Document:

Exhibit
10.6

 

LEASE AGREEMENT

 

THIS
LEASE, is entered into effective on the 1st day of October, 2006, between
Powers Avenue Joint Venture, a Florida partnership, hereinafter referred to as “Landlord”
and Body Shop of America, Inc., a Florida corporation, hereinafter
referred to as “Tenant”.

 

Landlord
and Tenant agree as follows:

 

ARTICLE I- DEMISE AND
TERM

 

SECTION 1.01 DEMISE AND
ACCEPTANCE GENERALLY:  Landlord
leases to the Tenant, and Tenant rents and leases from Landlord, the premises
hereinafter described upon the terms and conditions hereinafter set forth.

 

SECTION 1.02 PREMISES:  The leased premises consist of the property
located at 6225 Powers Avenue, Jacksonville, Florida 32217 and described on
attached Exhibit A, together with all improvements (the “Building”)
now located thereon, and is hereafter referred to as the “Premises.”

 

SECTION 1.03 COMMENCEMENT
AND DURATION OF LEASE:  This
Lease shall be effective and the Rent Commencement Date is October 1,
2006.  The term (“Term”) and duration of
this Lease shall be for a period beginning on the Rent Commencement Date and
ending ten (10) years thereafter.

 

ARTICLE II - RENT

 

SECTION 2.01 AMOUNT OF
MINIMUM RENT:  Yearly Rent
for the calendar year 2006 is Four Hundred Eight Thousand ($408,000.00)
Dollars.  Rent payments due hereunder are
payable in monthly installments of Thirty-four Thousand ($34,000.00) Dollars (“Minimum
Monthly Rent”) due in advance, on the first (1st) day of each month beginning
on the Rent Commencement Date and continuing thereafter during the Term hereof,
without demand, prior notice, set-off, deduction or abatement whatsoever.  Yearly Rent for the initial year and the year
in which the Term of this Lease shall terminate shall be pro rated under this
Lease.

 

Commencing
on the 1st day of January next following the Rent
Commencement Date and on each January 1 thereafter (each such date a “Rent
Adjustment Date”) the Minimum Monthly Rent then in effect shall be increased or
decreased by a percentage equal to the percentage increase in the Index
published for the month, which is four (4) months prior to the Rent
Adjustment Date compared to the Index published for the month, which is sixteen
(16) months prior to such Rent Adjustment Date.

 

The
Index refers to the Consumer Price Index published by the United States
Department of Labor, Bureau of Labor Statistics Consumer Price Index, Sub-group
“All Items” entitled “All Urban Consumers”, “United States City Average (1982 –
1984 = 100)”. If the publication of the Consumer Price Index of the U.S. Bureau
of Labor Statistics is discontinued, comparable statistics on the purchasing
power of the consumer dollar published by a responsible financial periodical
mutually acceptable to Landlord and Tenant shall be used for making such
computations.

 

SECTION 2.02 PAYMENT OF
RENT:  All rent shall be payable by
the Tenant to the Landlord at 6225 Powers Avenue, Jacksonville, Florida 32217,
or to such other address as Landlord may hereafter designate by written notice
to Tenant.

 

SECTION 2.03 LEASE YEAR
DEFINED:  “Lease Year” as used herein
shall mean a twelve month period, the first Lease Year commencing on the Rent
Commencement Date, and each successive Lease Year commencing on the successive
anniversaries thereof.

 

 

ARTICLE III -
EXPENSES PAYABLE BY TENANT

 

SECTION 3.01 NET
INTENT.  Except as otherwise provided
herein (including without limitation, Sections 6.02 and 9.01), all costs and
expenses and relating to the operation of the Premises and the use or occupancy
thereof shall be paid by Tenant (it being the intent hereof that this is a “net-net-net”
lease to the Landlord).

 

SECTION 3.02 TENANT
UTILITIES.  The Tenant
shall pay for all utilities consumed by Tenant on or in connection with the use
and occupancy of the Premises, including, without limitation, water, gas, sewer
and electricity, the amounts of such utilities attributable to Tenant’s use to
be determined in accordance with separate meters for the Premises.

 

SECTION 3.03 TENANT TO
PAY ALL TAXES

 

Tenant
shall pay, together with each payment of Minimum Monthly Rent, all sales tax
thereon.  Tenant shall pay all real
property taxes and general and special assessments (“Real Property Taxes”)
levied against the Premises during the Term of this Lease within 30 days after
the same become due and payable; provided, however, taxes for the initial year
and the year in which the Term of this Lease shall terminate shall be pro-rated
with Landlord. Tenant shall furnish to Landlord receipt for payment of the Real
Property Taxes promptly after payment thereof by the Tenant. The provisions of
this Section shall survive the termination of the Term of this Lease.

 

SECTION 3.04 ADDITIONAL
RENT:  All costs and expenses which
Tenant assumes or agrees to pay pursuant to this Lease shall be treated as
additional rent and, in the event of nonpayment which continues beyond
applicable grace and cure periods set forth in Section 10.02, Landlord
shall have all the rights and remedies herein provided for in the case of
nonpayment of rent. If Tenant shall default in making any payment required to
be made by Tenant or shall default in performing any term, covenant or
condition of this Lease on the part of Tenant to be performed, which shall
involve the expenditure of money by Tenant, Landlord at Landlord’s option may,
but shall not be obligated to, make such payment, or, on behalf of Tenant,
expend such sum as may be necessary to perform and fulfill such term, covenant
or condition, and any and all sums so expended by Landlord, with interest
thereon at the rate of eight percent (8%) per annum from the date of such
expenditure, shall be additional rent, and shall be repaid by Tenant to
Landlord, on demand, but no such payment or expenditure by Landlord shall be
deemed a waiver of Tenant’s default nor shall it affect any other remedy of
Landlord by reason of such default.

 

ARTICLE IV - INSURANCE

 

SECTION 4.01 PROPERTY
INSURANCE:  Tenant, at
its sole cost and expense, shall keep the improvements on the Premises, and all
appurtenances attached to or located in or upon the Premises, insured, for the
mutual benefit of Landlord and any mortgagee of Landlord and Tenant, during the
Term of this Lease against loss or damage by fire and other risks, including
but not limited to windstorm, now or hereafter embraced or covered by a policy
of standard fire and extended coverage insurance with vandalism and malicious
mischief endorsements for no less than their full replacement value.

 

SECTION 4.02 LIABILITY
INSURANCE:  Tenant, at
its sole cost and  expense, but for
the mutual benefit of Landlord and any mortgagee of Landlord and Tenant, shall
maintain personal injury and property damage liability insurance against claims
for personal injury, death or property damage occurring in, on or about the
Premises or other areas which by law are the responsibility of the landowner,
such insurance to afford minimum protection during the Term of this Lease, of
not less than Two Million Dollars ($2,000,000.00) combined limit (including the
Tenant’s excess liability coverage) in respect of personal injury or death, and
of not less than Five Hundred Thousand Dollars ($500,000.00) for property
damage.

 

SECTION 4.03
MISCELLANEOUS: All insurance provided for in this Article IV
shall be  effected under  valid and enforceable insurers licensed to
do business in the State of Florida whose capital assets are sufficient to
write the insurance under Florida law without re-insurance and who have a Best’s
rating

 

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of A or better. Upon the execution of this Lease,
and thereafter not less than thirty (30) days prior to the expiration dates of
the expiring policies theretofore furnished pursuant to this Article IV,
certificates of all policies (or the original or duplicate original policies
evidencing such insurance, bearing evidence of the payments of premiums or
accompanied by other evidence of insurance and payment of premiums satisfactory
to Landlord, shall be delivered by Tenant to Landlord. All policies of
insurance provided for herein shall name Landlord, any mortgagees of Landlord and
Tenant as the insureds, as their respective interests may appear. Each such
policy shall contain an agreement by the insurer that such policy shall not be
cancelled or modified without at least ten (10) days’ prior written notice
to Landlord, and any other person to whom a loss thereunder may be
payable.  All policy limits shall be
subject to increase at Landlord’s option based upon inflation, increased
liability awards, recommendations of Landlord’s professional insurance
advisers, and other relevant factors. 
Each such policy shall contain waiver of subrogation rights against
Landlord and Tenant, to the extent obtainable.

 

ARTICLE V -
REPRESENTATIONS AND WARRANTIES

 

Landlord
represents and warrants to Tenant as follows:

 

SECTION 5.01.  The Building and all heating, ventilating,
air conditioning, plumbing, electrical and other utility systems in the
Building or on the Premises are in good condition and repair and, without
limitation, are in a state of maintenance and repair which is equal to or
better than that required by Section 6.01 of the Lease.

 

SECTION 5.02.  The Building and the Premises are in
compliance with all building, zoning, subdivision, environmental protection,
health and safety laws and regulations, and all requirements of property and
liability insurers.

 

SECTION 5.03.  Tenant’s permitted use is allowed under
applicable zoning by-laws.

 

SECTION 5.04.  The lease to Tenant is permitted under all
agreements to which Landlord is a party, or by which the property is bound,
including any and all mortgage and financing agreements.

 

SECTION 5.05.  No governmental permits are required for
occupancy by Tenant for the permitted use, except as described herein.

 

ARTICLE VI - REPAIRS,
REPLACEMENT, AND MAINTENANCE

 

SECTION 6.01 TENANT’S
OBLIGATION TO MAINTAIN: 
Subject to Landlord’s obligations pursuant to Section 6.02 of this
Lease, Tenant shall, at all times during the Term hereof, at Tenant’s sole cost
and expense, perform ordinary maintenance and repair of the Premises in order
to keep the Premises in good order and condition, but in no event shall Tenant
have any obligation to perform any capital repairs or replacements during the
Term hereof.

 

SECTION 6.02 LANDLORD’S
OBLIGATION TO REPAIR.  Landlord
shall, at Landlord’s sole cost and expense, promptly make all repairs and
replacements that may be necessary to cure any defects, deficiencies or
violations whether foreseen or unforeseen, latent or otherwise, in the roof,
walls, structural portions of the Premises, irrespective of whether above or
below ground level, as well as such defects or deficiencies which in the
opinion of the public body having jurisdiction must be remedied as a condition
to compliance of the Premises and the improvements therein, thereon or
constituting a part thereof with all lawful requirements.  Without limiting the generality of the
foregoing, Landlord shall be responsible, at its sole cost and expense, for all
environmental liabilities and violations of applicable environmental laws
related to the Premises, unless such liabilities or violations are caused by an
act or omission of Tenant.

 

SECTION 6.03 MAKING
REPAIRS AND ALTERATIONS: 
Landlord and Tenant each agree that it will procure all necessary
permits before making any repairs, alterations, other improvements or
installations.

 

3

 

SECTION 6.04 NOT
SUBJECT TO MECHANIC OR MATERIALMEN’S LIENS:  The interest of the Landlord shall not be
subject to lien for improvements made by the Tenant, and this Lease expressly
prohibits such liability beyond applicable grace and cure periods set forth in Section 10.2.

 

ARTICLE VII - USE OF
PREMISES

 

The
Premises shall be used for any and all lawful purposes not prohibited by
applicable zoning laws and regulations.

 

ARTICLE VIII -
ASSIGNMENT AND SUBLETTING

 

Tenant
shall not assign Tenant’s interest in this Lease or sublet the Premises, or any
portion thereof, without the prior written consent of the Landlord, which
consent the Landlord agrees will not be unreasonably withheld or delayed,
provided that Tenant shall be permitted to sublet up to 49% of the Premises in
the aggregate without obtaining the prior written consent of Landlord.  No assignment or sublease shall release or
otherwise discharge Tenant from Tenant’s obligations and liabilities hereunder.

 

Notwithstanding
any of the foregoing to the contrary, without Landlord’s consent Tenant may
assign this Lease or sublet the Premises or any portion thereof to any entity
which (i) directly or indirectly controls, is directly or indirectly
controlled by, or is under direct or indirect common control with, Tenant, (ii) acquires
all or substantially all of the assets or ownership interests of Tenant, (iii) is
the resulting entity of a merger, consolidation, sale of stock or other
reorganization of Tenant, or (iv) is a bank or other lending institution
which obtains a leasehold mortgage for the purposes of securing financing by
the Tenant.  Furthermore, after a
foreclosure or deed-in-lieu of foreclosure of a leasehold mortgage, the holder
of such mortgage shall be entitled to a one time free assignment of the Lease
without obtaining the prior written consent of Landlord.

 

ARTICLE IX - DAMAGE
AND DESTRUCTION

 

SECTION 9.01 LANDLORD’S
OBLIGATION TO RESTORE AND REPAIR:  In the event that the improvements or any
portion thereof, shall be damaged or destroyed, by fire, the elements or other
casualty, whether such damage or destruction renders the Premises unfit for the
use contemplated hereby, this Lease shall continue in full force and effect,
and Landlord, at Landlord’s sole cost and expense, and as expeditiously as
possible, shall restore, repair and replace the improvements to the Premises
and all portions thereof to the condition as required by this Lease and, in any
event, to a condition at least as good and of at least the same fair market
value as existed immediately prior to such damage or destruction.

 

Notwithstanding
the foregoing, such repair shall, in any event, be completed within 180 days
after the date of such casualty.  If
Landlord does not complete such repair or restoration within such 180 day
period Tenant may cancel this Lease at any time thereafter by written notice to
the Landlord. Until such repairs or restoration are completed the rent
hereunder shall be abated in its entirety, except to the extent the Tenant is
able to use the Premises in which event the rent shall be adjusted to reflect
such use.

 

SECTION 9.02
APPLICATION OF INSURANCE PROCEEDS:  The hazard insurance  proceeds under the policies maintained by
Landlord for the Premises shall be held by Landlord and applied toward the cost
of all repairs and restoration Landlord is required to make under this Article IX.

 

ARTICLE X - QUIET
ENJOYMENT - BREACH AND LANDLORD’S REMEDIES

 

SECTION 10.01 COVENANT
OF QUIET ENJOYMENT: Upon payment of the rent and additional rent
herein provided, and observance and performance of all the covenants, terms and
conditions on Tenant’s part, the Landlord covenants that Tenant shall peaceably
and quietly hold and enjoy the Premises for the Term herein demised without
hindrance or interruption by the Landlord or any other person, or persons,
lawfully or equitably claiming by, through or under the Landlord.

 

4

 

SECTION 10.02 TENANT’S
DEFAULT: Upon the failure of Tenant (a) to pay the rent or additional
rent within ten (10) days after the receipt of a written notice of such
non-payment from Landlord or (b) to perform any other covenant or
agreement herein made within thirty (30) days of the receipt of any written
notice from Landlord, or if such performance cannot reasonably occur within 30
days, within such further time as may be necessary to complete such
performance, so long as such party diligently pursues such performance to
completion; then Landlord may, at Landlord’s option, terminate this Lease and
the Term hereof by giving to the Tenant ten (10) days’ written notice of
such termination.  In the event of any
termination of the Lease by Landlord pursuant to this Section 10.02 the
Tenant shall, notwithstanding such termination, continue to pay and be liable
for on the days originally fixed herein for they payment thereof, amounts equal
to the several installments of rent and any other charges herein reserved as
they would, under the terms of this Lease, become due if this Lease had not
been terminated and whether the Premises be relet or remain vacant in whole or
in part or for a period less than the remainder of the Term, or for the whole
thereof.  Landlord shall make reasonable
efforts to relet the Premises after any such termination.  In the event the Premises are relet, in whole
or in part, by the Landlord, the Tenant shall be entitled to a credit in the
net amount of rent received by the Landlord in reletting, after deduction of
reasonable expenses incurred in reletting the Premises and in collecting the
rent in connection therewith.  The Tenant
shall also be liable to the Landlord for all expenses (including reasonable
attorney’s fees) incurred by the Landlord in enforcing its rights under this
Lease in the event of a default by the Tenant, and such expenses may also be
deducted from any credit due the Tenant on account of any reletting by the
Landlord.

 

SECTION 10.03 LEGAL
FEES:  In the event of any litigation
between the parties under this Lease, the prevailing party in such litigation
shall be entitled to receive a reasonable attorney’s fee (including mediation,
arbitration, pretrial, all levels of appeal, and bankruptcy), and all
reasonable costs and expenses of any and all such proceedings.

 

SECTION 10.04 LATE CHARGE:  Tenant will pay a “late charge” to Landlord
equal to 8% of all rent and additional rent, paid more than 10 days after the
receipt of written notice of such non-payment from Landlord.

 

SECTION 10.05 LANDLORD’S
DEFAULT:  Notwithstanding anything herein
otherwise provided, in no event may Landlord be in default hereunder unless at
least 30 days’ written notice thereof is given to Landlord and Landlord shall
fail to cure the same by the date fixed in such notice.

 

ARTICLE XI - TENANT
TO KEEP PREMISES LIEN FREE

 

Tenant
agrees to keep the Premises at all times free of mechanic’s liens and other
liens for labor, services, or material purchased or procured, directly or
indirectly, by or for Tenant.

 

ARTICLE XII -
ESTOPPEL CERTIFICATE

 

Landlord
and Tenant shall, without charge, at any time and from time to time hereafter,
within 10 days after written request of the other party, certify by a written
instrument duly executed and acknowledged to any mortgagee, lender, purchaser
or assignee, or proposed mortgagee, purchaser, lender or assignee, as to the
then validity and force and effect of this Lease, as to any work to be done
thereunder by either party, as to the existence or non-existence of any default
on the part of the other party hereunder, and as to the existence or
non-existence of any offsets, counterclaims or defenses thereto on the part of
the other party.

 

ARTICLE XIII - SUBORDINATION

 

SECTION 13.01
SUBORDINATION OF LEASE:  At
Landlord’s request, Tenant shall subordinate this Lease and the estate of Tenant
hereunder to any mortgage lien (hereafter, the “Mortgage”) which now encumbers
or which at any time hereafter may encumber the Premises (such Mortgage and any
replacement, renewal, modification, consolidation, or extension thereof being
sometimes hereinafter 

 

5

 

referred to as an “Encumbrance”); provided,
however that the holder of such Encumbrance agrees that Tenant’s occupancy
of the Premises and its rights under this Lease will not be disturbed in the
event of foreclosure or other transfer of Landlord’s interest in the Premises
to such holder or its successor in interest so long as Tenant is not in default
under the terms of this Lease, beyond any applicable notice, grace or cure
periods, and that the holder of such Encumbrance agrees to assume the
obligations of Landlord under this Lease from and after the date such holder or
its successor assumes such obligation. 
Notwithstanding the foregoing, any holder of an Encumbrance may elect
that this Lease shall have priority over such Encumbrance and, upon
notification of such election by the holder of such Encumbrance, this Lease
shall be deemed to have priority over such Encumbrance, whether this Lease is
dated prior to or subsequent to the date of such Encumbrance.

 

Landlord
represents and warrants that as of the date of this Lease, there are no
Encumbrances that are or may be prior or paramount to this Lease.

 

SECTION 13.02
ATTORNMENT BY TENANT: 
Tenant agrees that if the holder of any Encumbrance or any persons
claiming under said Encumbrance shall succeed to the interest of Landlord in
this Lease, Tenant shall recognize and attorn to said holder as Landlord under
the terms of this Lease.  Tenant agrees
that it will, upon the request of Landlord, execute, acknowledge and deliver
any and all instruments necessary or desirable to give effect or notice of such
Attornment.

 

ARTICLE XIV -
COMPLETION OF IMPROVEMENTS

 

SECTION 14.01
NON-STRUCTURAL ALTERATIONS, ADDITIONS AND IMPROVEMENTS.  The Tenant, at its sole cost, shall have the
right to make such non-structural alterations, additions and improvements to
the Premises as may be necessary for its business, provided that such
non-structural alterations, additions and improvements do not decrease the
value of the Premises.

 

SECTION 14.02
STRUCTURAL ALTERATIONS, ADDITIONS AND IMPROVEMENTS, CONSTRUCTION OF ADDITIONAL
BUILDINGS.  The Tenant,
at its sole cost, shall have the right, with the prior written consent of the
Landlord (which consent shall not be unreasonably withheld or delayed) to make
such structural alterations, additions and improvements (“Structural
Alterations”) to the Premises, as may be necessary for its business, provided (a) the
Landlord shall have received written notice of any proposed Structural Alterations
not less than sixty days prior to the date on which work on such Structural
Alterations are to commence, (b) the architecture, workmanship and
materials employed in any Structural Alterations are similar to that of the
existing Building and other improvements on the Premises, and (c) such
Structural Alterations will not decrease the value on the Premises.

 

SECTION 14.03 INCLUSION
IN THE PREMISES.  Any and all
alterations, additions or improvements (including Structural Alterations) to
the Premises made by the Tenant during the Term shall be the property of the
Landlord without payment therefor by the Landlord, and shall be deemed included
in the Premises, and the terms and conditions of this Lease shall be fully
applicable thereto.  Tenant may, prior to
making any such additions, alterations or improvements, request Landlord’s
consent to their removal at the end of the Term.  If such consent is requested Landlord shall
be deemed to have given such consent unless a written denial is given to Tenant
within 15 days after such consent is requested.

 

ARTICLE XV -
GOVERNMENTAL REQUIREMENTS

 

SECTION 15.01 TENANT’S
GOVERNMENTAL REQUIREMENTS. Except as provided in Section 15.02,
Tenant shall, at its sole cost, comply with all requirements of all local,
municipal, county, state and federal governmental and fire underwriting
authorities now in force or which may hereafter be in force pertaining solely
to the specific use or operation of the Premises and any portion thereof by
Tenant, and shall faithfully observe all municipal and county ordinances and
state and federal statutes and regulations now in force or which may hereafter
be in force.

 

6

 

SECTION 15.02 LANDLORD’S
GOVERNMENTAL REQUIREMENTS. 
Landlord shall, at its sole cost and expense, comply with all
requirements of all local, municipal, county, state and federal governmental
and fire underwriting authorities now in force or which may hereafter be in
force pertaining to the ownership, operation, construction and maintenance of
the Premises, and any portion thereof, and shall faithfully observe all
municipal and county ordinances and state and federal statutes and regulations
now in force or which may hereafter be in force, including, without limitation,
the Americans with Disabilities Act and all laws and regulations relating to
protection of the environment.

 

ARTICLE XVI -
INDEMNIFICATION

 

Tenant
is and shall be in exclusive control and possession of the Premises, and
Landlord shall not in any event whatsoever be liable for any injury or damage
to any property or to any person happening on or about the Premises, or for any
injury or damage to any property of any tenant, lessee, business invitee,
guest, or licensee or of any other person contained therein, resulting from the
act or omission of Tenant.  Tenant hereby
indemnifies and agrees to hold the Landlord harmless from and against any and
all claims, liabilities, loss, damages, costs or expenses whatsoever resulting
from the acts or omissions of Tenant.

 

Notwithstanding
the foregoing, Tenant shall not in any event whatsoever be liable for any
injury or damage to any property or to any person happening on or about the
Premises, or for any injury or damage to any property of any tenant, lessee,
business invitee, guest, or licensee or of any other person contained therein,
which is not the result of acts or omissions of Tenant.  Landlord hereby indemnifies and agrees to
hold the Tenant harmless from and against any and all claims, liabilities,
loss, damages, costs or expenses whatsoever resulting from all of such other
causes or events.

 

ARTICLE XVII -
TERMINATION AND PRORATIONS

 

SECTION 17.01
TERMINATION:  The Tenant
covenants and agrees that at the termination of this Lease, whether by default,
lapse of time or otherwise, the Tenant shall peaceably and quietly surrender
possession and vacate the Premises immediately, and deliver possession thereof
to the Landlord. The Premises will be surrendered by the Tenant to the Landlord
in as good condition as prevailed at the time of commencement of the Term
hereof.

 

SECTION 17.02 PRORATION:  Provided that this Lease is not terminated on
account of Tenant’s default all taxes, assessments, and any other similar
expense or cost pertaining to the Premises, to the extent the same are the
obligation of the Tenant, shall be prorated on the day of termination of this
Lease; and any prepaid amounts due and owing under said proration to the Tenant
shall be repaid by Landlord, and any amounts unpaid, but prorated to be an
obligation of Tenant hereunder, shall be paid by the Tenant at the termination
of the Lease to the Landlord. The provisions of this Article XVII shall
survive the expiration or sooner termination of this Lease.

 

ARTICLE XVIII - OPTION TO EXTEND

 

Provided
that the Tenant shall not currently be in default hereunder, beyond applicable
grace and cure periods, Tenant shall have the right to extend the Term of this
Lease for two (2) consecutive periods of two (2) years each, on the
same terms and conditions as provided herein.

 

In
order for Tenant to elect to extend the Term of this option as provided, Tenant
shall give written notice to the Landlord at least 6 months prior to the
expiration of the then existing Term of its election to extend the Term as
provided herein.

 

ARTICLE XIX - GENERAL
COVENANTS

 

SECTION 19.01
CONSTRUCTION:  Whenever
the context of any provision shall require it, the singular number shall be
held to include the plural number and vice versa; and the use of any gender 

 

7

 

shall include any other or all genders. The Article and
Section headings in this Lease are for convenience only and do not
constitute a part of the provisions hereof. 
This Lease binds, applies to and inures to the benefit of, as the case may
require, the respective heirs, personal representatives, successors and assigns
of Landlord and Tenant.

 

This
Lease and the terms and provisions thereof shall not be construed more strongly
against the party preparing or causing the same to be prepared.

 

SECTION 19.02
MODIFICATION:  No waiver,
change, modification or discharge, in whole or in part, of any provision hereof
shall be deemed to have been made by either party unless such waiver, change,
modification or discharge be in writing signed by such party.

 

SECTION 19.03
ACCEPTANCE OF RENT:  No payment
by Tenant or receipt by Landlord of a lesser amount than the rent herein
stipulated shall be deemed to be other than on account of the stipulated rent,
nor shall any endorsement or statement on any check nor any letter accompanying
any check or payment as rent be deemed an accord and satisfaction, and Landlord
may accept such check or payment without prejudice to Landlord’s right to
recover the balance of such rent or pursue any other remedy in this Lease
provided.

 

SECTION 19.04 RIGHT TO
CURE:  Each of Tenant and Landlord
may, but shall not be obligated to, cure, at any time, without notice, any
default under this Lease uncured by the responsible party under this Lease as
and within the time periods provided herein; and whenever the curing party so
elects, all reasonable costs and expenses incurred by the curing party in
curing a default and including, without limitation, reasonable attorney’s fees,
(including all levels of appeal), together with interest on the amount of costs
and expenses so incurred at the rate of 8% per annum, shall be paid by the
responsible party to the curing party on demand, and shall be recoverable as
additional rent.

 

SECTION 19.05 NOTICES:  All notices required or desired to be given
hereunder shall be in writing and shall be valid and deemed delivered when
mailed by United States Registered or Certified Mail, Return Receipt Requested,
postage and charge prepaid thereon to carry it to its addressed destination,
said notices to be addressed as follows:

 

	
  TO
  LANDLORD:

  	
   

  	
  6225
  Powers Avenue

  Jacksonville, FL 32217

  
	
   

  	
   

  	
   

  
	
  TO
  TENANT:

  	
   

  	
  6225
  Powers Avenue

  Jacksonville, FL 32217

  

 

Either
Landlord or Tenant may change the place to which notice to that party shall
thereafter be given and addressed by giving written notice to the other party
in the manner set forth above.

 

SECTION 19.06
RECORDATION:  Tenant will
not record this Lease.  Landlord or
Tenant may record short form giving notice as provided in Florida Statutes, Section 713.10.

 

SECTION 19.07 NO BROKER:  Each party represents to the other that it
had no dealings with any broker in connection with this Lease, and agrees to
hold the other harmless from and against any and all claims, liabilities and/or
damages for brokerage commission claimed by any broker with whom it has dealt
with respect to this Lease or the negotiation thereof.

 

SECTION 19.08
COUNTERPARTS:  This
instrument may be executed in any number of counterparts, each of which shall
be deemed an original for all purposes, and all of which shall be one and the
same document.

 

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SECTION 19.09 TIME OF
ESSENCE: Time is of the essence of each and every provision of this Lease.

 

SECTION 19.10 WAIVER:  The failure of the Landlord to insist in any
one or more instances upon the strict performance of any one or more of the
covenants, terms and agreements of this Lease, shall not be construed as a
waiver of such covenants, terms or agreements, but the same shall continue in
full force and effect, and no waiver by the Landlord of any of the provisions
hereof shall in any event be deemed to have been made (by acceptance of rent or
otherwise) unless the same be expressed in writing, signed by the Landlord, and
all remedies provided for by the terms of this Lease shall be cumulative.

 

SECTION 19.11
SEVERABILITY:  If any
provision or portion thereof of this Lease is declared or found by any court of
competent jurisdiction to be unenforceable or null and void, such provision or
portions thereof shall be deemed stricken and severed from this Lease, and the
remaining provisions and portions thereof shall continue in full force and
effect. If a portion is so stricken, it is the intention of the parties that
the court give such provision its nearest valid and legal meaning.

 

SECTION 19.12 ENTIRE
AGREEMENT:  This Lease
constitutes the entire agreement between the parties hereto.  Except as set forth herein, there are no
promises, representations, or understandings between the parties of any kind or
nature whatsoever.

 

9

 

IN
WITNESS WHEREOF, the parties hereto have executed this Lease Agreement
effective the day and year first above written.

 

	
  Signed,
  sealed, and delivered in the presence of:

  	
   

  	
  Powers
  Avenue Joint Venture

  
	
   

  	
   

  	
   

  
	
  /s/ Gardner F. Davis

  	
   

  	
  By:

  	
  /s/ Jerrold Rosenbaum

  
	
  Print Name Gardner F. Davis

  	
   

  	
   

  	
  A Managing Partner

  
	
   

  	
   

  	
   

  
	
  /s/
  Brenda M. Jones

  	
   

  	
   

  
	
  Print
  Name Brenda M. Jones

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  As to Landlord

  	
   

  	
  “LANDLORD”

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/
  J. Ryan McCarthy

  	
   

  	
   

  
	
  Print
  Name J. Ryan McCarthy

  	
   

  	
  Body
  Shop of America, Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/
  Matthew T. Carroll

  	
   

  	
  By:

  	
  /s/ Carlo von Schroeter

  
	
  Print
  Name Matthew T. Carroll

  	
   

  	
   

  	
  Its Vice President

  
	
   

  	
   

  	
   

  
	
  As to Tenant

  	
   

  	
  “TENANT”

  
					

 

10Exhibit 10.7

 

BODY CENTRAL ACQUISITION CORP.

 

INCENTIVE STOCK OPTION AGREEMENT

 

This INCENTIVE STOCK OPTION AGREEMENT, dated as of October 12,
2009, (this “Agreement”), is between BODY CENTRAL ACQUISITION CORP., a
Delaware corporation (the “Company”), and B. Allen Weinstein (the “Optionee”).  Capitalized terms used herein without
definition shall have the meaning ascribed to such terms in the Company’s 2006
Equity Incentive Plan, a copy of which is attached hereto as Exhibit A (as amended from time to time,
the “Plan”).

 

1.             Grant of Option.  Pursuant to the Plan, the
Company grants to the Optionee, as of the date of this Agreement (the “Grant Date”) an option (the “Option”) to purchase from the Company all or
any number of an aggregate of 15,400 shares, subject to adjustment pursuant to Section 8
of the Plan (the “Option Shares”), of
Common Stock, at a price of $100.00 per share (the “Exercise Price”).  The Option
is being granted to the Optionee in connection with the Optionee’s employment
with certain subsidiaries of the Company.

 

2.             Character of Option.  The Option is intended to be
treated as an “incentive stock option” within the meaning of Section 422
of the Internal Revenue Code of 1986, as amended (the “Code”).

 

3.             Duration of Option.  Unless subject to earlier
expiration or termination pursuant to the terms of the Section 5 hereof or
the Plan, the Option shall expire on the tenth anniversary of the Grant Date.

 

4.             Exercise of Option.

 

(a)           Until its expiration or termination, the Option may be exercised, in the
manner specified in Section 7.7 of the Plan, and shall vest as follows: (i) 25%
of the Option Shares shall be vested as of August 3, 2010, the first
anniversary of the date Optionee was first employed by the Company or its
subsidiaries, and (ii) the remaining 75% of the Option Shares (subject to
adjustment pursuant to Section 8 of the Plan) shall vest in a series of
twelve (12) equal quarterly installments (the “Remaining Installments”), in
portions of whole Option Shares as determined by the Board in its sole
discretion, with the first Remaining Installment vesting on November 3,
2010, and an additional Remaining Installment vesting on the last day of each
quarterly period thereafter, until all of such Option Shares shall be fully
vested on August 3, 2013, provided, that no Option Shares shall
vest on any date unless the Optionee is an employee of the Company or its
subsidiaries on the date on which such Option Shares are scheduled to vest, and
has been an employee of the Company for the period between the Grant Date and
such date of vesting.  Notwithstanding
the foregoing, all of the Option Shares shall vest as of immediately prior to
the closing of a Sale of the Company Transaction (as such term is defined in
the Plan).

 

(b)           The Option may be exercised by the Optionee giving written notice, in
the manner provided in Section 15 of the Plan, specifying the number of
Option Shares with respect to which the Option is then being exercised; provided,
that upon the first exercise of the Option, unless the Optionee is already a
party thereto, the Optionee becomes party, as a Subsequent Stockholder, to the
Stockholder Agreement, dated as of October 1, 2006, among the Company and
certain of its stockholders, as it is then constituted (the “Stockholder
Agreement”), by executing an instrument of accession in the form of Exhibit B hereto (a “Stockholder Agreement Instrument of Accession”).

 

 

The notice shall be
accompanied by the Stockholder Agreement Instrument of Accession (in the case
of the first exercise) and payment in the form of cash or check payable to the
order of the Company in an amount equal to the exercise price of the Option
Shares to be purchased.  If the Common
Stock becomes traded on an established market, payment of any exercise price
may also be made through and under the terms and conditions of any formal
cashless exercise program authorized by the Company entailing the sale of the
Common Stock subject to the Option in a brokered transaction (other than to the
Company).  Receipt by the Company of such
notice and payment shall constitute the exercise of the Option.  Within thirty (30) days thereafter but
subject to the remaining provisions of the Plan, the Company shall deliver or
cause to be delivered to the Optionee or his agent a certificate or
certificates for the number of Option Shares then being purchased.  Such Option Shares shall be fully paid and
nonassessable.

 

(c)           Notwithstanding anything express or implied to the contrary in the
foregoing provisions of this Section 4, the Option may, as provided in Section 7.4
of the Plan, at any time be accelerated at the sole discretion of the
Committee, provided, that without the consent of the Optionee, such
acceleration would not cause the Option to fail to comply with the provisions
of Section 422 of the Code.

 

(d)           For purposes of this Agreement, the following terms shall have the
respective meanings ascribed to such terms below:

 

“Unvested Option
Shares” shall mean, at the relevant time of reference thereto, those Option
Shares for which the Option have not yet become exercisable at such time
pursuant to Section 4(a) above.

 

“Vested Option
Shares” shall mean, at the relevant time of reference thereto, those Option
Shares for which the Option are fully exercisable at such time pursuant to this
Section 4.

 

5.             Termination of
Association with the Company.  If the Optionee’s employment with the Company
or any of its subsidiaries is terminated, whether voluntarily or otherwise
(other than for death or disability, as determined by the Board), the Option,
to the extent the Option is exercisable on the date of termination, may be
exercised by the Optionee, but only within ninety (90) days after the Optionee
ceases to be an employee of the Company and its subsidiaries, unless terminated
earlier by its terms.  If the Optionee’s
employment with the Company and its subsidiaries is terminated due to the
Optionee’s death or disability, as determined by the Board, the Option, to the
extent the Option is exercisable on the date of termination, may be exercised
by the Optionee, but only within three hundred sixty five (365) days after the
Optionee ceases to be an employee of the Company and its subsidiaries.  Any Vested Option Shares not exercised within
the applicable period after the Optionee ceases to be an employee of the
Company shall terminate as of the close of business on the last day of such
period.

 

6.             Transfer of Option.  Other than as expressly
permitted by the provisions of Section 7.6 of the Plan, the Option may not
be transferred except by will or the laws of descent and distribution and,
during the lifetime of the Optionee, may be exercised only by the Optionee.

 

7.             Incorporation of Plan
Terms.  The
Option is granted subject to all of the applicable terms and provisions of the
Plan.  The Company warrants and
represents to the Optionee that this Agreement has been approved by the
Committee, and therefore notwithstanding the foregoing

 

2

 

sentence, in the event of
any conflict between the provisions of the Plan and the provisions of this
Agreement, the provisions of this Agreement shall control.

 

8.             Miscellaneous.  This Agreement shall be
construed and enforced in accordance with the internal, substantive laws of the
State of Delaware and shall be binding upon and inure to the benefit of any
successor or assign of the Company and any executor, administrator, trustee,
guardian, or other legal representative of the Optionee.  The prevailing party in any dispute arising
out of this Agreement shall be entitled to be paid its reasonable attorneys’
fees and litigation expenses actually incurred in connection with such dispute
from the other party to such dispute.

 

9.             Arbitration.  In the event of any dispute or
claim relating to or arising out of this Agreement, such dispute shall be
fully, finally and exclusively resolved by a panel of three neutral arbitrators
to be mutually agreed upon by the parties. 
Such arbitration will be decided under the employment dispute resolution
rules of the American Arbitration Association and will be held in New York
City.  If the parties cannot agree upon
such arbitrators within twenty (20) days after submission of a party’s request
for arbitration in writing, the arbitrators will be selected in accordance with
the procedures of the American Arbitration Association.  The cost of such arbitration shall be borne
equally by the Company and the Optionee. 
The arbitrators shall have no power or authority to award punitive or
special damages.  The parties agree that
the existence, content and result of any arbitration proceeding shall be
confidential, except to the extent that the Company determines it is required
to disclose such matters in accordance with applicable laws.

 

3

 

IN WITNESS WHEREOF, the parties have executed this
Incentive Stock Option Agreement as a sealed instrument as of the date first
above written.

 

	
  BODY CENTRAL ACQUISITION CORP.

  	
   

  	
  OPTIONEE

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Richard L. Walters

  	
   

  	
  By:

  	
  /s/
  B. Allen Weinstein  

  
	
   

  	
   

  	
   

  	
  B. Allen Weinstein

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Optionee’s Address:

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