Document:

Exhibit

Exhibit 10.1
EMPLOYMENT AGREEMENT

This Employment Agreement (this “Agreement”) is made effective on August 22, 2016 (“Effective Date”), by and between Q2 Software, Inc., a Delaware corporation (“Company”), and Odus (“Boogie”) Wittenburg Jr. (“Executive”).
The parties agree as follows:
1.Employment.  Company agrees to continue to employ Executive, and Executive agrees to accept such continuing employment on the terms and conditions set forth herein.
2.    Duties.
2.1    Position.  Executive is employed as Company’s President and shall have the duties and responsibilities assigned by Company’s Chief Executive Officer.  Executive shall perform faithfully and diligently all duties assigned to Executive.  Company reserves the right to modify Executive’s position and duties at any time in its sole and absolute discretion.
2.2    Best Efforts/Full-time.  During this Agreement, Executive will (A) expend Executive’s best efforts on behalf of Company, and will abide by all policies and decisions made by Company, as well as all applicable federal, state and local laws, regulations or ordinances; (B) act in the best interest of Company at all times; and (C) devote Executive’s full business time and efforts to the performance of Executive’s assigned duties for Company. 
3.    Compensation.  
3.1    Base Salary.  As compensation for Executive’s performance of Executive’s duties hereunder, Company shall pay to Executive an initial Base Salary of $35,833.33 per month (which equates to $430,000 over a full year), to be paid in accordance with Company’s regular payroll cycle, less required deductions for federal withholding tax, social security and all other employment taxes and payroll deductions.  Executive will be eligible for increases in base salary as determined from time to time by the Company’s Board or compensation committee thereof in their respective sole discretion.  In the event Executive’s employment under this Agreement is terminated by either party, for any reason, Executive will earn the Base Salary prorated to the date of termination.
3.2    Incentive Compensation.  Executive may be eligible to receive an annual cash incentive bonus of $370,000 at target, on such terms and subject to such conditions as may be decided from time to time by the Company, less required deductions for federal withholding tax, social security and all other employment taxes and payroll deductions.  Notwithstanding the foregoing, for the fiscal year ending December 31, 2016, Executive shall receive a pro-rated cash incentive bonus representing the target bonus amount multiplied by a fraction, (i) the numerator of which is the actual number of days of 2016 occurring on or after Executive’s start date and (ii) the denominator of which is 365. Executive must be employed by the Company at the time any annual cash incentive bonus is paid in order to be eligible such bonus, subject to Section 7.1 hereof.  Executive will be eligible for increases in incentive compensation as determined from time to time by the Company’s Board or compensation committee thereof in their respective sole discretion.  The Company reserves the right to vary or terminate any bonus scheme in place from time to time, on a prospective basis.  Company shall pay out the annual cash incentive bonus, if any, within 60 days following the end of the year in which the bonus is earned. 

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3.3    Equity Compensation.  Subject to the approval of Company’s Board of Directors (the “Board”) or the Compensation Committee thereof, Executive shall receive restricted stock units representing 85,000 shares of the Company’s Common Stock and options to purchase 212,500 shares of the Company’s Common Stock.  Such restricted stock units shall vest annually over a four (4) year period on the anniversary of the grant date, with the first vesting date occurring one year immediately following the grant date.  Such stock options shall vest over the same four (4) year period, with 1/4th of such stock options vesting on the one-year anniversary of the grant date and the remaining stock options vesting monthly over the subsequent 36 months.  Executive will be eligible for additional equity grants as determined from time to time by the Company’s Board or compensation committee thereof in their respective sole discretion.  All equity awards described herein and the terms and conditions thereof shall be subject to the approval of the Board or the Compensation Committee, the terms and conditions of Company’s 2014 Equity Incentive Plan (the “Stock Plan”) and the forms of award agreements approved by the Board thereunder, which Executive shall be required to execute as a condition to receiving such awards.
3.4    Customary Fringe Benefits.  Executive will be eligible for all customary and usual fringe benefits generally available to Executives of Company, subject to the terms and conditions of Company’s benefit plan documents and policies.  Executive shall be entitled to Paid Time Off benefits (“PTO”) subject to the terms and conditions of the Company’s PTO policy as in effect from time to time.
4.    At-Will Employment.  Executive’s employment with Company is at-will and not for any specified period and may be terminated at any time, with or without Cause (as defined below) or advance notice, by either Executive or Company, although subject to the provisions of Sections 5 through 7 below.  No representative of Company, other than the Board, has the authority to alter the at-will employment relationship.  Any change to the at-will employment relationship must be by specific, written agreement signed by Executive and the Board.  Nothing in this Agreement is intended to or should be construed to contradict, modify or alter this at-will relationship.
5.    Termination.  The termination provisions of this Agreement regarding the parties' respective obligations in the event Executive's engagement is terminated are intended to be exclusive and in lieu of any other rights to which Executive may otherwise be entitled by law, in equity, or otherwise.  This Agreement, and Executive's engagement hereunder, may be terminated at any time after the Effective Date, as follows:
5.1    Termination by Mutual Consent.  This Agreement may be terminated at any time by the written mutual consent of Company and Executive.
5.2    Termination by Company For Cause.  This Agreement may be terminated by Company at any time for Cause.  For purposes of this Agreement, “Cause” is defined as: (a) acts or omissions constituting gross negligence, recklessness or willful misconduct on the part of Executive with respect to Executive’s obligations or otherwise relating to the business of Company; (b) Executive’s material breach of this Agreement or Company’s Executive Proprietary Information and Inventions Agreement (the “PRIA”); (c) Executive’s conviction or entry of a plea of nolo contendere for fraud, misappropriation or embezzlement, or any felony or crime of moral turpitude; (d) Executive’s willful neglect of duties as determined in the sole and exclusive discretion of Company; (e) Executive is cited by Company’s Chief Executive Officer, in writing, at least two (2) times during any 12-month period for unsatisfactory performance; (f) Executive’s failure to perform the essential functions of Executive’s position, with or without reasonable accommodation, due to a mental or physical disability; or (g) Executive’s death.   
5.3    Termination by Company Without Cause.  This Agreement may be terminated by Company, without Cause, with or without notice, by the delivery to Executive of written notice of termination.   

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5.4    Resignation by Executive.  Executive shall have the right to terminate his employment hereunder by providing the Company with a notice of termination at least thirty (30) days prior to such termination. 
6.    Payments Upon Termination.  Upon termination of employment for any reason, Executive shall receive payment of his then unpaid Base Salary, pro-rated to the date of termination, as well as any other accrued, but unpaid benefits (collectively the “Accrued Compensation”).  Accrued Compensation will be paid in a lump sum on the date required under applicable law.  Except as expressly stated in this Agreement, all other employment related obligations of Company to Executive shall be automatically terminated and completely extinguished with the termination of Executive’s employment.
7.    Severance.  
7.1    Severance Payment.  In the event Company terminates Executive’s employment without Cause, Company shall provide Executive with a “Severance Payment,” equivalent to (a) twelve (12) months of Executive’s then Base Salary and (b) an amount equal to Executive’s cash incentive performance bonus (assuming the performance metrics were achieved at the targeted levels) pro-rated through the date of Executive’s termination. Such Severance Payment shall be payable in equal installments over a twelve month period, with the first installment payment made on the first payday occurring 30 days after the termination date and the remaining installments made on the following Company paydays.  The Company’s obligation to pay and Executive’s right to receive the Severance Payment shall cease in the event of Executive’s breach of any of his obligations under this Agreement or the PRIA.  The Company’s obligation to provide Executive with the Severance Payment is conditioned precedent upon Executive’s execution of a full general release in a form acceptable to the Company and such release has become effective in accordance with its terms prior to the 30th day following the termination date.  For the sake of clarity, Executive shall not be eligible to receive severance in connection with any other form of termination, other than a termination without Cause.    
7.2    Acceleration of Equity Awards in the Event of a Termination without Cause or Resignation for Good Reason Following a Change in Control.  In the event of a “Change in Control” (as defined in the Stock Plan) of Company and (i) Executive is terminated without Cause within one year following such Change in Control; or (ii) Executive resigns for Good Reason (as defined below) within one year following such Change in Control; or (iii) the “Acquiror” (as defined in the Stock Plan) does not assume, substitute or replace with substantially equivalent equity awards any “Awards” (as defined in the Stock Plan) then held by Executive, Company agrees that, in addition to the Severance Payments described above, all Awards then held by Executive shall immediately vest in full without regard to the vesting provisions set forth in the Stock Plan or the related agreements respecting such Awards, subject to all other terms and conditions thereof (other than any vesting provisions).   For the purposes of this Paragraph 7.2 only, Executive shall have “Good Reason” to resign within one year following a Change in Control if, without Executive’s written consent: (i) Company materially reduces Executive's title or position or an assignment to Executive of operational authority or duties which are materially inconsistent with the usual and customary operational authority and duties of a person in Executive's position in similarly-situated companies, (ii) Company materially reduces Executive's base compensation, or (iii) Company requires Executive to relocate to any place outside a fifty (50) mile radius of Company's current headquarters.  Notwithstanding the foregoing, Executive will not resign for Good Reason without first providing Company with written notice of the acts or omissions constituting the grounds for “Good Reason” within thirty (30) days of the initial existence of the grounds for “Good Reason” and providing Company with a reasonable cure period of thirty (30) days following the date of such notice.

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7.3    Application of Section 409A.  
(a)Notwithstanding anything set forth in this Agreement to the contrary, no amount payable pursuant to this Agreement which constitutes a “deferral of compensation” within the meaning of the Treasury Regulations issued pursuant to Section 409A (the “Section 409A Regulations”) of the Internal Revenue Code of 1986, as amended (the “Code”), shall be paid unless and until Executive has incurred a “separation from service” within the meaning of the Section 409A Regulations.  Furthermore, to the extent that Executive is a “specified Executive” within the meaning of the Section 409A Regulations as of the date of Executive’s separation from service, no amount that constitutes a deferral of compensation which is payable on account of Executive’s separation from service shall be paid to Executive before the date (the “Delayed Payment Date”) which is the first day of the seventh month after the date of Executive’s separation from service or, if earlier, the date of Executive’s death following such separation from service.  All such amounts that would, but for this Section, become payable prior to the Delayed Payment Date will be accumulated and paid on the Delayed Payment Date.
(b)Company intends that income provided to Executive pursuant to this Agreement will not be subject to taxation under Section 409A of the Code.  The provisions of this Agreement shall be interpreted and construed in favor of satisfying any applicable requirements of Section 409A of the Code.  However, Company does not guarantee any particular tax effect for income provided to Executive pursuant to this Agreement.  In any event, except for Company’s responsibility to withhold applicable income and employment taxes from compensation paid or provided to Executive, Company shall not be responsible for the payment of any applicable taxes on compensation paid or provided to Executive pursuant to this Agreement.  
(c)Notwithstanding anything herein to the contrary, the reimbursement of expenses or in-kind benefits provided pursuant to this Agreement shall be subject to the following conditions: (1) the expenses eligible for reimbursement or in-kind benefits in one taxable year shall not affect the expenses eligible for reimbursement or in-kind benefits in any other taxable year; (2) the reimbursement of eligible expenses or in-kind benefits shall be made promptly, subject to Company’s applicable policies, but in no event later than the end of the year after the year in which such expense was incurred; and (3) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit.
(d)For purposes of Section 409A of the Code, the right to a series of installment payments under this Agreement shall be treated as a right to a series of separate payments.
8.    Business Expenses.  Executive will be reimbursed for all reasonable, out-of-pocket business expenses incurred in the performance of Executive’s duties on behalf of Company.  To obtain reimbursement, expenses must be submitted promptly with appropriate supporting documentation in accordance with Company’s policies.
9.    No Conflict of Interest.  During Executive’s employment with Company and at all times Executive is receiving Severance Payments pursuant to this Agreement,  Executive must not engage in any work, paid or unpaid, that creates an actual conflict of interest with Company.  Such work shall include, but is not limited to, directly or indirectly competing with Company in any way, or acting as an officer, director, Executive, consultant, stockholder, volunteer, lender, or agent of any business enterprise of the same nature as, or which is in direct competition with, the business in which Company is now engaged or in which Company becomes engaged during Executive’s employment with Company, as may be determined by the Board in its sole discretion.  If Company believes such a conflict exists during the term of this Agreement, Company may ask Executive to choose to discontinue the other work or resign employment with Company.  

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In addition, Executive agrees not to refer any client or potential client of Company to competitors of Company, without obtaining Company’s prior written consent, during Executive’s employment and any period of time Executive is receiving Severance Payments pursuant to this Agreement.
10.    Confidentiality and Proprietary Rights.  Executive agrees to continue to abide by the PRIA and any nondisclosure or other policies or obligations of Executive to Company or other affiliated entities, each which PRIA and other policies and obligations is incorporated herein by reference.
11.    Injunctive Relief.  Executive acknowledges that Executive’s breach of the covenants contained in Sections 9-10 (collectively “Covenants”) would cause irreparable injury to Company and agrees that in the event of any such breach, Company shall be entitled to seek temporary, preliminary and permanent injunctive relief without the necessity of proving actual damages or posting any bond or other security.
12.    No Violation of Rights of Third Parties.  During Executive’s employment with Company, Executive will not (a) breach any agreement to keep in confidence any confidential or proprietary information, knowledge or data acquired by Executive prior to Executive’s employment with Company or (b) disclose to Company, or use or induce Company to use, any confidential or proprietary information or material belonging to any previous employer or any other third party.  Executive is not currently a party, and will not become a party, to any other agreement that is in conflict, or will prevent Executive from complying, with this Agreement.
13.    General Provisions.
13.1    Successors and Assigns.  The rights and obligations of Company under this Agreement shall inure to the benefit of and shall be binding upon the successors and assigns of Company.  Executive shall not be entitled to assign any of Executive’s rights or obligations under this Agreement.
13.2    Waiver.  Either party’s failure to enforce any provision of this Agreement shall not in any way be construed as a waiver of any such provision, or prevent that party thereafter from enforcing each and every other provision of this Agreement.
13.3    Severability.  In the event any provision of this Agreement is found to be unenforceable by a court of competent jurisdiction, such provision shall be deemed modified to the extent necessary to allow enforceability of the provision as so limited, it being intended that the parties shall receive the benefit contemplated herein to the fullest extent permitted by law.  If a deemed modification is not satisfactory in the judgment of such court, the unenforceable provision shall be deemed deleted, and the validity and enforceability of the remaining provisions shall not be affected thereby.
13.4    Interpretation; Construction.  The headings set forth in this Agreement are for convenience only and shall not be used in interpreting this Agreement.  This Agreement has been drafted by legal counsel representing Company, but Executive has participated in the negotiation of its terms.  Furthermore, Executive acknowledges that Executive has had an opportunity to review and revise the Agreement and have it reviewed by legal counsel, if desired, and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Agreement.
13.5    Governing Law.  This Agreement will be governed by and construed in accordance with the laws of the United States and the State of Texas.  Each party consents to the jurisdiction and venue of the state or federal courts in Travis County, Texas, if applicable, in any action, suit, or proceeding arising out of or relating to this Agreement.

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13.6    Notices.  Any notice required or permitted by this Agreement shall be in writing and shall be delivered as follows with notice deemed given as indicated:  (a) by personal delivery when delivered personally; (b) by overnight courier upon written verification of receipt; (c) by telecopy, facsimile, or e-mail transmission upon acknowledgment of receipt of electronic transmission; or (d) by certified or registered mail, return receipt requested, upon verification of receipt.  Notice shall be sent to the addresses set forth below, or such other address as either party may specify in writing.
13.7    Survival.  Sections 9 (“No Conflict of Interest”), 10 (“Confidentiality and Proprietary Rights”), 11 (“Injunctive Relief”), 12 (“No Violation of Rights of Third Parties”), 13 (“General Provisions”) and 14 (“Entire Agreement”) of this Agreement shall survive Executive’s employment by Company.
14.    Entire Agreement.  This Agreement and the PRIA constitute the entire among the parties relating to this subject matter and supersedes all prior or simultaneous representations, discussions, negotiations, and agreements, whether written or oral, including the offer letter between Company and Executive dated June 13, 2016.  This agreement may be amended or modified only with the written consent of Executive and Company.  No oral waiver, amendment or modification will be effective under any circumstances whatsoever and any such oral waiver, amendment or modification will be null and void.
[Signature page follows.]

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THE PARTIES TO THIS AGREEMENT HAVE READ THE FOREGOING AGREEMENT AND FULLY UNDERSTAND EACH AND EVERY PROVISION CONTAINED HEREIN. WHEREFORE, THE PARTIES HAVE EXECUTED THIS AGREEMENT ON THE DATES SHOWN BELOW.
	
			
	Dated: June 22, 2016    
	 
	/s/ Odus Wittenburg, Jr.

	 
	 
	Odus (“Boogie”) Wittenburg Jr.

	 
	 
	 

	 
	 
	 

	 
	 
	Q2 Software, Inc.

	 
	 
	 

	Dated: June 23, 2016    
	 
	By: /s/ Matt Flake    

	 
	 
	Name: Matt Flake    

	 
	 
	Title: CEO    

	 
	 
	 

SIGNATURE PAGE TO EMPLOYMENT AGREEMENTEX-10.1

 Exhibit 10.1 

EMPLOYMENT RELEASE AGREEMENT 
 As a result
of the separation of employment between Kelly Tacke (“You” or “Employee”) and CSW Industrials, Inc. (including its owners, shareholders, divisions, affiliates, subsidiaries, successors, employees, officers and directors) (the
“Company”), you and the Company enter into the following Employment Release Agreement (“Agreement”) and acknowledge and agree as follows: 

NOTE: Any non-disclosure, non-disparagement or waiver provision in this Agreement does not prohibit or restrict you from initiating
communications directly with, or responding to any inquiry from, or providing testimony before, any self-regulatory organization or state or federal regulatory authority, regarding the Company, your employment, this release or its underlying facts
or circumstances. Any cooperation provision in the Agreement does not require you to contact the Company regarding the subject matter of any such communications before engaging in such communications. 

 

	1.	Your employment will terminate effective close of business, June 15, 2016 (“Termination Date”). In conjunction with the termination of your employment, you shall resign all officer positions with the
Company. You must return this Agreement to the Company no later than twenty-one (21) days after receiving it; otherwise, the Company’s offer shall expire. 

 

	2.	Severance: 

  

	 	a.	As consideration for this Agreement, the adequacy of which you acknowledge, the Company agrees to pay you a discretionary severance payment in the gross amount of three hundred and ninety five thousand dollars
($395,000.00), less lawful withholdings, an amount to which you acknowledge you are not otherwise entitled (the “Severance Payment”). The Severance Payment will be paid to you on the Company’s first payroll run following the
Termination Date in accordance with the Company’s established payroll practices, but in no event later than June 30, 2016. 

As a condition to receipt of the Severance Payment, you must perform all of the following prior to the Termination Date in a manner
satisfactory to the Company: 
  

	 	i.	Execute the Form 10-K for the fiscal year ended March 31, 2016 (the “2016 Form 10-K”) in your capacity as the Company’s principal financial officer; 

 

	 	ii.	Execute all necessary certifications included as exhibits to the 2016 Form 10-K in your capacity as the Company’s principal financial officer; and 

 

	 	iii.	Execute the representation letter, and any other required documentation, required by the Company’s independent public accounting firm in connection with the 2016 Form 10-K and completion of the associated audit.

 The conditions contained in (i), (ii) and (iii) above constitute the full extent of work responsibilities that
will be required of you through the Termination Date, and subject to your compliance with the terms and conditions of this Agreement, there are no other conditions upon which your receipt of the Severance Payment is contingent. 

 

	 	b.	After the Termination Date, your eligibility for continuation of coverage under the Company’s group medical, dental and vision insurance plans normally would be governed exclusively by the continuation coverage
provisions of such plans and the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”). Pursuant to this Agreement, however, during any portion of the period beginning on the day following the Termination Date and ending six
(6) months later that you and your dependents participate in a Company group health plan through COBRA, the Company will pay the COBRA premium. If you become eligible for health coverage under another group health insurance plan with a
subsequent employer, you agree to notify the Company within five (5) business days, and you agree and understand that the Company’s obligations under this Section 2 to subsidize your COBRA payment shall immediately cease. If you elect
COBRA continuation coverage after the above six (6) month period, you will responsible for the full amount of the COBRA payment. 

	 	c.	Nothing in this Agreement adversely affects any right you may have to: (i) base wages earned by you through the Termination Date, and you shall be paid all such wages regardless of whether you sign this Agreement;
(ii) earned, unused vacation/PTO, less appropriate withholdings; (iii) reimbursement for approved business expenses incurred by you through the Termination Date for which you have not been reimbursed; (iv) continuation insurance
coverage pursuant to the terms of Company-provided insurance plans or applicable law; and (v) vested retirement benefits to which you are entitled as of the Termination Date pursuant to the terms of any Company retirement benefit plan(s) or
applicable laws. Moreover, all rights afforded to you under the Employee Matters Agreement (dated September 8, 2015 between Capital Southwest Corporation and the Company), the Company’s 2015 Equity and Incentive Compensation Plan and the
individual award agreements under such plan, as applicable, remain governed by the terms of each such plan and such agreements and are unaffected by your Release as contained in Section 6 of this Agreement. For the sake of clarity concerning
the foregoing sentence, the Company considers your termination of employment to be a termination without cause, and the vesting of certain existing, unvested equity and cash incentive awards resulting from the Company’s spin-off from Capital
Southwest Corporation (which are captured by the foregoing sentence) shall be determined in a manner consistent with the vesting provisions and other terms and conditions of such awards, and the Company agrees to take all actions reasonably
necessary to arrange for and/or enable the vesting or payment of such awards, as applicable, as promptly as possible following the Termination Date. In the event of your death or permanent disability after the date you accept this Agreement but
prior to your receipt of all consideration and benefits contained in this Section 2, such consideration and benefits will inure to the benefit of your estate, as applicable. 

 

	 	d.	You acknowledge that, except as set forth in this Agreement, the Company does not have, and will not have, any obligation to provide you at any time in the future with any payments, benefits, bonuses (including but not
limited to a bonus with respect to the fiscal years ended March 31, 2016 or March 31, 2017) or considerations other than those recited in Section 2 of this Agreement. You agree that these payments and benefits are not required under
the Company’s normal policies and procedures, and they provide adequate consideration for this Agreement. 

  

	3.	You represent that no incident has occurred during your employment with the Company that could form the basis for any claim by you against the Company under the so-called worker’s compensation laws of any
jurisdiction. 

  

	4.	You acknowledge that the Company has no obligation to employ, hire or rehire you, to consider you for hire, or to deal with you in any respect at any location, office, or place of business with regard to future
employment or potential employment. Accordingly, in order to prevent the occurrence of any future dispute, you hereby agree: (i) that you will not ever apply for or otherwise seek employment by the Company or its affiliates at any time in the
future, at any location, office, or place of business, and (ii) that your forbearance to seek future employment as just stated is purely contractual and is in no way involuntary, discriminatory, or retaliatory. You further agree that failure to
reinstate or hire you in the future will not subject the Company or its affiliates to liability of any kind. Notwithstanding anything herein to the contrary, it will not be a violation of this Agreement for you to represent to third parties that you
are eligible for re-hire with the Company. 

  

	5.	In the event the Company receives any inquiries from prospective employers, the Company’s standard practice is to respond by advising that the Company’s policy is to provide information only as to service
dates and positions held and by providing such information. If the Company is asked whether you are eligible for re-hire, the Company will advise that it does not provide such information. You should instruct any prospective employers to direct
their reference inquiries to Joseph B. Armes, Chairman and Chief Executive Officer, or any future CEO. 

  

	6.	 RELEASE. As used in this Agreement, the term “claims” will include all claims, covenants,
warranties, promises, undertakings, actions, suits, causes of action, obligations, debts, accounts, attorneys’ fees, judgments, losses and liabilities, of whatsoever kind or nature, in law, equity or otherwise. In consideration of this

  
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Agreement and all payments and benefits to be paid or accorded to you under this Agreement and other good and valuable consideration, you, for and on behalf of yourself and your heirs,
administrators, executors and assigns, agree to waive all claims, both known and unknown, and release, quitclaim unto, demise unto, and discharge the Company and its past and present respective affiliates, subsidiaries, employee benefit plans,
directors and officers, fiduciaries, employees, agents, attorneys, successors and assigns, in their individual, official and corporate capacities, from any and all demands, commissions, bonuses, wages, salaries, debts, sums of money, accounts,
damages, financial information, liabilities, rights of reinstatement, actions, causes of action, and/or suits at law or in equity, of any kind or nature whatsoever, whether known or not now known, including, but not limited to (i) those arising
from, relating to, or in connection with any acts or omissions related to any matter at any time prior to and including the date of your execution of this Agreement, and (ii) those arising from, relating to, or in connection with your
employment with or separation from the Company, from the beginning of time up to and including the date of your execution of this Agreement. The claims you are releasing and waiving include, but are not limited to, any claims which you may have
under any contract or policy, whether such policy is written or oral, express or implied; demands and causes of action for any alleged violation of any federal, state or local statutes, ordinances or common laws; tortious or contractual wrongful
discharge or conduct; breach of the covenant of good faith and fair dealing; violation of public policy; tortious interference with contract or prospective business relations; intentional or negligent infliction of emotional distress; fraud or
misrepresentation; battery or assault; negligence; negligent hiring or supervision; vicarious liability for the torts of others; invasion of privacy; failure to pay wages, stock awards, bonuses, commissions, incentive pay, benefits, vacation pay,
profit sharing, severance or other compensation of any sort; and harassment, retaliation or discrimination on the basis of race, color, national original, religion, sex, sexual preference, age, veteran status, genetic information, handicap,
disability or any other status protected by law. 

  

	    	By signing this Agreement, you confirm your intent that the release contained herein to be a general release of any and all claims to the fullest extent permissible by law. Notwithstanding the foregoing, nothing in this
Agreement shall be a waiver of: (i) your rights with respect to payment of amounts under this Agreement, (ii) your rights as discussed in Section 2.c., or (iii) any claims that cannot be waived by law. 

 

	7.	You represent that you have returned to the Company the originals and all copies of any business records or documents of any kind belonging to, or related to, the Company which are or were subject to your access,
custody or control, regardless of the sources from which such records were obtained. You further acknowledge that you have not retained and will not retain any copies, duplicates, reproductions, or excerpts thereof. Additionally, you have returned
to the Company all keys, security passes and other means of access to the Company’s offices and other facilities. Notwithstanding the foregoing, you are entitled to retain copies of any personnel records or documents of the Company relating to
your employment that you have in your possession. You also represent that you shall promptly return to the Company any and all computer hardware, equipment and software belonging to the Company, including any and all program and/or data disks,
manuals and all hard copies of Company information and data, and shall disclose to the Company any and all passwords utilized by you with regard to Company’s computer hardware and software so that the Company has immediate, full and complete
access to all of the Company’s data and information stored, used and maintained by you, or to which you had access. You agree that you will not access, or attempt to access, by any means, any of the Company’s computer systems. You agree
that, in the event you discover any other Company property in your possession after the date of this Agreement, you will immediately return such property to the Company. 

 

	8.	 You hereby re-affirm and acknowledge your obligations under any and all agreements you have with the Company to
keep it proprietary and confidential information confidential. Additionally, you hereby agree that, unless otherwise required by law, you will forever keep secret and inviolate all Confidential Information, which shall have come into your
possession, and you will not use the same for your own private benefit, directly or indirectly for the benefit of others, or in a manner detrimental to the Company. Furthermore, you will not disclose such Confidential Information to any other
person. The term “Confidential Information” shall include all confidential or proprietary information concerning the business and affairs of the Company, including without limitation, all trade secrets, know how and other information
generally retained on a confidential basis by the Company 

  
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concerning its products, services, investment and business strategies, methods, know-how, techniques, systems, software codes and specifications, formulae, inventions and discoveries, business
plans, pricing, product plans and the identities of and the nature of the Company’s dealings with its executives, Board members, portfolio companies, and customers, whether or not such information shall, in whole or in part, be subject to or
capable of being protected by patent, copyright or trademark laws, and regardless of whether such information contained a mark or stamp designating it as “confidential.” “Confidential Information” does not include any information
which at the time of disclosure or thereafter (i) is generally available to and known by the public, other than as a result of a disclosure directly or indirectly by you, (ii) is widely known within the industries in which the Company
operates, or you can demonstrate was otherwise known to you prior to becoming an employee of the Company, or (iii) becomes available to you on a non-confidential basis from a source (other than the Company or a Company employee or Board member)
that is not prohibited from disclosing such information to you by a legal, contractual or fiduciary obligation to the Company. The Company hereby acknowledges that nothing in this Agreement is intended to supersede any obligations to provide you
with indemnity and/or to defend you for acts taken by you in the course and scope of employment under any indemnity agreement or insurance the Company procured for such purpose. 

 

	9.	This Agreement does not prevent you from your right to file a claim or charge with, or testify, assist, or participate in an investigation, hearing, or proceeding with a federal, state or local agency or department;
although by signing this Agreement, you waive your right to intervene and/or to recover any damages or other relief in any charge, claim or suit brought by you or by or through any federal, state or local agency or department, except where
prohibited by law. You agree to release and discharge the Company not only from any and all claims which you could make on your own behalf, but also specifically waive any right to become, and promise not to become, a member of any class in any
proceeding or case in which a claim or claims against the Company may arise, in whole or in part, from any event which occurred prior to the date of this Agreement. If you are not permitted to opt-out of a future class, then you agree to waive any
recovery for which you would be eligible as a member of such class. 

  

	10.	You agree to reasonably cooperate with the Company and its counsel in the defense or prosecution of any claims or actions now in existence or which may be brought in the future against or on behalf of the Company which
relate in any way to events or occurrences that transpired while you were employed by the Company. Your cooperation in connection with such claims or actions will include, but not limited to, being available to meet with the Company’s counsel
to prepare for discovery or any legal proceeding, and to act as a witness on behalf of the Company at mutually convenient times. The Company will reimburse you for all reasonable, pre-approved out-of-pocket costs and expenses (but not including
attorneys’ fees and costs, or compensation for time) that you incur in connection with your obligations under this Section of the Agreement, to the extent permitted by law. 

 

	11.	This Agreement is intended to comply with the Older Workers’ Benefit Protection Act. You acknowledge that you have carefully read and fully understand the provisions of this Agreement. You understand that you are
releasing any and all claims that might be available to you under the Age Discrimination in Employment Act (ADEA). You are not releasing claims under the ADEA that may arise after you sign this Agreement. You have the right to, and you should,
consult with an attorney before signing this Agreement. You have twenty-one (21) days from the date you received this Agreement to consider it and consult with an attorney. If you choose to sign this document, you have seven (7) days
to change your mind and revoke the agreement. If you choose to revoke the Agreement, you must deliver by certified mail, return receipt requested, written notice of revocation to Joseph B. Armes at the Company’s corporate office address and by
email to joe.armes@cswindustrials.com. You also understand that payments to which you may become entitled by signing this Agreement will not be paid until after the seven (7) days during which you can revoke the Agreement. 

 

	12.	 You and the Company acknowledge that this Agreement constitutes the entire agreement between the parties and
supersedes all previous oral or written negotiations or communications between the parties, except to the extent otherwise stated herein. You acknowledge that the Company has made no promises or representations to you other than those contained in
this Agreement. You acknowledge and agree that you are signing the Agreement 

  
 -4- 

	 	
voluntarily and without any other promises or agreements from the Company. If for any reason a court of competent jurisdiction finds any provision of this Agreement or any portion of this
Agreement to be unenforceable, such provision will be enforced to the maximum extent permissible (if such provision cannot be enforced to any extent, it shall be severed) so as to implement the intentions of the parties, and the remainder will
continue in full force and effect. This Agreement shall be governed, interpreted and enforced in accordance with the laws of the State of Texas. The parties agree to exclusive, mandatory and sole jurisdiction and venue in Dallas, Texas, and agree
and consent to have all such disputes resolved in the courts of Dallas County, Texas. The parties further agree to waive a trial by jury and agree to have their any dispute between them determined by a judge. 

 

	13.	Notwithstanding any provision of this Agreement to the contrary, if, at the time of Employee’s termination of employment with the Company, she is a “specified employee” as defined in Section 409A of
the Internal Revenue Code of 1986, as amended (the “Code”), and one or more of the payments or benefits received or to be received by Employee pursuant to this Agreement would constitute deferred compensation subject to Section 409A,
no such payment or benefit will be provided under this Agreement until the earlier of (i) the date which is six (6) months after Employee’s “separation from service” for any reason, other than death or “disability”
(as such terms are used in Section 409A(a)(2) of the Code), or (ii) the date of Employee’s death or “disability” (as such term is used in Section 409A(a)(2)(C) of the Code). The provisions of this Section 13 shall
only apply to the extent required to avoid Employee’s incurrence of any penalty tax or interest under Section 409A of the Code or any regulations or Treasury guidance promulgated thereunder. In addition, if any provision of this Agreement
would cause Employee to incur any penalty tax or interest under Section 409A of the Code or any regulations or Treasury guidance promulgated thereunder, the Company shall reform such provision to maintain to the maximum extent practicable the
original intent of the applicable provision without violating the provisions of Section 409A of the Code. In the event that Employee incurs a termination of employment that does not constitute a “separation from service” as defined in
Section 409A of the Code, then the Employee’s rights to the compensation described in Section 2 shall vest as of the date on which the termination of employment occurs, but payment of any amounts that constitute deferred compensation
subject to Section 409A of the Code shall be deferred until the earlier of (i) the date on which the Employee incurs a separation from service as so defined (or six months thereafter if the first Section of this Section 13 applies),
or (ii) the date of the participant’s death. The determination of whether the Employee is a specified employee shall be made in accordance with Treasury Regulations §1.409A-1(i), with such modifications as may be elected by the
Company in accordance with §1.409A-1(i)(8). Any such election shall be deemed incorporated into this Agreement, and shall be binding upon both the Company and Employee. 

 

	    	The intent of the parties is to insure that the Agreement satisfies the requirements of Section 409A of the Code, and it shall be so interpreted. It is the understanding and intention of the parties that the
compensation to be paid to Employee pursuant to Section 2 is exempt from Section 409A as separation pay paid only on an involuntary separation from service pursuant to Treasury Regulations §1.409A-1(b)(9)(iii); however, upon
Employee’s termination of employment for any reason, the Company shall determine in good faith based upon existing authority whether such compensation is subject to Section 409A and, if the Company so determines, the provisions of the
Agreement applicable to deferred compensation subject to Section 409A of the Code shall apply. Notwithstanding the foregoing, in no event shall the Company be liable or responsible for any tax penalties imposed on the Employee pursuant to
Section 409A. 

 EMPLOYEE ACKNOWLEDGES AND WARRANTS THAT
HE/SHE HAS READ AND UNDERSTANDS THE EFFECTS OF THIS EMPLOYMENT
RELEASE AGREEMENT, HE/SHE HAS BEEN PROVIDED SUFFICIENT TIME TO CONSIDER
THE EMPLOYEE RELEASE AGREEMENT, AND EXECUTES THE SAME OF HIS/HER OWN
FREE WILL AND ACCORD FOR THE PURPOSES AND CONSIDERATION SET FORTH.
EMPLOYEE FURTHER ACKNOWLEDGES AND WARRANTS TO THE COMPANY THAT HAVING CAREFULLY
READ THIS EMPLOYMENT RELEASE AGREEMENT THAT HE/SHE FULLY UNDERSTANDS IT
TO BE AMONG OTHER THINGS A RELEASE OF ALL CLAIMS, KNOWN OR
UNKNOWN, THAT HE/SHE HAS OR MAY HAVE AGAINST THE PARTY OR
PARTIES RELEASED ARISING OUT OF THE MATTERS DESCRIBED. THIS AGREEMENT MAY
BE EXECUTED IN ONE OR MORE COUNTERPARTS, EACH OF WHICH SHALL BE
DEEMED TO BE AN ORIGINAL BUT ALL OF WHICH TOGETHER SHALL CONSTITUTE
THE SAME INSTRUMENT.  

  
 -5- 

 [SIGNATURE PAGE FOLLOWS] 

  
 -6- 

 The parties to this Agreement are executing this Agreement as of the date set forth below. 

 

			
	CSW INDUSTRIALS, INC.
		
	By:	 	/s/ Joseph B. Armes
	Joseph B. Armes
	Chairman and Chief Executive Officer
	
	Date: June 9, 2016

  

			
	Agreed and Accepted:
	
	 /s/ Kelly Tacke

	Kelly Tacke
	
	Date: June 9, 2016

  
 -7-

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