Document:

ex10_1.htm

Exhibit 10.1

	 	 Amendment to Credit Agreement

 

This agreement is dated as of April 6, 2009. by and between AR1 Network Services, Inc. (the "Borrower"J and JPMorgan Chase Bank, N.A., successor by merger to Bank One, NA, with its main office in Chicago, IL (together with its
successors and assigns the “Bank”). The provisions of this agreement are effective on the date that this agreement has been executed by all of the signers and delivered to the Bank (the "Effective Date").

 

WHEREAS, the Borrower and the Bank entered into a credit agreement dated July 9, 2004, as amended (if applicable) (the "Credit Agreement"); and

 

WHEREAS, the Borrower has requested and the Bank has agreed to amend the Credit Agreement as set forth in this agreement:

 

NOW, THEREFORE, in mutual consideration of the agreements contained herein and for other good and valuable consideration, the parties agree as follows:

 

	
1.
	
DEFINED TERMS. Capitalized terms used in this agreement shall have the same meanings as in the Credit Agreement, unless otherwise defined in this agreement.

 

2.             MODIFICATION OF CREDIT AGREEMENT. The Credit Agreement is hereby amended as follows:

 

	
  
	
2.1
	
From and after the Effective Date, Section 1.2 of the Credit Agreement captioned "Facility A (Line of Credit)" is hereby amended by adding the following Subsection thereto as follows:

 

Non Usage Fee. The Borrower shall pay to the Bank a non-usage fee calculated on the average daily unused portion of Facility A at a rate of 0.25% per
annum, payable in arrears within fifteen (15) days of the end of each calendar quarter for which the fee is owing. The Bank may begin to accrue the foregoing fee on the date the Borrower signs or otherwise authenticates this agreement.

 

	
  
	
2.2
	
From and after the Effective Date, Section 2 of the Credit Agreement captioned "Definitions" is hereby amended by adding the following Definition thereto as follows:

 

2.11   "Subordinated Debt" means debt subordinated to the Liabilities in manner and by written
agreement satisfactory to the Bank.

 

	
  
	
2.3
	
From and after the Effective Date, Section 5.2 of the Credit Agreement is hereby amended by adding Subsection M thereto as follows:

 

M.           Debt Service Coverage. Ratio. Permit its "Debt Service Coverage Ratio" (hereinafter defined in this subsection) for any
"Test Period" (hereinafter defined in this subsection) to be less than 1.20 to 1.00. As used in this subsection the term "Debt Service Coverage Ratio" means its ratio of (i) net income, plus tax expense, plus interest expense, plus depreciation expense, plus amortization expense, minus Distributions made, minus income tax expense,
all computed for the Test Period, to (ii) interest expense, plus scheduled principal payments on debt that is not Subordinated Debt, plus scheduled capital lease payments, plus principal payments made on Subordinated Debt, all computed for the Test Period. As used in this subsection, the term "Test Period" means each period
of four consecutive fiscal quarters.

 

	
3.
	
RATIFICATION. The Borrower ratifies and reaffirms the Credit Agreement and the Credit Agreement shall remain in full force and effect as modified by this agreement

 

	
4.
	
BORROWER REPRESENTATIONS AND WARRANTIES The Borrower represents and warrants that (a) the representations and warranties contained in the Credit Agreement are true and correct
in all material respects as of the date of this agreement, (b) no condition, event, act or omission which could constitute a default or an event of default under the Credit
Agreement, as modified by this agreement, or any other Related Document exists, and (c) no condition, event, act or omission has occurred and is continuing that with the giving of notice, or the passage of time or both, would constitute
a default or an event of default under the Credit Agreement, as modified by this agreement, or any other Related Document.

 

	
5.
	
FEES AND EXPENSES. The Borrower agrees to pay all fees and out-of-pocket disbursements incurred by the Bank in connection with this agreement, both before and after judgment, including legal fees incurred by the Bank by the preparation, consummation, administration and enforcement of this
agreement.

  

  

  

 

 

	
6.
	
EXECUTION AND DELIVERY. This agreement shall become effective only after it is fully executed by the Borrower and the Rank, and the Bank shall have received from the Borrower the following documents: Note Modification Agreement.

 

	
7.
	
ACKNOWLEDGEMENTS OF BORROWER / RELEASE. The Borrower acknowledges that as of the date of this agreement it has no offsets with respects to all amounts owed by the Borrower to the Bank arising under or related to the Credit Agreement,
as modified by this agreement, or any other Related Document on or prior to the date of this agreement. The Borrower fully, filially and forever releases and discharges the Bank, its successors and assigns and their respective directors, officers, employees, agents and representatives (each a "Bank Party"} from any and all claims, causes of action, debts, demands and liabilities, of whatever kind or nature, in law or in equity, of the Borrower, whether now known or unknown
to the Borrower, which may have arisen in connection with the Credit Agreement or the actions or omissions of any Bank Party related to the Credit Agreement on or prior to the date hereof The Borrower acknowledges and agrees that this agreement is limited to the terms outlined above, and shall not be construed as an agreement to change any other terms or provisions of the Credit Agreement. This agreement shall not establish a course of dealing or be construed as evidence of any willingness on the Bank's part
to grant other or future agreements, should any be requested.

 

	
8.
	
INTEGRATION, ENTIRE AGREEMENT, CHANGE, DISCHARGE, TERMINATION, OR WAIVER. The Credit Agreement, as modified by this agreement, and the other Related Documents contain the complete understanding and agreement of the Borrower and the Bank in respect of the Credit Facilities and supersede all prior understandings and negotiations. No provision of the Credit Agreement,
as modified by this agreement, or the other Related Documents, may be changed, discharged, supplemented, terminated, or waived except in a writing signed by the parry against whom it is being enforced.

 

	
9.
	
Governing Law and Venue. This agreement shall be governed by and construed in accordance with the laws of the State of Wisconsin (without giving effect to its laws of conflicts). The Borrower agrees that any legal action or proceeding with respect to any of its obligations under this agreement may be brought by the Bank in any state or federal court located
in the State of Wisconsin, as the Bank in its sole discretion may elect. By the execution and delivery of this agreement, the Borrower submits to and accepts, for itself and in respect of its property, generally and unconditionally, the non-exclusive jurisdiction of those courts. The Borrower waives any claim that the State of Wisconsin is not a convenient forum or the proper value for any such suit, action or proceeding.

 

	
10.
	
NOT A NOVATION. This agreement is a modification only and not a novation. Except as expressly modified by this agreement, the Credit Agreement, any other Related Documents,
and all the terms and conditions thereof, shall be and remain in full force and effect with the changes herein deemed to be incorporated therein, This agreement is to be considered attached to the Credit Agreement and made a part thereof. This agreement shall not release or affect the liability of any guarantor of any promissory note or credit facility executed in reference to the Credit Agreement or release any owner of collateral granted as security for the Credit Agreement. The validity, priority and enforceability
of the Credit Agreement shall not be impaired hereby. To the extent that any provision of this agreement conflicts with any term or condition set forth in the Credit Agreement, or any other Related Documents, the provisions of this agreement shall supersede and control. The Bank expressly reserves all lights against all panics to the Credit Agreement and the other Related Documents.

 

	  	
Borrower:

	 	 
	  	
ARI Network Services, Inc.

	 	 
	  	
By:
	
/s/ Kenneth S. Folberg

	  	  	
Kenneth S. Folberg, VP of Finance & CFO

	  	  	
Printed Name        Title

	 	 	 
	  	
Date Signed:
	
April 9, 2009

	  	  	  
	  	
Bank:
	  
	 	 	 
	  	
JP Morgan Chase Bank N.A.

	 	 
	  	
By:
	
/s/ Anthony w. Bartell

	  	  	
Anthony w. Bartell, VP

	  	  	
Printed Name        Title

	 	 	 
	  	
Date Signed:
	
4/10/09

 

  

2

  

 

	 	
Note Modification Agreement

 

This agreement is dated as of April 6, 2009 (the "Agreement Date"), by and between ARI Network Services, Inc. (the "Borrower") and JPMorgan Chase Bank, N.A., successor by merger to Bank One, NA, with its main office m Chicago,
IL (together with its successors and assigns, the "Bank"). The provisions of this agreement are effective on the date that this agreement has been executed by all of the signers and delivered to the Bank (the "Effective Date").

 

WHEREAS, the Borrower executed a Line of Credit Note dated as of July 9, 2004 in the original principal amount of Five Hundred Thousand and 00/100 Dollars ($500,000.00). (as same may have been amended or modified from time to time, the "Note")
as evidence of an extension of credit from the Bank to the Borrower, which Note has at all times been, and is now, continuously and without interruption outstanding in favor of the Rank; and,

 

WHEREAS, the Borrower has requested and the Bank has agreed that the Note be modified to the limited extent as hereinafter set forth in this agreement;

 

NOW THEREFORE, in mutual consideration of the agreements contained herein and for other good and valuable consideration, the parties agree as follows;

 

1.             ACCURACY OF RECITALS. The Borrower acknowledges the accuracy of the Recitals stated above.

 

2.             DEFINITIONS. Capitalized terms used in this agreement shall have the same meanings as in the Note, unless otherwise defined in this agreement.

 

3.             MODIFICATION OF NOTE.

 

3.1      From and after the Effective Date, the provision in the Note captioned "Due" and the first paragraph of the provision in the Note captioned "Promise to Pay" are hereby amended and restated to read as follows!

 

Due:           June 30, 2011

 

Promise to Pay. On or before June 30, 2011, for value received, ARI Network Services, Inc. (the "Borrower") promises to pay to JPMorgan Chase Bank, N.A., whose address is 111 E. Wisconsin Ave, Milwaukee, WI 53202 (the "Bank") or order, in lawful money of the United States of America,
the sum of One Million Five Hundred Thousand and 00/100 Dollars ($1,500.000.00) or so much thereof as may be advanced and outstanding, plus interest on the unpaid principal balance computed on the basis of the actual number of days elapsed in a year of 360 days at the rate of 1.00% per annum above the Prime Rate (the "Note Rate"), and at the rate of 3.00% per annum above the Note Rate, at the Bank's option, upon the occurrence of any default under this Note, whether or not the Bank elects to accelerate the maturity
of this Note, from the date such increased rate is imposed by the Bank. In this Note, "Prime Rate" means the rate of interest per annum announced from time to lime by the Bank as its prime rate. The Prime Rate is a variable rate and each change in the Prime Rate is effective from and including the dale the change is announced as being effective, THE PRIME RATE IS A REFERENCE RATE AND MAY NOT BE THE BANK'S LOWEST RATE.

 

3.2      From and after the Effective Date, the provision in the Note captioned "Late Fee" to hereby amended and restated to read as follows:

 

Late Fee. Any principal or interest which is not paid within 10 days after its due date (whether as stated, by acceleration or otherwise) shall be subject to a late payment charge of five percent (5.00%) of the total payment due, in addition to the payment of interest, up to the maximum
amount of One Thousand Five Hundred and 00/100 Dollars ($1,500.00) per late charge. The Borrower agrees to pay and stipulates that five percent (5.00%) of the total payment due is a reasonable amount for a late payment charge. The Borrower shall pay the late payment charge upon demand by the Bank or, if billed, within the time specified.

 

3.3      Each of the Related Documents is modified to provide that it shall be a default or an event of default thereunder if the Borrower shall fail to comply with any of the covenants of the Borrower herein or if any representation or warranty by the Borrower herein or by any guarantor in any Related Documents
is materially incomplete, incorrect, or misleading as of the date hereof. As used in this agreement, the "Related Documents" shall include the Note and all applications for letters of credit, loan agreements, credit agreements, reimbursement agreements, security agreements, mortgages, deeds of trust, pledge agreements, assignments, guaranties, or any other instrument or document executed m connection with the Note or in connection with any other obligations of the Borrower
to the Bank.

  

  

  

 

3.4      Each reference in the Related Documents to any of the Related Documents shall be a reference to such document as modified by tins agreement.

 

4.             RATIFICATION OF RELATED DOCUMENTS AND COLLATERAL. The Related Documents are ratified and reaffirmed by the Borrower and shall remain rn full force and effect as they may be modified by this agreement. All
property described as security in the Related Documents shall remain as security for the Note, as modified by this agreement, and the Liabilities under the other Related Documents.

 

5.             BORROWER REPRESENTATIONS AND WARRANTIES. The Borrower represents and warrants to the Bank that each of the representations and warranties made in the Note and the other Related Documents and each of the following
representations and warranties are and will remain, true and correct until the later of maturity or the date on which all Liabilities evidenced by the Note arc paid in full.

 

5.1      No default, event of default or event that would constitute a default or event of default but for the giving of notice, the lapse of time or both, has occurred and is continuing under any provision of the Note, as modified by this agreement, or any other Related Document.

 

5.2      No event has occurred which may in any one case or in the aggregate materially and adversely affect the financial condition, properties, business, affairs, prospects or operations of the Borrower or any guarantor or any subsidiary of the Borrower.

 

5.3      The Borrower has no defenses or counterclaims, offsets or adverse claims, demands or actions of any kind, personal or olherwise, that it could assert with respect to the Note or any other Liabilities.

 

5.4      The Note, as modified by this agreement, and the other Related Documents are the legal, valid, and binding obligations of the Borrower and the other parties, enforceable against the Borrower and other parties in accordance with their terms, except
as may be limited by bankruptcy, insolvency or other laws affecting the enforcement of creditors' rights generally and by general principles of equity.

 

5.5      The Borrower, other than any Borrower who is a natural person, is validly existing under the laws of the State of its formation or organization. The Borrower has the requisite power and authority to execute and deliver this agreement and to perform the obligations described in the Related Documents
as modified herein. The execution and delivery of this agreement and the performance of the obligations described in the Related Documents as modified herein have been duly authorized by all requisite action by or on behalf of the Borrower. This agreement has been duly executed and delivered by or on behalf of the Borrower,

 

6.             BORROWER COVENANTS. The borrower covenants with the Bank:

 

6.1      The Borrower shall execute, deliver, and provide to the Bank such additional agreements, documents, and instruments as reasonably required by the Bank to effectuate the intent of this agreement.

 

6.2      The Borrower fully, finally, and forever releases and discharges the Bank, its successors, and assigns and their respective directors, officers, employees, agents, and representatives (each a "Bank Party") from any and all causes of action, claims,
debts, demands, and liabilities, of whatever kind or nature, in law or equity, of the Borrower, whether now known or unknown to the Borrower, (i) in respect of the loan evidenced by the Note and the Related Documents, or of the actions or omissions of any Bank Party in any manner related to the loan evidenced by the Note or the Related Documents and (ii) arising from events occurring prior to the date of this agreement

 

6.3      To the extent not prohibited by applicable law. the Borrower shall pay to the Bank:

 

6.3.1    All the internal and external costs and expenses incurred (or charged by internal allocation) by the Bank in connection with this agreement (including, without limitation, inside and outside attorneys, appraisal, appraisal review, processing, title, filing, and recording costs, expenses, and fees).

 

7.              EXECUTION AND DELIVERY OF AGREEMENT BY THE BANK. The Bank shall not be bound by this agreement until (i) the Bank has executed this agreement and (ii) the Borrower performed all of the obligations of the
Borrower under this agreement to be performed contemporaneously with the execution and delivery of this agreement,

 

8:             INTEGRATION, ENTIRE AGREEMENT, CHANGE, DISCHARGE, TERMINATION, OR WAIVER. The Note, as modified
by this agreement, and the other Related Documents contain the complete understanding and agreement or the Borrower and the Bank in respect of any Liabilities evidenced by the Note and supersede alt prior understandings, and negotiations. No provision of the Note, as modified by this agreement, or any other Related Documents may be changed, discharged, supplemented, terminated, or waived except in a writing signed by the party against whom it is being
enforced.

  

2

  

 

9.      GOVERNING LAW AND VENUE. This agreement shall be governed by and construed in accordance with the laws of The State of Wisconsin (without giving effect to its laws of conflicts). The Borrower agrees that any legal action or proceeding with respect
to any of its obligations under the Note of this agreement may be brought by the Bank in any state or federal court located in the State of Wisconsin, as the Bank in its sole discretion may elect. By the execution and delivery of this agreement, the Borrower submits to and accepts, for itself and in respect of its property, generally and unconditional, the non-exclusive jurisdiction of those courts. The Borrower waives any claim that the State of Wisconsin
is not a convenient forum or the proper venue for any such suit, action or proceeding. This agreement binds the Borrower and its successors, and benefits the Bank, its successors and assigns. The Borrower shall not, however, have the right to assign the Borrower's rights under this agreement or any interest therein, without the prior written consent of the Bank.

 

10.      COUNTERPART EXECUTION. This agreement may be executed in multiple counterparts, each of which, when so executed, shall he deemed an original, but all such counterparts, taken together, shall constitute one and the same agreement.

 

11.      NOT A NOVATION. This agreement is a modification only and not a novation, In addition to all amounts hereafter due under the Note, as modified by this agreement, and the other Related Documents, all accrued interest evidenced by the Note being
modified by this agreement and all accrued amounts due and payable under the Related Documents shall continue to be due and payable until paid. Except for the modification(s) set forth in this agreement, the Note, the other Related Documents and all the terms and conditions thereof, shall be and remain in full force and effect with the changes herein deemed to be incorporated therein. This agreement is to be considered attached to the Note and made a part thereof. This agreement shall not release or affect the
liability of any guarantor, surety or endorser of the Note or release any owner of collateral securing the Note. The validity, priority and enforceability of the Note shall not be impaired hereby. References to the Related Documents and to other agreements shall not affect or impair the absolute and unconditional obligation of the Borrower to pay the principal and interest on the Note when due. The Bank reserves all rights against all parties to the Note and the other Related Documents.

 

	  	
Borrower:

	 	 
	
Adress:  11425 West Lake Park Drive, Suite 900 Milwaukee, WI 53224
	
ARI Network Services, Inc.

	  	
By:
	
/s/ Kenneth S. Folberg

	  	  	
Kenneth S. Folberg, VP of Finance & CFO

	  	  	
Printed Name        Title

	 	 	 
	  	
Date Signed:
	
April 9, 2009

	  	  	  
	
BANK’S ACCEOPTANCE
	  	  
	 	 	 
	
The foregoing agreement is hereby agreed to and acknowledged.
	  
	  	
Bank:
	  
	 	 	 
	  	
JP Morgan Chase Bank N.A.

	 	 
	  	
By:
	
/s/ Anthony w. Bartell

	  	  	
Anthony w. Bartell, VP

	  	  	
Printed Name        Title

	 	 	 
	  	
Date Signed:
	
4/10/09

 

 

3Unassociated Document

    Exhibit
10.1

    DEFERRED
BONUS AGREEMENT

    

    FOR

    

    SEKAR
SUNDARARAJAN

    

    WHEREAS,
Hooker Furniture Corporation (the “Company”) and Sekar Sundararajan (the
“Executive”) (collectively, the “Parties”) entered into an Employment Package
Offer Letter on or about February 8, 2008 (the “Offer Letter”) and agreed upon a
“Deferred Compensation Vesting Schedule” as described in Appendix 1 to the Offer
Letter (the “Appendix”);

    

    WHEREAS,
the Offer Letter and Appendix constitute a nonqualified deferred compensation
plan within the meaning of Section 409A of the Internal Revenue Code of 1986, as
amended (“Section 409A”) that is intended to comply with the requirements of
Section 409A; and

    

    WHEREAS,
the Parties now wish to amend and restate the nonqualified deferred compensation
plan described in the Offer Letter and Appendix to consolidate the plan into a
single plan document and to add a claims procedure, as required by the Employee
Retirement Income Security Act of 1974, as amended (“ERISA”).

    

    NOW,
THEREFORE, BE IT RESOLVED, that the Parties do hereby agree that this Deferred
Bonus Agreement (the “Agreement”), as set forth below, shall amend, restate,
supersede and replace the Appendix and that portion of the Offer Letter that
concerns the deferred bonus.

    

    
      	
              1.

            	
              Deferred
      Bonus Amounts.  The Executive shall be awarded a
      designated deferred bonus (each, a “Deferred Bonus Amount”) in the amount
      and at the date specified in the table below.  The vested
      portion of each Deferred Bonus Amount shall be paid to the Executive (or
      the Executive’s Beneficiary in the event of his death) on the Payment Date
      designated in the table below.

            

    

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              	
                                      Fiscal

                                      Year

                                    	 	
                                      Deferred Bonus

                                      Amount

                                    	 	
                                      Award Date

                                    	 	
                                      Payment Date

                                    
	
                                      2009

                                    	 	$	50,000	 	
                                      February
      8, 2008

                                    	 	
                                      January
      31, 2010

                                    
	
                                      2010

                                    	 	$	50,000	 	
                                      February
      1, 2009

                                    	 	
                                      January
      30, 2011

                                    
	
                                      2011

                                    	 	$	50,000	 	
                                      January
      31, 2010

                                    	 	
                                      January
      29,
2012

                                    

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    

    
      	
              2.

            	
              Vesting
      of Deferred Bonus Amounts.  The Executive shall be vested
      in 33.33% of each Deferred Bonus Amount on the date on which such amount
      is awarded.  The Executive shall be vested in 66.66% of each
      Deferred Bonus Amount if he remains continuously employed by the Company
      until the end of the first fiscal year in which the Deferred Bonus Amount
      was awarded.  The Executive shall vest in 100% of each Deferred
      Bonus Amount if he remains continuously employed by the Company from each
      respective Award Date through the corresponding Payment Date, as set forth
      in Section 1 above.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
              3.

            	
              Payment
      of Deferred Bonus Amounts.  The Company shall pay the
      Executive the vested portion the Executive’s Deferred Bonus Amounts within
      fifteen (15) business days following the designated Payment Date for that
      Deferred Bonus Amount, as specified in Section 1
  above.

            

    

    

    
      	
              4.

            	
              Designation
      of Beneficiary.  The Executive may designate a
      Beneficiary to receive any benefits due under this Agreement upon the
      Executive's death.  Such designation must be made by executing a
      Beneficiary designation form provided by the Company.  The
      Executive may change a Beneficiary designation by executing a subsequent
      Beneficiary designation form.  A Beneficiary designation is not
      binding on the Company until the Beneficiary designation form is actually
      delivered to the Company.

            

    

    

    
      	
              5.

            	
              Other
      Benefits and Employment.  Nothing contained herein shall
      in any way limit the Executive’s right to participate in or benefit from
      any pension, retirement, severance, disability, or other employee benefit
      plan or arrangement under which he is or may become eligible for by reason
      of his employment with the Company.  No provision of this
      Agreement shall be construed as conferring upon the Executive the right to
      continue in the employ of the
Company.

            

    

    

    
      	
              6.

            	
              Withholding.  Notwithstanding
      any of the foregoing provisions hereof, the Company may withhold from
      payments to be made hereunder all applicable federal and state withholding
      taxes.

            

    

    

    
      	
              7.

            	
              Unfunded
      Arrangement.  There is no fund associated with this
      Agreement.  The Company shall be required to make payments only
      as benefits become due and payable. The Executive and his Beneficiary
      shall have no right, other than the right of an unsecured general
      creditor, against the Company in respect to the benefits payable, or which
      may be payable, to the Executive and his Beneficiary
      hereunder.  If the Company, acting in its sole discretion,
      establishes a reserve or other fund associated with this Agreement, the
      Executive and his Beneficiary shall have no right to or interest in any
      specific amount or asset of such reserve or fund by reason of amounts
      which may be payable under this Agreement, and neither the Executive nor
      his Beneficiary shall have any right to receive any payment under this
      Agreement except as and to the extent expressly provided in this
      Agreement.

            

    

    

    
      	
              8.

            	
              No
      Assignment of Benefits.  Any benefits to which the
      Executive or his Beneficiary may become entitled under this Agreement are
      not subject in any manner to anticipation, alienation, sale, transfer,
      assignment, pledge, encumbrance, charge, garnishment, execution or levy of
      any kind, and any attempt to cause any such benefits to be so subjected
      shall not be recognized.  Benefits are not subject to attachment
      or legal process for the debts, contracts, liabilities, engagements or
      torts of the Executive or his Beneficiary.  This Agreement does
      not give the Executive any interest, lien or claim against any specific
      asset of the Company.

            

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

    
      	
              9.

            	
              Administration.

            

    

    

    
      	
               
      

            	
              (a)

            	
              This
      Agreement shall be administered by the Company, which shall have the
      express discretionary authority to interpret the terms of this Agreement
      and to adopt such rules and regulations as it deems necessary to carry out
      the Agreement.  Subject to subsection (b) below, the Company's
      interpretation and construction of any provision of this Agreement shall
      be final and conclusive.

            

    

    

    
      	
               
      

            	
              (b)

            	
              Claims
      Procedures.

            

    

    

    
      (i)        Right to
File a Claim.  The Executive or his Beneficiary (as described in
Section 4 of this Agreement) is entitled to file a claim with respect to
contributions, benefits or other aspects of the operation of this
Agreement.  The claim is required to be in writing and must be made to
the Company.

    

    
      (ii)       Denial of
Claim.  If the claim is denied by the Company, the claimant shall be
notified in writing within ninety (90) days after receipt of the claim or within
one hundred eighty (180) days after such receipt if special circumstances
require an extension of time.  If special circumstances require an
extension of time, the claimant shall be furnished written notice prior to the
termination of the initial ninety (90) day period which explains the special
circumstances requiring an extension of time and the day by which the Company
expects to make its determination.  A written notice of denial of the
claim shall contain the following information:

    

    

    
      	
               
      

            	
              (A)

            	
              Specific
      reason or reasons for the denial,

            

    

    

    
      (B)        Specific
reference to the pertinent provisions of the Agreement on which the denial is
based,

    

    

    
      (C)       A
description of any additional material or information necessary for the claimant
to perfect the claim and an explanation of why the material or information is
necessary, and

    

    

    
      (D)       A
description of the Agreement’s review procedures and the time limits applicable
to the procedures, including a statement of the claimant’s right to bring a
civil action under Section 502(a) ERISA following a denial upon review of the
claim.

    

    

    
      	
               
      

            	
              (iii)

            	
              Claims
      Review Procedure.

            

    

    

    
      (A)       The
Executive or his Beneficiary may request that the Company review the denial of
the claim.  Such request must be made within sixty (60) days following
the date the claimant received written notice of the denial of the
claim.  The Company shall afford the claimant a full and fair review
of the decision denying the claim and shall:

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    

    
      (1)         provide,
upon request and free of charge, reasonable access to and copies of all
documents, records and other information relevant to the claim,
and

    

     

    
      (2)         permit
the claimant to submit written comments, documents, records and other
information relating to the claim.

    

    

    
      (B)      
The
decision on review by the Company shall be in writing and shall be issued within
sixty (60) days following receipt of the request for review.  The
period for decision may be extended to a date not later than 120 days after such
receipt if the Company determines that special circumstances require
extension.  If special circumstances require an extension of time, the
claimant shall be furnished written notice prior to the termination of the
initial 60-day period which explains the special circumstances requiring an
extension of time and the date by which the Company expects to render its
decision on review.  The decision on review shall
include:

    

    

    
      (1)         Specific
reason or reasons for the adverse determination,

    

     

    
      (2)         references
to the specific provisions in the Agreement on which the determination is
based,

    

    

    
      (3)         a
statement that the claimant is entitled to receive, upon request and free of
charge, reasonable access to and copies of all documents, records and other
information relevant to the claimant’s claim, and

    

    

    
      (4)         a
statement of the claimant’s right to bring an action under Section 502(c) of
ERISA.

    

    

    
      (iv)      Authorized
Representative:  Any action required or authorized to be taken by the
claimant pursuant to this Section 1 may be taken by a representative authorized
in writing by the claimant to represent the claimant.

    

    

    
      	
              10.

            	
              Amendment or Termination.   This
      Agreement may be amended or revoked at any time in whole or in part by the
      mutual written agreement of the Executive and the Company subject to the
      provisions of Section 15 presented
below.

            

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    

    
      	
              11.

            	
              Successors.  In
      the event of the dissolution, merger, consolidation or reorganization of
      the Company, the successor to all or a major portion of the Company’s
      assets shall continue this Agreement, and the successor shall have all of
      the powers, duties and responsibilities of the Foundation under this
      Agreement.

            

    

    

    
      	
              12.

            	
              Governing
      Law.  This Agreement shall be construed and enforced in
      accordance with and governed by the laws of the state of the Commonwealth
      of Virginia, except to the extent preempted by applicable federal law, and
      without regard to the conflicts of laws or provisions of any
      jurisdiction.

            

    

    

    
      	
              13.

            	
              Construction.  For
      construction, the singular and plural include each other where the meaning
      would be appropriate.  The headings in this Agreement have been
      inserted for convenience of reference only and are to be ignored in any
      construction of the provisions. If a provision of this Agreement is not
      valid, that invalidity shall not affect any other provisions of this
      Agreement.

            

    

    

    
      	
              14.

            	
              Counterparts.  This
      Agreement may be executed in several counterparts, each of which shall be
      deemed to be an original but all of which together will constitute one and
      the same instrument.

            

    

    

    
      	
              15.

            	
              Code
      Section 409A.  It is intended that this Agreement comply
      with Section 409A and any regulations, guidance and transition rules
      issued thereunder, and the Agreement shall be interpreted and operated
      consistently with that intent.  If the Company shall determine
      that any provisions of this Agreement do not comply with the requirements
      of Section 409A, the Company shall have the authority to amend the
      Agreement to the extent necessary (including retroactively) in order to
      preserve compliance with said Section 409A.  The Company shall
      also have the express discretionary authority to take such other actions
      as may be permissible to correct any failures to comply with Section
      409A.

            

    

    

    
      	
              16.

            	
              No
      Effect on Offer Letter.  This Agreement shall exclusively
      govern the terms of the deferred bonus and shall have no effect any other
      terms of the Executive’s employment contained in the Offer
      Letter.  Such other terms shall remain in full force and
      effect.

            

    

    

    *  *  *  *  *

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the 10th
day of June 2009.

    

    
      
        	 
      	
                HOOKER
      FURNITURE CORPORATE

              
	 
      	 
      
	 
      	
                /s/ E. Larry Ryder

              
	 
      	
                E.
      Larry Ryder,

              
	 
      	
                Executive
      Vice President – Finance and

              
	 
      	
                Administration

              

      

    

     

    
      
        	 
      	
                EMPLOYEE

              
	 
      	 
      
	 
      	
                /s/ Sekar Sundararajan

              
	 
      	
                Sekar
      Sundararajan

              

      

    

     

    
      
         

      

      
        6

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