Document:

Exhibit 4.1

 

EXECUTION COPY

 

 

KRATOS DEFENSE & SECURITY SOLUTIONS, INC.,

 

as Issuer,

 

THE GUARANTORS HEREAFTER PARTIES HERETO,

 

as Guarantors

 

and

 

WILMINGTON TRUST FSB,

 

as Trustee and Collateral Agent

 

 

THIRD SUPPLEMENTAL INDENTURE

 

Dated as of April 15, 2011

 

Supplementing the Indenture, Dated as of May 19, 2010 (as further amended or supplemented)

 

 

Providing for the

 

Amendment to the Terms of 10% Senior Secured Notes due 2017

 

 

THIS THIRD SUPPLEMENTAL INDENTURE, dated as of April 15, 2011 (the “Third Supplemental Indenture”), is by and among KRATOS DEFENSE & SECURITY SOLUTIONS, INC., a corporation duly incorporated and existing under the laws of the State of Delaware (the “Company”), the guarantors listed on Exhibit A hereto (the “Guarantors”) and WILMINGTON TRUST FSB, as trustee (the “Trustee”) and collateral agent (the “Collateral Agent”).

 

Capitalized terms used herein and not otherwise defined herein shall have the meanings ascribed to thereto in the Indenture (as defined below).

 

RECITALS

 

WHEREAS, the Company has heretofore executed and delivered to the Trustee an Indenture (the “Original Indenture”), dated as of May 19, 2010, providing for the initial issuance by the Company of its Initial Notes (as defined below);

 

WHEREAS, Section 2.02 of the Original Indenture provides that the Company may, subject to compliance with Section 4.08 of the Original Indenture, issue Additional Notes in an unlimited amount under the Original Indenture;

 

WHEREAS, the Company has heretofore executed and delivered to the Trustee the First Supplemental Indenture, dated as of February 7, 2011, among the Company, the guarantors party thereto and the Trustee (the “First Supplemental Indenture”), to the Original Indenture, for the purpose of amending the Original Indenture to amend Section 4.08(a) in the Original Indenture, to permit the issuance of Additional Notes in connection with the Herley Acquisition, as permitted by Section 9.02 of the Original Indenture;

 

WHEREAS, the certain subsidiaries of the Company have heretofore executed and delivered to the Trustee the Supplemental Indenture, dated as of April 1, 2011, among certain of the subsidiary guarantors of the Company party thereto and Wilmington Trust FSB, as trustee (the “Second Supplemental Indenture” and, collectively with the Original Indenture and the First Supplemental Indenture, the “Indenture”), to the Original Indenture, for the purpose of adding additional subsidiary guarantors of the Company as guarantors of the Indenture;

 

WHEREAS, Section 9.01 of the Indenture provides that the Company and the Guarantors and the Trustee or Collateral Agent, as applicable, may amend, modify or supplement the Indenture, the Notes, the Guarantees and the Collateral Agreements without the consent of Holders (as defined in the Indenture) to cure any ambiguity, defect or inconsistency contained therein or to make any change that would provide any additional rights or benefits to the Holders or that does not adversely affect the legal rights of any such Holder under the Indenture, the Notes, the Guarantees or the Collateral Agreements, in accordance with the limitations set forth in the Indenture;

 

WHEREAS, all things necessary to make the New Notes (as defined below), when executed by the Company and authenticated and delivered by the Trustee and issued upon the terms and subject to the conditions set forth herein and in the Indenture, the valid and binding and legal obligations of the Company and the Guarantors and to make this Third Supplemental Indenture a valid, binding and legal agreement of the Company and the Guarantors, have been done;

 

NOW, THEREFORE, in consideration of the above premises, each party hereby agrees, for the benefit of the others and for the equal and ratable benefit of the Holders of the Notes (as defined below), as follows:

 

 

AGREEMENTS

 

ARTICLE I

 

DEFINITIONS

 

Section 1.1     All capitalized terms used herein without definition shall have the meanings assigned to them in the Indenture. The rules of interpretation set forth in the Indenture shall be applied here as if set forth in full herein.

 

“Initial Notes” means the $225.0 million aggregate principal amount of Notes issued under the Indenture on May 19, 2010.

 

“New Notes” means the $285.0 million aggregate principal amount of Additional Notes (other than the Initial Notes) issued under this Third Supplemental Indenture, as part of the same series of the Initial Notes.

 

“Notes” means the Company’s 10% Senior Secured Notes due 2017. The Initial Notes and the New Notes will form part of the same series for all purposes under the Indenture, and unless the context otherwise requires, all references to the Notes will include the Initial Notes and the New Notes.

 

ARTICLE II

 

AUTHORIZATION AND ISSUANCE OF NEW NOTES

 

Section 2.1     The Company will be entitled, upon delivery of an Officers’ Certificate and an Opinion of Counsel, and subject to their compliance with Section 4.08 of the Indenture, to issue the New Notes under this Third Supplemental Indenture which will have identical terms as, and be pari passu with, the Initial Notes, except that the New Notes will be subject to transfer restrictions under the applicable securities laws and will have different CUSIP and ISIN numbers from their issuance until the date on which the Exchange Offer with respect to the New Notes is consummated, at which time the Company will cause the New Notes to have the same CUSIP and ISIN numbers as the Initial Notes.  The Initial Notes and the New Notes issued will be treated as a single class for all purposes under the Indenture and this Third Supplemental Indenture.

 

Section 2.2     With respect to the New Notes, the Company has set forth in an authentication order in accordance with Section 2.02 of the Indenture, a copy of which will be delivered to the Trustee, (i) the aggregate principal amount of such New Notes to be authenticated and delivered pursuant to this Third Supplemental Indenture, (ii) the date the New Notes are to be authenticated and (iii) whether the New Notes are to be Initial Notes, Exchange Notes or Additional Notes.

 

ARTICLE III

 

EXECUTION AND AUTHENTICATION OF NEW NOTES

 

Section 3.1     The Trustee will, upon receipt of a written order of the Company in the form of an Officers’ Certificate (which Officers’ Certificate shall certify that the issuance of the New Notes is in compliance with Section 4.08 of the Indenture), authenticate New Notes for issue that may be validly issued under this Third Supplemental Indenture.

 

ARTICLE IV

 

AMENDMENTS TO INDENTURE; EFFECTIVENESS OF AMENDMENTS

 

Section 4.1     Amendments to the Indenture.

 

(a)           The definition of “Registration Rights Agreement” under Section 1.01 of the Indenture is hereby deleted in its entirety and replaced with the following:

 

 

“ “Registration Rights Agreement” means, with respect to the Initial Notes bearing CUSIP Nos. 5007BAA6, U50103AA5, 50077BAB4), the Registration Rights Agreement, dated as of the Issue Date, between the Company, the Guarantors and the Initial Purchasers, as the same may be amended from time to time in accordance with the terms thereof, with respect to the Additional Notes bearing CUSIP Nos. 50077BAD0, U50103AB3, 50077BAE8, the Registration Rights Agreement, dated as of March 25, 2011, among the Company, the guarantors party thereto, Jefferies & Company, Inc., KeyBanc Capital Markets Inc. and Oppenheimer & Co. Inc.”

 

(b)           The definition of “Exchange Offer” under Section 1.01 of the Indenture is hereby deleted in its entirety and replaced with the following:

 

“ “Exchange Offer” means an exchange offer that may be made by the Company, pursuant to the Registration Rights Agreement, to exchange for any and all of the Initial Notes, or any Additional Notes, as applicable, a like aggregate principal amount of Exchange Notes having substantially identical terms to the Initial Notes, or any Additional Notes, as applicable, registered under the Securities Act.”

 

(c)           The last sentence of Section 4.08(a) of the Indenture, which was added to Section 4.08(a) of the Indenture pursuant to the First Supplemental Indenture, is hereby deleted in its entirety and replaced with the following:

 

“Notwithstanding the foregoing proviso, the Company may incur Indebtedness and any of its Restricted Subsidiaries that is a Guarantor may incur Indebtedness in the form of Additional Notes in an aggregate principal amount of up to $285.0 million to the extent issued in exchange for Indebtedness incurred by an Unrestricted Subsidiary and to the extent incurred by such Unrestricted Subsidiary of the Company to fund a portion of the purchase price of the Herley Acquisition and related transaction fees and expenses and for general corporate purposes without regard to the Consolidated Fixed Charge Coverage Ratio of the Company at the time of such incurrence or after giving effect to the incurrence thereof.”

 

(d)           Section 6.01(9) of the Indenture is hereby amended by deleting the period at the end of Section 6.01 (9) and adding the following language:

 

“; or

 

(10) (i) any security interest created by any Collateral Agreement ceases to be in full force and effect (except as permitted by the terms of this Indenture or the Collateral Agreements) or (ii) the breach or repudiation by the Company or any of its Restricted Subsidiaries of any of their obligations under any Collateral Agreement (other than by reason of a release of such obligation or Lien related thereto in accordance with the terms of this Indenture or the Collateral Agreement); provided that, in the case of clauses (i) and (ii), such cessation, breach or repudiation, individually or in the aggregate, results in Collateral having a Fair Market Value in excess of $5.0 million not being subject to a valid, perfected security interest in favor of the Collateral Agent (to the extent required under the Collateral Agreements).  For the avoidance of doubt, this Section 6.01 (10) does not limit or otherwise alter in any manner the remedies available to Holders in Sections 6.01(1) through 6.01(9) above.”

 

Section 4.2     Effectiveness of this Third Supplemental Indenture.  This Third Supplemental Indenture is entered into pursuant to and consistent with Section 2.02 and Section 9.01 of the Indenture.  Upon the execution of this Third Supplemental Indenture by the Company, the Guarantors, the Trustee and the Collateral Agent, the Indenture shall be amended and supplemented in accordance herewith, and this Third Supplemental Indenture shall form a part of the Indenture for all purposes and each holder of Notes shall be bound thereby.

 

 

ARTICLE V

 

MISCELLANEOUS PROVISIONS

 

Section 5.1     Confirmation of the Original Indenture.  The Original Indenture, as heretofore supplemented and amended by the First Supplemental Indenture, the Second Supplemental Indenture and this Third Supplemental Indenture, as well as the Notes, are in all respects ratified and confirmed and all the terms shall remain in full force and effect. This Third Supplemental Indenture shall form a part of the Indenture for all purposes, and every Holder of Notes, heretofore or hereafter authenticated and delivered under the Indenture shall be bound hereby and all terms and conditions of each shall be read together as though they constitute a single instrument, except that in the case of conflict the provisions of this Third Supplemental Indenture shall control.

 

Section 5.2     Governing Law.  This Third Supplemental Indenture shall be governed by and construed in accordance with the laws of the State of New York applicable to agreements made or instruments entered into and, in each case, performed in said state.

 

Section 5.3     Successors.  All agreements of the Company in this Third Supplemental Indenture shall bind their respective successors.  All agreements of the Trustee in this Third Supplemental Indenture shall bind its successors.

 

Section 5.4     Duplicate Originals.  All parties may sign any number of copies of this Third Supplemental Indenture.  Each signed copy shall be an original, but all of them together shall represent the same agreement.  The exchange of copies of this Third Supplemental Indenture and of signature pages by facsimile or pdf shall constitute effective execution and delivery of this Third Supplemental Indenture.  Signatures of the parties hereto transmitted by facsimile or pdf shall be deemed to be their original signatures for all purposes.

 

Section 5.5     Severability.  In case any one or more of the provisions in this Third Supplemental Indenture or in the Notes shall be held invalid, illegal or unenforceable, in any respect for any reason, the validity, legality and enforceability of any such provision in every other respect and of the remaining provisions shall not in any way be affected or impaired thereby, it being intended that all of the provisions hereof shall be enforceable to the full extent permitted by law.

 

Section 5.6     Trustee Not Responsible for Recitals.  The recitals contained herein shall be taken as the statements of the Company, and the Trustee assumes no responsibility for their correctness. The Trustee makes no representations as to the validity or sufficiency of this Third Supplemental Indenture.

 

Section 5.7     Effect of Headings.  The Section headings herein are for convenience only and shall not affect the construction thereof.

 

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly executed as of the day and year written above.

 

	
 
    	
KRATOS DEFENSE &   SECURITY SOLUTIONS, INC.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Deanna H. Lund
    
	
 
    	
 
    	
Name:
    	
Deanna H. Lund
    
	
 
    	
 
    	
Title:
    	
Executive Vice President and Chief Financial Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
AI METRIX, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Deanna H. Lund
    
	
 
    	
 
    	
Name:
    	
Deanna H. Lund
    
	
 
    	
 
    	
Title:
    	
Executive Vice President and Chief Financial Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
AIRORLITE   COMMUNICATIONS, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Deanna H. Lund
    
	
 
    	
 
    	
Name:
    	
Deanna H. Lund
    
	
 
    	
 
    	
Title:
    	
Executive Vice President and Chief Financial Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
CHARLESTON MARINE CONTAINERS   INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Deanna H. Lund
    
	
 
    	
 
    	
Name:
    	
Deanna H. Lund
    
	
 
    	
 
    	
Title:
    	
Executive Vice President and Chief Financial Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
DALLASTOWN REALTY I, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Deanna H. Lund
    
	
 
    	
 
    	
Name:
    	
Deanna H. Lund
    
	
 
    	
 
    	
Title:
    	
Executive Vice President and Chief Financial Officer   of Gichner Holdings, Inc., sole member of Dallastown Realty I, LLC
    

 

 

	
 
    	
DALLASTOWN REALTY II, LLC
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Deanna H. Lund
    
	
 
    	
 
    	
Name:
    	
Deanna H. Lund
    
	
 
    	
 
    	
Title:
    	
Executive Vice President   and Chief Financial   Officer of Dallastown Realty I, LLC, sole member of Dallastown Realty II, LLC
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
DEFENSE   SYSTEMS, INCORPORATED
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Deanna H. Lund
    
	
 
    	
 
    	
Name:
    	
Deanna H. Lund
    
	
 
    	
 
    	
Title:
    	
Executive Vice President and Chief Financial Officer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
DEI SERVICES CORPORATION
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Deanna H. Lund
    
	
 
    	
 
    	
Name:
    	
Deanna H. Lund
    
	
 
    	
 
    	
Title:
    	
Executive Vice President and Chief Financial Officer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
DIGITAL FUSION   SOLUTIONS, INC.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Deanna H. Lund
    
	
 
    	
 
    	
Name:
    	
Deanna H. Lund
    
	
 
    	
 
    	
Title:
    	
Executive Vice President and Chief Financial Officer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
DIGITAL FUSION, INC.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Deanna H. Lund
    
	
 
    	
 
    	
Name:
    	
Deanna H. Lund
    
	
 
    	
 
    	
Title:
    	
Executive Vice President and Chief Financial Officer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
DIVERSIFIED SECURITY   SOLUTIONS, INC.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Deanna H. Lund
    
	
 
    	
 
    	
Name:
    	
Deanna H. Lund
    
	
 
    	
 
    	
Title:
    	
Executive Vice President and Chief Financial Officer
    

 

 

	
 
    	
DTI ASSOCIATES, INC.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Deanna H. Lund
    
	
 
    	
 
    	
Name:
    	
Deanna H. Lund
    
	
 
    	
 
    	
Title:
    	
Executive Vice President and Chief Financial Officer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
GICHNER   HOLDINGS, INC.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Deanna H. Lund
    
	
 
    	
 
    	
Name:
    	
Deanna H. Lund
    
	
 
    	
 
    	
Title:
    	
Executive Vice President and Chief Financial Officer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
GICHNER SYSTEMS   INTERNATIONAL, INC.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Deanna H. Lund
    
	
 
    	
 
    	
Name:
    	
Deanna H. Lund
    
	
 
    	
 
    	
Title:
    	
Executive Vice President and Chief Financial Officer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
GICHNER SYSTEMS   GROUP, INC.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Deanna H. Lund
    
	
 
    	
 
    	
Name:
    	
Deanna H. Lund
    
	
 
    	
 
    	
Title:
    	
Executive Vice President and Chief Financial Officer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
HAVERSTICK CONSULTING, INC.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Deanna H. Lund
    
	
 
    	
 
    	
Name:
    	
Deanna H. Lund
    
	
 
    	
 
    	
Title:
    	
Executive Vice President and Chief Financial Officer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
HAVERSTICK GOVERNMENT   SOLUTIONS, INC.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Deanna H. Lund
    
	
 
    	
 
    	
Name:
    	
Deanna H. Lund
    
	
 
    	
 
    	
Title:
    	
Executive Vice President and Chief Financial Officer
    

 

 

	
 
    	
HENRY BROS.   ELECTRONICS, INC.,
    
	
 
    	
a Delaware corporation
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Deanna H. Lund
    
	
 
    	
 
    	
Name:
    	
Deanna H. Lund
    
	
 
    	
 
    	
Title:
    	
Executive Vice President and Chief Financial Officer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
HENRY   BROS. ELECTRONICS, INC.,
    
	
 
    	
a   Colorado corporation
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Deanna H. Lund
    
	
 
    	
 
    	
Name:
    	
Deanna H. Lund
    
	
 
    	
 
    	
Title:
    	
Executive Vice President and Chief Financial Officer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
HENRY BROS.   ELECTRONICS, INC.,
    
	
 
    	
a Virginia corporation
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Deanna H. Lund
    
	
 
    	
 
    	
Name:
    	
Deanna H. Lund
    
	
 
    	
 
    	
Title:
    	
Executive Vice President and Chief Financial Officer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
HENRY BROS.   ELECTRONICS, INC.,
    
	
 
    	
a New Jersey corporation
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Deanna H. Lund
    
	
 
    	
 
    	
Name:
    	
Deanna H. Lund
    
	
 
    	
 
    	
Title:
    	
Executive Vice President and Chief Financial Officer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
HENRY BROS.   ELECTRONICS, INC.,
    
	
 
    	
a California corporation
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Deanna H. Lund
    
	
 
    	
 
    	
Name:
    	
Deanna H. Lund
    
	
 
    	
 
    	
Title:
    	
Executive Vice President and Chief Financial Officer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
HENRY BROS. ELECTRONICS,   LLC,
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Deanna H. Lund
    
	
 
    	
 
    	
Name:
    	
Deanna H. Lund
    
	
 
    	
 
    	
Title:
    	
Executive Vice President and Chief Financial Officer   of Henry Bros. Electronics, Inc., sole member of Henry Bros.   Electronics, LLC
    

 

 

	
 
    	
HGS   HOLDINGS, INC.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Deanna H. Lund
    
	
 
    	
 
    	
Name:
    	
Deanna   H. Lund
    
	
 
    	
 
    	
Title:
    	
Executive   Vice President and Chief Financial Officer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
JMA   ASSOCIATES, INC.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Deanna H. Lund
    
	
 
    	
 
    	
Name:
    	
Deanna   H. Lund
    
	
 
    	
 
    	
Title:
    	
Executive   Vice President and Chief Financial Officer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
KRATOS   DEFENSE ENGINEERING SOLUTIONS, INC.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Deanna H. Lund
    
	
 
    	
 
    	
Name:
    	
Deanna   H. Lund
    
	
 
    	
 
    	
Title:
    	
Executive   Vice President and Chief Financial Officer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
KRATOS   PUBLIC SAFETY & SECURITY SOLUTIONS, INC.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Deanna H. Lund
    
	
 
    	
 
    	
Name:
    	
Deanna   H. Lund
    
	
 
    	
 
    	
Title:
    	
Executive   Vice President and Chief Financial Officer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
KRATOS   MID-ATLANTIC, INC.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Deanna H. Lund
    
	
 
    	
 
    	
Name:
    	
Deanna   H. Lund
    
	
 
    	
 
    	
Title:
    	
Executive   Vice President and Chief Financial Officer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
KRATOS   SOUTHEAST, INC.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Deanna H. Lund
    
	
 
    	
 
    	
Name:
    	
Deanna   H. Lund
    
	
 
    	
 
    	
Title:
    	
Executive   Vice President and Chief Financial Officer
    

 

 

	
 
    	
KRATOS   SOUTHWEST L.P.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Deanna H. Lund
    
	
 
    	
 
    	
Name:
    	
Deanna   H. Lund
    
	
 
    	
 
    	
Title:
    	
Executive   Vice President and Chief Financial Officer of Kratos Texas, Inc., General   Partner of Kratos Southwest L.P.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
KRATOS   TEXAS, INC.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Deanna H. Lund
    
	
 
    	
 
    	
Name:
    	
Deanna   H. Lund
    
	
 
    	
 
    	
Title:
    	
Executive   Vice President and Chief Financial Officer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
MADISON   RESEARCH CORPORATION
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Deanna H. Lund
    
	
 
    	
 
    	
Name:
    	
Deanna   H. Lund
    
	
 
    	
 
    	
Title:
    	
Executive   Vice President and Chief Financial Officer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
NATIONAL   SAFE OF CALIFORNIA, INC.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Deanna H. Lund
    
	
 
    	
 
    	
Name:
    	
Deanna   H. Lund
    
	
 
    	
 
    	
Title:
    	
Executive   Vice President and Chief Financial Officer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
POLEXIS, INC.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Deanna H. Lund
    
	
 
    	
 
    	
Name:
    	
Deanna   H. Lund
    
	
 
    	
 
    	
Title:
    	
Executive   Vice President and Chief Financial Officer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
REALITY   BASED IT SERVICES, LTD.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Deanna H. Lund
    
	
 
    	
 
    	
Name:
    	
Deanna   H. Lund
    
	
 
    	
 
    	
Title:
    	
Executive   Vice President and Chief Financial Officer
    

 

 

	
 
    	
ROCKET   SUPPORT SERVICES LLC
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Deanna H. Lund
    
	
 
    	
 
    	
Name:
    	
Deanna   H. Lund
    
	
 
    	
 
    	
Title:
    	
Executive   Vice President and Chief Financial Officer of HGS Holdings, Inc., sole   managing member of Rocket Support Services LLC
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
SHADOW   I, INC.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Deanna H. Lund
    
	
 
    	
 
    	
Name:
    	
Deanna   H. Lund
    
	
 
    	
 
    	
Title:
    	
Executive   Vice President and Chief Financial Officer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
SHADOW   II, INC.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Deanna H. Lund
    
	
 
    	
 
    	
Name:
    	
Deanna   H. Lund
    
	
 
    	
 
    	
Title:
    	
Executive   Vice President and Chief Financial Officer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
SHADOW   III, INC.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Deanna H. Lund
    
	
 
    	
 
    	
Name:
    	
Deanna   H. Lund
    
	
 
    	
 
    	
Title:
    	
Executive   Vice President and Chief Financial Officer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
SCT   ACQUISITION, LLC.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Deanna H. Lund
    
	
 
    	
 
    	
Name:   
    	
Deanna   H. Lund
    
	
 
    	
 
    	
Title:
    	
Executive   Vice President and Chief Financial Officer of Charlestown Marine Containers   Inc., sole member of SCT Acquisition, LLC
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
SCT   REAL ESTATE, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Deanna H. Lund
    
	
 
    	
 
    	
Name:   
    	
Deanna   H. Lund
    
	
 
    	
 
    	
Title:
    	
Executive   Vice President and Chief Financial Officer of SCT Acquisition, LLC, sole   member of SCT Real Estate, LLC
    

 

 

	
 
    	
SUMMIT   RESEARCH CORPORATION
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Deanna H. Lund
    
	
 
    	
 
    	
Name:
    	
Deanna   H. Lund
    
	
 
    	
 
    	
Title:
    	
Executive   Vice President and Chief Financial Officer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
KRATOS   TECHNOLOGY & TRAINING SOLUTIONS, INC.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Deanna H. Lund
    
	
 
    	
 
    	
Name:
    	
Deanna   H. Lund
    
	
 
    	
 
    	
Title:
    	
Executive   Vice President and Chief Financial Officer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
WFI   NMC CORP.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Deanna H. Lund
    
	
 
    	
 
    	
Name:
    	
Deanna   H. Lund
    
	
 
    	
 
    	
Title:
    	
Executive   Vice President and Chief Financial Officer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
HERLEY   INDUSTRIES, INC.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Deanna H. Lund 
    
	
 
    	
 
    	
Name:
    	
Deanna H. Lund
    
	
 
    	
 
    	
Title:
    	
Executive   Vice President and Chief Financial Officer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
GENERAL   MICROWAVE CORPORATION
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Deanna H. Lund
    
	
 
    	
 
    	
Name:
    	
Deanna H. Lund
    
	
 
    	
 
    	
Title:
    	
Executive   Vice President and Chief Financial Officer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
GENERAL   MICROWAVE ISRAEL CORPORATION
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Deanna H. Lund
    
	
 
    	
 
    	
Name:
    	
Deanna H. Lund
    
	
 
    	
 
    	
Title:
    	
Executive   Vice President and Chief Financial Officer
    

 

 

	
 
    	
HERLEY-CTI, INC.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Deanna H. Lund
    
	
 
    	
 
    	
Name:
    	
Deanna H. Lund
    
	
 
    	
 
    	
Title:
    	
Executive   Vice President and Chief Financial Officer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
MSI   ACQUISITION CORP.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Deanna H. Lund
    
	
 
    	
 
    	
Name:
    	
Deanna H. Lund
    
	
 
    	
 
    	
Title:
    	
Executive   Vice President and Chief Financial Officer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
MICRO   SYSTEMS, INC.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Deanna H. Lund
    
	
 
    	
 
    	
Name:
    	
Deanna H. Lund
    
	
 
    	
 
    	
Title:
    	
Executive   Vice President and Chief Financial Officer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
STAPOR   RESEARCH, INC.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Deanna H. Lund
    
	
 
    	
 
    	
Name:
    	
Deanna H. Lund
    
	
 
    	
 
    	
Title:
    	
Executive   Vice President and Chief Financial Officer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
HERLEY-RSS, INC.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Deanna H. Lund
    
	
 
    	
 
    	
Name:
    	
Deanna H. Lund
    
	
 
    	
 
    	
Title:
    	
Executive   Vice President and Chief Financial Officer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
WILMINGTON   TRUST FSB, as Trustee and Collateral Agent
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Jane Schweiger
    
	
 
    	
 
    	
Name:
    	
Jane   Schweiger
    
	
 
    	
 
    	
Title:
    	
Vice   President
    
					

 

 

EXHIBIT A

 

Guarantors

 

AI METRIX, INC.

AIRORLITE COMMUNICATIONS, INC.

CHARLESTON MARINE CONTAINERS INC.

DALLASTOWN REALTY I, LLC

DALLASTOWN REALTY II, LLC

DEFENSE SYSTEMS, INCORPORATED

DEI SERVICES CORPORATION

DIGITAL FUSION SOLUTIONS, INC.

DIGITAL FUSION, INC.

DIVERSIFIED SECURITY SOLUTIONS, INC.

DTI ASSOCIATES, INC.

GICHNER HOLDINGS, INC.

GICHNER SYSTEMS GROUP, INC.

GICHNER SYSTEMS INTERNATIONAL, INC.

HAVERSTICK CONSULTING, INC.

HAVERSTICK GOVERNMENT SOLUTIONS, INC.

HENRY BROS. ELECTRONICS, INC., a Delaware corporation

HENRY BROS. ELECTRONICS, INC., a New Jersey corporation

HENRY BROS. ELECTRONICS, INC., a California corporation

HENRY BROS. ELECTRONICS, INC., a Colorado corporation

HENRY BROS. ELECTRONICS, INC., a Virginia corporation 

\HENRY BROS. ELECTRONICS, LLC

HGS HOLDINGS, INC.

JMA ASSOCIATES, INC.

KRATOS DEFENSE ENGINEERING SOLUTIONS, INC.

KRATOS PUBLIC SAFETY & SECURITY SOLUTIONS, INC.

KRATOS COMMERCIAL SOLUTIONS, INC.

KRATOS GOVERNMENT SOLUTIONS, INC.

KRATOS MID-ATLANTIC, INC.

KRATOS SOUTHEAST, INC.

KRATOS SOUTHWEST, L.P.

KRATOS TEXAS, INC.

MADISON RESEARCH CORPORATION

NATIONAL SAFE OF CALIFORNIA, INC.

POLEXIS, INC.

REALITY BASED IT SERVICES, LTD.

ROCKET SUPPORT SERVICES, LLC

 

 

SHADOW I, INC.

SHADOW II, INC.

SHADOW III, INC.

SCT REAL ESTATE, LLC

SUMMIT RESEARCH CORPORATION

KRATOS TECHNOLOGY & TRAINING SOLUTIONS, INC.

WFI NMC CORP.

HERLEY INDUSTRIES, INC.

GENERAL MICROWAVE CORPORATION 

MICRO-EL PATENT CORPORATION

GENERAL MICROWAVE ISRAEL CORPORATION

HERLEY-CTI, INC.

MSI ACQUISITION CORP.

MICRO SYSTEMS, INC.

STAPOR RESEARCH

HERLEY-RSS, INC.Exhibit 10.1

 

AGREEMENT
 BETWEEN
 CHRISTOPHER & BANKS CORPORATION
 AND

         

 

THIS AGREEMENT is to be effective as of the date it is fully executed (the “Effective Date”), by and between Christopher & Banks Corporation, a corporation duly organized and existing under the laws of the State of Delaware (the “Corporation”), and            (“Executive”).

 

PREAMBLE

 

Based upon the mutual promises contained in this Agreement and other consideration, Corporation and Executive have agreed to execute this Agreement containing the following terms and conditions:

 

ARTICLE 1
 EMPLOYMENT

 

1.1           Executive agrees continue to serve as            of Corporation.  Executive further agrees to perform such duties as are customarily incident to such position and such other duties which may be assigned to Executive from time to time by the Chief Executive Officer and/or the Board of Directors of Corporation.

 

ARTICLE 2
 AT-WILL EMPLOYMENT

 

2.1           Executive acknowledges and agrees that [his/her] employment as an officer and employee of Corporation is on an at-will basis.

 

ARTICLE 3
 DUTIES

 

3.1           Executive agrees to devote Executive’s full time and effort, to the best of Executive’s ability, to carry out the duties of «Title» for the profit, benefit and advantage of the Company.  Executive shall report directly to the [Board of Directors of the Corporation OR Chief Executive Officer of the Corporation or such other person as the Chief Executive Officer or Board of Directors of Corporation may designate].

 

ARTICLE 4
 COOPERATION

 

4.1           During Executive’s employment and for one (1) year thereafter, Executive agrees to cooperate fully with the Company, including its attorneys and accountants, in connection with any potential or actual litigation, other real or potential disputes, internal investigations or government investigations, which directly or indirectly involve the Company.  Executive agrees to appear as a witness voluntarily upon the Company’s request regardless of whether served with a subpoena and be available to attend depositions, court proceedings, consultations or meetings regarding investigations, litigation or potential litigation as requested by the Company.  With respect to the Executive’s cooperation obligations under this provision, for the one (1) year period following the cessation of Executive’s employment with the Company, the Company acknowledges that these cooperation obligations, if exercised, will impose on Executive’s time and could likely interfere with other commitments Executive may have in the future.  Consequently, the Company shall attempt to schedule such depositions, court proceedings, consultations or meetings in coordination with Executive’s schedule and to allow Executive to participate telephonically as appropriate but Executive recognizes that scheduling of certain court proceedings, including depositions and trials, may be beyond the Company’s control and that for some matters or proceedings Executive’s physical presence may be required.

 

4.2           During the time Executive is receiving severance payments from the Corporation, Executive shall not be entitled to any additional payment for [his/her] efforts, assistance and/or cooperation pursuant to this section.  If Executive is no longer receiving severance or any other form of payment, then the Corporation agrees to reimburse Executive for [his/her] time incurred under this Article 4 at a rate of $           per hour for actual time spent attending such depositions, consultations or meetings.  Notwithstanding the first sentence of this Section 4.2, the Corporation agrees to reimburse Executive for the out-of-pocket expenditures actually and reasonably incurred by Executive in connection with the performance of services contemplated by this Article 4, including hotel accommodations, coach airfare, transportation and meals consistent with the Corporation’s generally applicable expense reimbursement policies at such time.

 

 

4.3           It is expressly understood by the parties that (i) any services Executive may provide to Company pursuant to this Section 4 shall not be as an employee and Executive’s provision of such services shall not create an employment relationship between Executive and the Company, (ii) any payments to Executive pursuant to this provision are not wages and instead shall be reflected on a federal 1099 tax form, and (iii) the payment or reimbursement of expenses by the Corporation to Executive under this Article 4 shall be in exchange for Executive’s time and/or reimbursement for expenses actually incurred and are not intended or understood to be dependent upon the character or content of any information Executive discloses in good faith in any such proceedings, meetings or consultations.

 

ARTICLE 5
 DEFINITIONS

 

5.1           “Cause” shall mean (i) any fraud, misappropriation or embezzlement by Executive in connection with or affecting the business of the Company or its affiliates, (ii) any conviction of (including any plea of guilty or no contest to) a felony or a gross misdemeanor by Executive, (iii) any gross neglect or persistent neglect by Executive to perform the duties assigned to Executive or any other act that can be reasonably expected to cause substantial economic or reputational injury to the Company, (iv) any material breach of Articles 3.1, 4.1, 6 or 7 of this Agreement, or (v) any material violation of the Company’s written policies, procedures or codes of conduct.  Provided further that in connection with clauses (iii) — (v), Executive shall first have received a written notice from the Corporation’s Chief Executive Officer or its Board of Directors that summarizes and reasonably describes the manner in which Executive has persistently neglected his duties, engaged in an act reasonably expected to cause substantial harm, materially breached Articles 3.1, 4.1, 6 or 7 of the Agreement, or materially violated a Company policy, procedure or Code of Conduct (the “Event”) and, to the extent the Event is capable of being cured, Executive shall have fourteen (14) calendar days from the date notice of the Event is delivered to Executive (via electronic mail, regular mail, in person or otherwise) to cure the same, but the Corporation is not required to give written notice of, nor shall Executive have a period to cure the same or any similar failure, which was the subject of an earlier written notice to Executive under this Article 5.1.

 

5.2           “Company” shall mean Corporation and/or its majority-owned and wholly-owned subsidiaries.

 

5.3           “Confidential Information” means any information that is not generally known outside the Company, including but not limited to trade secrets, and that is proprietary to the Company, relating to any phase of the Company’s existing or reasonably foreseeable business, including information conceived, discovered or developed by Executive.  Confidential Information includes, but is not limited to, business plans; strategic plans and initiatives; financial information, statements and projections; new store plans or locations; payroll and personnel records and information; marketing information, materials and plans; product designs; supplier information; customer information; customer lists; project lists; information relating to pricing and costs; or other information that is designated by the Company as “Confidential” or other similar designation or is treated by the Company as Confidential.

 

5.4           A “Competitor” means any of the following women’s specialty apparel companies:  Ann Taylor Stores Corporation; Ascena Retail Group, Inc.; Cato Corporation; Charming Shoppes, Inc.; Chicos FAS, Inc.; Coldwater Creek, Inc.; New York & Co., Inc.; and The Talbots, Inc.  “Competitor” shall also include:  (i) all divisions, subsidiaries, affiliates and successors in interest of the stores or legal entities identified in this Article 5.4; and (ii) any person, business, or entity where a substantial portion of Executive’s duties involve providing advice, consultation, products or services to any of the entities or their affiliates identified in this Section 5.4.

 

ARTICLE 6
 NONCOMPETITION, NONSOLICITATION AND NONDISPARAGEMENT

 

6.1           During Executive’s employment, Executive shall not plan, organize or engage in any business competitive with the Company or any product or service marketed or planned for marketing by the Company or assist or work with any other person or entity to do so.

 

6.2           During Executive’s employment and for a period of one year after termination of Executive’s employment with the Company for any reason, under any circumstance, by either party, whether voluntary or involuntary, Executive shall not, without the prior written permission of the Corporation’s Board of Directors, (i) directly or indirectly engage in activities with a Competitor or (ii) own (whether as a shareholder, partner or otherwise, other than as a 3% or less shareholder of a publicly held company) any interest in a Competitor, or (iii) be connected as an officer, director, advisor, consultant, agent or employee or participate in the management of any Competitor.  If Executive violates this provision, then the duration of the restriction set forth in this provision shall be extended by the period of time during which Executive was not in compliance with this provision, provided that, except by order of a court of competent jurisdiction, this restriction shall not apply past the two-year anniversary of the last date of Executive’s employment with the Company.  If Executive is interested in pursuing any activity that may violate this provision, the Corporation encourages Executive to bring that situation to the Corporation’s attention so that the parties can consider and discuss in advance whether Executive’s proposed activity would violate this provision and/or whether some accommodation might be possible that would allow Executive to engage in such activity while still protecting the Company’s legitimate interests.

 

 

6.3           During Executive’s employment and for a period of one year after termination of Executive’s employment with the Company for any reason, under any circumstance, by either party, whether voluntary or involuntary, Executive shall not solicit, entice, encourage, or induce (or attempt to do so, directly or indirectly), any employee of the Company to leave or terminate his or her employment with the Company or to establish a relationship with a Competitor.  This Article 6.3 shall apply to the then-current employees of the Company and any individual who was employed by the Company at any time in the forty-five (45) day period immediately prior to Executive’s last day of employment with the Company.  If Executive violates this provision, then the duration of the restriction set forth in this provision shall be extended by the period of time during which Executive was not in compliance with this provision, provided that, except by order of a court of competent jurisdiction, this restriction shall not apply past the two-year anniversary of the last date of Executive’s employment with the Company.

 

6.4           During Executive’s employment and for a period of one year after termination of Executive’s employment with the Company for any reason, under any circumstance, by either party, whether voluntary or involuntary, Executive shall not solicit, engage, or induce (or attempt to do so, directly or indirectly) any vendor, supplier, sales agent or buying agent of the Company to commence work on behalf of, or to establish a relationship with, a Competitor or to sever or materially alter his/her/its relationship with the Company.  The post-termination obligations of this Article 6.4 shall apply to the vendors, suppliers, sales agents and buying agents of the Company as of the date of Executive’s termination and at any time in the one-year period immediately prior to Executive’s termination date.  If Executive violates this provision, then the duration of the restriction set forth in this provision shall be extended by the period of time during which Executive was not in compliance with this provision, provided that, except by order of a court of competent jurisdiction, this restriction shall not apply past the two-year anniversary of the last date of Executive’s employment with the Company.

 

6.5           If Executive’s employment is involuntarily terminated by the Corporation other than for Cause, the Corporation shall pay Executive the greater of (i) $           or (ii) six (6) months of Executive’s highest annual salary at any time during the twelve (12) month period preceding the date of Executive’s termination, paid according to the Corporation’s normal payroll schedule and practices and subject to applicable withholdings, deductions, and tax reporting requirements; provided that as a condition to receipt of such severance Executive executes and does not rescind a general release of claims as prepared by the Corporation and in favor of the Company.  Further, in the absence of an applicable government subsidy with respect to COBRA coverage and provided that Executive timely elects COBRA and executes and does not rescind the release of claims referred to above, the Company shall continue to pay for the six (6) months following the Executive’s last date of employment the employer portion of the premiums for health and dental insurance coverage under the Company’s group health and dental insurance plans in which Executive was participating on the last date of employment.  Executive shall continue to be responsible to pay Executive’s portion of the premiums, if any, for such insurance coverage during this period.  The Company will discontinue payments under this Article 6.5 if, and at such time, Executive (i) is covered or eligible to be covered under the health and/or dental insurance policy of a new employer, or (ii) ceases to participate, for whatever reason, in the Company’s group insurance plans.  By his signature below, Executive acknowledges and agrees that the Company may modify or terminate its group insurance plans at any time and that Executive shall have the same right to participate in the Company’s group insurance plans only as is provided on an equivalent basis to the Company’s employees.  Executive further agrees to promptly provide the Company notice if Executive becomes covered or eligible to be covered under the health and/or dental insurance policy of a new employer.  In the event there is a government subsidy with respect to COBRA for which the Company and/or Executive is eligible at time of Executive’s termination of employment, then such subsidy shall take precedence and be controlling and the Company shall not be obligated to pay the employer portion of premiums as described above but only to comply with the subsidy criteria.

 

6.6           Executive promises and agrees not to disparage the Company and the Company’s officers, directors, employees, products or services.

 

ARTICLE 7
 CONFIDENTIAL AND PROPRIETARY INFORMATION, IDEAS, AND PROPERTY

 

7.1           Executive promises and agrees to take reasonable measures to maintain and preserve the confidentiality of the Confidential Information.

 

7.2           Executive promises and agrees not to use or disclose Confidential Information except in the course of performing Executive’s duties solely for the benefit of, and on behalf of, the Company.

 

7.3           Executive promises and agrees not to use, discuss, disclose, divulge, or make available in any way, whether directly or indirectly, Confidential Information to any person or entity not authorized by the Company to receive or use it.

 

7.4           Executive promises and agrees not to disclose or discuss, directly or indirectly, in any manner whatsoever, any information regarding the contents and terms of this Agreement, other than to Executive’s legal and financial advisors or Executive’s spouse, if applicable, provided such persons agree to keep the information confidential, or as otherwise required by law.

 

7.5           Employee acknowledges and agrees that all documents, electronic data or files, or other tangible property relating in any way to the business of the Company, including those which are conceived by Executive or come into Executive’s possession during Executive’s employment, are and shall remain the exclusive property of the Company, and Executive agrees to return all such documents, electronic data and files, and tangible property to the Company upon termination of Executive’s employment or at such earlier time as the Company may request of Executive, and Executive further promises and agrees not retain any copies, summaries, or abstracts thereof.

 

 

7.6           The obligations of this section shall continue after the termination of Executive’s employment and shall be binding on Executive’s assigns, executors, administrators, or other legal representatives.

 

ARTICLE 8
 JUDICIAL CONSTRUCTION

 

8.1           Executive believes and acknowledges that the provisions contained in this Agreement, including without limitation the provisions contained in Articles 4.1, 6, and 7 of this Agreement, are fair and reasonable and necessary to protect the Company’s legitimate interests.  Nonetheless, it is agreed that if a court finds any of these provisions to be invalid in whole or in part, such finding shall not invalidate any such provision, nor the Agreement, in its entirety, but rather the provision in question shall be construed, blue-lined, reformed, rewritten, and/or equitably modified by the court as if the most restrictive covenants permissible under applicable law were contained herein.

 

ARTICLE 9
 RIGHT TO INJUNCTIVE RELIEF

 

9.1           Executive acknowledges that a breach or threatened breach by Executive of any of the terms of Articles 4.1, 6 or 7 of this Agreement will render irreparable harm to the Corporation or its related entities.  Accordingly, the Corporation shall therefore be entitled to any and all equitable relief, including, but not limited to, temporary and permanent injunctive relief, and to any other remedy that may be available under any applicable law or agreement between the parties, and to recover from Executive all costs of litigation including, but not limited to, attorneys’ fees and court costs incurred in enforcing the provisions of Articles 4, 6 and 7.

 

9.2           Executive acknowledges and agrees that, in the event a court determines that a bond is necessary in connection with any grant to the Corporation of injunctive relief, then a fair and reasonable amount for any such bond would be $5,000.

 

ARTICLE 10
 ASSIGNMENT

 

10.1         Executive consents to and the Corporation shall have the right to assign this Agreement to its successors or assigns.  Additionally, Executive consents to and the Corporation shall have the right to assign this Agreement to any subsidiary, and all covenants or agreements hereunder shall inure to the benefit of and be enforceable by its successors or assigns.

 

10.2         For purposes of Article 10.1 and the possible assignment of this Agreement, the terms “successors” and “assigns” shall include any corporation which buys all or substantially all of the Corporation’s assets, or a controlling portion of its stock, or with which it merges or consolidates.

 

10.3         Executive’s rights under this Agreement are personal to Executive and may not be assigned except with the written consent of the Corporation’s Board of Directors.

 

ARTICLE 11
 FAILURE TO DEMAND PERFORMANCE AND WAIVER

 

11.1         The Corporation’s failure at any time to demand strict performance or compliance by Executive either during or after Executive’s employment with any part of this Agreement shall not be deemed to be a waiver of the Corporation’s rights under this Agreement or by operation of law.  The Corporation’s rights under this Agreement can only be waived expressly, in writing by the Corporation’s Board of Directors.  Any express waiver by either party of a breach of any provision of this Agreement shall not operate as or be construed as a waiver of any subsequent breach thereof.

 

ARTICLE 12
 ENTIRE AGREEMENT

 

12.1         The Corporation and Executive acknowledge [that this Agreement contains the full and complete agreement between and among them, that there are no oral or implied agreements or other modifications relating to the same subject matter OR that this Agreement supersedes and terminates any other written or oral agreement between the parties relating to the same subject matter] not specifically set forth herein.  The parties further agree that no modifications of this Agreement may be made except by means of a written agreement or memorandum signed by both parties.

 

 

ARTICLE 13
 GOVERNING LAW

 

13.1         The parties acknowledge that the Corporation’s principal place of business is located in the State of Minnesota.  The parties hereby agree that this Agreement shall be construed in accordance with the internal laws of the State of Minnesota without giving effect to any choice or conflict of law provision or rule that would cause the application of the laws of any jurisdiction other than the State of Minnesota.

 

13.2         Executive and the Company agree to submit to the exclusive jurisdiction of, and venue in, the courts of the State of Minnesota, County of Hennepin, or of the Federal District Court of Minnesota with respect to any dispute that may arise between them.

 

ARTICLE 14
 SURVIVAL

 

14.1         The parties agree that Articles 4, 6 and 7 of this Agreement, and those provisions necessary for the enforcement of Articles 4, 6 and 7 of this Agreement, shall survive termination of this Agreement and termination of Executive’s employment for any reason.

 

ARTICLE 15
 UNDERSTANDINGS

 

15.1         Executive hereby acknowledges that (i) this Agreement constitutes good and valuable consideration in exchange for the obligations and agreements undertaken by Executive by this Agreement, including, without limitation, the provisions contained in Articles 6 and 7 of this Agreement, (ii) Executive has carefully considered the obligations, restrictions, and undertakings contained in this Agreement and, having had the opportunity to confer with counsel of Executive’s own choosing, has determined that they are reasonable; and (iii) the obligations, restrictions, and undertakings contained in this Agreement will not unduly restrict Executive in securing other employment or earning a livelihood in the event of Executive’s termination of employment.

 

15.2         Executive promises and agrees to inform any potential new employer of the restrictions contained in Articles 6 and 7 of this Agreement.  By signing below, Executive also authorizes the Corporation to notify third parties (including, but not limited to, Executive’s actual or potential future employers) of Articles 6 and 7 of this Agreement, and those provisions necessary for the enforcement of Articles 6 and 7 of this Agreement, and Executive’s responsibilities hereunder.

 

15.3         Executive represents and warrants to the Corporation that Executive is not under, or currently bound to be under in the future, any obligation to any person or entity that is or would be inconsistent or in conflict with this Agreement or would prevent, limit, or impair in any way the performance by Executive of Executive’s obligations hereunder.

 

15.4         If Executive possesses any information that Executive knows or should know is considered by any third party to be the confidential, trade secret, or otherwise proprietary information of such third party, Executive shall not disclose such information to the Company or use such information in the course of Executive’s employment or in any other way to benefit the Company.

 

IN WITNESS WHEREOF, the Corporation has hereunto signed its name and Executive hereunder has signed Executive’s name, all as of the day and year written below.

 

 

	
 
    	
 
    	
CHRISTOPHER &   BANKS CORPORATION
    
	
 
    	
 
    	
 
    
	
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Date:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Witness:

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