Document:

Form of 2005 Incentive Stock Option Award

 Exhibit 10.7 
  
 INCENTIVE STOCK OPTION AGREEMENT 
 PURSUANT TO HUGHES SUPPLY, INC. 
 1997 EXECUTIVE STOCK PLAN 
  
 THIS AGREEMENT is made as of the Grant Date by and between HUGHES SUPPLY,
INC. (the “Company”) and [NAME] (the “Grantee”). 
  
 Upon and subject to the Terms and Conditions attached hereto and incorporated herein by reference, the Company hereby awards as of the Grant Date to Grantee an incentive stock option (the “Option”) pursuant
to the Plan, as described below, to purchase the Option Shares. All capitalized terms used but not defined herein shall have the meanings ascribed to them in the Plan. 
  

	 	A.	Grant Date: [DATE]. 

  

	 	B.	Type of Option: Incentive Stock Option (except to the extent all or a portion of the Option is required to be treated as a non-qualified stock option pursuant to Section 4 of
the Terms and Conditions attached hereto). 

  

	 	C.	Plan: Hughes Supply, Inc. 1997 Executive Stock Plan. 

  

	 	D.	Option Shares: All or any part of [NUMBER] shares of the Company’s common stock, $1.00 par value per share (“Common Stock”). 

 

	 	E.	Exercise Price: $[PRICE] per share of Common Stock. The Exercise Price is the Fair Market Value, determined pursuant to the Plan, of a share of Common Stock on the
Grant Date. 

  

	 	F.	Option Period: The Option may be exercised as to all or any portion of the vested Option Shares during the Option Period, which commences on the Grant Date and, except as
otherwise provided in section H. below, ends generally on the earliest of: 

  
 (i) the tenth (10th) anniversary of the Grant Date; 
  
 (ii) expiration of three (3) months after the date the Grantee experiences a termination of employment for any reason other than death or Disability; or 
  
 (iii) one (1) year following the date of the Grantee’s death or Disability. 
  
 Note that other limitations to exercising the Option, as described in the
attached Terms and Conditions, may apply. 
  

	 	G.	Vesting Schedule: [SCHEDULE]. 

  

	 	H.	Partial Vesting: In the event that the Grantee’s employment with the Company or any affiliate terminates due to Retirement (as hereinafter defined) prior to the date on
which the Option would have become fully vested pursuant to the vesting schedule set forth in G. above: 

  
 (i) the Option will become partially vested on the date on which the Option would become fully vested pursuant to the vesting schedule set
forth in G. above without regard to termination of the Grantee’s employment prior to such date (the “Partial Vesting 
  

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 Date”), with the vested percentage determined by the ratio that the period from the Grant Date to
the date of Retirement bears to the period from the Grant Date to the Partial Vesting Date; 
  
 (ii) on the date of Retirement, the portion of the Option that will not become vested pursuant to this section H. will immediately expire
and terminate; and 
  
 (iii) the portion of the
Option that becomes vested pursuant to this section H. will expire, terminate and become unexercisable on the first anniversary of the Partial Vesting Date. 
  

	 	I.	Definitions Relating to Partial Vesting. 

  
 (1) For purposes of this Agreement, “Retirement” shall mean the termination of the Grantee’s full-time employment with the Company, other
than a termination for Cause (as hereinafter defined), after the attainment of age 55 if the sum of the Grantee’s age and number of years of full-time employment with the Company equals or exceeds 70. 
  
 (2) For purposes of this Agreement “Cause” shall mean any of the
following: 
  
 (a) willful or gross neglect by
the Grantee of his duties; 
  
 (b) conviction of
the Grantee of any felony, or of any lesser crime or offense materially and adversely affecting the property, reputation or goodwill of the Company or its successors; 
  
 (c) any material breach by the Grantee of the terms of an employment agreement between the Grantee and the
Company; 
  
 (d) willful misconduct by the
Grantee in connection with the performance of his duties; 
  
 (e) theft or misappropriation of business assets of the Company or of any existing or prospective customer of the Company; 
  
 (f) poor or inadequate work performance, which has not been cured within 30 days following written notice; 
  
 (g) excessive tardiness; 
  
 (h) violation of any securities laws as determined by the
Company; or 
  
 (i) any other conduct detrimental
to the business of the Company, including, without limitation, the failure by the Grantee to comply with the policies and procedures of the Company which may be in effect from time to time. 
  
 By their signatures below, the Grantee and the Company agree that the Option
is granted under and governed by the terms and conditions of the Plan and this Agreement. Grantee has received and reviewed in their entirety this Agreement and the prospectus that summarizes the terms of the Plan, has had an opportunity to request
a copy of the Plan in accordance with the procedure described in the prospectus, has had an opportunity to obtain the advice of counsel prior to executing this Agreement and fully understands all provisions of the Plan and Agreement. Grantee hereby
agrees to accept as binding, conclusive and final all decisions or interpretations of the Committee upon any questions relating to the Plan and Agreement. 
  

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 IN WITNESS WHEREOF, the Company and the Grantee have executed and sealed this Agreement as of the Grant
Date set forth above. 
  

			
	HUGHES SUPPLY, INC.
		
	By:	 	  

	 	 	Thomas I. Morgan, President and CEO
	  
  

	[NAME OF GRANTEE]

  
  

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 TERMS AND CONDITIONS 
 TO THE 
 INCENTIVE STOCK OPTION AGREEMENT 
 HUGHES SUPPLY, INC. 
 1997 EXECUTIVE
STOCK PLAN 
  
 1. Exercise of Option. Subject to the
provisions provided herein or in the Agreement made pursuant to the Plan, and subject to any other procedural requirements as may be established by the Company subsequent to the date of the Agreement made pursuant to the Plan: 
  
 (a) The Option may be exercised with respect to all or any
portion of the Option Shares at any time during the Option Period by the delivery to the Company, at its principal place of business, of (i) a written notice of exercise in substantially the form attached hereto as Exhibit 1, which shall be
actually delivered to the Company or its designee no earlier than thirty (30) days prior to the date upon which Grantee desires to exercise all or any portion of the Option; and (ii) payment to the Company of the Exercise Price multiplied by
the number of Option Shares being purchased (the “Purchase Price”) in the manner provided in Subsection (b); and, if applicable, (iii) payment, in accordance with Section 5, of the withholding liability arising from the exercise. Upon
acceptance of such notice and receipt of payment in full of the Purchase Price and any applicable withholding liability, the Company shall cause to be issued a certificate representing the Option Shares purchased. 
  
 (b) The Purchase Price shall be paid in full upon the
exercise of an Option and no Option Shares shall be issued or delivered until full payment therefor has been made. Payment of the Purchase Price for all Option Shares purchased pursuant to the exercise of an Option shall be made in one of the
following manners: 
  
 (i) by cash or check
acceptable to the Company; 
  
 (ii) by delivery
to the Company of a number of shares of Common Stock which have been owned by the holder for at least six (6) months prior to the date of exercise having an aggregate Fair Market Value of not less than the product of the Exercise Price multiplied by
the number of shares the Grantee intends to purchase upon the exercise of the Option on the date of delivery; 
  
 (iii) by receipt of the purchase price in cash from a proper broker, dealer or other creditor following delivery of instructions by the
Grantee to the Secretary of the Company or his designee regarding delivery to such broker, dealer or other creditor of that number of Option Shares with respect to which the Option is exercised; or 
  
 (iv) any combination thereof. 
  
 2. Rights as Shareholder. Until the stock certificates reflecting the
Option Shares accruing to the Grantee upon exercise of the Option are issued to the Grantee, the Grantee shall have no rights as a shareholder with respect to such Option Shares. The Company shall make no adjustment for any dividends or
distributions or other rights on or with respect to Option Shares for which the record date is prior to the issuance of that stock certificate, except as the Plan or the attached Agreement otherwise provides. 
  
 3. Restriction on Transfer of Option and of Option Shares. Except to
the extent the Committee deems permissible under Section 422(b) of the Internal Revenue Code of 1986, as amended, and consistent with the best interests of the Company, the Option evidenced hereby is nontransferable other than 
  

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 by will or the laws of descent and distribution and shall be exercisable during the lifetime of the Grantee only by the
Grantee (or in the event of his disability, by his personal representative) and after his death, only by his legatee or the executor of his estate. 
  
 4. Incentive Stock Option Status. In the event the aggregate Fair Market Value (determined as of the applicable option grant date) of shares of
Common Stock subject to options (under all plans of the Company and its Subsidiaries) that first become exercisable in favor of the Grantee during any calendar year by an amount that exceeds $100,000, then such options in excess of the limitation
shall not be incentive stock options. To the extent such options include this Option, that portion of the Option that does not constitute an incentive stock option shall be treated as a non-qualified stock option and shall be subject to the
remaining provisions of this Agreement and its related Terms and Conditions and any applicable provisions contained within the Plan. 
  
 5. Withholding. In the event the Option or any portion thereof shall be treated as a non-qualified stock option, the Grantee must satisfy his
federal, state and local, if any, withholding taxes imposed by reason of the exercise of the Option. The Grantee may satisfy this withholding obligation by paying to the Company the full amount of the withholding obligation in cash or check
acceptable to the Company. If the Grantee fails to make such payment of the withholding taxes to the Company within five (5) days after the exercise of the Option, the actual number of shares of Common Stock issuable upon exercise shall be reduced
by the smallest number of whole shares of Common Stock which, when multiplied by the fair market value of the Common Stock as of the date the Option is exercised, is sufficient to satisfy the amount of withholding tax. 
  
 6. Changes in Capitalization. 
  
 (a) The number of shares of Common Stock reserved for
issuance upon the exercise of the Option and the Exercise Price of the Option shall be proportionately adjusted for any increase or decrease in the number of issued shares of Common Stock resulting from a subdivision or a combination of shares or
the payment of an ordinary stock dividend in shares of such Common Stock to holders of outstanding shares of Common Stock or any other increase or decrease in the number of shares of such Common Stock outstanding effected without receipt of
consideration by the Company to the extent that Grantee’s proportionate interest shall be maintained as before the occurrence of the event. 
  
 (b) In the event of a merger, consolidation, extraordinary dividend, reorganization or other change in the capital structure of the
Company or tender offer for shares of Common Stock, the Committee may make such adjustments with respect to the Option and take such other actions as it deems necessary or appropriate to reflect such merger, consolidation, reorganization or tender
offer; provided, however that if the Company shall not be the surviving entity as a result of any such event and the parties to that transaction do not provide for the substitution of the Option with option rights in the surviving entity, then the
Committee may cash-out the Option based upon the Fair Market Value of the Common Stock determined as of any date within thirty (30) days immediately prior to the transaction. 
  
 (c) The existence of the Plan and the Option granted pursuant to the Plan shall not affect in any way the
right or power of the Company to make or authorize any adjustment, reclassification, reorganization or other change in its capital or business structure, any merger or consolidation of the Company, any issue of debt or equity securities having
preferences or priorities as to the Common Stock or the rights thereof, the dissolution or liquidation of the Company, any sale or transfer of all or any part of its business or assets, or any other corporate act or proceeding. Any adjustment
pursuant to this Section 6 may provide, in the Committee’s discretion, for the elimination without payment therefor of any fractional shares that might otherwise be subject to the Option. 
  

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 7. Special Limitation on Exercise. No purported exercise of the Option shall be effective without
the approval of the Committee, which may be withheld to the extent that the exercise, either individually or in the aggregate together with the exercise of other previously exercised stock options and/or offers and sales pursuant to any prior or
contemplated offering of securities, would, in the sole and absolute judgment of the Committee, require the filing of a registration statement with the United States Securities and Exchange Commission or with the securities commission of any state.
If a registration statement is not in effect under the Securities Act of 1933 or any applicable state securities law with respect to shares of Common Stock purchasable or otherwise deliverable under the Option, the Grantee (a) shall deliver to the
Company, prior to the exercise of the Option or as a condition to the delivery of Common Stock pursuant to the exercise of an Option exercise, such information, representations and warranties as the Company may reasonably request in order for the
Company to be able to satisfy itself that the Option Shares are being acquired in accordance with the terms of an applicable exemption from the securities registration requirements of applicable federal and state securities laws and (b) shall agree
that the shares of Common Stock so acquired will not be disposed of except pursuant to an effective registration statement, unless the Company shall have received an opinion of counsel that such disposition is exempt from such requirement under the
Securities Act of 1933 and any applicable state securities law. 
  
 8. Legend on Stock Certificates. Certificates evidencing the Option Shares, to the extent appropriate at the time, shall have noted conspicuously on the certificates a legend intended to give all persons full notice of the existence
of the conditions, restrictions, rights and obligations set forth herein and in the Plan. 
  
 9. Governing Laws. This Agreement and the Terms and Conditions shall be construed, administered and enforced according to the laws of the State of Florida. 
  
 10. Successors. This Agreement and the Terms and Conditions shall be
binding upon and inure to the benefit of the heirs, legal representatives, successors and permitted assigns of the Grantee and the Company. 
  
 11. Notice. Except as otherwise specified herein, all notices and other communications under this Agreement shall be in writing and shall be deemed
to have been given if personally delivered or if sent by registered or certified United States mail, return receipt requested, postage prepaid, addressed to the proposed recipient at the last known address of the recipient. Any party may designate
any other address to which notices shall be sent by giving notice of the address to the other parties in the same manner as provided herein. 
  
 12. Severability. In the event that any one or more of the provisions or portion thereof contained in the Agreement and these Terms and Conditions
shall for any reason be held to be invalid, illegal or unenforceable in any respect, the same shall not invalidate or otherwise affect any other provisions of the Agreement and these Terms and Conditions, and the Agreement and these Terms and
Conditions shall be construed as if the invalid, illegal or unenforceable provision or portion thereof had never been contained herein. 
  
 13. Entire Agreement. Subject to the terms and conditions of the Plan which is incorporated herein by reference, the Agreement and the Terms and
Conditions express the entire understanding of the parties with respect to the Option. 
  

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 14. Violation. Any transfer, pledge, sale, assignment, or hypothecation of the Option or any
portion thereof shall be a violation of the terms of the Agreement or these Terms and Conditions and shall be void and without effect. 
  
 15. Headings and Capitalized Terms. Section headings used herein are for convenience of reference only and shall not be considered in construing
the Agreement or these Terms and Conditions. Capitalized terms used, but not defined, in either the Agreement or the Terms and Conditions shall be given the meaning ascribed to them in the Plan. 
  
 16. Specific Performance. In the event of any actual or threatened
default in, or breach of, any of the terms, conditions and provisions of the Agreement and these Terms and Conditions, the party or parties who are thereby aggrieved shall have the right to specific performance and injunction in addition to any and
all other rights and remedies at law or in equity, and all such rights and remedies shall be cumulative. 
  
 17. Arbitration. Any controversy or claim arising out of or relating to this Option shall be settled by arbitration in accordance with the
commercial Arbitration rules of the American Arbitration Association. The arbitration shall take place in Orlando, Florida. Each party to this Agreement may select a neutral arbitrator. The selected arbitrators shall in turn appoint a third neutral
arbitrator, and the three so chosen shall comprise the arbitration panel. The decision of the arbitration panel shall be final and binding on the parties, and judgment upon the award rendered by the arbitration panel may be entered by any court
having jurisdiction thereof. 
  
 18. No Right to Continued
Retention. Neither the establishment of the Plan nor the award of Option Shares hereunder shall be construed as giving the Grantee the right to continued employment with the Company or any affiliate. 
  

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 EXHIBIT 1 
  
 NOTICE OF EXERCISE OF 
 INCENTIVE STOCK OPTION TO PURCHASE 
 COMMON STOCK OF 
 HUGHES SUPPLY, INC. 
  
 Hughes Supply, Inc. 
 One Hughes Way 
 Orlando, Florida 32805 
  

			
	Attention:	 	    Secretary
		
	Re:	 	    Exercise of Incentive Stock Option

  
 Gentlemen: 
  
 Subject to acceptance hereof by Hughes Supply, Inc. (the
“Company”) pursuant to the provisions of the Hughes Supply, Inc. 1997 Executive Stock Plan (the “Plan”), I hereby give notice of my election to exercise the option granted to me to purchase
             shares of common stock of the Company (“Common Stock”) under the Incentive Stock Option Agreement (the “Agreement”) dated as of [DATE]
(the “Option”). The purchase shall take place as of                     ,      (the “Exercise
Date”). 
  
 On or before the Exercise Date, I will pay the
applicable purchase price as follows: 
  

	 	 ̈	by delivery of cash or a check acceptable to the Company for $___________ for the full purchase price payable to the order of Hughes Supply, Inc. 

  

	 	 ̈	by delivery of cash or a check acceptable to the Company for $___________ representing a portion of the purchase price with the balance to consist of shares of Common Stock that I
have owned for at least six months and that are represented by a stock certificate I will surrender to the Company with my endorsement. If the number of shares of Common Stock represented by such stock certificate exceed the number to be applied
against the purchase price, I understand that a new stock certificate will be issued to me reflecting the excess number of shares. 

  

	 	 ̈	by delivery of a stock certificate representing shares of Common Stock that I have owned for at least six months which I will surrender to the Company with my endorsement as payment
of the purchase price. If the number of shares of Common Stock represented by such certificate exceed the number to be applied against the purchase price, I understand that a new certificate will be issued to me reflecting the excess number of
shares. 

  

	 	 ̈	by delivery of the purchase price by _________________________, a broker, dealer or other “creditor” as defined by Regulation T issued by the Board of Governors of the
Federal Reserve System. I hereby authorize the Company to issue a stock certificate for the number of shares indicated above in the name of said broker, dealer or other creditor or its nominee pursuant to instructions received by the Company and to
deliver said stock certificate directly to that broker, dealer or other creditor (or to such other party specified in the instructions received by the Company from the broker, dealer or other creditor) upon receipt of the purchase price.

 To the extent applicable, the required federal, state and local income tax withholding obligations on the
exercise of the Option shall also be paid in cash or by check acceptable to the Company within five (5) days after the Exercise Date, or will be satisfied by reduction of the actual number of shares of Common Stock issuable upon exercise by the
smallest number of whole shares of Common Stock which, when multiplied by the fair market value of the Common Stock as of the date the Option is exercised, is sufficient to satisfy the amount of withholding tax. 
  
 As soon as the stock certificate is registered in my name, please deliver it
to me at the below address. 
  
 If the Common Stock being acquired
is not registered for issuance to and resale by the Grantee pursuant to an effective registration statement on Form S-8 (or successor form) filed under the Securities Act of 1933, as amended (the “1933 Act”), I hereby represent, warrant,
covenant, and agree with the Company as follows: 
  
 The shares of the Common Stock being acquired by me will be acquired for my own account without the participation of any other person, with the intent of holding the Common Stock for investment and without the intent of participating,
directly or indirectly, in a distribution of the Common Stock and not with a view to, or for resale in connection with, any distribution of the Common Stock, nor am I aware of the existence of any distribution of the Common Stock; 
  
 I am not acquiring the Common Stock based upon any
representation, oral or written, by any person with respect to the future value of, or income from, the Common Stock but rather upon an independent examination and judgment as to the prospects of the Company; 
  
 The Common Stock was not offered to me by means of publicly
disseminated advertisements or sales literature, nor am I aware of any offers made to other persons by such means; 
  
 I am able to bear the economic risks of the investment in the Common Stock, including the risk of a complete loss of my investment
therein; 
  
 I understand and agree that the
Common Stock will be issued and sold to me without registration under any state law relating to the registration of securities for sale, and will be issued and sold in reliance on the exemptions from registration under the 1933 Act, provided by
Sections 3(b) and/or 4(2) thereof and the rules and regulations promulgated thereunder; 
  
 The Common Stock cannot be offered for sale, sold or transferred by me other than pursuant to: (A) an effective registration under the
1933 Act or in a transaction otherwise in compliance with the 1933 Act; and (B) evidence satisfactory to the Company of compliance with the applicable securities laws of other jurisdictions. The Company shall be entitled to rely upon an opinion of
counsel satisfactory to it with respect to compliance with the above laws; 
  
 The Company will be under no obligation to register the Common Stock or to comply with any exemption available for sale of the Common Stock without registration or filing, and the information or conditions necessary
to permit routine sales of securities of the Company under Rule 144 under the 1933 Act are not now available and no assurance has been given that it or they will become available. The Company is under no obligation to act in any manner so as to make
Rule 144 available with respect to the Common Stock; 

 I have and have had complete access to and the opportunity to review and make copies of
all material documents related to the business of the Company, including, but not limited to, contracts, financial statements, tax returns, leases, deeds and other books and records. I have examined such of these documents as I wished and am
familiar with the business and affairs of the Company. I realize that the purchase of the Common Stock is a speculative investment and that any possible profit therefrom is uncertain; 
  
 I have had the opportunity to ask questions of and receive answers from the Company and any person acting on
its behalf and to obtain all material information reasonably available with respect to the Company and its affairs. I have received all information and data with respect to the Company which I have requested and which I have deemed relevant in
connection with the evaluation of the merits and risks of my investment in the Company; 
  
 I have such knowledge and experience in financial and business matters that I am capable of evaluating the merits and risks of the
purchase of the Common Stock hereunder and I am able to bear the economic risk of such purchase; and 
  
 The agreements, representations, warranties and covenants made by me herein extend to and apply to all of the Common Stock of the Company
issued to me pursuant to the Agreement. Acceptance by me of the certificate representing such Common Stock shall constitute a confirmation by me that all such agreements, representations, warranties and covenants made herein shall be true and
correct at that time. 
  
  

 I understand that the certificates representing the shares being purchased by me in accordance with this
notice shall bear a legend referring to the foregoing covenants, representations and warranties and restrictions on transfer, and I agree that a legend to that effect may be placed on any certificate which may be issued to me as a substitute for the
certificates being acquired by me in accordance with this notice. I further understand that capitalized terms used in this Notice of Exercise without definition shall have the meanings given to them in the Plan. 
  

	
	Very truly yours,
	
	  

	Signature
	
	Name
                                        
                                
	Address
                                        
                            
	__________________________________________
	Social Security Number
                                        
   
	Date                      

  

					
	AGREED TO AND ACCEPTED:	 	 
		
	HUGHES SUPPLY, INC.	 	 
			
	By:	 	  

	 	 
			
	Title:	 	  

	 	 
	Number of Shares Exercised:
                                        
                        	 	 
		
	Number of Shares Remaining:	 	Date:Form of 2005 Performance-Based Restricted Stock Award

 Exhibit 10.8 
  
 HUGHES SUPPLY, INC. 
 RESTRICTED STOCK AWARD AGREEMENT 
  
 This RESTRICTED STOCK AWARD AGREEMENT (the “Agreement”) is made as of                      (the “Grant Date”)
between HUGHES SUPPLY, INC. a Florida corporation (the “Company”) and                     , a key employee of the Company (the
“Employee”). 
  
 Background Information

  
 A. The Board of Directors (the “Board”) and
shareholders of the Company previously adopted the Hughes Supply, Inc. 1997 Executive Stock Plan, as amended and restated as of March 1, 2005 (the “Plan”). 
  
 B. Section 8 of the Plan provides that the Compensation Committee of the Board (the “Committee”) shall have the
discretion and right to grant Restricted Stock (as defined below) to key employees of the Company, subject to the terms and conditions of the Plan and any additional terms provided by the Committee. The Committee has made a grant of Restricted Stock
to the Employee as of the Grant Date pursuant to the terms of the Plan and this Agreement. 
  
 C. The Employee desires to accept the grant of Restricted Stock and agrees to be bound by the terms and conditions of the Plan and this Agreement. 
  
 Agreement 
  
 1. Restricted Stock. Subject to the terms and conditions provided in this Agreement and the Plan, the Company hereby grants the Employee
[                    ] [            ] shares of restricted, common stock of the
Company (the “Restricted Stock”) as of the Grant Date. 
  
 2. Vesting. 
  
 (a) Full Vesting. The
Employee’s rights and interest in the Restricted Stock shall become fully vested and non-forfeitable (and the stock shall cease being restricted) upon the occurrence of the first of the following events, provided the Employee is a full-time
employee of the Company or its Affiliates (as hereinafter defined) at that time. 
  
 (i) Continued Employment for Five (5) Years Following Grant Date. The Employee shall become 100% vested if the Employee remains employed by the Company or its Affiliates for a period of five (5) years following
the Grant Date. 
  
 (ii) Age 65. The Employee shall become
100% vested upon the attainment of age 65. 
  
 (iii)
Death. The Employee shall become 100% vested (and the Restricted Stock shall pass to his/her beneficiaries) upon the Employee’s death. 
  
 (iv) Disability. The Employee shall become 100% vested if his termination of employment with the Company and its Affiliates is due to the
Employee’s “disability”. For purposes of this Agreement, “disability” shall have the same meaning as is provided under the Company’s group, 

 long-term disability plan or policy then maintained by the Company or the Affiliate for whom the Employee is employed. If
no such plan or policy then exists, “disability” shall have the same meaning as in Internal Revenue Code §22(e)(3), as amended or replaced from time to time. In the event of a dispute under this provision, the determination of
“disability” shall be made by the Committee, in its discretion, upon the advice of one or more physicians employed by the Committee to assist in its determination. 
  
 (v) Change of Control. The Employee shall become 100% vested upon a “change of control” of the Company. For
purposes of this Agreement, a “change of control” shall mean: 
  
 (A) any one person, or more than one person acting as a group, acquires ownership of stock of the Company that, together with stock held by such person or group, possesses more than 50 percent of the total Fair Market
Value or total voting power of the stock of the Company; provided, however, that if any one person, or more than one person acting as a group, is considered to own more than 50 percent of the total Fair Market Value or total voting power of the
stock of the Company, the acquisition of additional stock by the same person or persons will not be considered a Change in Control. Notwithstanding the foregoing, an increase in the percentage of stock of the Company owned by any one person, or
persons acting as a group, as a result of a transaction in which the Company acquires its stock in exchange for property will be treated as an acquisition of stock of the Company for purposes of this subsection (A); 
  
 (B) during any period of 12 consecutive months, individuals who at the
beginning of such period constituted the Board (together with any new or replacement directors whose election by the Board, or whose nomination for election by the Company’s shareholders, was approved by a vote of at least a majority of the
directors then still in office who were either directors at the beginning of such period or whose election or nomination for election was previously so approved) cease for any reason to constitute a majority of the directors then in office; or

  
 (C) any one person, or more than one person acting as a
group, acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by the person or persons) assets from the Company, outside of the ordinary course of business, that have a gross fair market value equal to
or more than 40 percent of the total gross fair market value of all of the assets of the Company immediately prior to such acquisition or acquisitions. For purposes of this subsection (C), “gross fair market value” means the value of the
assets of the Company, or the value of the assets being disposed of, determined without regard to any liabilities associated with such assets. Notwithstanding anything to the contrary in this Plan, the following shall not be treated as a Change in
Control under this subsection (C): 
  
 (1) a transfer of assets
from the Company to a shareholder of the Company (determined immediately before the asset transfer); 
  
 (2) a transfer of assets from the Company to an entity, 50 percent or more of the total value or voting power of which is owned, directly or indirectly,
by the Company; 
  
 (3) a transfer of assets from the Company to
a person, or more than one person acting as a group, that owns, directly or indirectly, 50 percent or more of the total value or voting power of all the outstanding stock of the Company; or 
  
 (4) a transfer of assets from the Company to an entity, at least 50 percent
of the total value or voting power of which is owned, directly or indirectly, by a person described in (3) above. 
  

 2 

 (b) Partial Vesting After Retirement. In the event that the Employee ceases to be a full-time
employee of the Company or its Affiliates due to Retirement (as hereinafter defined) prior to the date on which the Restricted Stock would have become fully vested pursuant to Section 2(a): 
  
 (i) the Restricted Stock will become partially vested on the occurrence of
the fifth (5th) anniversary of the Grant Date or one of the events described in Section 2(a)(ii) through (v),
whichever occurs first (the “Partial Vesting Date”), with the vested percentage determined by the ratio that the period from the Grant Date to the date of Retirement bears to the period from the Grant Date to the Partial Vesting Date;

  
 (ii) no portion of the Restricted Stock will be forfeited
prior to the Partial Vesting Date; and 
  
 (iii) on the Partial
Vesting Date, the Employee shall forfeit all of his rights and interest in the portion of the Restricted Stock that does not become vested pursuant to this Section 2(b). 
  
 (c) Definitions Relating to Partial Vesting. 
  
 (i) For purposes of this Agreement, “Retirement” shall mean the termination of the Employee’s full-time
employment with the Company, other than a termination for Cause (as hereinafter defined), after the attainment of age 55 if the sum of the Employee’s age and number of years of full-time employment with the Company equals or exceeds 70.

  
 (ii) For purposes of this Agreement “Cause” shall
mean any of the following: 
  
 (A) willful or gross neglect by
the Employee of his duties; 
  
 (B) conviction of the Employee of
any felony, or of any lesser crime or offense materially and adversely affecting the property, reputation or goodwill of the Company or its successors; 
  
 (C) any material breach by the Employee of the terms of an employment agreement between the Employee and the Company; 
  
 (D) willful misconduct by the Employee in connection with the performance of
his duties; 
  
 (E) theft or misappropriation of business assets
of the Company or of any existing or prospective customer of the Company; 
  
 (F) poor or inadequate work performance, which has not been cured within 30 days following written notice; 
  
 (G) excessive tardiness; 
  
 (H) violation of any securities laws as determined by the Company; or 
  

 3 

 (I) any other conduct detrimental to the business of the Company, including, without limitation, the
failure by the Employee to comply with the policies and procedures of the Company which may be in effect from time to time. 
  
 3. Restrictions on Transfer. Until such time as any share of Restricted Stock becomes vested pursuant to Section 2 above, the Employee shall not
have the right to make or permit to occur any transfer, pledge or hypothecation of all or any portion of the Restricted Stock, whether outright or as security, with or without consideration, voluntary or involuntary. At such time as any share of
Restricted Stock becomes vested pursuant to Section 2 above, all or any portion of the Restricted Stock may be transferred or assigned to one or more Family Members (as defined in the Plan) of the Employee, provided any such transfer or assignment
is made without consideration to the Employee. Any transfer, pledge or hypothecation not made in accordance with this Agreement shall be deemed null and void. See also Section 6 below. 
  
 Except as otherwise provided in Section 2(b) above, the Employee shall forfeit all of his rights and interest in the
Restricted Stock, including but not limited to the rights to vote and receive dividends, if he fails to remain as a full-time employee of the Company or its Affiliates until he becomes “vested” in his Restricted Stock. To the extent
Restricted Stock is forfeited by the Employee, it shall again become available for use under the Plan. 
  
 For purposes of this Agreement, an “Affiliate” means (i) an entity that directly or through another Affiliate is more than fifty percent (50%)
owned by the Company, or (ii) an entity in which the Company has a “significant equity interest” as determined by the Committee. 
  
 4. Shares Held by Custodian. The Employee hereby authorizes and directs the Company to deliver any share certificate issued by the Company to
evidence the award of Restricted Stock to the Secretary of the Company or such other officer of the Company as may be designated by the Committee (the “Share Custodian”) to be held by the Share Custodian until the Restricted Stock becomes
vested in accordance with Section 2 above. When all or any portion of the Restricted Stock becomes vested, the Share Custodian shall deliver to the Employee (or his beneficiary in the event of death) a certificate representing the vested Restricted
Stock (which then will be unrestricted). The Employee hereby irrevocably appoints the Share Custodian, and any successor thereto, as the true and lawful attorney-in-fact of the Employee with full power and authority to execute any stock transfer
power or other instrument necessary to transfer the Restricted Stock to the Company, or to transfer a portion of the Restricted Stock to the Employee on an unrestricted basis upon vesting, pursuant to this Agreement, in the name, place, and stead of
the Employee. The term of such appointment shall commence on the Grant Date and shall continue until all the Restricted Stock becomes vested or is forfeited. During the period that the Share Custodian holds the shares of Restricted Stock subject to
this Section, the Employee shall be entitled to all rights applicable to shares of common stock of the Company not so held, including the right to vote and receive dividends, but provided, however, in the event the number of shares of Restricted
Stock is increased or reduced by changing par value, split-up, stock split, reverse stock split, reclassification, merger, reorganization, consolidation, or otherwise, and in the event of any distribution of common stock or other securities of the
Company in respect of such shares of common stock, the Employee agrees that any certificate representing shares of such additional common stock or other securities of the Company issued as a result of any of the foregoing shall be delivered to the
Share Custodian and shall be subject to all of the provisions of this Agreement as if initially received hereunder. 
  
 5. Tax Payment Upon Vesting. At such time as the Employee becomes vested pursuant to Section 2 above in all or any portion of the Performance-Based
Restricted Stock, the Employee (or his/her personal representative) must satisfy his federal, state and local, if any, withholding taxes imposed by reason of the exercise of the Option. The Employee may satisfy this withholding obligation by paying
to 
  

 4 

 the Company the full amount of the withholding obligation in cash or check acceptable to the Company. If the Employee
fails to make such payment of the withholding taxes to the Company within five (5) days after the occurrence of the vesting event (a “Vesting Date”), the Employee’s actual number of vested shares of Performance-Based Restricted Stock
shall be reduced by the smallest number of whole shares of common stock of the Company which, when multiplied by the fair market value of the common stock on the Vesting Date, is sufficient to satisfy the amount of the withholding tax obligations
imposed on the Company by reason of the vesting of the Performance-Based Restricted Stock. 
  
 6. Investment Representations. The Employee hereby represents, warrants, covenants, and agrees with the Company as follows: 
  
 (a) The Restricted Stock being acquired by the Employee will be acquired for the Employee’s own account without the
participation of any other person, with the intent of holding the Restricted Stock for investment and without the intent of participating, directly or indirectly, in a distribution of the Restricted Stock and not with a view to, or for resale in
connection with, any distribution of the Restricted Stock, nor is the Employee aware of the existence of any distribution of the Restricted Stock; 
  
 (b) The Employee is not acquiring the Restricted Stock based upon any representation, oral or written, by any person with respect to the future value of,
or income from, the Restricted Stock but rather upon an independent examination and judgment as to the prospects of the Company; 
  
 (c) The Restricted Stock was not offered to the Employee by means of publicly disseminated advertisements or sales literature, nor is the Employee aware
of any offers made to other persons by such means; 
  
 (d) The
Employee is able to bear the economic risks of the investment in the Restricted Stock, including the risk of a complete loss of his/her investment therein; 
  
 (e) The Restricted Stock cannot be offered for sale, sold or transferred by the Employee other than pursuant to: (A) an effective registration under the
Securities Act of 1933 (the “1933 Act”) or in a transaction otherwise in compliance with the 1933 Act; and (B) evidence satisfactory to the Company of compliance with the applicable securities laws of other jurisdictions. The Company shall
be entitled to rely upon an opinion of counsel satisfactory to it with respect to compliance with the above laws; 
  
 (f) The Employee has, and has had, complete access to and the opportunity to review and make copies of all material documents related to the business of
the Company, including, but not limited to, contracts, financial statements, tax returns, leases, deeds, and other books and records. Employee has examined such of these documents as the Employee has wished and is familiar with the business and
affairs of the Company. The Employee realizes that the acquisition of the Restricted Stock is a speculative investment and that any possible profit therefrom is uncertain; 
  
 (g) The Employee has had the opportunity to ask questions of and receive answers from the Company and any person acting on
its behalf and to obtain all material information reasonably available with respect to the Company and its affairs. The Employee has received all information and data with respect to the Company which the Employee has requested and which the
Employee has deemed relevant in connection with the evaluation of the merits and risks of the Employee’s investment in the Company; 
  
 (h) The Employee has such knowledge and experience in financial and business matters that the Employee is capable of evaluating the merits and risks of
the acquisition of the Restricted Stock hereunder and the Employee is able to bear the economic risk of such acquisition; and 
  

 5 

 (i) The agreements, representations, warranties, and covenants made by the Employee herein extend to and
apply to all of the Restricted Stock of the Company issued to the Employee pursuant to this award. Acceptance by the Employee of the certificate representing such Restricted Stock shall constitute a confirmation by the Employee that all such
agreements, representations, warranties, and covenants made herein shall be true and correct at that time. 
  
 7. No Effect on Employment. Nothing in the Plan or this Agreement shall confer upon the Employee the right to continue in the employment of the
Company or effect any right which the Company may have to terminate the employment of the Employee regardless of the effect of such termination of employment on the rights of the Employee under the Plan or this Agreement. 
  
 8. Governing Laws. This Agreement shall be construed and enforced in
accordance with the local laws of the State of Florida applicable to agreements to be executed and performed wholly within said state, and shall inure to the benefit of, and be binding upon, the parties hereto and their heirs, personal
representatives, successors and assigns. The parties further agree that in any dispute between them relating to this Agreement, exclusive jurisdiction shall be in the trial courts located within Orange County, Florida, any objections as to
jurisdiction or venue in such court being expressly waived. 
  
 9.
Successors. This Agreement shall inure to the benefit of the heirs, legal representatives, successors and permitted assigns of the Company and Employee. 
  

10. Notice. Any notice which either party hereto may be required or permitted to give to the other shall be in writing, and may be delivered
personally or by mail, postage prepaid, addressed as follows: to the General Counsel of the Company, or to the Company (attention of the General Counsel), at Hughes Supply, Inc., One Hughes Way, Orlando, Florida 32805, or at any other address as the
Company, by notice to the Employee, may designate in writing from time to time; to the Employee, at the Employee’s address as shown on the records of the Company, or at any other address as the Employee, by notice to the Company, may designate
in writing from time to time. 
  
 11. Severability. In the
event that any one or more of the provisions or portion thereof contained in this Agreement shall for any reason be held to be invalid, illegal or unenforceable in any respect, the same shall not invalidate or otherwise affect any other provisions
of this Agreement, and this Agreement shall be construed as if the invalid, illegal or unenforceable provision or portion thereof had never been contained herein. 
  
 12. Entire Agreement; Modifications to Agreement. Subject to the terms and conditions of the Plan, which are
incorporated herein by reference, this Agreement expresses the entire understanding and agreement of the parties hereto with respect to such terms, restrictions and limitations. The Committee may amend or terminate any (or all) of the provisions of
this Agreement at any time prior to the date on which any of the shares of Restricted Stock shall have vested with the Employee pursuant to the terms hereof. 
  
 13. Headings. Section headings used herein are for convenience of reference only and shall not be considered in construing this Agreement.

  
 14. Specific Performance. In the event of any actual or
threatened default in, or breach of, any of the terms, conditions and provisions of this Agreement, the party or parties who are thereby aggrieved shall have the right to specific performance and injunction in addition to any and all other rights
and remedies at law or in equity, and all such rights and remedies shall be cumulative. 
  
 15. Resolution of Disputes. Any determination or interpretation by the Committee shall be final, binding and conclusive on all persons affected thereby. 
  

 6 

 IN WITNESS WHEREOF, the Company has executed this Agreement as of the Grant Date set forth above.

  

			
	HUGHES SUPPLY, INC.
		
	By:	 	  

	 	 	Tom Morgan, President and CEO
	
	EMPLOYEE:
	
	  

  

 7

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