Grant of Employment Inducement Awards

LL Flooring Holdings, Inc. (NYSE: LL) (the "Company"), a leading specialty retailer of hard-surface flooring in the U.S., today announced the grant of employment inducement awards to Robert Madore, Andrew Wadhams, Laura Massaro and one new vice president. The Company announced on July 6, 2023 that Mr. Madore had been appointed as Executive Vice President, Chief Financial Officer; Mr. Wadhams had been named as Senior Vice President, Retail and Commercial Sales; and Laura Massaro had been named as Senior Vice President, Chief Marketing Officer, each effective upon commencement of their employment with the Company on July 10, 2023.

The Compensation Committee of the Company's Board of Directors approved the employment inducement awards on July 12, 2023, with a grant date of August 11, 2023, as a material inducement to enter into offers of employment, in reliance on the employment inducement award exception to New York Stock Exchange (“NYSE”) Listing Rule 303A.08 that requires shareholder approval of equity-based compensation plans. Listing Rule 303A.08 requires the public announcement of such inducement.

The employment inducement awards (the “Inducement Awards”) will have an aggregate total cumulative grant date value of $1,277,500 and will consist of (i) with respect to Mr. Madore, (A) a time-based restricted stock award (which will vest ratably over three years) with a grant date value of $425,000 and (B) a performance-based restricted stock unit award with time-based vesting and a grant date value of $175,000 (100% of which will cliff vest on the three-year anniversary of the grant date, subject to meeting the applicable performance targets set forth in the Company’s grant agreement), and (ii) with respect to the other individuals, time-based restricted stock awards (which will vest ratably over three years) with an aggregate grant date value of $677,500. The Inducement Awards are subject to continued or accelerated vesting upon certain termination of employment events and in connection with certain transactions involving the Company, as more fully described in the forms of equity award agreements filed as exhibits to the Company’s Quarterly Report on Form 10-Q filed on August 9, 2023 with the SEC and in the Registration Statement on Form S-8 (333-198311) filed on August 9, 2023 with the SEC registering the common stock subject to the Inducement Awards.