Document:

Employment Agreement with Richard Vilsoet

 

EXHIBIT 10.1

EMPLOYMENT AGREEMENT

          This employment agreement (the “Employment Agreement”) is made this 5th day of May, 2005, by
and between Richard B. Vilsoet (the “Employee”) and Dycom Industries, Inc., a Florida corporation
(the “Company”), pursuant to the terms hereof.

     1. Employment.

          Subject to the terms and conditions hereof, as of May 9, 2005 (the “Effective Date”), the
Company hereby agrees to employ the Employee and, effective as of May 23, 2005, the Employee will
become the General Counsel of the Company. The Employee agrees to perform such specific duties and
accept such responsibilities as the board of directors of the Company (the “Board”) and the Chief
Executive Officer may from time to time establish that are reasonably related and consistent with
the Employee’s position as the General Counsel of the Company. The Employee shall report directly
to the Chief Executive Officer. The Employee hereby accepts employment by the Company as General
Counsel, subject to the terms and conditions hereof, and agrees to devote his full business time
and attention to his duties hereunder, to the best of his abilities.

     2. Term of Employment.

          The Employee’s employment pursuant to the Employment Agreement shall commence on the Effective
Date and shall terminate upon the earlier to occur of (i) termination pursuant to paragraph 5
hereof or (ii) the fourth anniversary of the Effective Date; provided, however, that the term of
the Employee’s employment hereunder shall be automatically extended without further action of
either party for additional twelve month periods, unless written notice of either party’s intention
not to extend has been given to the other party hereto at least 60 days prior to the expiration of
the then effective term. The period commencing as of the Effective Date and ending on the fourth
anniversary of the Effective Date or such later date to which the term of the Executive’s
employment under this Agreement shall have been extended is hereinafter referred to as the
"Employment Term”.

     3. Compensation, Benefits and Expenses.

          (a) During the Employment Term, the Company shall pay the Employee a base annual salary of
$250,000 (the “Base Salary”). Payment will be made on the regularly scheduled pay dates of the
Company, subject to all appropriate withholdings or other deductions required by applicable law or
by the Company’s established policies applicable to employees of the Company. The Board may
increase the Base Salary in its sole discretion, but shall not reduce the Base Salary below the
rate established by the Employment Agreement without the Employee’s written consent.

          (b) During the Employment Term, the Employee shall be entitled to participate in the Company’s
annual incentive plan, under which the Employee shall be eligible to receive an annual target bonus
equal to an amount between twenty percent (20%) and fifty

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percent (50%) of Base Salary if certain performance criteria and measures are satisfied, as
determined by and within the sole discretion of the Board.

          (c) The Company shall promptly reimburse the Employee upon receipt of appropriate
documentation in accordance with Company policies for all reasonable and customary relocation
expenses that he may incur in relocating to Palm Beach Gardens, Florida in an amount not to exceed
$7,500.

          (d) During the Employment Term, in addition to the compensation payable to the Employee as
described above, the Employee shall be entitled to participate in all the employee benefit plans or
programs of the Company that are available to senior executives of the Company generally and such
other benefit plans or programs in accordance with the terms thereof, as may be specified by the
Board (“Employee Benefits”).

          (e) As of the Effective Date, the Board shall grant the Employee options (the “Options”) to
acquire 25,000 shares of common stock of the Company, with a per share exercise price equal to the
closing price of such stock on the Effective Date, pursuant to the Company’s 2003 Long Term
Incentive Plan (the “LTIP”). Such grant shall be subject to the terms and conditions of the award
agreement for the Option Plan, attached hereto as Exhibit A. In addition, during the Employment
Term, the Employee shall be eligible for subsequent annual option grants under the LTIP, or any
such successor stock option plan, at the time such grants are made under the LTIP to senior
executives of the Company generally, as determined by and within the sole discretion of the Board.

          (f) During the Employment Term, the Company shall reimburse the Employee for such reasonable
out-of-pocket expenses as he may incur from time to time for and on behalf of the furtherance of
the Company’s business, provided that the Employee submits to the Company satisfactory
documentation or other support for such expenses in accordance with the Company’s expense
reimbursement policy.

     4. Covenants of the Employee.

          (a) The Employee agrees with the Company that, during the Employment Term, the Employee shall
not directly or indirectly, whether as a proprietor, partner, joint venturer, employer, agent,
employee, consultant, officer or beneficial or record owner of more than one percent (1%) of the
stock of any corporation or association of any nature, engage in any business which is competitive
to the business conducted by the Company, its subsidiaries or its affiliates (collectively, the
"Companies”), in any geographic area in which the Companies have engaged or will engage during the
Employment Term (including, without limitation, any area in which any customer of the Companies may
be located).

          (b) The Employee agrees with the Company that at no time during the Employment Term, or
following his termination of employment with the Company, will the Employee directly or indirectly
divulge to any person, entity or other organization or appropriate for the Employee’s own use or
for the use of others any trade secrets or confidential information or confidential knowledge
pertaining to the business of the Companies (collectively, the

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"Proprietary Information”). The Employee shall retain all copies and extracts of any written
confidential information acquired or developed by him during his employment for the sole benefit of
the Companies. The Employee further agrees that he will not remove or take from the Companies’
premises (or, if previously removed or taken, he will, at the Company’s request, promptly return)
any written confidential information or any copies or extracts thereof. The Employee shall
promptly make all disclosures, execute all instruments and papers, and perform all acts reasonably
necessary to vest and confirm to the Company, fully and completely, all rights created or
contemplated by this paragraph 4(b).

          (c) In the event the Employee resigns his employment with the Company for any reason, or if
the Company terminates his employment without Cause (as defined below), the Employee separately
agrees, being fully aware that the performance of the Employment Agreement is important to preserve
the present value of the property and business of the Company that for a period of twelve (12)
calendar months following such termination or the balance of the Employment Term, whichever is less
(the “Restricted Period”), the Employee shall not directly or indirectly engage in any business,
whether as proprietor, partner, joint venturer, employer, agent, employee, consultant, officer or
beneficial or record owner of more than one percent (1%) of the stock of any corporation or
association of any nature which is competitive to the business conducted by the Companies, in the
geographical service area in which the Companies have engaged or will engage during such period
(including, without limitation, any area in which any such customer of the Companies may be
located).

          (d) As a separate and independent covenant, the Employee agrees with the Company that, for so
long as the Employee is employed by the Company and for the Restricted Period, he will not in any
way, directly or indirectly, for the purpose of conducting or engaging in any competitive business
with the Companies, call upon, solicit, advise or otherwise do, or attempt to do, business with any
person who is, or was, during the then most recent 12-month period, a customer of the Companies, or
solicit, induce, hire, attempt to hire, interfere with or attempt to interfere with, any person who
is, or was during the then most recent 12-month period, an employee, officer, representative or
agent of the Companies.

          (e) The Employee agrees that the breach by the Employee of any of the foregoing covenants is
likely to result in immediate and irreparable harm, directly or indirectly, to the Companies. The
Employee, therefore, consents and agrees that if the Employee violates any of such covenants, the
Companies shall be entitled, among and in addition to any other rights or remedies available under
the Employment Agreement or at law or in equity, to temporary and permanent injunctive relief,
without bond or other security, to prevent the Employee from committing or continuing a breach of
such covenants. Such injunctive relief in any court shall be available to the Companies, in lieu
of, or prior to or pending determination in, any arbitration proceeding.

          (f) It is the desire, intent and agreement of the Employee and the Company that the
restrictions placed on the Employee by this paragraph 4 be enforced to the fullest extent
permissible under the law and public policy applied by any jurisdiction in which enforcement is
sought. Accordingly, if and to the extent that any portion of this paragraph 4 shall be
adjudicated to be unenforceable, such portion shall be deemed amended to delete therefrom or to
reform the

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portion thus adjudicated to be invalid or unenforceable, such deletion or reformation to apply only
with respect to the operation of such portion in the particular jurisdiction in which such
adjudication is made.

          (g) Except with respect to the equitable relief contemplated under paragraph 4(e), any
controversy or claim arising out of or relating to the Employment Agreement shall be resolved by
arbitration in Palm Beach County, Florida, in accordance with the rules then in effect of the
American Arbitration Association, and judgment upon the award rendered may be entered in any court
having jurisdiction thereon. The prevailing party in any such arbitration proceeding will be
reimbursed by the other party hereto for its reasonable attorney fees and fees and costs incurred
attributable to such arbitration.

     5. Termination.

          (a) Termination for Cause. The Company shall have the right to terminate the Employee’s
employment at any time and for any reason. If the Employee is terminated for Cause (as defined
below), the Company shall not have any obligation to pay the Employee any Base Salary or other
compensation or to provide any employee benefits subsequent to the date of such Employee’s
termination of employment (unless required by applicable law), including, without limitation,
Severance Benefits (as defined in paragraph 5(b) hereof). Termination for “Cause” shall mean
termination of employment for any of the following reasons:

(i) The Employee entering a plea of no-contest with respect to, or being convicted
by a court of competent and final jurisdiction of, any crime, whether or not
involving the Companies, that constitutes a felony in the jurisdiction involved; or

(ii) any willful misconduct by the Employee that is injurious to the financial
condition or business reputation of the Company.

          (b) Termination Without Cause. Subject to the provisions of paragraph 5(c), if, prior to the
expiration of the Employment Term, the Company terminates the Employee’s employment without Cause,
the Company shall, subject to the Employee’s execution of a general release of claims against the
Company in a form satisfactory to the Company, provide the Employee with Severance Benefits.
"Severance Benefits” mean (i) if the Company terminates the Employee’s employment without Cause
during the period beginning on the Effective Date up to and including the second anniversary of the
Effective Date, Base Salary for twenty four(24) months, or (ii) if the Company terminates the
Employee’s employment without Cause at any time immediately following day after the second
anniversary of the Effective Date, Base Salary for twelve (12) months; provided, however, in either
case that if the Employee is entitled to a greater number of severance payments pursuant to the
Company’s severance plan, if any, he will be entitled to receive the severance payments payable
under such severance plan (such period under clauses (i) or (ii) or under any Company severance
plan, as applicable, being referred to hereunder as the “Severance Period”). The Severance
Benefits shall be paid at the rate of Base Salary then in effect thirty (30) days prior to such
termination, and shall be paid at the same intervals as would have been paid had the Employee
remained in the employment of the

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Company. The Company shall also provide the Employee and his eligible dependents with group
medical and life insurance after termination of the Employee’s employment without Cause (to the
extent such eligible dependents were participating in the Company’s group medical and life
insurance programs prior to the Employee’s termination of employment), until the Employee becomes
eligible for similar coverage as the result of the Employee accepting another position with a new
employer or until the termination of the applicable Severance Period, whichever shall occur first.

          (c) Conditions Applicable to Severance Period. If, during the Severance Period, the Employee
breaches any of his obligations under the Employment Agreement (including, but not limited to,
paragraph 4), the Company may, upon written notice to the Employee terminate the Severance Period
and cease to make any payments or provide the benefits in paragraph 5(b).

          (d) Resignation by the Employee. In the event the Employee resigns his employment with the
Company, the Employee: (i) shall provide the Company with sixty (60) days’ prior written notice;
(ii) shall not make any public announcements concerning his resignation prior to the resignation
date without the written consent of the Company and (iii) shall continue to perform faithfully the
duties assigned to him under the Employment Agreement (or such other duties as the Company or Board
may assign to the Employee) from the date of such notice until the termination date. In addition,
in the event the Employee resigns his employment with the Company for any reason, the Company shall
not have any obligation to pay the Employee any Base Salary or other compensation or to provide any
employee benefits subsequent to the date of such Employee’s termination of Employment (unless
required by applicable law), including, without limitation, Severance Benefits (as defined in
paragraph 5(b) hereof).

          (e) Termination Upon Death or Disability. Unless otherwise terminated earlier pursuant to the
terms of the Employment Agreement, the Employee’s employment under the Employment Agreement shall
terminate upon his death and may be terminated by the Company upon giving not less than thirty (30)
days’ written notice to the Employee in the event that the Employee, because of physical or mental
disability or incapacity, is unable to perform (or, in the opinion of a physician, is reasonably
expected to be unable to perform) his duties hereunder for an aggregate of one hundred eighty (180)
days during any twelve-month period (“Disabled”). All questions arising with respect to whether
the Employee is Disabled shall be determined by a reputable physician mutually selected by the
Company and the Employee at the time such question arises. If the Company and the Employee cannot
agree upon the selection of a physician within a period of seven (7) days after such question
arises, then the Chief of Staff of Good Samaritan Hospital in Palm Beach County, Florida shall be
asked to select a physician to make such determination. The determination of the physician
selected pursuant to the above provisions of this paragraph 5(e) as to such matters shall be
conclusively binding upon the parties hereto.

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          (f) Termination Upon a Change of Control. In the event of a “Change of Control,”
notwithstanding any provisions in the LTIP or any successor stock option plan to the contrary, all
outstanding Options under the LTIP or any successor stock option plan, to the extent not already
vested, shall become fully and immediately vested as of the date of the occurrence of a Change of
Control. For purposes of the Employment Agreement, a “Change of Control” shall be deemed to have
occurred with respect to the Company if any one or more of the following events occur:

(i) A tender offer is made and consummated for the ownership of fifty percent (50%)
or more of the outstanding voting securities of the Company;

(ii) a “person,” within the meaning of Section 3(a)9 or Section 13(d) (as in effect
on the date hereof) of the Securities Exchange Act of 1934, shall acquire fifty
percent (50%) or more of the outstanding voting securities of the Company;

(iii) substantially all of the assets of the Company are sold or transferred to
another person, corporation or entity that is not a wholly owned subsidiary of the
Company; or

(iv) a change in the Board such that a majority of the seats on the Board are
occupied by individuals who were neither nominated by a majority of the directors of
the Company as of the close of business on the Effective Date nor appointed by
directors so nominated.

     6. Assignment and Succession.

          (a) The services to be rendered and obligations to be performed by the Employee under the
Employment Agreement are special and unique, and all such services and obligations and all of the
Employee’s rights under the Employment Agreement are personal to the Employee and shall not be
assignable or transferable. In the event of the Employee’s death, however, the Employee’s personal
representative shall be entitled to receive any and all payments then due under the Employment
Agreement.

          (b) The Employment Agreement shall inure to the benefit of and be binding upon and enforceable
by the Company and the Employee and their respective successors, permitted assigns, heirs, legal
representatives, executors, and administrators. If the Company shall be merged into or
consolidated with another entity, the provisions of the Employment Agreement shall be binding upon
and inure to the benefit of the entity surviving such merger or resulting from such consolidation.
The Company will require any successor (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to expressly assume and agree to perform the Employment Agreement in
the same manner that the Company would be required to perform it if no such succession had taken
place. The provisions of this paragraph 6(b) shall continue to apply to each subsequent Company of
the Employee hereunder in the event of any subsequent merger, consolidation, or transfer of assets
of such subsequent Company.

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     7. Notices.

          All notices, requests, claims, demands and other communications hereunder shall be in writing
and shall be given (and shall be deemed to have been duly given upon receipt) by delivery in
person, by cable, telegram or telex or by registered or certified mail (postage prepaid, return
receipt requested) to the respective parties at the following addresses (or at such other address
for a party as shall be specified in a notice given in accordance with this paragraph 7):

if to the Company:

Dycom Industries, Inc.

First Union Center, Suite 500

4440 PGA Boulevard

Palm Beach Gardens, Florida 33410

Attention: Steven E. Nielsen

if to the Employee:

Richard B. Vilsoet

Gables Floresta, Apartment 2003

400 Via Royale

Jupiter, Florida 33458

     8. Waiver of Breach.

          (a) The waiver by the Company or the Employee of a breach of any provision of the Employment
Agreement shall not operate or be construed as a waiver by such party of any subsequent breach.

          (b) The parties hereto recognize that the laws and public policies of various jurisdictions
may differ as to the validity and enforceability of covenants similar to those set forth herein.
It is the intention of the parties that the provisions hereof be enforced to the fullest extent
permissible under the laws and policies of each jurisdiction in which enforcement may be sought,
and that the unenforceability (or the modification to conform to such laws or policies) of any
provisions hereof shall not render unenforceable, or impair, the remainder of the provisions
hereof. Accordingly, if, at the time of enforcement of any provision hereof, a court of competent
jurisdiction holds that the restrictions stated herein are unreasonable under circumstances then
existing, the parties hereto agree that the maximum period, scope or geographic area reasonable
under such circumstances will be substituted for the stated period, scope or geographical area and
that such court shall be allowed to revise the restrictions contained herein to cover the maximum
period, scope and geographical area permitted by law.

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     9. Amendment.

          The Employment Agreement may be amended only by a written instrument signed by all parties
hereto.

     10. Full Settlement.

          The Company’s obligation to pay the Employee the amounts required by the Employment Agreement
shall be absolute and unconditional and shall not be affected by any circumstances, including,
without limitation, any setoff, counterclaim, recoupment, defense or other right which the Company
may have against the Employee or anyone else. All payments and benefits to which the Employee is
entitled under the Employment Agreement shall be made and provided without offset, deduction, or
mitigation on account of income that the Employee may receive from employment from the Company or
otherwise.

     11. Other Severance Benefits.

          In consideration for the payments to be made to the Employee under the Employment Agreement,
in the event the Employee receives severance payments pursuant to Section 5(b)(i) or (ii) of the
Employment Agreement, the Employee agrees to waive any and all rights to any payments or benefits
under any other severance plan, program or arrangement of the Companies.

     12. Governing Law; Jurisdiction and Service of Process.

          The Employment Agreement shall be subject to the laws of the State of Florida applicable to
contracts executed in and to be performed in that State.

     13. Authority to Enter into Employment Agreement.

          The Employee represents and warrants that he is not subject to any employment agreements,
non-competition agreements or any other agreement or understanding, whether or not in writing, that
would prevent him from entering into the Employment Agreement and performing the duties hereunder.

     14. Partial Invalidity.

          The invalidity or unenforceability of any provision hereof shall in no way affect the validity
or enforceability of any other provision.

     15. Withholding.

          The payment of any amount pursuant to the Employment Agreement shall be subject to applicable
withholding and payroll taxes, and such other deductions as may be required under the Company’s
employee benefit plans, if any.

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     16. Counterparts.

          The Employment Agreement may be executed in two or more counterparts, each of which shall be
deemed an original but all of which together shall constitute one and the same instruments.

     17. Entire Agreement.

          All prior negotiations and agreements between the parties hereto with respect to the matters
contained herein are superseded by the Employment Agreement, and there are no representations,
warranties, understandings or agreements other than those expressly set forth herein.

     18. Jobs Act Compliance.

          If the Company determines in its good faith judgment that any provision of this Agreement
contravenes the final regulations anticipated to be promulgated under the Jobs Act, or other
Department of Treasury guidance, the Company shall, without the Employee’s consent, reform this
Agreement or any provisions hereof to maintain to the maximum extent practicable the original of
the provision without violating Section 409A of the Code.

          IN WITNESS WHEREOF, the parties have entered into this Employment Agreement as of the date set
forth above.

	 	 	 	 	 
	 	DYCOM INDUSTRIES, INC.

 	 
	 	By:  	/s/ Steven E. Nielsen
 	 
	 	 	Name:  	Steven E. Nielsen 	 
	 	 	Title:  	President and Chief Executive Officer 	 
	 
	 	AGREED AND ACCEPTED

	 	/s/
Richard B. Vilsoet
 
	 	Richard B. Vilsoet

 	 
	 	 	 
	 	 	 
	 	 	 

9Amended & Restated 1997 Executive Stock Plan

 

Exhibit 10.1

HUGHES SUPPLY, INC. 1997 EXECUTIVE STOCK PLAN

Amended and Restated Plan

(as amended through March 1, 2005)

SECTION 1. BACKGROUND AND PURPOSE

     The name of this Plan is the Hughes Supply, Inc. 1997 Executive Stock Plan (the “Plan”). The
purpose of this Plan is to promote the interest of the Company and its Subsidiaries through grants
to Key Employees and Non-Employee Directors of Options to purchase Stock, grants of stock
appreciation rights and grants of Restricted Stock, including Performance-Based Restricted Stock,
in order (1) to attract and retain Key Employees and Non-Employee Directors, (2) to provide an
additional incentive to Key Employees and Non-Employee Directors to work to increase the value of
Stock and (3) to establish or increase Key Employees’ and Non-Employee Directors’ stake in the
future of the Company which corresponds to the stake of the Company’s shareholders.

SECTION 2. DEFINITIONS 

     Each term set forth in this Section 2 shall have the meaning set forth opposite such term for
purposes of this Plan and, for purposes of such definitions, the singular shall include the plural
and the plural shall include the singular.

     2.1 Board — means the Board of Directors of the Company.

     2.2 Cause — means any of the following:

     (a) willful or gross neglect by the Key Employee of his duties;

     (b) conviction of the Key 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 Key Employee of the terms of an employment agreement between
the Key Employee and the Company;

     (d) willful misconduct by the Key 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 thirty (30) days
following written notice;

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     (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 Key Employee to comply with the policies and procedures of the
Company which may be in effect from time to time.

     2.3 Change in Control  — means the first to occur of the following events:

     (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 fifty
percent (50%) 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 fifty percent (50%) 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 twelve (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 forty percent (40%) 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):

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     (i) a transfer of assets from the Company to a shareholder of the Company (determined
immediately before the asset transfer);

     (ii) a transfer of assets from the Company to an entity, fifty percent (50%) or more of the
total value or voting power of which is owned, directly or indirectly, by the Company;

     (iii) a transfer of assets from the Company to a person, or more than one person acting as a
group, that owns, directly or indirectly, fifty percent (50%) or more of the total value or voting
power of all the outstanding stock of the Company; or

     (iv) a transfer of assets from the Company to an entity, at least fifty percent (50%) of the
total value or voting power of which is owned, directly or indirectly, by a person described in
(iii) above.

     2.4 Change in Control Price — means, as determined by the Board,

     (a) the highest Fair Market Value of a share of Stock within the 60-day period immediately
preceding the date of determination of the Change in Control Price by the Board (the “60-Day
Period”), or

     (b) the highest price paid or offered per share of Stock, as determined by the Board, in any
bona fide transaction or bona fide offer related to the Change in Control, at any time within the
60-Day Period, or

     (c) some lower price as the Board, in its discretion, determines to be a reasonable estimate
of the Fair Market Value of a share of Stock.

     2.5 Chief Executive Officer — means the Chief Executive Officer of the Company.

     2.6 Code  — means the Internal Revenue Code of 1986, as amended.

     2.7 Committee — means the Compensation Committee of the Board to which the
responsibility to administer this Plan is delegated by the Board and which shall consist of at
least two members of the Board all of whom are “outside directors” within the meaning of Code
Section 162(m).

     2.8 Company — means Hughes Supply, Inc., a Florida company, and any successor to such
corporation.

     2.9 Disability — has the same meaning as provided in the long-term disability plan or
policy maintained or, if applicable, most recently maintained, by the Company or, if applicable,
any affiliate of the Company for the Grantee. If no

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long-term disability plan or policy was ever maintained on behalf of the Grantee or, if the
determination of Disability relates to an ISO, Disability shall mean that condition described in
Code Section 22(e)(3), as amended from time to time. In the event of a dispute, the determination
of Disability shall be made by the Board and shall be supported by advice of a physician competent
in the area to which such Disability relates.

     2.10 Exchange Act — means the Securities Exchange Act of 1934, as amended.

     2.11 Fair Market Value — refers to the determination of value of a share of Stock.
If the Stock is actively traded on any national securities exchange or any Nasdaq quotation or
market system, Fair Market Value shall mean the closing price at which sales of Stock shall have
been sold on the most recent trading date immediately prior to the date of determination, as
reported by any such exchange or system selected by the Committee on which the shares of Stock are
then traded. If the shares of Stock are not actively traded on any such exchange or system, Fair
Market Value shall mean the arithmetic mean of the bid and asked prices for the shares of Stock on
the most recent trading date within a reasonable period prior to the determination date as reported
by such exchange or system. If there are no bid and asked prices within a reasonable period or if
the shares of Stock are not traded on any exchange or system as of the determination date, Fair
Market Value shall mean the fair market value of a share of Stock as determined by the Committee
taking into account such facts and circumstances deemed to be material by the Committee to the
value of the Stock in the hands of the Grantee; provided that, for purposes of granting awards
other than ISOs, Fair Market Value of a share of Stock may be determined by the Committee by
reference to the average market value determined over a period certain or as of specified dates, to
a tender offer price for the shares of Stock (if settlement of an award is triggered by such an
event) or to any other reasonable measure of fair market value and provided further that, for
purposes of granting ISOs, Fair Market Value of a share of Stock shall be determined in accordance
with the valuation principles described in the regulations promulgated under Code Section 422.

     2.12 Family Member — means any child, stepchild, grandchild, parent, stepparent,
grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law,
son-in-law, brother-in-law, or sister-in-law of the Grantee, including adoptive relationships, any
person sharing the Grantee’s household (other than a tenant or employee), a trust in which these
persons have more than fifty percent of the beneficial interest, a foundation in which these
persons (or the Grantee) control the management of assets, and any other entity in which these
persons (or the Grantee) own more than fifty percent of the voting interests.

     2.13 Grantee — means a Key Employee or Non-Employee Director who receives a grant of
an Option, a SAR or Restricted Stock.

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     2.14 ISO — means an option granted under this Plan to purchase Stock which is
evidenced by an Option Agreement which provides that the option is intended to satisfy the
requirements for an incentive stock option under Section 422 of the Code.

     2.15 Key Employee — means any employee of the Company or any Subsidiary, or any
Outside Consultant, who, in the judgment of the Committee acting in its absolute discretion is a
key to the success of the Company or such Subsidiary.

     2.16 Non-Employee Director — means a member of the Board who, on the date of
determination, is not an employee of the Company.

     2.17 NQO — means an option granted under this Plan to purchase Stock which is
evidenced by an Option Agreement which provides that the option shall not be treated as an
incentive stock option under Section 422 of the Code.

     2.18 Option — means an ISO or a NQO.

     2.19 Option Agreement — means the written agreement or instrument which sets forth
the terms of an Option granted to a Grantee under Section 7 of this Plan.

     2.20 Option Price — means the price which shall be paid to purchase one share of
Stock upon the exercise of an Option granted under this Plan.

     2.21  Outside Consultant — means an independent contractor that regularly performs
services for, provides goods to, or purchases goods or services from, the Company or any
Subsidiary.

     2.22 Parent Corporation — means any corporation which is a parent of the Company
within the meaning of Section 424(e) of the Code.

     2.23 Performance-Based Restricted Stock — means Stock granted to a Grantee under
Section 8.2 of this Plan.  

     2.24 Plan — means this Hughes Supply, Inc. 1997 Executive Stock Plan, as amended from
time to time.

     2.25 Restricted Stock — means Stock granted to a Grantee under Section 8 of this
Plan, including Performance-Based Restricted Stock.

     2.26 Restricted Stock Agreement — means the written agreement or instrument which
sets forth the terms of a Restricted Stock grant to a Grantee under Section 8 of this Plan.

5

 

     2.27 Retirement — means a Key Employee’s termination of employment, other than a
termination for Cause, after the attainment of age fifty-five (55) if the sum of the Key Employee’s
age and number of years of full-time employment by the Company equals or exceeds seventy (70);
provided, however, that the Committee shall have the authority, but not the obligation, to treat a
Key Employee’s termination of employment, other than a termination for Cause, as a Retirement
notwithstanding the fact that the Key Employee has not attained age fifty-five (55), or the sum of
the Key Employee’s age and number of years of full-time employment by the Company does not equal or
exceed seventy (70), if the Committee, acting in its absolute discretion determines that such
action is appropriate under the circumstances. 

     2.28 Rule 16b-3 — means the exemption under Rule 16b-3 to Section 16(b) of the
Exchange Act or any successor to such rule.

     2.29 SAR — means a right which is granted pursuant to the terms of Section 7 of this
Plan to the appreciation in the Fair Market Value of a share of Stock in excess of the SAR Share
Value for such a share.

     2.30 SAR Agreement — means the written agreement or instrument which sets forth the
terms of a SAR granted to a Grantee under Section 7 of this Plan.

     2.31 SAR Share Value — means the figure which is set forth in each SAR Agreement and
which is no less than the Fair Market Value of a share of Stock on the date the related SAR is
granted.

     2.32 Stock — means the One Dollar ($1.00) par value common stock of the Company.

     2.33 Subsidiary — means any corporation which is a subsidiary corporation (within the
meaning of Section 424(f) of the Code) of the Company except a corporation which has subsidiary
corporation status under Section 424(e) of the Code exclusively as a result of the Company or its
subsidiary holding stock in such corporation as a fiduciary with respect to any trust, estate,
conservatorship, guardianship or agency.

     2.34 Ten Percent Shareholder — means a person who owns (after taking into account the
attribution rules of Section 424(d) of the Code) more than ten percent of the total combined voting
power of all classes of stock of either the Company, a Subsidiary or a Parent Corporation.

     2.35 Vesting Date — means:

     (a) with respect to an Option, the date on which the Option grant would become fully vested in
accordance with the terms set forth in the Option

6

 

Agreement pursuant to Section 7.7(a) without regard to termination of the Grantee’s employment
prior to such date; or

     (b) with respect to Restricted Stock, the date on which the Restricted Stock would become
fully vested as a result of satisfaction of the forfeiture conditions set forth in the Restricted
Stock Agreement pursuant to Section 8.2(d) or Section 8.3(c) without regard to termination of the
Grantee’s employment prior to such date.

SECTION
3. SHARES RESERVED UNDER PLAN 

     There shall be 6,500,000 shares of Stock reserved for use under this Plan. All such shares of
Stock shall be reserved to the extent that the Company deems appropriate from authorized but
unissued shares of Stock and from shares of Stock which have been reacquired by the Company.
Furthermore, any shares of Stock subject to an Option which remain unissued after the cancellation,
expiration or exchange of such Option and any Restricted Shares which are forfeited thereafter
shall again become available for use under this Plan, but any shares of Stock used to satisfy a
withholding obligation under Section 14.3 shall not again become available for use under this Plan.
The exercise of a SAR or a surrender right in an Option with respect to any shares of Stock shall
be treated for purposes of this Section 3 the same as the exercise of an Option for the same number
of shares of Stock.

SECTION 4. EFFECTIVE DATE

     This Plan was originally effective on April 2, 1997, and was amended and restated effective
April 9, 2003. The Plan shall be amended and restated effective March 1, 2005.

SECTION 5. COMMITTEE

     This Plan shall be administered by the Committee. The Committee acting in its absolute
discretion shall exercise such powers and take such action as expressly called for under this Plan
and, further, the Committee shall have the power to interpret this Plan and (subject to Section 11,
Section 12 and Section 13) to take such other action in the administration and operation of this
Plan as the Committee deems equitable under the circumstances, which action shall be binding on the
Company, on each affected Key Employee or Non-Employee Director and on each other person directly
or indirectly affected by such action. The Committee shall use its best efforts to grant Options,
SARs and Restricted Stock under this Plan to a Grantee which will qualify as “performance-based
compensation” for purposes of Section 162(m) of the Code, except where the Committee deems that the
Company’s interests when viewed broadly will be better served by a grant which is free of the

7

 

conditions required to so qualify any such grant for purposes of Section 162(m) of the Code.

SECTION 6. ELIGIBILITY

     Only Key Employees and Non-Employee Directors shall be eligible for the grant of Options, SARs
or Restricted Stock under this Plan.

SECTION 7. OPTIONS AND SARs

     7.1 Options. The Committee acting in its absolute discretion shall have the right to
grant Options to Key Employees and Non-Employee Directors under this Plan from time to time to
purchase shares of Stock; provided, however, the Committee shall not grant an ISO to an Outside
Consultant or a Non-Employee Director. Each grant of an Option shall be evidenced by an Option
Agreement, and each Option Agreement shall set forth whether the Option is an ISO or a NQO and
shall set forth such other terms and conditions of such grant as the Committee acting in its
absolute discretion deems consistent with the terms of this Plan.

     7.2 $100,000 Limit. The aggregate Fair Market Value of ISOs granted to a Key Employee
under this Plan and incentive stock options granted to such Key Employee under any other stock
option plan adopted by the Company, a Subsidiary or a Parent Corporation which first become
exercisable in any calendar year shall not exceed $100,000; provided, however, that if the
limitation is exceeded, the ISOs which cause the limitation to be exceeded will be treated as NQOs.
Such Fair Market Value figure shall be determined by the Committee on the date the ISO or other
incentive stock option is granted, and the Committee shall interpret and administer the limitation
set forth in this Section 7.2 in accordance with Section 422(d) of the Code.

     7.3 Share Limitation. A Key Employee or Non-Employee Director may be granted in any
calendar year one or more Options, or one or more SARs, or one or more Options and SARs in any
combination which, individually or in the aggregate, relate to no more than 100,000 shares of
Stock.

     7.4 Option Price. Subject to adjustment in accordance with Section 11, the Option Price
for each share of Stock subject to an Option must be set forth in the applicable Option Agreement.
In no event shall the Option Price for each share of Stock subject to an ISO be less than the Fair
Market Value of a share of Stock on the date the Option ISO is granted. With respect to each grant
of an ISO to a Key Employee who is a Ten Percent Shareholder, the Option Price must not be less
than 110% of the Fair Market Value of a share of Stock as of the date the Option is granted. With
respect to each grant of a NQO, the Committee is authorized to
establish any Option Price, in its sole discretion. The Option Price may not be

8

 

amended or modified after the grant of
the Option, and an Option may not be surrendered in consideration of or exchanged for a grant of a
new Option having an Option Price below that of the Option which was surrendered or exchanged.

     7.5 Payment. The Option Price shall be payable in full upon the exercise of any
Option, and an Option Agreement at the discretion of the Committee can provide for the payment of
the Option Price:

     (a) in cash or by a check acceptable to the Company or its designee,

     (b) through the delivery or attestation to the ownership of Stock which has been held by the
Grantee for a period acceptable to the Company and which Stock or attestation is otherwise
acceptable to the Company or its designee,

     (c) through a broker facilitated exercise procedure acceptable to the Company, or

     (d) in any combination of the three methods described in this Section 7.5 which is acceptable
to the Company or its designee.

Any payment made in or by attestation to the ownership of Stock shall be treated as equal to the
Fair Market Value of such Stock on the date the indicia of ownership of such Stock or the
attestation is delivered to the Company or its designee in a form acceptable to the Company or its
designee.

     7.6 Exercise Period. Any ISO granted to a Key Employee who is not a Ten Percent
Shareholder is not exercisable after the expiration of ten (10) years after the date the Option is
granted. Any ISO granted to a Key Employee who is a Ten Percent Shareholder is not exercisable
after the expiration of five (5) years after the date the Option is granted. The term of any NQO
must be specified in the applicable Option Agreement. The date an Option is granted is the date on
which the Committee has approved the terms and conditions of the Option and has determined the
recipient of the Option and the number of Shares of Stock covered by the Option.

     7.7 Conditions to Exercise of an Option.

     (a) Each Option granted under the Plan is exercisable by whom, at such time or times, or upon
the occurrence of such event or events, and in such amounts as the Committee shall specify in the
Option Agreement; provided, however, that subsequent to the grant of an Option, the Committee, at
any time before complete termination of the Option, may accelerate the time or times at which such
Option may be exercised in whole or in part, including, without limitation, upon a Change in Control and may permit the Grantee or any other

9

 

designated person
to exercise the Option, or any portion thereof, for all or part of the remaining Option term,
notwithstanding any provisions in the Option Agreement to the contrary.

     (b) In the event of termination of employment of a Key Employee due to Retirement prior to the
Vesting Date of the Option held by such Key Employee:

     (1) on the Vesting Date, such Option will become partially vested, with the vested percentage
of such Option determined by the ratio that the period from the date such Option is granted to the
date of Retirement bears to the period from the date such Option is granted to the Vesting Date;

     (2) on the date of Retirement, the portion of such Option that will not become vested in
accordance with Section 7.7(b)(1) will immediately expire and terminate; and

     (3) the portion of such Option that becomes vested in accordance with Section 7.7(b)(1) will
expire, terminate and become unexercisable one (1) year after the Vesting Date.

     7.8 Termination of an ISO. Except as otherwise provided above in Section 7.7(b), with
respect to an ISO, in the event of termination of employment of a Key Employee, the Option or
portion thereof held by the Key Employee which is unexercised will expire, terminate, and become
unexercisable no later than the expiration of three (3) months after the date of termination of
employment; provided, however, that in the case of a holder whose termination of employment is due
to death or Disability, one (1) year shall be substituted for such three (3) month period. For
purposes of this Section 7.8, termination of employment by the Key Employee will not be deemed to
have occurred if the Key Employee is employed by another corporation (or a parent or subsidiary
corporation of such other corporation) which has assumed the ISO of the Key Employee in a
transaction to which Code Section 424(a) is applicable.

     7.9 Special Provisions for Certain Substitute Options. Notwithstanding anything to
the contrary in Section 7, any Option issued in substitution for an option previously issued by
another entity, which substitution occurs in connection with a transaction to which Code Section
424(a) is applicable, may provide for an exercise price computed in accordance with Code Section
424(a) and the regulations thereunder and may contain such other terms and conditions as the
Committee may prescribe to cause substitute Option to contain as nearly as possible the same terms
and conditions (including the applicable vesting and termination provisions) as those conditions in
the previously issued option being replaced thereby.

10

 

     7.10 Nontransferability. Except to the extent the Committee deems permissible under
Section 422(b) of the Code and consistent with the best interests of the Company, neither an Option
granted under this Plan, and any related surrender rights, nor a SAR granted under this Plan shall
be transferable by a Grantee other than by will or by the laws of descent and distribution, and
such Option and any such surrender rights and any such SAR shall be exercisable during a Grantee’s
lifetime only by the Grantee. To the extent authorized by the Committee in its sole discretion, an
Option granted under this Plan, and any related surrender rights, or a SAR granted under this Plan
may be transferred or assigned to one or more Family Members of the Grantee, provided any such
transfer or assignment is made without consideration to the Grantee. The Family Member or Family
Members to whom an Option or a SAR is transferred thereafter shall be treated as the Grantee under
this Plan.

     7.11 SARs and Surrender Rights.

     (a) SARs. The Committee acting in its absolute discretion may grant a Key Employee or
Non-Employee Director a SAR which will give the Grantee the right to the appreciation in one, or
more than one, share of Stock, and any such appreciation shall be measured from the related SAR
Share Value. The Committee shall have the right to make any such grant subject to such additional
terms as the Committee deems appropriate, and such terms shall be set forth in the related SAR
Agreement.

     (b) Option Surrender Rights. The Committee acting in its absolute discretion also may
incorporate a provision in an Option Agreement to give a Grantee the right to surrender his or her
Option in whole or in part in lieu of the exercise (in whole or in part) of that Option to purchase
Stock on any date that

     (1) the Fair Market Value of the Stock subject to such Option exceeds the Option Price for
such Stock, and

     (2) the Option to purchase such Stock is otherwise exercisable.

     (c) Procedure. The exercise of a SAR or a surrender right in an Option shall be
effected by the delivery of the related SAR Agreement or Option Agreement to the Committee (or to
its delegate) together with a statement signed by the Grantee which specifies the number of shares
of Stock as to which the Grantee, as appropriate, exercises his or her SAR or exercises his or her
right to surrender his or her Option and (at the Grantee’s option) how he or she desires payment to
be made with respect to such shares.

11

 

     (d) Payment. A Grantee who exercises his or her SAR or right to surrender his or her
Option shall (to the extent consistent with the exemption under Rule 16b-3) receive a payment in
cash or in Stock, or in a combination of cash and Stock, equal in amount on the date such exercise
is effected to: (i) the number of shares of Stock with respect to which, as applicable, the SAR or
the surrender right is exercised times (ii) the excess of the Fair Market Value of a share of Stock
on such date over, as applicable, the SAR Share Value for a share of Stock subject to the SAR or
the Option Price for a share of stock subject to an Option. Unless otherwise specified by the
Committee acting in its absolute discretion, the Company shall determine the form and timing of
such payment, and the Company shall have the right (1) to take into account whatever factors the
Company deems appropriate under the circumstances, including any written request made by the
Grantee and delivered to the Company and (2) to forfeit a Grantee’s right to payment of cash in
lieu of a fractional share of stock if the Company deems such forfeiture necessary in order for the
surrender of his or her Option under this Section 7.11 to come within the exemption under Rule
16b-3. Any cash payment under this Section 7.11 shall be made from the Company’s general assets,
and a Grantee shall be no more than a general and unsecured creditor of the Company with respect to
such payment.

     (e) Restrictions. Each SAR Agreement and each Option Agreement which incorporates a
provision to allow a Grantee to surrender his or her Option shall incorporate such additional
restrictions on the exercise of such SAR or surrender right as the Committee deems necessary to
satisfy the conditions to the exemption under Rule 16b-3.

SECTION 8. RESTRICTED STOCK 

     8.1 Committee Action. The Committee acting in its absolute discretion shall have the
right to grant Restricted Stock to Key Employees and Non-Employee Directors under this Plan from
time to time. However, no more than 3,250,000 shares of Stock shall be granted as Restricted Stock
from the shares otherwise available for grants under this Plan. Each Restricted Stock grant shall
be evidenced by a Restricted Stock Agreement, and each Restricted Stock Agreement shall set forth
the conditions, if any, which will need to be timely satisfied before the grant will be effective
and the conditions, if any, under which the Grantee’s interest in the related Stock will be
forfeited. The Committee may make grants of Performance-Based Restricted Stock and grants of
Restricted Stock which is not Performance-Based Restricted Stock.

     8.2 Performance-Based Restricted Stock.

     (a) Effective Date. A grant of Performance-Based Restricted Stock shall be effective
as of the date the Committee certifies that the applicable conditions described in Section 8.2(c)
have been timely satisfied.

12

 

     (b) Share Limitation. No more than 150,000 shares of Performance-Based Restricted
Stock may be granted to a Key Employee or Non-Employee Director in any calendar year.

     (c) Grant Conditions. The Committee, acting in its absolute discretion, may select
from time to time Key Employees and Non-Employee Directors to receive grants of Performance-Based
Restricted Stock in such amounts as the Committee may, in its absolute discretion, determine,
subject to any limitations provided in this Plan. The Committee shall make each grant subject to
the attainment of certain performance targets. The Committee shall determine the performance
targets which will be applied with respect to each grant of Performance-Based Restricted Stock at
the time of grant, but in no event later than ninety (90) days after the commencement of the period
of service to which the performance targets relate. The performance criteria applicable to
Performance-Based Restricted Stock grants will be one or more of the following criteria: (i) Stock
price; (ii) average annual growth in earnings per share; (iii) increase in shareholder value; (iv)
earnings per share; (v) net income; (vi) return on assets; (vii) return on shareholders’ equity;
(viii) increase in cash flow; (ix) operating profit or operating margins; (x) revenue growth of the
Company; and (xi) operating expenses. The related Restricted Stock Agreement shall set forth the
applicable performance criteria and the deadline for satisfying the performance criteria. Shares
of Performance-Based Restricted Stock shall be unavailable under Section 3 for the period which
begins on the date as of which such grant is made and, if a Performance-Based Restricted Stock
grant fails to become effective in whole or in part under Section 8.2, such period shall end on the
date of such failure (i) for the related shares of Stock subject to such grant (if the entire grant
fails to become effective) or (ii) for the related shares of Stock subject to that part of the
grant which fails to become effective (if only part of the grant fails to become effective). If
such period ends for any such shares of Stock, such shares shall be treated under Section 3 as
forfeited at the end of such period and shall again become available under Section 3.

     (d) Forfeiture Conditions. The Committee may make each Performance-Based Restricted
Stock grant (if, when and to the extent that the grant becomes effective) subject to one, or more
than one, objective employment, performance or other forfeiture condition which the Committee
acting in its absolute discretion deems appropriate under the circumstances for Key Employees or
Non-Employee Directors generally or for a Grantee in particular, and the related Restricted Stock
Agreement shall set forth each such condition and the deadline for satisfying each such forfeiture
condition. A Grantee’s nonforfeitable interest in the shares of Stock related to a
Performance-Based Restricted Stock grant shall depend on the extent to which each such condition is
timely satisfied. Each share of Stock related to a Performance-Based Restricted Stock grant shall
again become available under Section 3 after such grant becomes effective if such share is
forfeited as a

13

 

result of a failure to timely satisfy a forfeiture condition, in which event such share of
Stock shall again become available under Section 3 as of the date of such failure. A Stock
certificate shall be issued (subject to the conditions, if any, described in this Section 8.2) to,
or for the benefit of, the Grantee with respect to the number of shares for which a grant has
become effective as soon as practicable after the date the grant becomes effective.

     (e) In the event of termination of employment of a Key Employee due to Retirement after
satisfaction of the grant conditions established pursuant to Section 8.2(c) but prior to the
Vesting Date of the Performance-Based Restricted Stock granted to such Key Employee:

     (1) on the Vesting Date, such Performance-Based Restricted Stock grant will become partially
vested, with the vested percentage determined by the ratio that the period from the date such
Performance-Based Restricted Stock is granted to the date of Retirement bears to the period from
the date such Performance-Based Restricted Stock is granted to the Vesting Date; and

     (2) the portion of the Performance-Based Restricted Stock that may be mathematically
determined, based on the date of Retirement, to be unable to vest on the Vesting Date, will be
forfeited on the date of Retirement; and

     (3) the portion of such Performance-Based Restricted Stock that does not become vested in
accordance with Section 8.2(e)(1) will be forfeited.

     8.3 Restricted Stock Other Than Performance-Based Restricted Stock

     (a) Effective Date. A Restricted Stock grant which is not a grant of
Performance-Based Restricted Stock shall be effective (a) as of the date set by the Committee when
the grant is made or, if the grant is made subject to one, or more than one, condition, (b) as of
the date the Company determines that such conditions have been timely satisfied.

     (b) Grant Conditions. The Committee acting in its absolute discretion may make the
grant of Restricted Stock which is not Performance-Based Restricted Stock to a Grantee subject to
the satisfaction of one, or more than one, objective employment, performance or other grant
condition which the Committee deems appropriate under the circumstances for Key Employees or
Non-Employee Directors generally or for a Grantee in particular, and the related Restricted Stock
Agreement shall set forth each such condition and the deadline for satisfying each such grant
condition. If a Restricted Stock grant which is not a grant of Performance-Based Restricted Stock
will become effective only upon the satisfaction of one, or more than one, condition, the related
shares of Stock shall be unavailable under Section 3 for the period which begins on the date as of
which such grant is made and, if a Restricted Stock grant which is not a grant of Performance-Based

14

 

Restricted Stock fails to become effective in whole or in part under Section 8.3, such period
shall end on the date of such failure (i) for the related shares of Stock subject to such grant (if
the entire grant fails to become effective) or (ii) for the related shares of Stock subject to that
part of the grant which fails to become effective (if only part of the grant fails to become
effective). If such period ends for any such shares of Stock, such shares shall be treated under
Section 3 as forfeited at the end of such period and shall again become available under Section 3.

     (c) Forfeiture Conditions. The Committee may make each grant of Restricted Stock
which is not a grant of Performance-Based Restricted Stock (if, when and to the extent that the
grant becomes effective) subject to one, or more than one, objective employment, performance or
other forfeiture condition which the Committee acting in its absolute discretion deems appropriate
under the circumstances for Key Employees or Non-Employee Directors generally or for a Grantee in
particular, and the related Restricted Stock Agreement shall set forth each such condition and the
deadline for satisfying each such forfeiture condition. A Grantee’s nonforfeitable interest in the
shares of Stock related to a grant of Restricted Stock which is not a grant of Performance-Based
Restricted Stock shall depend on the extent to which each such condition is timely satisfied. Each
share of Stock related to a Restricted Stock grant which is not a grant of Performance-Based
Restricted Stock shall again become available under Section 3 after such grant becomes effective if
such share is forfeited as a result of a failure to timely satisfy a forfeiture condition, in which
event such share of Stock shall again become available under Section 3 as of the date of such
failure. A Stock certificate shall be issued (subject to the conditions, if any, described in this
Section 8.3) to, or for the benefit of, the Grantee with respect to the number of shares for which
a grant has become effective as soon as practicable after the date the grant becomes effective.

     (d) In the event of termination of employment of a Key Employee due to Retirement after
satisfaction of the grant conditions established pursuant to Section 8.3(b) but prior to the
Vesting Date of the Restricted Stock which is not a grant of Performance-Based Restricted Stock:

     (1) on the Vesting Date, such Restricted Stock grant will become partially vested, with the
vested percentage determined by the ratio that the period from the date such Restricted Stock is
granted to the date of Retirement bears to the period from the date such Restricted Stock is
granted to the Vesting Date; and

     (2) the portion of the Restricted Stock that may be mathematically determined, based on the
date of Retirement, to be unable to vest on the Vesting Date, will be forfeited on the date of
Retirement; and

     (3) the portion of such Restricted Stock that does not become vested in accordance with
Section 8.3(d)(1) will be forfeited.

15

 

     8.4 Dividends and Voting Rights.

     (a) Each Restricted Stock Agreement shall state whether the Grantee shall have a right to
receive any cash dividends which are paid with respect to his or her Restricted Stock after the
date his or her Restricted Stock grant has become effective and before the first day that the
Grantee’s interest in such stock is forfeited completely or becomes completely nonforfeitable. If
a Restricted Stock Agreement provides that a Grantee has no right to receive a cash dividend when
paid, such agreement shall set forth the conditions, if any, under which the Grantee will be
eligible to receive one, or more than one, payment in the future to compensate the Grantee for the
fact that he or she had no right to receive any cash dividends on his or her Restricted Stock when
such dividends were paid. If a Restricted Stock Agreement calls for any such payments to be made,
the Company shall make such payments from the Company’s general assets, and the Grantee shall be no
more than a general and unsecured creditor of the Company with respect to such payments.

     (b) If a Stock dividend is declared on such a share of Stock after the grant is effective but
before the Grantee’s interest in such Stock has been forfeited or has become nonforfeitable, such
Stock dividend shall be treated as part of the grant of the related Restricted Stock, and a
Grantee’s interest in such Stock dividend shall be forfeited or shall become nonforfeitable at the
same time as the Stock with respect to which the Stock dividend was paid is forfeited or becomes
nonforfeitable.

     (c) If a dividend is paid other than in cash or Stock, the disposition of such dividend shall
be made in accordance with such rules as the Committee shall adopt with respect to each such
dividend.

     (d) A Grantee shall have the right to vote the Stock related to his or her Restricted Stock
grant after the grant is effective with respect to such Stock but before his or her interest in
such Stock has been forfeited or has become nonforfeitable.

     8.5 Satisfaction of Forfeiture Conditions. A share of Stock shall cease to be
Restricted Stock at such time as a Grantee’s interest in such Stock becomes nonforfeitable under
this Plan, and the certificate representing such share shall be reissued as soon as practicable
thereafter without any further restrictions related to Section 8.2 or Section 8.3 and shall be
transferred to the Grantee.

     8.6 Transferability. To the extent authorized by the Committee in its sole
discretion, Restricted Stock granted under this Plan may be transferred or assigned to one or more
Family Members of the Grantee, provided any such transfer

16

 

or assignment is made without
consideration to the Grantee. The Family Member or Family Members to whom Restricted Stock is
transferred thereafter shall be treated as the Grantee under this Plan.

     8.7 Deferral of Receipt of Shares. The Company may permit a Grantee to defer receipt
of the delivery of shares that would otherwise be due by virtue of the grant of or the lapse or
waiver of restrictions with respect to Restricted Stock in accordance with such deferred
compensation plans, agreements, rules and procedures established by the Company for such deferral.

SECTION 9. SECURITIES REGISTRATION AND ESCROW OF SHARES

     9.1 Securities Registration. Each Option Agreement, SAR Agreement and Restricted
Stock Agreement shall provide that, upon the receipt of shares of Stock as a result of the exercise
of an Option (or any related surrender right) or a SAR or the satisfaction of the forfeiture
conditions under a Restricted Stock Agreement, the Grantee shall, if so requested by the Company,
hold such shares of Stock for investment and not with a view of resale or distribution to the
public and, if so requested by the Company, shall deliver to the Company a written statement
satisfactory to the Company to that effect. As for Stock issued pursuant to this Plan, the Company
at its expense shall take such action as it deems necessary or appropriate to register the original
issuance of such Stock to a Grantee under the Securities Act of 1933, as amended, or under any
other applicable securities laws or to qualify such Stock for an exemption under any such laws
prior to the issuance of such Stock to a Grantee; however, the Company shall have no obligation
whatsoever to take any such action in connection with the transfer, resale or other disposition of
such Stock by a Grantee.

     9.2 Escrow of Shares. Any certificates representing the shares of Stock issued under
the Plan shall be issued in the Grantee’s name, but, if the applicable Option Agreement, SAR
Agreement or Restricted Stock Agreement (the “Agreement”) so provides, the shares of Stock will be
held by a custodian designated by the Company (the “Custodian”). Each applicable Agreement
providing for the transfer of shares of Stock to the Custodian shall appoint the Custodian as
attorney-in-fact for the Grantee for the term specified in the applicable Agreement, with full
power and authority in the Grantee’s name, place and stead to transfer, assign and convey to the
Company any shares of Stock held by the Custodian for such Grantee, if the Grantee forfeits the
shares of Stock under the terms of the applicable Agreement. During the period that the Custodian
holds the shares subject to this Section, the Grantee will be entitled to all rights, except as
provided in the applicable Agreement, applicable to shares of Stock not so held. Subject to Section
8.4 of this Plan, any dividends declared on shares of Stock held by the Custodian will, as provided
in the applicable Agreement, be paid directly to the Grantee or, in the alternative, be retained by
the Custodian or by the Company until the

17

 

expiration of the term specified in the applicable
Agreement and will then be delivered, together with any proceeds, with the shares of Stock to the
Grantee or to the Company, as applicable.

SECTION 10. LIFE OF PLAN

     No Option or SAR or Restricted Stock shall be granted under this Plan after March 7, 2015,
after which this Plan otherwise thereafter shall continue in effect until all outstanding Options
(and any related surrender rights) and SAR have been exercised in full or no longer are exercisable
and all Restricted Stock grants under this Plan have been forfeited or the forfeiture conditions on
the related Stock have been satisfied in full.

SECTION 11. ADJUSTMENT 

     The number of shares of Stock reserved under Section 3 of this Plan, the number of shares of
Stock related to Restricted Stock grants under this Plan and any related grant conditions and
forfeiture conditions, the number of shares of Stock subject to Options granted under this Plan and
the Option Price of such Options and the SAR Grant Value and the number of shares of Stock related
to any SAR all shall be adjusted by the Board in an equitable manner to reflect any change in the
capitalization of the Company, including, but not limited to, such changes as stock dividends or
stock splits. Furthermore, the Board shall have the right to adjust (in a manner which satisfies
the requirements of Section 424(a) of the Code) the number of shares of Stock reserved under
Section 3 of this Plan, the number of shares of Stock related to Restricted Stock grants under this
Plan and any related grant conditions and forfeiture conditions, the number of shares subject to
Options granted under this Plan and the Option Price of such Options and the SAR Grant Value and
the number of shares of Stock related to any SAR in the event of any corporate transaction
described in Section 424(a) of the Code which provides for the substitution or assumption of such
Options, SARs or Restricted Stock grants. If any adjustment under this Section 11 would create a
fractional share of Stock or a right to acquire a fractional share of Stock, such fractional share
shall be disregarded and the number of shares of Stock reserved under this Plan and the number
subject to any Options or related to any SARs or Restricted Stock grants under this Plan shall be
the next lower number of shares of Stock, rounding all fractions downward. An adjustment made
under this Section 11 by the Board shall be conclusive and binding on all affected persons.

SECTION 12. CHANGE IN CONTROL 

     If there is a Change in Control and the Board determines that no adequate provision has been
made as part of such Change in Control for either the assumption of the Options, SARs and
Restricted Stock grants outstanding under

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this Plan or for the granting of comparable, substitute
stock options, stock appreciation rights and restricted stock grants,

     (1) each outstanding Option and SAR at the direction and discretion of the Board

     (a) may (subject to such conditions, if any, as the Board deems appropriate under the
circumstances) be cancelled unilaterally by the Company in exchange for the number of whole shares
of Stock (and cash in lieu of a fractional share), if any, which each Grantee would have received
if on the date set by the Board he or she had exercised his or her SAR in full or if he or she had
exercised a right to surrender his or her outstanding Option in full under Section 7.11 of this
Plan, or

     (b) may (subject to such conditions, if any, as the Board deems appropriate under the
circumstances) be cancelled unilaterally by the Company in exchange for a cash payment equal to the
Change in Control Price (reduced by the exercise price applicable to such Options or SARs), or

     (c) may be cancelled unilaterally by the Company if the Option Price or SAR Share Value equals
or exceeds the Fair Market Value of a share of Stock on such date, and

     (2) the grant conditions, if any, and forfeiture conditions on all outstanding Restricted
Stock grants may be deemed completely satisfied on the date set by the Board.

SECTION 13. AMENDMENT OR TERMINATION 

     This Plan may be amended by the Board from time to time to the extent that the Board deems
necessary or appropriate; provided, however, that any such amendment may be conditioned on
shareholder approval if the Committee determines such approval is necessary and desirable for
compliance with Section 422 of the Code or Rule 16b-3 under the Exchange Act or with any other
applicable law, rule or regulation, including requirements of any exchange or quotation system on
which the Stock is listed or quoted. The Board also may suspend the granting of Options, SARs and
Restricted Stock under this Plan at any time and may terminate this Plan at any time; provided,
however, the Company shall not have the right to modify, amend or cancel any Option, SAR or
Restricted Stock granted before such suspension or termination unless (1) the Grantee consents in
writing to such modification, amendment or cancellation or (2) there is a dissolution or
liquidation of the Company or a transaction described in Section 11 or Section 12 of this Plan.

19

 

SECTION 14. MISCELLANEOUS 

     14.1 Shareholder Rights. No Grantee shall have any rights as a shareholder of the
Company as a result of the grant of an Option or a SAR under this Plan or his or her exercise of
such Option or SAR pending the actual delivery of the Stock subject to such Option to such Grantee. Subject to Section 8, a Grantee’s rights as
a shareholder in the shares of Stock related to a Restricted Stock grant which is effective shall
be set forth in the related Restricted Stock Agreement.

     14.2 No Contract of Employment or Service. The grant of an Option, SAR or Restricted
Stock to a Grantee under this Plan shall not constitute a contract of employment or service and
shall not confer on a Grantee any rights upon termination of his or her employment or service with
the Company in addition to those rights, if any, expressly set forth in the Option Agreement which
evidences his or her Option, the SAR Agreement which evidences his or her SAR or the Restricted
Stock Agreement related to his or her Restricted Stock.

     14.3 Withholding. The Company shall deduct from all cash distributions under the Plan
any taxes required to be withheld by federal, state or local government. Whenever the Company
proposes or is required to issue or transfer shares of Stock under the Plan, the Company shall have
the right to require the recipient to remit to the Company an amount sufficient to satisfy any
federal, state and local withholding tax requirements prior to the delivery of any certificate or
certificates for such shares. A Grantee may satisfy this withholding obligation by paying the full
amount of the withholding obligation in cash or check acceptable to the Company or its designee.
If the Employee fails to make such payment of the withholding taxes within the time specified by
the Company or its designee, the number of shares of Stock that the Grantee is to receive 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 date on which the amount of tax
required to be withheld is determined, is sufficient to satisfy the amount of the federal, state
and local withholding tax obligations imposed on the Company by reason of the exercise or payment
of a grant under this Plan.

     14.4 Construction. This Plan shall be construed under the laws of the State of
Florida, to the extent not preempted by federal law, without reference to the principles of
conflict of laws.

     14.5 Compliance with Code. All ISOs to be granted hereunder are intended to comply
with Code Section 422, and all provisions of the Plan and all ISOs granted hereunder shall be
construed in such manner as to effectuate that intent.

20

 

     14.6 Non-alienation of Benefits. Other than as specifically provided herein, no
benefit under the Plan shall be subject in any manner to anticipation, alienation, sale, transfer,
assignment, pledge, encumbrance or charge; and any attempt to do so shall be void. No such benefit
shall, prior to receipt by the Grantee, be in any manner liable for or subject to the debts,
contracts, liabilities, engagements or torts of the Grantee.

     14.7 Listing and Legal Compliance. The Committee may suspend the exercise or payment
of any incentive granted under this Plan so long as it determines that securities exchange listing
or registration or qualification under any securities laws is required in connection therewith and
has not been completed on terms acceptable to the Committee.

	 	 	 	 	 
	 	HUGHES SUPPLY, INC.

 	 
	 	By:  	/s/
Jay Romans 
 	 
	 	 	Jay Romans

Senior Vice President of Human Resources 	 
	 	 	 	 
	 

ATTEST:

	 	 	 	 	 
	 	 	 
	 	By:  	/s/
John Z. Pare’ 	 
	 	 	 	John Z. Pare’ 

Secretary	 
	 
	 	 	[CORPORATE SEAL]
 	 

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