant date thereof, which will be your first day of employment with the Company. Stock options will vest at 25% per year, over a four-year period, and have a ten-year term, with other terms
being in accordance with the Company’s 1998 Stock Incentive Plan, as amended and restated October 9, 2002. Your initial option grant will be an incentive stock option to the maximum extent permitted under Section 422 of the Internal
Revenue Code.
  
 In the event your employment with the Company is terminated
for any reason other than death, disability or for Cause, you will have three months following your termination of employment to exercise the vested portion of your initial option grant. In the event your employment with the Company is terminated
for Cause, your initial option grant will terminate concurrently with your termination of employment. In the event your employment with the Company is terminated due to your death or disability, you will have twelve months following your termination
of employment to exercise the vested portion of your initial option grant. In no event may your initial option grant be exercised after the expiration of its ten-year term.

 
 In addition, you will be eligible to receive options or other equity of the Company
on an annual basis in accordance with the Company’s 1998 Stock Incentive Plan, as amended and restated October 9, 2002. The type and amount of equity of the Company that you will be eligible to receive in any year in accordance with the
Company’s 1998 Stock Incentive Plan generally will be consistent with the type and amount of equity that other similarly-situated senior officers of the Company will be eligible to receive in such year.

		
	Severance	  	Should your employment be terminated “Not for Cause” (as defined in Attachment A) by the Company, other than in connection with a “Change of Control”
(as defined in Attachment B), you will receive salary continuation for a period of twelve (12) months from your termination date. In the event that you resign or are terminated by the Company for Cause, you will not be eligible to receive any
severance pay. Your entitlement to any severance payments will be contingent upon your execution of the Company’s written release and expiration of any applicable revocation period to the Company’s written release. (See Attachment
A)
		
	Change of Control	  	Should there be a Change of Control of the Company (See Attachment B) and you, within 12 months thereafter, are subject to an “Involuntary Termination” (as
defined in Attachment B) by the Company, you will receive, in lieu of any other severance pursuant to this offer letter, salary continuation for a period of twelve (12) months from your termination date at the annual rate of your base salary.
In addition, your initial stock option grant will vest in full upon a Change of Control. Your entitlement to any severance payments and acceleration of your stock option grant will be contingent upon your
execution

  
 Page 2

  

			
		  	of the Company’s written release and expiration of any applicable revocation period to the written release. (See Attachment A) In addition, the severance payments and
benefits to be provided upon an Involuntary Termination following a Change of Control are subject to the excise tax payment provisions set forth in Attachment B.
		
	Non-Compete Provision	  	You acknowledge and agree that in your role as Chief Operating Officer you shall acquire confidential and proprietary information belonging to the Company. To preserve and
protect this information and the assets of the Company, and in consideration of the severance and benefits provided to you under this offer letter, you agree not to work in a capacity that would compete directly with the Company, or solicit any
employees or customers of the Company, for a period of one (1) year following the effective date of your resignation from or termination by the Company for any reason, as set forth in Attachment C. In the event that you breach this provision
all severance and other benefits shall cease.
		
	Car Allowance	  	You will receive a car allowance of $500.00 per month.
		
	401(k) Plan	  	You will be eligible to participate in the Company’s 401(k) Plan on the first enrollment dates following your date of hire.
		
	Medical Benefits	  	You will be eligible to participate in the Company’s healthcare program per the Company’s guidelines.
		
	Vacation	  	15 business days (3 calendar weeks) per year.
		
	Employee Discount	  	You will be eligible for a 40% associate discount on merchandise of the Company.
		
	Miscellaneous Benefits:	  	You will be eligible for other benefits as set forth in the relocation policy (and other policies, if any) attached hereto as administered in accordance with the Company’s
customary practices and procedures.

 The language that follows reflects our standard offer letter language. We do not mean for it to come across as
impersonal, but rather, as sound and necessary information for you to know from the outset of your working relationship with us. The relationship between you and the Company is called “at-will employment.” This means that employment with
the Company is for no specific period of time. As a result, either you or the Company is free to terminate your employment relationship at any time for any reason, with or without Cause. This is the full and complete agreement between us on this
term. Although your job duties, title, compensation, benefits, or the Company’s policies, practices and procedures may change from time to time, the “at-will” nature of your employment may only be changed in an express writing signed
by you and the Chief Executive Officer of the Company. 

  
 Page 3

  

 Finally, your employment is contingent on (a) you executing a Proprietary Information and Inventions
Agreement, (b) you providing the Company with legal proof of your identity and authorization to work in the United States at time of hire and (c) successful completion of a routine background investigation and references check. 

I am enclosing two copies of this letter. Please sign and return one copy to me on your first day of work and keep the other copy for your files.

 Ken, we are very excited about you joining the “Resto” team and look forward to your contributions to the growth and success of
the Company. 
 Sincerely, 
 /s/ Gary
Friedman 
 Gary Friedman 
 Chairman,
President and Chief Executive Officer 
 Þ I understand and agree to the terms of
this offer of employment: 
  

							
	 /s/ Ken Dunaj
	 		 		 	 5/9/06

	Ken Dunaj	 		 		 	Date

  

	cc:	Associate’s File 

  
 Page 4

  

 Attachment A 
 Severance. In the event that your employment is terminated Not for Cause by the Company, other than in connection with a “Change of Control” (as defined in Attachment B),
you will be eligible to receive severance pay in the form of salary continuation for a period of twelve (12) months from your termination date with the Company at an annual rate equal to your base salary less applicable deductions and
withholdings, payable in regular periodic payments in accordance with the Company’s policy. You acknowledge that except as expressly provided in this offer letter, you will not receive any additional compensation, severance or benefits after
your termination of employment. You agree and acknowledge that your right to receive the severance payments shall be conditioned upon your execution of a release agreement with the Company containing standard terms and conditions used by the Company
at the time for a general release by a senior officer of all claims arising from the officer’s relationship with the Company. In the event that the Company terminates your employment for “Cause” (as defined below), you shall not be
entitled to receive any of the severance payments or benefits described above, and the Company shall pay you all compensation due and owing through the last day actually worked; thereafter the obligations of the Company under this offer letter shall
cease. 
 If you are subject to an Involuntary Termination within 12 months following a Change of Control, you will be eligible to receive
severance pay in the form of salary continuation for a period of 12 months from your termination date with the Company at an annual rate equal to your base salary less applicable deductions and withholdings, payable in regular periodic payments in
accordance with the Company’s policy. You also will receive full vesting of your initial stock option grant of 400,000 stock options only. You agree and acknowledge that your right to receive the severance payments and acceleration of your
initial stock option grant shall be conditioned upon your execution of a release agreement with the Company containing standard terms and conditions used by the Company at the time for a general release by a senior officer of all claims arising from
the officer’s relationship with the Company. In addition, the severance payments and benefits to be provided upon an Involuntary Termination following a Change of Control are subject to the excise tax payment provisions set forth in
Attachment B. 
 Definition of Cause and Not for Cause. For purposes of determining your eligibility for the
above-described severance payments and benefits, the Company may terminate your employment for “Cause” if: (a) you exhibit persistent deficiencies in performance or gross incompetence, (b) you breach any material term of this
offer letter or any other written agreement you have with the Company, (c) you have been convicted of a felony involving fraud or dishonesty, (d) you die or suffer from a “Disability” (as defined below) during your continued
employment with the Company, (e) you intentionally and continually fail to substantially perform your reasonably assigned duties with the Company (other than a failure resulting from your assignment of duties that would constitute an
“Involuntary Termination” (as defined in Attachment B) following a Change of Control), which failure continues for a period of at least thirty (30) days after a written notice of demand for substantial performance has been
delivered to you specifying the manner in which you have failed substantially to perform, or (f) you intentionally engaged in conduct which is demonstrably and materially injurious to the Company; provided, that no termination of your
employment shall be for Cause as set forth in clause (f) above until there shall have been delivered to you a copy of a written notice setting forth that you were guilty of the conduct set forth in clause (f) and specifying the particulars

  
 A-1

 
thereof in detail. No act, nor failure to act, on your part shall be considered “intentional” unless you have acted, or failed to act, with a lack of good faith and with a lack of
reasonable belief that your action or failure to act was in the best interest of the Company. 
 For purposes of this offer letter, the term
“Not for Cause” shall mean termination of your employment by the Company for reasons other than for “Cause.” 

Termination by Employee. In the event that you elect to terminate your employment for any reason other than in connection with an
Involuntary Termination within 12 months following a Change of Control, the Company shall pay you all compensation due and owing through the last day actually worked and thereafter the obligations of the Company under this offer letter shall cease.

 Disability. “Disability” shall mean that you are unable to carry out the responsibilities and functions of the
position held by you by reason of any physical or mental impairment for more than 120 days in any twelve-month period. If you suffer from a Disability, then, to the extent permitted by law, the Company may terminate your employment. The Company
shall pay to you all compensation to which you are entitled up through the date of termination, and thereafter all obligations of the Company under this offer letter shall cease. Nothing in this offer letter shall affect your rights under any
disability plan in which you are a participant. 

  
 A-2

 Attachment B 
 Definitions: 
 “Involuntary Termination” shall mean the termination of your
employment which occurs by reason of: 
 (i) your involuntary dismissal or discharge by the Company Not for Cause, or 

(ii) your voluntary resignation within 45 days following one or more of the following events: 

(A) a change in your position with the Company which materially reduces your duties and responsibilities or the level of management to
which you report, 
 (B) a reduction in your level of compensation (including base salary, fringe benefits and target bonus
under any corporate-performance based bonus or incentive programs), other than a reduction that is similar in percentage or nature to a reduction generally applicable to all similarly-situated senior officers of the Company, or 

(C) a relocation of your principal place of employment by more than fifty (50) miles, provided and only if such change, reduction or
relocation is effected by the Company without your consent. 
 “Change of Control” shall mean any of the following: 

(a) An acquisition (other than directly from the Company) of any voting securities of the Company (the “Voting Securities”) by
any Person (as the term “person” is used for purposes of Section 13 or 14 of the Securities Exchange Act of 1934, as amended (the “1934 Act”)) immediately after which such Person has Beneficial Ownership (as the term
“beneficial ownership” is defined under Rule 13d-3 promulgated under the 1934 Act) of fifty percent (50%) or more of the combined voting power of the Company’s then outstanding Voting Securities; provided, that in determining
whether a Change of Control has occurred, Voting Securities which are acquired in a Non-Control Acquisition (as hereinafter defined) shall not constitute an acquisition which would cause a Change of Control. A “Non-Control Acquisition”
shall mean an acquisition by (i) an employee benefit plan (or a trust forming a part thereof) maintained by (1) the Company or (2) any corporation or other Person of which a majority of its voting power or its equity securities or
equity interest is owned directly or indirectly by the Company (a “Subsidiary”), (ii) the Company or any Subsidiary, or (iii) any Person in connection with a Non-Control Transaction (as hereinafter defined); 

(b) The individuals who, as of date this offer letter, are members of the Board of Directors of the Company (the “Incumbent
Board”), cease for any reason to constitute at least a majority of the Board of Directors of the Company; provided, that if the appointment, election or nomination for election by the Company’s stockholders of any new director was approved
by a vote of at least two-thirds of the Incumbent Board, such new director shall, for purposes of this offer letter, be considered a member of the Incumbent Board; and provided, further, that no individual shall be considered a member of the
Incumbent Board if such individual initially assumed office as a result of either an actual or threatened “Election Contest” (as described in Rule 14a-11 promulgated under the 1934 Act) or other actual or threatened solicitation of proxies
or consents by or on behalf of a Person other than the Board of Directors of the Company (a “Proxy Contest”) including by reason of any agreement intended to avoid or settle any Election Contest or Proxy Contest; 

  
 B-1

 (c) A merger, consolidation or reorganization involving the Company, unless such merger,
consolidation or reorganization satisfies the conditions set forth in clauses (1) and (2) below (any transaction(s) meeting the requirements of clauses (1) and (2) below being referred to herein as “Non-Control
Transactions”): 
 (1) the stockholders of the Company immediately before such merger, consolidation or reorganization own,
directly or indirectly, immediately following such merger, consolidation or reorganization, at least fifty percent (50%) of the combined voting power of the outstanding voting securities of the corporation resulting from such merger,
consolidation or reorganization (the “Surviving Corporation”) in substantially the same proportion as their ownership of the Voting Securities immediately before such merger, consolidation or reorganization; and 

(2) the individuals who were members of the Incumbent Board immediately prior to the execution of the agreement providing for such
merger, consolidation or reorganization constitute at least a majority of the members of the board of directors of the Surviving Corporation; 
 (d) A complete liquidation or dissolution of the Company; or 
 (e) An agreement
for the sale or other disposition of all or substantially all of the assets of the Company to any Person (other than a transfer to a Subsidiary); and 
 (f) Any other event that at least two-thirds of the Incumbent Board in its sole discretion shall determine constitutes a Change of Control. 

Notwithstanding the foregoing, a Change of Control shall not be deemed to occur solely because any Person (the “Subject
Person”) acquired Beneficial Ownership of more than the permitted amount of the outstanding Voting Securities as a result of the acquisition of Voting Securities by the Company which, by reducing the number of Voting Securities outstanding,
increases the proportional number of shares Beneficially Owned by the Subject Person; provided, that if a Change of Control would occur (but for the operation of this sentence) as a result of the acquisition of Voting Securities by the Company, and
after such share acquisition by the Company the Subject Person becomes the Beneficial Owner of any additional voting Securities which increases the percentage of the then outstanding Voting Securities Beneficially Owned by the Subject Person, then a
Change of Control shall occur; provided further that no Change of Control shall be deemed to have occurred under (a) or (c) above merely because individuals and entities who, individually, as of the date of the offer letter have Beneficial
Ownership of at least 5% of the Voting Securities have, immediately after the transaction described in (a) or (c) above, Beneficial Ownership, in the aggregate, of more than 50% of the Voting Securities of the Company or successor or
parent thereof if both (i) no one such individual or entity has, immediately after such a transaction, Beneficial Ownership of more than 50% and (ii) the transaction does not result in the Company or successor or parent thereof becoming a
private company. 
 Notwithstanding anything contained in this offer letter to the contrary, if your employment is terminated
prior to a Change of Control and the Board of Directors of the Company 

  
 B-2

 
determines that such termination (i) was at the request of a third party who has indicated an intention or taken steps reasonably calculated to effect a Change of Control and who
subsequently effectuates a Change of Control or (ii) otherwise occurred in connection with, or in anticipation of, a Change of Control which actually occurs, then, for all purposes of this offer letter, the date of a Change of Control with
respect to you shall mean the date immediately prior to the date of such termination of your employment. 
 Excise Tax Payments:

 (1) In the event that any payment or benefit (within the meaning of Section 280G(b)(2) of the Internal Revenue Code of 1986, as
amended (the “Code”)) to you or for your benefit, paid or payable or distributed or distributable pursuant to the terms of this letter or otherwise in connection with, or arising out of, your employment with the Company or a Change in
Control (a “Payment” or “Payments”), would be subject to the excise tax imposed under Code Section 4999, or any interest or penalties are incurred by you 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 you
shall be subject to the Excise Tax (such reduced amount is hereinafter referred to as the “Limited Payment Amount”). Unless you have given prior written notice specifying a different order to the Company 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). Any notice given by you pursuant to the preceding sentence shall take precedence over the provisions of any other plan,
arrangement or agreement governing your rights and entitlements to any benefits or compensation. 
 (2) 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 you within five
(5) days after the termination date, if applicable, or such other time as requested by the Company or by you (provided you reasonably believe 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 you with respect to a Payment or Payments, it shall furnish you with an opinion reasonably acceptable to you 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 you, you 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 you, subject to the
application of paragraph (3) below. 
 (3) 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, you 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 

  
 B-3

 
an Excess Payment has been made, you must repay such Excess Payment to the Company; provided, that no Excess Payment will be repaid by you to the Company unless, and only to the extent
that, the repayment would either reduce the amount on which you are 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 your satisfaction of the Dispute, that an Underpayment has
occurred, the Company shall pay an amount equal to the Underpayment to you 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 you until the date of payment. 
 Compliance with Section 409A: 

This Agreement is intended to comply with Section 409A of the Code (as amplified by any IRS or U.S. Treasury Department guidance), and shall be
construed and interpreted in accordance with such intent. You acknowledge that the Company, in the exercise of its sole discretion and without your consent, (i) may amend or modify this Agreement in any manner in order to meet the requirements
of Section 409A of the Code as amplified by any IRS or U.S. Treasury Department guidance and (ii) shall have the authority to delay the payment of any amounts or the provision of any benefits under this Agreement to the extent it deems
necessary or appropriate to comply with Section 409A(a)(2)(B)(i) of the Code (relating to payments made to certain “key employees” of certain publicly-traded companies) as amplified by any IRS or U.S. Treasury Department guidance as
the Company deems appropriate or advisable. In such event, any amounts or benefits under this Agreement to which you would otherwise be entitled during the six (6) month period following the termination of your employment will be paid on the
first business day following the expiration of such six (6) month period. Any provision of this Agreement that would cause the payment of any benefit to fail to satisfy Section 409A of the Code shall have no force and effect until amended
to comply with Code Section 409A (which amendment may be retroactive to the extent permitted by the Code or any regulations or rulings thereunder). 

  
 B-4

 Attachment C 
 Confidential Information. You agree to hold in confidence for the benefit of the Company all secret or confidential information, knowledge or data, including proprietary information and
trade secrets, relating to the Company and its businesses, which shall have been obtained by you prior to or in the course of your employment by the Company (“Confidential Information”), provided, however, that Confidential Information
shall not retain its status as such if the Confidential Information (i) is publicly known through no act or omission by you, (ii) becomes available to you on a non-confidential basis from a source other than the Company, provided that such
source is not bound by a confidentiality agreement with, or other obligation of secrecy to, the Company or another party, or (iii) is known by you prior to receiving it from the Company, provided that such information is not subject to another
confidentiality agreement with, or other obligation of secrecy to, the Company or another party. You also shall have the right to disclose Confidential Information to the extent required by law, provided that you first give prompt written notice to
the Company regarding the intention to make such disclosure and, provided, further, you request confidential treatment of such Confidential Information to the fullest extent permitted by law. Whether before or after termination of your employment
with the Company, you shall not, without the prior written consent of the Company, communicate or divulge any Confidential Information, other than to the Company and to those persons or entities designated by the Company or as otherwise is
reasonably necessary for you to carry out you responsibilities as an executive of the Company. 
 You also represent and warrant and covenant
that you shall not disclose to the Company, or use, or induce the Company to use, any confidential or proprietary information or trade secrets of others at any time, and you acknowledge and agree that any violation of this provision shall be grounds
for your immediate termination for Cause and could subject you to substantial civil liabilities and criminal penalties. You further specifically and expressly acknowledge that no officer or other employee or representative of the Company has
requested or instructed you to disclose or use any such third party confidential or proprietary information or trade secrets. 

Restriction on Competition. You acknowledge and agree that in your role as Chief Operating Officer you shall acquire confidential and
proprietary information belonging to the Company. To preserve and protect this information and the assets of the Company, including the goodwill and customers of the Company of which you will have an interest in your role as an employee and officer
of the Company, or its subsidiaries, and to preserve and protect the goodwill and business interests of the Company going forward, and in consideration of the severance and benefits provided to you under the offer letter, you agree that, for a
period of one (1) year from your termination of employment for any reason (the “Restricted Period”), you will not directly or indirectly engage in, or have any ownership interest in, or participate in the financing operation,
management or control of, any person, firm, corporation or business that engages in the Restricted Business of Restoration Hardware, Inc. “Restricted Business of Restoration Hardware, Inc.” is defined in Attachment D. 

Restrictions on Solicitation after Termination. In consideration of the severance and benefits provided to you under the offer letter, you
agree that, during the Restricted Period, you shall not, without the prior written consent of the Company, directly or indirectly, including, without limitation, as a sole proprietor, member of a partnership, stockholder or investor, officer or
director of a corporation, or as an employee, associate, consultant, independent contractor or agent of any person, partnership, corporation or other business organization or entity other than

  
 C-1

 
the Company (i) solicit or endeavor to entice away from the Company any person or entity who is, or during the then most recent 12-month period was, employed by, or had served as an agent or
key consultant of the Company; (ii) solicit or endeavor to entice away from the Company any person or entity who is, or was within the then most recent 12-month period, a customer of the Company; (iii) attempt to solicit any business that
is related to the business of the Company or any business that is competitive with the Company; or (iv) assist any person, firm, corporation or business that engages in the Restricted Business of Restoration Hardware, Inc. in taking such action
set forth in clauses (i), (ii) or (iii). Furthermore, during the Restricted Period, you shall not, for yourself or for any other entity, hire or employ any person who is, or during the then most recent 12-month period was, employed by, or had
served as an agent or key consultant of, the Company. 

  
 C-2

 Attachment D 
 Definition of “Restricted Business of Restoration Hardware, Inc.” “Restricted Business of Restoration Hardware, Inc.” shall mean (a) a retail company, including
without limitation, a subsidiary or business unit of such company, where an aggregate of 25% or more of its revenue (including revenue of any subsidiary or business unit) is derived from the home furnishings business, including without limitation,
lighting, floor covering, furniture, hardware and tools, or hard goods business or (b) a manufacturer, supplier or other vendor that has a material vendor relationship with the Company. 

  
 D-1

  
 

 
 Relocation Policy 

 

			
	 BENEFITS
	  	 DETAILS

		
	Miscellaneous Relocation Allowance	  	$5,000 grossed up for tax purposes
		
	House Hunting Trips	  	One trip not to exceed 6 nights / 7 days, to include lodging, meals and transportation for employee and spouse.
		
	Shipment of Household Goods	  	Packing, loading, shipping and unloading normal household goods with company assigned authorized carriers.
		
	Storage of Household Goods	  	Up to ninety (90) days.
		
	Shipment of Automobile	  	Ship one personal automobile if distance is more than 750 miles, or mileage reimbursed for up to two automobiles.
		
	Temporary Living	  	Up to ninety (90) days lodging and meals (excluding lunches during work week), with one trip every other weekend to and from employee’s home address only.
		
	Selling Costs of Former Home	  	Normal and customary selling costs.
		
	New Home Closing Costs	  	 If homeowner, reimbursable expenses will include:
  

•      Loan application/ commitment fees

 

•      Legal fees

 

•      Origination fee (max 1%)

 

•      Recording fees

 

•      Credit/appraisal reports

 

•      Tax search

 

•      Title Ins. (lender coverage only)

 

•      Survey

 

•      Closing/escrow/settlement fees

 

•      Transfer taxes/stamps

 

•      Home Inspection

		
	Final Trip to New Location	  	For employee and family – reimbursement of reasonable lodging, meals and transportation.
		
	Duplicate Mortgage	  	Up to three (3) months.
		
	Tax Information	  	 Gross-up includes deductible and non-deductible expenses.

 
 Non-deductible (taxed and grossed-up)

 

•      Final move, meals & mileage

 

•      Pre-move travel

 

•      Temporary living

 

•      Expenses of buying new residence (excluding origination fees or
points)
  
 Deductible

 

•      Loan origination or points

 FIRST AMENDMENT 

TO 

OFFER LETTER 
 THIS FIRST AMENDMENT TO OFFER LETTER (this “Amendment”) is executed and delivered effective as of November 15, 2007, by and between Restoration Hardware, Inc., a Delaware corporation
(the “Company”) and Ken Dunaj, an individual resident of the State of California (“Employee”). 

RECITALS 

WHEREAS, the Company and Employee previously executed and delivered an Offer Letter, dated as of May 5, 2006 (the
“Original Agreement”); and 
 WHEREAS, the Company and Employee now wish to amend the Original Agreement
in order to provide for a Retention Incentive Payment (as defined below), enhanced severance protection and a limitation of the events comprising “Involuntary Termination” following a Change of Control, pursuant to the terms and conditions
described herein; 
 NOW, THEREFORE, in consideration of the mutual covenants contained herein, the Company and Employee,
intending to be legally bound, hereby agree as follows: 
 1. Capitalized terms not otherwise defined herein shall have the
meaning ascribed to them in the Original Agreement. 
 2. A new section is hereby added to the Original Agreement following the
section on “Miscellaneous Benefits,” reading as follows and effective for thirty-six (36) months from the date hereof: 
  

			
	Retention Incentive Payment	  	In the event of a Change of Control (as defined in Attachment B), the Company shall pay you a one-time retention incentive payment of Two Hundred Fifty Thousand Dollars
($250,000), less state, federal and other applicable tax withholdings (the “Retention Incentive Payment”), within thirty (30) days of the consummation of the Change of Control (“Change of Control Date”), provided that you have
continued to be employed by the Company through the Change of Control Date. Notwithstanding the preceding sentence, if within sixty (60) days prior to the Change of Control Date with respect to a Change of Control that constitutes a “change in
ownership or effective control” or a “change in the ownership of a substantial portion of the assets” of the Company under Internal Revenue Code Section 409A (“409A Change of Control”), the Company has terminated your
employment Not for Cause, the Retention Incentive Payment shall be payable within thirty (30) days of the Change of Control Date. If within sixty (60) days prior to the Change of Control Date with respect to a Change of Control that does not
constitute a 409A Change of Control, the Company has terminated your employment Not for Cause, the Retention Incentive Payment shall be payable within sixty (60) days of your “separation from service” under Code Section 409A. The Retention
Incentive Payment shall only be payable, if at all, with respect to the first Change of Control occurring after the date hereof.

  
 1 

 3. The section on “Change of Control” of the Original Agreement is hereby replaced
in its entirety with the following: 
  

			
	Change of Control	  	Should there be a Change of Control of the Company (See Attachment B), your initial stock option grant will vest in full upon such Change of Control. In addition, if
either on such Change of Control date or within (18) months after the Change of Control, you are subject to an “Involuntary Termination” (as defined in Attachment B) by the Company, you will receive, in lieu of any other severance
pursuant to this offer letter, compensation continuation for a period of twelve (12) months from your termination date at the rate of two (2) times your annual base salary plus two (2) times your target bonus, which target bonus for this sole
purpose shall be Three Hundred Thousand Dollars ($300,000). Your entitlement to any severance payments and acceleration of your stock option grant will be contingent upon your execution of the Company’s written release and expiration of any
applicable revocation period to the written release. (See Attachment A) In addition, the severance payments and benefits to be provided upon an Involuntary Termination following a Change of Control are subject to the excise tax payment
provisions set forth in Attachment B. This section shall govern the benefits payable in the event of your Involuntary Termination in the eighteen (18) months after a Change of Control, notwithstanding any inconsistent language in
Attachment A, and any inconsistent language shall be of no force or effect. In the event this section is effective, no other severance or similar benefits shall be payable hereunder.

 4. The definition of “Involuntary Termination” on Attachment B to the Original Agreement is
hereby replaced in its entirety with the following: 
 “Involuntary Termination” shall mean the termination of your
employment which occurs by reason of: 
 (i) your involuntary dismissal or discharge by the Company Not for Cause, or 

(ii) your voluntary resignation within 45 days following one or more of the following events: 

(A) a change in your position with the Company which materially reduces your duties and responsibilities or the level of
management to which you report (but excluding (x) a reduction in duties or responsibilities by virtue of the Company being acquired and made part of another entity (as, for example, when the chief executive officer of the Company remains as the
senior executive officer of a division or subsidiary of the acquirer, which division or subsidiary either contains substantially all of the Company’s business or is of a comparable size), or (y) a change in your reporting position such
that you no longer report directly to the chief executive officer of a publicly-traded company; provided, that, for the avoidance of doubt, you will be deemed to have sustained a material reduction in

  
 2 

 
your duties or responsibilities if you are no longer reporting directly to one of the following (i) the Company’s Chief Executive Officer, (ii) the parent company’s Chief
Operating Officer or Chief Executive Officer, (iii) the head of the operating group covering the Company, or (iv) any other person holding a substantially equivalent position to any of such preceding clauses (i) through (iii)),

 (B) a reduction in your level of compensation (including base salary, fringe benefits and target bonus under
any corporate-performance based bonus or incentive programs), other than a reduction that is similar in percentage or nature to a reduction generally applicable to all similarly situated senior officers of the Company, or 

(C) a relocation of your principal place of employment by more than fifty (50) miles, provided and only if such
change, reduction or relocation is effected by the Company without your consent. 
 5. The section at the end of Attachment B to
the Original Agreement with the heading “Compliance with Section 409A” is amended to read as follows: 

Compliance with Section 409A: 
 This Agreement is intended to comply with Section 409A of the Code (as amplified by any IRS or U.S. Treasury Department guidance), and shall be construed and interpreted in accordance with such
intent. You acknowledge that the Company, in the exercise of its sole discretion and without your consent, (i) may amend or modify this Agreement in any manner in order to meet the requirements of Section 409A of the Code as amplified by any
IRS or U.S. Treasury Department guidance and (ii) shall have the authority to delay the payment of any amounts or the provision of any benefits under this Agreement to the extent it deems necessary or appropriate to comply with
Section 409A(a)(2)(B)(i) of the Code (relating to payments made to certain “key employees” of certain publicly-traded companies) as amplified by any IRS or U.S. Treasury Department guidance as the Company deems appropriate or
advisable. In such event, if, upon your separation from service, you are then a “specified employee” (as defined in Section 409A of the Code), then only to the extent necessary to comply with Code Section 409A and avoid
imposition of taxes under Code Section 409A, the Company will defer payment of certain of the amounts owed to you under this Agreement until the earlier of your death or the first business day of the seventh month following your separation from
service. Any provision of this Agreement that would cause the payment of any benefit to fail to satisfy Section 409A of the Code shall have no force and effect until amended to comply with Code Section 409A (which amendment may be
retroactive to the extent permitted by the Code or any regulations or rulings thereunder). Notwithstanding anything to the contrary, no actions taken pursuant to this section shall reduce the total amount of payments and benefits owed to you and to
be paid to you under this Agreement. 

  
 3 

 6. You will be entitled to reimbursement for reasonable attorney’s fees incurred by you
in negotiating the terms of this Amendment, not to exceed $10,000 unless approved by the Company. Except as provided above in this Amendment, all terms, covenants and conditions in the Original Agreement shall remain in full force and effect and
shall not be affected by this Amendment. 
 7. This Amendment may be executed in one or more counterparts, each of which shall
be deemed an original and all of which shall be taken together and deemed to be one instrument, 
 [SIGNATURE PAGE FOLLOWS]

  
 4 

 IN WITNESS WHEREOF, the parties hereby execute this First Amendment to Offer Letter as of
the date first above written. 
  

							
	RESTORATION HARDWARE, INC.
				
	By:	 	 /s/ Gary Friedman
	 		 	 /s/ Ken Dunaj

		 	Name: Gary Friedman	 		 	Ken Dunaj
		 	Title: Chairman, CEO and President	 		 	EVP & COO

 SIGNATURE PAGE TO FIRST
AMENDMENT TO OFFER LETTER 

 EXECUTION COPY 
 SECOND AMENDMENT 
 TO 

OFFER LETTER 
 THIS SECOND AMENDMENT TO OFFER LETTER (this “Amendment”) is executed and delivered effective as of March 31, 2009, by and between Restoration Hardware, Inc., a Delaware corporation
(the “Company”) and Ken Dunaj, an individual resident of the State of California (“Employee”). 

RECITALS 

WHEREAS, the Company and Employee previously executed and delivered an Offer Letter, dated as of May 5, 2006 (the
“Original Agreement”), and the First Amendment to the Offer Letter, dated as of November 15, 2007 (the “First Amendment” and together with the Original Agreement, the “Agreement”); 

WHEREAS, a “Change of Control” of the Company, within the meaning of such definition as constituted in Attachment
B of the Original Agreement, was consummated on June 17, 2008 (the “Catterton/Tower III Change of Control”); 
 WHEREAS, the change in Employee’s reporting relationship, effective April 1, 2009 (the “Reporting Change”), constitutes a material reduction in the level of management to
which Employee reports within the meaning of Section (ii)(A) of the definition of “Involuntary Termination” in the First Amendment; and 
 WHEREAS, the Company and Employee now wish to further amend the Agreement in order to (i) provide for an extended period following the Catterton/Tower III Change of Control during which
Employee may receive severance as a result of an Involuntary Termination and also extending the period during which Employee may voluntarily resign for any event constituting an Involuntary Termination, including but not limited to the Reporting
Change; and (ii) modify the Agreement’s Change of Control provisions. 
 NOW, THEREFORE, in consideration of
the mutual covenants contained herein, the Company and Employee, intending to be legally bound, hereby agree as follows: 
 1.
Capitalized terms not otherwise defined herein shall have the meaning ascribed to them in the Agreement. 
 2. The section
entitled “Change of Control” in the Original Agreement, as amended by the First Amendment, is hereby replaced in its entirety with the following: 
 Change of Control. If, either on or within eighteen (18) months following a Change of Control of the Company (as defined in Attachment B), you are subject to an “Involuntary
Termination” (as defined in Attachment B) by the Company, you will receive, in lieu of any other severance pursuant to this offer letter, at your election, one of the following: either (i) compensation continuation (paid according
to the Company’s regular payroll schedule) for a period of twelve (12) months from your termination date at the rate of two (2) times your annual base salary plus two (2) times your target bonus, which target

  
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bonus for this sole purpose shall be Three Hundred Thousand Dollars ($300,000), provided that you surrender all vested incentive units (“Incentive Units”) granted to you
under the Home Holdings, LLC 2008 Team Resto Ownership Plan (the “Plan”) as of your termination date for zero value; or (ii) compensation continuation (paid according to the Company’s regular payroll schedule) for a period
of twelve (12) months from your termination date at the rate of one (1) times your annual base salary plus one (1) times your target bonus, which target bonus for this sole purpose shall be Three Hundred Thousand Dollars ($300,000),
with no requirement to surrender your vested Incentive Units for zero value. Your entitlement to severance payments will be contingent upon your execution of the Company’s written release and expiration of any applicable revocation period to
the written release (and such written release shall be a mutual release of claims and shall be limited to releasing claims you or the Company may then have and the Company shall provide such written release to you for your consideration (and
potential execution) no later than two days after your termination date). In addition, the severance payments and benefits to be provided upon an Involuntary Termination following a Change of Control are subject to the excise tax payment provisions
set forth in Attachment B provided, however, that the Company has concluded that no part of the severance or other payments or benefits to be paid to you under this Agreement or otherwise which are attributable to the Catterton/Tower III
Change of Control (as defined below) constitutes an “excess parachute payment” within the meaning of Section 280G of the Internal Revenue Code, and the Company will report and withhold taxes, as applicable, consistent with such
position. This section shall govern the benefits payable in the event of your Involuntary Termination in the eighteen (18) months after a Change of Control. In the event this section is effective, no other severance or similar benefits shall be
payable hereunder. 
 3. A new section entitled “Catterton/Tower III Change of Control” hereby is added to the
Agreement, following the section entitled “Change of Control,” to read as follows: 
 Catterton/Tower III Change of
Control. The foregoing section entitled Change of Control (as amended by the First and Second Amendments), and the definition of “Involuntary Termination” on Attachment B (as amended by the First Amendment) are modified
as follows solely with respect to the Change of Control of the Company that was consummated on June 17, 2008 (the “Catterton/Tower III Change of Control”): 

(i) The period during which you shall be entitled to receive the severance described in the section entitled Change of
Control (as amended by the First and Second Amendments) following an Involuntary Termination hereby is extended to cover any Involuntary Termination that occurs on or before April 30, 2010. 

(ii) The requirement to resign within 45 days following an event described in clause (ii) of the definition of
Involuntary Termination in order to receive the severance described in the section entitled Change of Control (as amended by the First and Second Amendments) hereby is waived through and including April 30, 2010. Instead, you shall be
required to give the Company sixty (60) days notice in advance of the date of your voluntary resignation. For avoidance of doubt, this means that the latest you could give notice to the Company under this section Catterton/Tower III Change
of Control is 

  
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March 2, 2010, for a termination on April 30, 2010. The Company shall have the right to waive all or part of the sixty (60) day notice period and to terminate your employment at
any time after such notice is given. 
 4. The following new sentence hereby is appended to the end of the “Compliance with
Section 409A” section in Attachment B as follows: 
 Notwithstanding anything to the contrary, the Company has
concluded that the severance or other payments or benefits to be paid to you under this Agreement which are attributable to the Catterton/Tower III Change on Control (as defined above), along with the modifications to the Agreement created by this
Amendment, either are (i) exempt from Section 409A of the Code or (ii) compliant with Section 409A of the Code, and the Company will report and withhold taxes, as applicable, consistent with such position. 

5. Employee acknowledges and agrees that the modifications to the Agreement in this Amendment, including, but not limited to, the
modifications in Sections 2 and 3 hereof, do not per se constitute grounds for an Involuntary Termination. 
 6. Except as
provided above in this Amendment, all terms, covenants and conditions in the Agreement (for the avoidance of doubt, including the First Amendment) shall remain in full force and effect and shall not be affected by this Amendment. 

7. The Company shall pay for all legal fees, costs and expenses actually incurred by Employee in connection with the negotiation,
preparation and execution of this Amendment up to $10,000. The Company shall directly make full cash payment to Employee’s legal counsel for such fees and costs within 30 days after the Company’s receipt of applicable invoices and such
invoices shall be provided to the Company within 45 days after execution of this Amendment. 
 8. This Amendment may be executed
in one or more counterparts, each of which shall be deemed an original and all of which shall be taken together and deemed to be one instrument. 
 [SIGNATURE PAGE FOLLOWS] 

  
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 IN WITNESS WHEREOF, the parties hereby execute this Second Amendment to Offer Letter as
of the date first above written. 
  

							
	RESTORATION HARDWARE, INC.
				
	 By:
	 	 /s/ Deborah Ellinger
	 		 	 /s/ Ken Dunaj

		 	Deborah Ellinger	 		 	Ken Dunaj
		 	President	 		 	

 SIGNATURE PAGE TO SECOND
AMENDMENT TO OFFER LETTER 

  

 THIRD AMENDMENT 

TO 

OFFER LETTER 
 THIS THIRD AMENDMENT TO OFFER LETTER (this “Amendment” is executed and delivered effective as of January 6, 2010, by and between Restoration Hardware, Inc., a Delaware corporation
(the “Company”) and Ken Dunaj, an individual resident of the State of California (“Employee”). 

RECITALS 

WHEREAS, the Company and Employee previously executed and delivered an Offer Letter, dated as of May 5, 2006 (the
“Original Agreement”), the First Amendment to the Offer Letter, dated as of November 15, 2007 (the “First Amendment”), and the Second Amendment to the Offer Letter, dated as of March 31, 2009 (the
“Second Amendment, and together with the Original Agreement and the First Amendment, the “Agreement”); 

WHEREAS, a “Change of Control” of the Company, within the meaning of such definition as constituted in Attachment
B of the Original Agreement, was consummated on June 17, 2008 (the “Catterton/Tower III Change of Control”); 
 WHEREAS, the change in Employee’s reporting relationship, effective April 1, 2009 (the “Reporting Change”), constituted a material reduction in the level of management to
which Employee reports within the meaning of Section (ii)(A) of the definition of “Involuntary Termination” in the First Amendment; 
 WHEREAS, in the Second Amendment, the Company and Employee agreed, among other things, to provide for an extended period following the Catterton/Tower III Change of Control during which Employee
may receive severance as a result of an Involuntary Termination and also to extend the period during which Employee may voluntarily resign for any event constituting an Involuntary Termination, including but not limited to the Reporting Change; and

 WHEREAS, the parties hereto desire to further extend the period following the Catterton/Tower III Change of Control
during which Employee may receive severance as a result of an Involuntary Termination and to further extend the period during which Employee may voluntarily resign for any event constituting an Involuntary Termination, including but not limited to
the Reporting Change, in each case until March 1, 2011. 
 NOW, THEREFORE, in consideration of the mutual covenants
contained herein, the Company and Employee, intending to be legally bound, hereby agree as follows: 
 1. Capitalized terms not
otherwise defined herein shall have the meaning ascribed to them in the Agreement. 
 2. Subsections (i) and (ii) of
the section entitled “Catterton/Tower III Change of Control” hereby are amended to read as follows: 

(i) The period during which you shall be entitled to receive the severance described in the section entitled Change of
Control (as amended by the First and Second Amendments) following an Involuntary Termination hereby is extended to cover any Involuntary Termination that occurs on or before March 1, 2011. 

  
 1 

 (ii) The requirement to resign within 45 days following an event described
in clause (ii) of the definition of Involuntary Termination in order to receive the severance described in the section entitled Change of Control (as amended by the First and Second Amendments) hereby is waived through and including
March 1, 2011. Instead, you shall be required to give the Company sixty (60) days notice in advance of the date of your voluntary resignation. For avoidance of doubt, this means that the latest you could give notice to the Company under
this section Catterton/Tower III Change of Control is December 31, 2010, for a termination on March 1, 2011. The Company shall have the right to waive all or part of the sixty (60) day notice period and to terminate your
employment at any time after such notice is given. 
 3. The last sentence in the “Compliance with Section 409A”
section in Attachment B (which was added by the Second Amendment) is hereby amended to read as follow: 
 Notwithstanding
anything to the contrary, the Company has concluded that the severance or other payments or benefits to be paid to you under this Agreement which are attributable to the Catterton/Tower III Change of Control (as defined above), along with the
modifications to the Agreement created by the First, Second and Third Amendments, either are (i) exempt from Section 409A of the Code or (ii) compliant with Section 409A of the Code, and the Company will report and withhold
taxes, as applicable, consistent with such position. 
 4. Employee acknowledges and agrees that the modifications to the
Agreement in this Amendment do not per se constitute grounds for an Involuntary Termination. 
 5. Except as provided above in
this Amendment, all terms, covenants and conditions in the Agreement (for the avoidance of doubt, including the First Amendment and the Second Amendment) shall remain in full force and effect and shall not be affected by this Amendment. 

6. This Amendment may be executed in one or more counterparts, each of which shall be deemed an original and all of which shall be taken
together and deemed to be one instrument. 
 [SIGNATURE PAGE FOLLOWS] 

  
 2 

 IN WITNESS WHEREOF, the parties hereby execute this First Amendment to Offer Letter as of
the date first above written. 
  

							
	RESTORATION HARDWARE, INC.
				
	By:	 	 /s/ Gary Friedman
	 		 	 /s/ Ken Dunaj

		 	Name	 		 	Ken Dunaj
		 	Title	 		 	

 SIGNATURE PAGE TO THIRD
AMENDMENT TO OFFER LETTER

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