Document:

bfdi_ex1019.htm

Exhibit 10.19

 

 

 

Borrowing Base Rider

 

 

THIS BORROWING BASE RIDER (“Rider”) is made as of the effective date of September 28, 2013, by and between BREKFORD CORP., a Delaware corporation (the “Borrower”) with an address at 7020 Dorsey Road, Suite C, Hanover, MD  21076, and PNC BANK, NATIONAL ASSOCIATION (the “Bank”), with an address at 8593 Baltimore National Pike, Ellicott City, Maryland  21043. This Rider is incorporated into and made part of that certain Loan Agreement dated as of June 28, 2012 (as amended by that certain First Amendment to Loan Documents dated as of December 21, 2012 by and between the Borrower and the  Bank (the “First Amendment”), by that certain Second Amendment to Loan Documents dated of even date herewith by and between the Borrower and the Bank (the “Second Amendment”) and as otherwise amended, restated, modified, substituted, extended, and renewed from time to time, the “Loan Agreement”) and promissory note dated as of June 28, 2012 (as amended by the First Amendment and the Second Amendment and as amended, restated, modified, substituted, extended, and renewed from time to time, the “Note”) and also into certain other financing documents and security agreements executed by and between the Borrower and the Bank (all such documents, as amended, restated, modified, substituted, extended, and renewed from time to time, including this Rider are collectively referred to as the “Loan Documents”).  All initially capitalized terms not otherwise defined in this Rider shall have the same meanings assigned to such terms in the other Loan Documents.

Pursuant to the Loan Documents, the Bank has extended a “Facility” or “Loans” (as defined in the Loan Documents) to the Borrower, under which the Borrower may borrow, repay and reborrow funds at any time prior to the Expiration Date (such Facility or Loans being referred to herein as the “Facility”).  As a condition to the Bank’s willingness to extend the Facility to the Borrower, the Bank and the Borrower are entering into this Rider in order to set forth their agreement regarding the maximum amount which may be outstanding under the Facility at any time, and for the other purposes set forth below.

NOW, THEREFORE, with the foregoing background deemed incorporated by reference and made a part hereof, the parties hereto, intending to be legally bound, covenant and agree as follows:

1.           Limitations on Borrowings Under Facility.  Notwithstanding any provision to the contrary in any of the other Loan Documents, at no time shall the aggregate principal amount of indebtedness outstanding at any one time under the Facility exceed the Borrowing Base (as hereinafter defined) at such time.  If at any time the aggregate principal amount of indebtedness outstanding under the Facility exceeds the limitations set forth in this Section 1 for any reason, then the Borrower shall immediately repay the amount of such excess to the Bank in immediately available funds.

2.           Borrowing Base Certificates.  In addition to any and all provisions of the other Loan Documents which establish conditions to the Borrower’s ability to request and obtain any advance under the Facility, the Borrower may not request an advance under the Facility unless a Borrowing Base Certificate (as hereinafter defined) shall have been delivered to the Bank on or before the 15th day of each month.

3.           Certain Defined Terms.  In addition to the words and terms defined elsewhere in this Rider or in the other Loan Documents, the following words and terms, as used in this Rider, shall have the following meanings:

“Account” shall mean an “account” or a “general intangible” as defined in the Uniform Commercial Code as in effect in the jurisdiction whose Law governs the perfection of the Bank’s security interest therein, whether now owned or hereafter acquired or arising.

“Account Debtor” shall mean, with respect to any Account, each Person who is obligated to make payments to the Borrower on such Account.

“Affiliate” of the Borrower or any Account Debtor shall mean (a) any Person who (either alone or with a group of Persons, and either directly or indirectly through one or more intermediaries) is in control of, is controlled by or is under common control with the Borrower or such Account Debtor, (b) any director, officer, partner, employee or agent of the Borrower or such Account Debtor, and (c) any member of the immediate family of any natural person described in the preceding clauses (a) and (b).  A Person or group of Persons shall be deemed to be in control of the Borrower or an Account Debtor when such Person or group of Persons possesses, directly or indirectly, the power to direct or cause the direction of the management or policies of the Borrower or such Account Debtor, whether through the ownership of voting securities, by contract or otherwise.

  

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“Borrowing Base” at any time shall mean the lesser of (a) $3,000,000 and (b) the sum of (i) eighty percent (80%) of Qualified Accounts at such time and (ii) fifty percent (50%) of Qualified Inventory at such time; provided, however, that, if the blank in this proviso clause is completed, the total amount of advances allocable to Qualified Inventory shall not exceed $500,000.00 at any time.  The value of Qualified Accounts and Qualified Inventory at any time shall be determined by reference to the most recent Borrowing Base Certificate delivered by the Borrower to the Bank.

“Borrowing Base Certificate” shall mean each Borrowing Base Certificate to be delivered by the Borrower to the Bank pursuant to Section 2 of this Rider, in substantially the form attached as Exhibit A to this Rider, executed by the Borrower and with blanks appropriately completed, as amended, supplemented or otherwise modified from time to time.

“Eligible Location” shall mean one of the addresses in the United States of America at which the Borrower maintains, keeps or stores Inventory, as listed in the Security Agreement executed and delivered by the Borrower and the Bank in connection with the Facility, and, if such location is leased by the Borrower, for which the Bank has received a landlord’s waiver acceptable to the Bank.  The Borrower and the Bank may agree jointly to add other addresses of the Borrower to such list at any time by executing and delivering a substitute list of addresses under said Security Agreement.  The Bank may in its discretion at any time determine that any address on such list shall no longer be an Eligible Location, by giving written notice of such determination to the Borrower.

“Inventory” shall mean “inventory” as defined in the Uniform Commercial Code as in effect in the jurisdiction whose Law governs the perfection of the Bank’s security interest therein, whether now owned or hereafter acquired and wherever located.

“Law” shall mean any law (including common law), constitution, statute, treaty, regulation, rule, ordinance, order, injunction, writ, decree or award of any Official Body.

“Lien” shall mean any mortgage, pledge, security interest, bailment, encumbrance, claim, lien or charge of any kind, including any agreement to give any of the foregoing, any conditional sale or other title retention agreement and any lease in the nature thereof, and the filing of or agreement to give any financing statement under the Uniform Commercial Code.

“Official Body” shall mean any government or political subdivision or any agency, authority, bureau, central bank, commission, department or instrumentality of any government or political subdivision, or any court, tribunal, grand jury or arbitrator, in each case whether foreign or domestic.

“Person” shall mean an individual, sole proprietorship, corporation, partnership (general or limited), trust, business trust, limited liability company, unincorporated organization or association, joint venture, joint-stock company, Official Body, or any other entity of whatever nature.

“Qualified Accounts” shall mean Accounts which are and at all times continue to be acceptable to the Bank in its sole discretion.  Standards of acceptability include but are not limited to the following conditions:

(a)           The Account duly complies with all applicable Laws, whether Federal, state or local, including but not limited to usury Laws, the Federal Truth in Lending Act, the Federal Consumer Credit Protection Act, the Fair Credit Billing Act, and Regulation Z of the Board of Governors of the Federal Reserve System;

(b)           The Account was not originated in, and is not subject to the Laws of, a jurisdiction whose Laws would make the account or the grant of the security interest in the Account to the Bank unlawful, invalid or unenforceable;

(c)           The Account was originated by the Borrower in connection with the sale of goods or the rendering of services by the Borrower in the ordinary course of business under an enforceable contract, and such sale has been consummated and such goods have been delivered or such services have been rendered so that the performance of such contract has been completed by the Borrower and by all parties other than the Account Debtor;

(d)           The Account is evidenced by a written invoice or other documentation and arises from a contract, all of which are in form and substance satisfactory to the Bank;

(e)           The Account does not arise out of a contract with, or order from, an Account Debtor that, by its terms, forbids or makes void or unenforceable the grant of the security interest by the Borrower to the Bank in and to the Account arising with respect thereto;

(f)           The title of the Borrower to the Account and, except as to the Account Debtor, to any related goods is absolute and is not subject to any Lien except Liens in favor of the Bank;

(g)           The Account provides for payment in United States Dollars by the Account Debtor;

  

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(h)           The Account shall have amounts owing that are not less than the amounts represented by the Borrower;

(i)           The portion of the Account for which income has not yet been earned or which constitutes unearned discount, service charges or deferred interest shall be ineligible;

(j)           The Account shall be eligible only to the extent that it is not subject to any defense, claim of reduction, counterclaim, set-off, recoupment, or any dispute or claim for credits, allowances or adjustments by the Account Debtor because of returned, inferior, damaged goods or unsatisfactory services, or for any other reason;

(k)           The goods the sale of which gave rise to the Account were shipped or delivered or provided to the Account Debtor on an absolute sale basis and not on a bill and hold sale basis, a consignment sale basis, a guaranteed sale basis, a sale or return basis, or on the basis of any other similar terms making the Account Debtor’s payment obligations conditional;

(l)           The Account Debtor has not returned, rejected or refused to retain, or otherwise notified the Borrower of any dispute concerning, or claimed nonconformity of, any of the goods from the sale of which the Account arose;

(m)           No default exists under the Account by any party thereto, and all rights and remedies of the Borrower under the Account are freely assignable by the Borrower;

(n)           The Account has not been outstanding for more than ninety (90) days past the invoice date (or, in the case of Accounts owing from the Mayor and  City Council of Baltimore or any related agency thereof, one hundred and eighty (180) days past the invoice date) and is not subject to “dating” terms;

(o)           The Account shall be ineligible if 50% or more of the accounts of the related Account Debtor and its Affiliates are more than ninety (90) days past due from the date of original invoice therefor (or, in the case of Accounts owing from the Mayor and City Council of Baltimore or any related agency thereof, one hundred and eighty (180) days past due from the date of original invoice therefor);

(p)           The Account shall be ineligible to the extent that the aggregate amount of all the Accounts of the Account Debtor and its Affiliates exceed 20% of all of the Borrower’s Accounts; provided, however, that this subsection (p) shall not apply to Accounts owing from the Mayor and City Council of Baltimore or any related agency thereof;

(q)           The Borrower has not received any note, trade acceptance, draft, chattel paper or other instrument with respect to, or in payment of, the Account, unless, if any such instrument has been received, the Borrower immediately notifies the Bank and, at the Bank’s request, endorses or assigns and delivers such instrument to the Bank;

(r)           The Borrower has not received any notice of (i) the death of the Account Debtor, if an individual, or of a partner or member thereof if a partnership or a limited liability company, (ii) the filing by or against the Account Debtor of any proceeding in bankruptcy, receivership, insolvency, reorganization, liquidation, conservatorship or any similar proceeding, or (iii) any assignment by the Account Debtor for the benefit of creditors.  Upon receipt by the Borrower of any such notice, it will give the Bank prompt written notice thereof;

(s)           The Account Debtor is not an Affiliate of the Borrower;

(t)           The Account shall be ineligible if the related Account Debtor is domiciled in any country other than the United States of America or the Province of Ontario, Canada, or a Province of Canada which has adopted and has in effect the Personal Property Security Act, unless such Account is supported by a documentary letter of credit, duly assigned to and in the possession of the Bank, from a financial institution acceptable to the Bank and the terms and conditions of which are acceptable to the Bank;

(u)           The Account shall be ineligible if the Account Debtor is an Official Body, unless the Borrower shall have taken all actions deemed necessary by the Bank in order to perfect the Bank’s security interest therein, if the Bank has so requested, including but not limited to any notices or filings required under the Assignment of Claims Act of 1940, as amended, or other applicable Laws;

(v)           The Bank has not deemed such Account ineligible because of uncertainty about the creditworthiness of the Account Debtor (including, without limitation, unsatisfactory past experiences of the Borrower or the Bank with the Account Debtor or unsatisfactory reputation of the Account Debtor) or because the Bank otherwise makes a determination that the collateral value of the Account to the Bank is impaired or that the Bank’s ability to realize such value is insecure;

  

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(w)           The Account shall be eligible only to the extent that the amount owing on the Account is not a Payment Intangible; and

(x)           The Account shall comply with the additional eligibility standards, if any, which are set forth on Exhibit B to this Rider.Standards of acceptability shall be fixed and may be revised from time to time solely by the Bank in its exclusive judgment.  In the case of any dispute about whether an Account is or has ceased to be a Qualified Account, the decision of the Bank shall be final.

“Qualified Inventory” shall mean the Borrower’s Inventory of saleable raw materials and finished goods manufactured or acquired by the Borrower in the ordinary course of business, subject to its control or sole possession, stored in an Eligible Location and in a manner acceptable to the Bank, valued at the lower of cost or market value (determined on a first-in, first-out basis), which is not subject to any Lien except Liens in favor of the Bank, which complies with the additional eligibility standards, if any, which are set forth on Exhibit B to this Rider, and which is and at all times continues to be acceptable to the Bank.  Standards of acceptability shall be fixed and may be revised from time to time exclusively by the Bank in its sole discretion.  In the case of any dispute about whether Inventory is or has ceased to be Qualified Inventory, the decision of the Bank shall be final.

“Payment Intangible” shall mean a “payment intangible” as defined in the Uniform Commercial Code as in effect in the jurisdiction whose Law governs the perfection of the Bank’s security interest in the Accounts.

4.           Governing Law.  This Rider will be interpreted and the rights and liabilities of the parties hereto determined in accordance with the laws of the State where the Bank’s office indicated above is located, excluding its conflicts of laws rules.

5.           Counterparts.  This Rider may be signed in any number of counterpart copies and by the parties hereto on separate counterparts, but all such copies shall constitute one and the same instrument.  Delivery of an executed counterpart of a signature page to this Agreement by facsimile transmission shall be effective as delivery of a manually executed counterpart.  Any party so executing this Agreement by facsimile transmission shall promptly deliver a manually executed counterpart, provided that any failure to do so shall not affect the validity of the counterpart executed by facsimile transmission.

[Signatures follow on the next page.]

 

  

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WITNESS the due execution hereof as a document under seal, as of the date first written above.

 

	
WITNESS:

	
BREKFORD CORP., a Delaware corporation

 

	  	  
	
/s/___________________________________

	
By: /s/ Chandra (C.B.) Brechin_________(SEAL)

	  	
      Chandra (C.B.) Brechin

      Chief Executive Officer

	
 

 

 

/s/___________________________________

	
 

 

 

By: /s/ Scott Rutherford_______________(SEAL)

	  	
       Scott Rutherford

       President

	  	
PNC BANK, NATIONAL ASSOCIATION

	  	  
	  	  
	
/s/___________________________________

	
By: /s/ Stephen D. Palmer_____________(SEAL)

	  	
      Stephen D. Palmer

	  	
      Senior Vice President

  

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EXHIBIT A

TO BORROWING BASE RIDER

 

Borrowing Base Certificate

 

THIS BORROWING BASE CERTIFICATE, dated as of _________________  _____, _______, is executed and delivered by the undersigned borrower (the “Borrower”) in favor of PNC BANK, NATIONAL ASSOCIATION (the “Bank”), pursuant to a letter agreement or loan agreement dated as of December 21, 2012 (including any Borrowing Base Rider executed pursuant thereto and made a part thereof, and as amended or otherwise modified from time to time, the “Agreement”).  All initially capitalized terms used in this Certificate shall have the meanings assigned to them in the Agreement.  To induce the Bank to make loans and other financial accommodations available to the Borrower under the Agreement, the Borrower hereby certifies, represents and warrants to the Bank, as of the date hereof, that (a) the person signing below is an authorized officer or representative of the Borrower; (b) the statements below concerning the collateral securing the Obligations are true and complete; (c) the eligible collateral described below represents only Qualified Accounts and Qualified Inventory; (d) the Borrower is in compliance with all of the terms and provisions of the Agreement and the other Loan Documents; (e) all of the Borrower's representations and warranties in the Agreement and the other Loan Documents are true and correct; and (f) no Event of Default has occurred and is continuing or exists.

 

	 
1. Collateral Availability

	 	 	 	 
	 	 	 	 	 
	 
A.  Accounts Receivable

	 	 
C.  Other Assets

	 	 
	 	 	 	 	 
	1.   Beginning A/R Balance 	$_____________	15.  Other Collateral Value 	$_____________	 
	2.   Changes to A/R Balance	$_____________	16.  Advance Percentage or Cap 	___% / $______	 
	3.   Total A/R     	$_____________	 
17.  Other Borrowing Availability

	 	 
	4.   Ineligible A/R 	$_____________	(L15 X L16) 	$_____________	 
	5.   Qualified A/R (L3 - L4) 	$_____________	 
18.  Total Availability

	 	 
	6.   Advance Percentage   	______%	(Sum of L7, L14 & L17)	$_____________	 
	 
7.   A/R Borrowing Availability

	 	 	 	 
	      (L5 X L6)  	$_____________	 
2.  Borrowing Availability

	 	 
	 	 	 	 	 
	 	 	19.  Maximum Line Amount  	$_____________	 
	 
B.  Inventory

	 	20.  Total Availability (L18) 	$_____________	 
	 	 	 
21.  Maximum Borrowing Capacity

	 	 
	8.   Beginning Inventory Balance  	$_____________	(lesser of L19 and L20) 	$_____________	 
	9.   Changes to Inventory Balance 	$_____________	22.  Outstanding Principal Balance 	$_____________	 
	10. Total Inventory      	$_____________	23. L/C’s, other items to be covered	$_____________	 
	11.  Ineligible Inventory  	$_____________	 
24.  Available to Borrow

	 	 
	12. Qualified Inventory (L10 - L11)	$_____________	L21 - L22 - L23	$_____________	 
	13.  Advance Percentage or Cap 	___% / $______	25.  Advance Request 	$_____________	 
	 
14.  Inv. Borrowing Availability

	 	26.  New Line Balance	$_____________	 
	       (lesser of L12 X L13 or cap)	$_____________	27.  Collateral Coverage	$_____________	 
	 	 	 	 	 

 

Dated: ______________________________                                              ___________________________________

(Borrower Name)

Certificate No.:______________________________                                By:  ______________________________________

Print Name: ________________________________

Title:_____________________________________

 

6Exhibit 10.30 AJacksonSeveranceAgreement01082014

Exhibit 10.30†

EXECUTIVE SEVERANCE AGREEMENT 
AND GENERAL RELEASE

This Executive Severance Agreement and Release (“Agreement”) is between Andrea Jackson (“Ms. Jackson”) and Body Central Services, Inc. (“Body Central”). 

WHEREAS, both Body Central and Ms. Jackson wish to amicably separate their employment relationship in consideration of the mutual agreements provided for in this Agreement;

1.Separation:  While this is an amicable agreement between Body Central and Ms. Jackson, Ms. Jackson is being “Involuntarily Separated” from her employment with her “Last Day of Employment” being January 6, 2014 which shall not be earlier than the date Ms. Jackson has a "separation from service" from Body Central, as all of those terms are defined in Treasury Regulations Section 1.409A-1(h). Ms. Jackson’s Last Date of Employment will be referred to in this Agreement as the “Separation Date.”  Ms. Jackson will be permitted to submit a letter of resignation if she so chooses.  

2.Severance Benefits:  

a.Body Central will pay Ms. Jackson severance pay of three hundred thousand dollars ($300,000) which is the equivalent of 52 weeks of her current base salary.  This severance pay will be divided into twenty-six equal payment amounts of $11,538.46 minus all legally required deductions (“severance installment”).  No payments will be made until Ms. Jackson signs this agreement and the 7 day revocation period described in paragraph 12.g. below expires. The first payment will be made on the first payroll date after Ms. Jackson signs this Agreement and after the revocation period expires.    This first payment will be equal to the amount of pay Ms. Jackson would have received from January 6, 2014 through the date of the first payment.  Thereafter, payments will be made on regularly scheduled payroll dates in the severance installment amount.  On the last payroll date in 2014, Body Central will pay Ms. Jackson all remaining installment payments.  All amounts due under this provision will be made no later than December 31, 2014.

b.Body Central will pay Ms. Jackson all accrued, but unused paid leave.  This payment will be made on the first payroll date after Ms. Jackson signs this Agreement and after the expiration of the 7 day revocation period described in paragraph 12.g. below.
c.Body Central will pay Ms. Jackson a lump sum payment of $6,653.40 which is the equivalent of 6 months of health insurance premium payments which may be applied to her COBRA payments to continue health insurance coverage.

d.Body Central will release Ms. Jackson form her Non-Competition obligations under paragraph 1(d) of her Confidentiality, Non-Disparagement, Non-Competition and Non-Solicitation Agreement which Ms. Jackson signed, and was effective on January 12, 2013.  All other restrictive covenants and obligations Ms. Jackson has under her Confidentiality, Non-Disparagement, Non-Competition and Non-Solicitation 

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2201516.1
2610196.1

Agreement will remain in full force and effect, and are incorporated into this Severance Agreement by reference.  Furthermore, the consideration provided to Ms. Jackson in this Severance Agreement, is also being paid in consideration of Ms. Jackson’s remaining obligations under the terms of the Restrictive Covenant Agreement.

e.Body Central will release Ms. Jackson from her obligations under the Relocation Assistance provision of her January 21, 2013 employment letter, which waiver is valued at $150,000.

f.The severance payments and waivers of obligation are contingent upon Ms. Jackson signing this Agreement, not revoking it within the 7 day revocation period, and not breaching this Agreement at any time. 

g.Body Central's Chief Executive Officer will issue a written communication to all of Body Central's Senior Vice-Presidents and Vice-Presidents directing them to not express, or cause others to express, any disparaging, derogatory or negative opinions concerning Ms. Jackson to any individuals outside of Body Central.  This provision applies to all forms of expression, including verbal and written, and through all available mediums such as the internet.  Nothing in this provision prevents a Body Central employee from providing truthful testimony if compelled by legal process.  Once this directive is issued, Body Central will have satisfied its obligations under this provision.

3.Confidentiality:  Ms. Jackson shall keep the terms and conditions of this Agreement strictly confidential, except that Ms. Jackson may share the terms of this Agreement with her spouse or with her legal and tax advisors for the purpose of obtaining professional advice, provided she advises each upon disclosure of her obligation to maintain the confidentiality.  Ms. Jackson may also disclose the terms and conditions of this Agreement as necessary to the taxing authorities, or in response to a subpoena or order of a court of competent jurisdiction, or other valid legal process; provided, however, that Ms. Jackson provides written notice to Body Central in a timely manner so that Body Central may assert any objections it has prior to Ms. Jackson’s disclosure.  Ms. Jackson acknowledges that a breach of this or any other obligation of confidentiality will be a material breach for which Body Central may seek an immediate injunction and appropriate damages. 

4.Waiver and Release:  

a.    Ms. Jackson releases Body Central and all of its subsidiary, parent, predecessor, successor and affiliated corporations and entities (including but not limited to Body Central Corp., Body Central Direct, Inc., Catalogue Ventures, Inc., Body Central Services, Inc., and Body Central Acquisition Corp.) and their sponsored benefit plans, and all of the foregoing corporations’, entities’ and plans’ past, current and future directors, officers, employees, representatives, agents, administrators, contractors, insurers and attorneys, individually and collectively (all of the foregoing shall collectively be referred to as the “Released Parties”), from, and waives, any and all claims of any nature, whether known or unknown, which Ms. Jackson may have relating in any way to her employment, 

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from the beginning of her relationship with the Released Parties through the date Ms. Jackson signs this Agreement.  This release includes, but is not limited to, the following claims:  the Age Discrimination in Employment Act, as amended (“ADEA”); Title VII of the Civil Rights Act of 1964, as amended; the Civil Rights Acts of 1866, 1871, and 1991; Executive Order Nos. 11246 and 11478; the Equal Pay Act of 1963, as amended; the Employee Retirement Income Security Act of 1974, as amended; the Rehabilitation Act of 1973, as amended; the Americans With Disabilities Act of 1990; the Family and Medical Leave Act of 1993; the National Labor Relations Act of 1935, as amended; the Fair Labor Standards Act of 1938, as amended; the Occupational Safety and Health Act of 1970, as amended; the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended; the Older Workers Benefit Protection Act; the Worker Adjustment and Retraining Notification Act, 29 U.S.C. § 2101, et seq.; the False Claims Act, 31 U.S.C. § 3730(h); and any other federal or state law, rule, or regulation, or local ordinance, including any suit in tort (including negligence), or contract (whether oral, written or implied), and any other common law or equitable basis of action.  However, Ms. Jackson does not release or waive any claims, rights, or causes of action which may not lawfully be released or waived in this manner, including the ability to challenge the release or waiver of her rights under the ADEA.

b.      Ms. Jackson represents that she has not filed any pending administrative charges or complaints against the Released Parties, and does not intend to file any administrative charges or complaint against the Released Parties with any federal, state or local agency and understands that Body Central has reasonably relied on her representations in this paragraph in agreeing to perform the obligations set forth in paragraph no. 2 of this Agreement.  If Ms. Jackson files such a charge, or if such a charge is filed on her behalf, Ms. Jackson waives any right to any monetary recovery based on any such charge or claim for damages relating to or arising out of her employment with Body Central.  

c.    Except for any challenge to the waiver and release of claims under the ADEA, if for any reason the signing of this Agreement does not result in a complete waiver and release of all claims Ms. Jackson has or could have made against the Released Parties as of the date of signing this Agreement, Ms. Jackson shall cooperate with the Released Parties in all efforts to obtain, or enter into, a valid and enforceable waiver with the same or similar terms and obligations, and release of all of Ms. Jackson’s claims against the Released Parties in their entirety. Ms. Jackson specifically agrees that, if ever necessary, she will not oppose agency review of this Agreement, or a motion to file this Agreement in the appropriate court for evaluation and approval by a judge.  Furthermore, Ms. Jackson agrees to participate in any hearings or proceedings required to obtain agency or court approval of this Agreement, including representing to the agency or court that this Agreement was made knowingly and voluntarily, without coercion, and that the amount paid by Body Central under this Agreement was reasonable consideration and made in exchange for her obligations under this Agreement, including all waivers and releases.

5.Obligation to Cooperate and Assist. Ms. Jackson agrees to cooperate in good faith with Body Central to assist it with any information which is within Ms. Jackson’s knowledge as a result of Ms. Jackson’s employment with Body Central, including but not 

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limited to being reasonably available for interview by Body Central’s attorneys, or providing truthful testimony without the necessity of a subpoena (unless requested by Ms. Jackson’s employer) or compensation, in any pending or future legal matter in which Body Central is a party.  In such instances, Body Central will pay all reasonable travel expenses associated with such cooperation, and will attempt to schedule such matters at the convenience of the Ms. Jackson.  If Ms. Jackson does not cooperate in good faith under this provision, Body Central may immediately cease making any remaining severance payments to Ms. Jackson until cooperation resumes.

6.Corporate Responsibility and Complaints:  Ms. Jackson understands that Body Central has in place a Code of Business Conduct and Ethics (“CBCE”) designed to ensure that Body Central complies with federal, state and local laws and regulations.  Ms. Jackson acknowledges and agrees that she (i) has not knowingly engaged in any activity which would constitute conduct in violation of the CBCE or which would result in the need for corrective action to be taken under the CBCE and/or which would be in violation of federal, state or local laws or regulations, and (ii) is not aware of any act of omission or commission by any other employee or agents of the Released Parties which would constitute conduct in violation of the CBCE or which would result in the need for corrective action under the CBCE or which would be in violation of federal, state or local laws or regulations.  Ms. Jackson represents that as of the date she signs this Agreement, she does not have any information which would support a claim that the Released Parties have violated federal state, or local law and therefore, she represents that she has not filed and does not intend to file any charges, complaints or claims making any such claims.  

7.Return of Property:  If Ms. Jackson has not already done so, she shall return to Body Central all property belonging to the Released Parties, including, without limitation, any documents and all copies, including all electronic copies, containing any proprietary or confidential information pertaining to the Released Parties.

8.Non-Disparagement:  Ms. Jackson shall not make any statements, or cause any statements to be made, or take any action, which is contrary to the Released Parties’ best interests.  Accordingly, Ms. Jackson will not express, or cause others to express, any disparaging,  derogatory or negative opinions concerning the Released Parties, or any of their operations, practices or services.  This provision applies to all forms of expression, including verbal and written, and through all available mediums such as the internet. Nothing in this provision prevents Ms. Jackson from providing truthful testimony if compelled by legal process.  

9.Non-Application:  Ms. Jackson agrees not to apply for employment with Body Central in the future.

10.Equity.  Notwithstanding anything to the contrary herein, the treatment of Ms. Jackson’s vested and unvested stock options and restricted stock awards granted by the Company pursuant to the Body Central Corp. Amended and Restated 2006 Equity Incentive Plan, as amended (the “Plan”) and the stock option agreements and restricted stock 

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agreements (the “Award Agreements”), as set forth on Exhibit A hereto, shall be governed by the terms and conditions set forth in the Plan and the respective Award Agreements.  In accordance with the terms of the Plan and the respective Awards Agreements, (i) any stock options and shares of restricted stock Ms. Jackson holds shall cease vesting as of the Separation Date, (ii) Ms. Jackson shall forfeit for no consideration any unvested shares of restricted stock as of the Separation Date and (iii) Ms. Jackson may exercise those options that have become exercisable as of the Separation Date (the “Vested Options”) within ninety (90) days after the Separation Date.

11.401(k) Plan.  Ms. Jackson’s entitlements under Body Central’s 401(k) plan or the Executive Non-Qualified Excess Plan, if any, are not affected by the terms of this Agreement and all entitlements will be governed by the terms of the Plan.

12.ADEA Acknowledgements:  Ms. Jackson acknowledges the following:

a.    she is waiving and releasing any rights she may have, or may have had under the Age Discrimination in Employment Act of 1967, as amended, (“ADEA”), including the right to bring legal action against the Released Parties.

b.    she has the capacity to understand, and in fact does understand all of the provisions of this Agreement.

c.    she is entering into this waiver and release knowingly and voluntarily, and without any coercion whatsoever.  

d.    this waiver and release does not apply to any rights or claims that may arise under the ADEA after the date Ms. Jackson signs this Agreement.  

e.    the consideration given for this Agreement is in addition to anything of value to which Ms. Jackson was already entitled. 

f.    she has had at least twenty-one (21) days within which to consider this Agreement. 

g.    she has seven (7) days following her execution of this Agreement to revoke the Agreement.  Revocation must be in writing and either delivered personally, or via email, within seven (7) days to the Body Central representative executing this Agreement.  

h.    she has been advised by this Agreement that she should consult with an attorney prior to executing this Agreement.

Nothing in this Agreement prevents or precludes Ms.  Jackson from challenging or seeking a determination in good faith of the validity of this waiver and release under the ADEA, nor does it impose any condition precedent, penalties or costs for doing so.

Page 5 of 5

13.No Admission. Neither this Agreement, nor anything contained in it, is to be construed as an admission by the Released Parties of any liability or unlawful conduct whatsoever.

14.Acknowledgements

a.    Ms. Jackson acknowledges that she was not already entitled to the severance payments described in paragraph 2 of this Agreement until she entered into this Severance Agreement.

b.    Ms. Jackson acknowledges that as of the date she signs this Agreement, and other than the severance payments provided for in paragraph 2. of this Agreement, Body Central has paid Ms. Jackson all earned and accrued compensation to which she is entitled, including but not limited to any and all salary, bonus, commissions, incentive compensation or similar benefit, stock options, restricted stock, severance pay, pension, vacation pay, life insurance, disability benefits, health or medical insurance, or any other fringe benefit.  

c.    Ms. Jackson acknowledges that she has reported all injuries she has incurred, if any, in the course and scope of performing her duties.

15.Remedy Upon Breach.  

a.    In the event Ms. Jackson breaches this Agreement, including a breach of the Confidentiality, Non-Disparagement, Cooperation and/or restrictive covenant provisions, she will have forfeited her right to any further payments under paragraph 2. and Body Central may immediately cease any further payments under those provisions.  Body Central may also demand immediate reimbursement from Ms. Jackson of any payments already made under paragraph 2, less $100, and Ms. Jackson will be obligated to reimburse Body Central for these payments within 10 business days of receiving Body Central’s written demand.  Ms. Jackson will be permitted to retain $100 of any money already paid to her under paragraph 2 of this Agreement in consideration for, and to enforce the remaining provisions of this Agreement including her waiver and release.  

b.    As a condition precedent to any legal action for breach of this Agreement, or to interpret or enforce this Agreement, the party intending such an action shall give prior notice to the other party in writing and the parties shall jointly submit the dispute to voluntary mediation before a mediator.  The parties will jointly agree to a mediator within 5 business days of the date of the written notification, and the parties will agree to a mediation date to take place within 30 days of the date of the written notification, unless the parties jointly agree to an extension.  As an exception to this provision, a party may seek 

Page 6 of 6

an immediate temporary injunction in court to preserve the status quo or to prevent irreparable harm without first complying with this condition precedent.

16.Jurisdiction and Venue:  The laws of the State of Florida shall govern this Agreement, and venue for any suit alleging breach of this Agreement, or to enforce this Agreement, shall be solely in Duval County, Florida.

17.Additional Provisions:  

a.    Ms. Jackson represents and warrants in executing this Agreement that: (a) she does not rely, and has not relied, upon any representation or statement made by Body Central or any other of the Released Parties which is not set forth in this Agreement,  (b) she has the capacity to act on her own behalf,  and (c) there are no liens or claims of lien or assignments in law or equity against any of the claims or causes of action Ms. Jackson has released or waived in this Agreement.  Ms. Jackson acknowledges and agrees that this Agreement binds her and her heirs, assigns, executors, and other representatives of any kind. 

b.    If any provision of this Agreement is invalidated by a court of competent jurisdiction, then all the remaining provisions of this Agreement shall continue unabated and in full force and effect.  

c.    Either party to this Agreement shall be entitled to an award of costs and attorneys’ fees expended in any action in which the party prevails for breach of, or to enforce the terms of, this Agreement (including seeking rescission), or where the party successfully defends a claim, lawsuit or other type of action which has been waived in this Agreement; provided, that the recovery of costs and attorneys’ fees shall not be permitted if prohibited by applicable law.  

d.    This Agreement shall not be admissible as evidence for any reason in any proceeding except one in which a party to this Agreement or the Released Parties seeks to enforce this Agreement or alleges this Agreement has been breached.

e.    This Agreement, and the incorporated agreements referenced in paragraphs 2.d. and e, and paragraph 10 above, contain the entire understanding and agreements between the parties and supersede and renders null and void any previous contracts, whether written or oral, between Ms. Jackson and any of the released parties.  This Agreement cannot be amended, modified, or supplemented except by a written agreement entered into by both parties to this Agreement.   

THIS SPACE INTENTIONALLY LEFT BLANK.

Page 7 of 7

MS. JACKSON ACKNOWLEDGES THAT SHE HAS CAREFULLY READ THIS EXECUTIVE SEVERANCE SEPARATION AGREEMENT AND GENERAL RELEASE, AND KNOWS AND UNDERSTANDS ITS CONTENTS, AND VOLUNTARILY SIGNS IT OF HER OWN FREE WILL.

IN WITNESS WHEREOF, and intending to be legally bound by the terms of this Agreement, Ms. Jackson and Body Central execute this Agreement by signing below voluntarily and with full knowledge of the significance of all of its provisions. 

	
		
	Ms. Andrea Jackson
	Body Central Services, Inc.

	Signature: /s/ Andrea Jackson
	Signature:  /s/ Brian Woolf

	 
	Title:  CEO

	Date:  1/10/2014
	Date:   1/14/2014

	Witness: /s/ E. Jackson
	Witness:  /s/ Frederick Lamster

Page 8 of 8

EXHIBIT A

Option Agreements

Incentive Stock Option Agreement by and between Body Central Acquisition Corp. and Ms. Jackson dated as of February 25, 2013.

Outstanding Equity as of the Termination Date

	
					
	Grant Date
	Type of Award
	Ex. Price
	Number of Options

	Vested
	Unvested

	2/25/2013
	Options
	$8.01
	0
	25,000

Page 9 of 9

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00228-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00228-of-00352.parquet"}]]