Document:

EX-10(N)

 

Exhibit 10(n)

THIRD AMENDMENT TO PRIVATE LABEL

BUSINESS CREDIT PROGRAM AGREEMENT

     This Third Amendment to Private Label Business Credit Program Agreement
(“Amendment”) is made effective as of the 7th day of October
2005, by and between LESCO, Inc., an Ohio corporation (“LESCO”), LESCO Services,
Inc., an Ohio corporation (“LSI”), AIM Lawn & Garden Products, Inc., an Ohio
corporation (“AIM”), and LESCO Technologies, LLC, a Nevada limited liability
company (“LTLLC” and together with LESCO, LSI and AIM, the “LESCO
Parties”), on the one hand, and GE Capital Financial Inc., a Utah industrial
loan corporation (“Bank”), on the other, and amends that certain Private Label
Business Credit Program Agreement, dated December 16, 2003, by and among Bank and
the LESCO Parties (as amended by that certain First Amendment to Private Label
Business Credit Program Agreement, dated December 29, 2003, and by that certain
Second Amendment to Private Label Business Credit Program Agreement, dated _________,
2005, and as may otherwise have been amended, the “Agreement”).

RECITALS:

     WHEREAS, Bank and the LESCO Parties desire to amend the provisions of the
Agreement relating to the financial covenant set forth therein in conjunction
with the amending and restating of LESCO’s working capital credit facility.

     NOW THEREFORE, in consideration of the following terms and conditions, and
for good and valuable consideration the receipt and sufficiency of which is
acknowledged, the LESCO Parties and Bank agree as follows:

I.       AMENDMENTS TO AGREEMENT

     (a)       Amendment to Schedule 6.7(c). The “Fixed Charge Coverage
Ratio” covenant set forth in Schedule 6.7(c) is hereby deleted in its
entirety and replaced with the following:

Fixed Charge Coverage Ratio, At the end of each fiscal quarter of
LESCO commencing with the fiscal quarter ending December 31, 2005, LESCO,
on a consolidated basis, shall maintain a Fixed Charge Coverage Ratio for
the immediately preceding four fiscal quarters, of not less than 1.00 to
1.00. With respect to each of the following charges, such charges shall not
be taken into account in calculating the Fixed Charge Coverage ratio for
the fiscal quarter(s) in which such charges occur (without duplication):
(i) fees and costs incurred by LESCO during such quarter(s) in respect of
terminating or hedging any swap arrangement to which LESCO is a party, (ii)
proceeds of the sale of the Existing Accounts to LESCO, (iii) the costs and
expenses of LESCO in completing the sale of the Existing Accounts to Bank,
(iv) the costs and expenses of LESCO in amending and restating its credit
facility dated as of October 7, 2005 with PNC Bank, National Association,
as agent, (v) acceleration of expenses in connection with LESCO’s
restructuring effected in January 2002, (vi) the write-off of amounts
owing, but not paid, in respect of Excluded Accounts (as defined in the
Purchase Agreement), (vii) the amount(s) expended by LESCO to pay cash
dividends on or to redeem any of its capital stock; (viii) charges taken in
the fourth fiscal quarter of 2004 in an amount not in excess

 

 

of Five Million Two Hundred Thousand Dollars ($5,200,000) related to termination of LESCO’s
purchase of Novex product pursuant to that certain Asset Purchase Agreement, dated October 24, 2002, between KPAC Holdings, Inc., a Virginia corporation, as purchaser and LESCO as
seller (including charges taken for the termination payment made by LESCO to KPAC Holdings,
Inc., reductions in the value of Novex inventory, write-off of that certain promissory note,
dated November 4, 2002, made by KPAC Holdings, Inc. in favor of LESCO in the stated principal
amount of One Million Eight Hundred Fifty Thousand Dollars ($1,850,000), and related legal
expenses), and (ix) charges in the amount of Thirty-Five Million Dollars ($35,000,000) taken
in the fourth fiscal quarter of 2005 with respect to the sale of the assets pursuant to that
certain Asset Purchase Agreement dated as of July 26, 2005, as amended, between LESCO, as
seller, and Turf Care Supply Corp., a Delaware corporation, as buyer.

II.       GENERAL

     
(a)       Definitions. Capitalized terms used in this Amendment, unless defined herein, shall have the meanings specified in the Agreement.

     
(b)       Authority for Amendment. The execution, delivery and performance of this
Amendment has been duly authorized by all requisite corporate action on the part of the LESCO
Parties and Bank and upon execution by each party, will constitute a legal, binding obligation thereof.

     
(c)       Effect of Amendment. Except as specifically amended hereby, the Agreement,
and all terms contained therein, remains in full force and effect. The Agreement, as amended
by this Amendment, constitutes the entire understanding of the parties with respect to the subject matter hereof.

     
(d)       Binding Effect; Severability. Each reference herein to a party hereto shall be
deemed to include its successors and assigns, all of whom shall be bound by this Amendment
and in whose favor the provisions of this Amendment shall inure. In case any one or more of the
provisions contained in this Amendment shall be invalid, illegal or unenforceable in any respect,
the validity, legality and enforceability of the remaining provisions contained herein shall not in
any way be affected or impaired thereby.

     
(e)       Further Assurances. The parties hereto agree to execute such other documents and
instruments and to do such other and further things as may be necessary or desirable for the
execution and implementation of this Amendment and the consummation of the transactions
contemplated hereby and thereby.

     
(f)       Governing Law. This Amendment shall be governed by and construed in accordance
with the laws of the State of Utah.

     
(g)       Counterparts. This Amendment may be executed in counterparts, each of which shall
constitute an original, but all of which, when taken together, shall constitute but one agreement.
Transmission by facsimile of an executed counterpart of this Amendment shall be deemed to
constitute due and sufficient delivery of such counterpart; provided however, that the

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parties hereby agree to deliver to each other an original of such counterpart promptly after
delivery of the facsimile.

     (h)       Effective Date of Amendment. This Amendment shall become effective as of the
effective date set forth below when executed and delivered by the parties hereto.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

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IN WITNESS WHEREOF, the LESCO Parties and Bank have caused this Amendment
to be executed by their respective duly authorized officers as of the date
set forth below.

     EFFECTIVE
DATE: October 7, 2005

	 	 	 	 	 
	 	BANK:

GE CAPITAL FINANCIAL INC.

 	 
	 	By:  	/s/
Gregory A. Laufer
 	 
	 	Name: 	Gregory A. Laufer	 
	 	Title: 	EVP 	 
	 
	 	LESCO:

LESCO, INC.

 	 
	 	By:  	/s/  Jeffrey Rutherford
 	 
	 	Name: 	Jeffrey Rutherford 	 
	 	Its: Senior Vice President and Chief Financial Officer 	 
	 
	 	LESCO SERVICES, INC.

 	 
	 	By:  	/s/ Jeffrey Rutherford
 	 
	 	Name: 	Jeffrey Rutherford 	 
	 	Its:      Vice President and Chief Financial Officer 	 
	 
	 	LESCO TECHNOLOGIES, LLC

 	 
	 	By:  	Jeffrey Rutherford
 	 
	 	Name: 	Jeffrey Rutherford 	 
	 	Its:       Vice President and Chief Financial Officer 	 
	 
	 	AIM LAWN & GARDEN PRODUCTS, INC.

 	 
	 	By:  	Jeffrey Rutherford
 	 
	 	Name: 	Jeffrey Rutherford 	 
	 	Its:       Vice President and Chief Financial Officer 	 
	 

4EX-10(AA)

 

Exhibit 10(aa)

EMPLOYMENT RETENTION AGREEMENT

     THIS
EMPLOYMENT RETENTION AGREEMENT (this “Agreement”), is entered into between LESCO, Inc.,
an Ohio corporation (the “Company”), and RICHARD F. DOGGETT (“Employee”), in accordance with
the LESCO, Inc. Employment Retention Plan (the “Plan”), and
is made this
19th day of
February, 2007.

	1.	 	INTRODUCTION

     The Company established the Plan for the purpose of providing certain of its employees
with incentives to continue employment with the Company on an objective and impartial
basis in the event of the Company’s Change in Control. The Employee desires to continue in
the Company’s employment in accordance with the terms and
conditions set forth in the Plan,
a copy of which is attached hereto as Exhibit A and is incorporated herein by
reference. In the event any Plan term or condition conflicts with any term or condition of
the Agreement, the Plan’s term or condition shall, at all times, control. All terms
capitalized throughout the Agreement shall have the meaning set forth in the Plan, unless
otherwise specifically provided for herein.

     The
Company and Employee (the “Parties”) now enter into this Agreement to
establish their rights and obligations under the Plan, and, to the extent not expressly set
forth in the Plan, to provide for certain additional rights and responsibilities of the
Parties. In consideration of the Parties’ mutual promises and obligations contained herein
and as further established under the Plan, the Parties, intending to be legally bound,
hereby agree to the terms and conditions set forth below or provided for within the Plan.

	2.	 	TERM OF AGREEMENT

     The Term of the Agreement shall be the period commencing on the Effective Date and
ending on the date that is the earlier of the Employee’s Separation from Service or the
first anniversary of the Effective Date.

	3	 	CHANGE IN CONTROL PERIOD

     Change
in Control Period shall mean the period commencing with the Effective Date and
ending on the second (2nd) anniversary of such Effective Date.

	4.	 	SEVERANCE PAYMENTS

	 	(a)	 	Upon the occurrence of a Triggering Event, Company shall pay to Employee
the amounts set forth below, which shall be payable in one lump sum payment
within thirty (30) days of the Triggering Event, unless otherwise specifically
provided for in the Plan or the subsections below:

 

 

	 	(i)	 	all amounts specifically set forth in Article II of the Plan; and
	 
	 	(ii)	 	an amount equal to the product of two (2) times the
Employee’s Annual Base Salary; and
	 
	 	(iii)	 	an amount equal to the maximum yearly contribution the
Company could make to the Employee’s account in the LESCO, Inc. Salary
Savings Plan and Trust, or any successor qualified defined contribution
retirement plan, based on the amount contributed to such retirement plan by
the Employee during the year of the Triggering Event; and
	 
	 	(iv)	 	to the extent not theretofore paid or provided, the Company
shall timely pay or provide to the Executive any other amounts or benefits
required to be paid or provided or which the Executive is eligible to receive
under any plan, program, policy or practice or contract or agreement of the
Company and its affiliated companies (such other amounts and benefits shall
be hereinafter referred to as the “Other Benefits”).

	 	(b)	 	Notwithstanding anything to the contrary in the Plan or the
Agreement, if any
portion of the compensation or benefits payable to or on behalf of the Employee
under the Plan, or under any other agreement with, or plan of, the Company (in the
aggregate “Total Payments”) would constitute an “excess parachute payment” under
Code Section 280G, then the payments to be made to the Employee under the Plan shall
be reduced such that the value of the aggregate Total Payments that Employee is entitled to receive shall be one dollar ($1) less than
the maximum amount  that Employee may receive without becoming subject to the tax imposed by Code
Section 4999, or which the  Company may pay without loss of
deduction under Code Section 280G. The calculation of such potential excise tax liability, as well as
the method in which the compensation reduction is applied, shall be conducted and
determined by the Company’s independent accountants whose determinations shall be
binding on the Parties.

	5.	 	AMENDMENT, MODIFICATION, AND TERMINATION

     No
term or provision of this Agreement may be changed, waived, amended, modified, or terminated,
except by written instrument. Notwithstanding the foregoing, the Company reserves the right to
unilaterally amend, modify, or terminate this Agreement in any manner that the Company deems
advisable in order to ensure this Agreement’s and the Plan’s continued compliance with the
provisions of Code Section 409A; provided, however, that no such action shall materially reduce
the value of the benefits provided to the Employee hereunder.

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     IN WITNESS WHEREOF, as conclusive evidence of the adoption of the Agreement and as acknowledgement
of the Company’s and the Employee’s agreement and consent to be bound by the terms of the Plan, the
parties have hereunto set their hands as of the date and year first above written.

	 	 	 	 	 	 	 
	EMPLOYEE	 	 	 	LESCO, INC.
	 
	 	 	 	 	 	 
	/s/ Richard F. Doggett

	 	 	 	By
	 	/s/ Jeffrey L. Rutherford
	 

	 	 	 	 	 	 
	Richard F. Doggett
	 	 	 	 	 	Jeffrey L. Rutherford
	 
	 	 	 	 	 	 
	Senior Vice President, Sales

	 	 	 	Its
	 	President & CEO
	 

	 	 	 	 	 	 
	Title
	 	 	 	 	 	 

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