Document:

Exhibit 10.1

 

LEASE TERMINATION AGREEMENT

 

This Lease Termination Agreement (this “Agreement”) is entered into this 16th day of August 2012 by and between Za’hav, LLC, a Colorado limited liability company (“Landlord”),whose address is c/o NAI Shames Makovsky, 1400 Glenarm Pl., Suite 100, Denver, CO  80202 and CoBiz Bank d/b/a/ Arizona Business Bank as successor-in-interest to First Capital Bank of Arizona, an Arizona corporation (“Tenant”) whose address is 821 17th Street, Denver, Colorado 80202 (Attn. Mark Frank) and CoBiz Financial. Inc. a Colorado corporation formerly known as CoBiz, Inc. (“Guarantor”) whose address is 821 17th Street, Denver, Colorado 80202 (Attn. Mark Frank).

 

RECITALS

 

WHEREAS, Landlord and Tenant entered into that certain Lease dated June 15, 2001 (the “Lease”) pursuant to which Tenant leases the real property commonly known and numbered as 12775 West Bell Road, Surprise, Arizona  85374 (the “Premises”).

 

WHEREAS, the Guarantor executed that certain guaranty of even date with the Lease (the “Guaranty”).

 

WHEREAS, the expiration date of the term of the Lease is June 30, 2016 (the “Expiration Date”).

 

WHEREAS, Tenant is desirous of terminating the Lease prior to the Expiration Date.

 

WHEREAS, Landlord and Tenant both desire to terminate and cancel the Lease pursuant to the terms and conditions set forth in this Agreement.

 

COVENANTS

 

NOW, THEREFORE, in consideration of the mutual covenants contained herein and other valuable consideration received, and with the intent to be legally bound, Landlord and Tenant agree as follows:

 

1.             Termination of Lease & Guaranty.  Landlord, Tenant and Guarantor hereby mutually terminate and cancel the Lease and the Guaranty effective on or before August 31, 2012 (the “Early Termination Date”).  Tenant hereby releases to Landlord all right, title and interest in and to the Premises that Tenant may have acquired by reason of the Lease as of the Early Termination Date.  Except as to Tenant and Guarantor obligations specifically set forth in the Lease or the Guaranty, if any, that survive the termination of the Lease, whether by early termination or by its own terms and conditions, Landlord hereby releases Tenant and Guarantor from all other obligations, liabilities, actions, claims etc. under the Lease and the Guaranty.

 

2.             Early Termination Fee.  In consideration of the early termination and release of obligations as set forth above, Tenant shall pay an early termination fee to Landlord in the amount of Three Hundred Thirty Seven Thousand and 00/100 Dollars US ($337,000.00) (the “Termination Fee”).  Tenant shall pay the Termination Fee to Landlord immediately upon Tenant’s receipt of the Waiver Notice (as defined below).

 

3.             Contingency.  The foregoing notwithstanding, the rights and obligations of the parties set forth in this Agreement are hereby expressly conditioned upon Landlord’s receipt and approval of a lease for the Premises to a new party (the “New Lease”) with terms that are satisfactory to Landlord, in Landlord’s sole and absolute discretion on or before the Early Termination Date.  In the event Landlord is

 

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satisfied with the New Lease, Landlord shall send written notice to Tenant and to Guarantor that Landlord has waived the contingency set forth in this Section 3 (the “Waiver Notice”), whereupon the Termination Fee shall be due and payable to Landlord and this Agreement shall immediately become effective making said date the Early Termination Date.  In the event that Landlord expressly rejects the New Lease or fails to notify Tenant that it has approved the New Lease on or before the Early Termination Date,  this Agreement shall be of no further force or effect and the Lease shall remain in full force and effect until the Expiration Date.

 

4.             Rent.  Tenant shall continue to pay Base Rent in the amount of $11,923.08 per month plus Additional Rent as set forth in the Lease through August 31, 2012, irrespective of any early termination of the Lease.  Tenant’s prorated portion of 2012 real estate taxes for the Premises through August 31, 2012 is $14,279.91 and Tenant shall pay such amount to Landlord simultaneously with and in addition to the Termination Fee.

 

5.             Surrender of Premises.  Tenant will vacate the Premises and surrender possession to Landlord on the Early Termination Date, free of all occupants.  The parties agree that, subject to the Tenant paying the Landlord a cleaning fee of three thousand dollars ($3,000.00) simultaneously with and in addition to the Termination Fee, the Premises are being delivered to the Landlord as set forth  in Section 16.1 of the Lease and Tenant’s obligations regarding the Premises have been fully satisfied.

 

6.             No Security Deposit.  The parties hereby acknowledge that Landlord does not hold a security deposit under the terms of the Lease and shall not be liable therefor.

 

7.             Successors and Assigns.  This Agreement shall be binding upon and shall inure to the benefit of Landlord and Tenant and their respective heirs, legal representatives, successors and assigns.

 

8.             Capitalized Terms.  All capitalized terms used herein and not otherwise defined shall have the meanings ascribed them in the Lease.

 

9.             Law Applicable.  This Agreement shall be construed, governed and enforced under the laws of the State of Arizona.

 

10.           Authorization.  Each of the signatories to this Agreement acknowledge and agree that he or she has full authority to execute this Agreement on behalf of each party and to bind each such party hereto.

 

[Signature page to follow.]

 

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IN WITNESS WHEREOF, this Lease Termination Agreement is executed as of this 16th day of August 2012.

 

	
LANDLORD: 
    	
 
    	
TENANT: 
    
	
 
    	
 
    	
 
    
	
Za’hav,   LLC a Colorado limited liability company
    	
 
    	
CoBiz   Bank d/b/a Arizona Business Bank
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
By:
    	
/s/Mark   Frank
    
	
By:
    	
/s/   Evan Makovsky
    	
 
    	
Name:
    	
Mark   Frank
    
	
 
    	
Evan   Makovsky, Manager
    	
 
    	
Title:
    	
EVP
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
GUARANTOR:
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
CoBiz   Financial Inc., a Colorado corporation
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
By:
    	
/s/Richard   Dalton
    
	
 
    	
 
    	
Name:
    	
Richard   Dalton
    
	
 
    	
 
    	
Title:   
    	
EVP/   COO
    
									

 

3Exhibit 10.1

 

AMENDMENT TO EMPLOYMENT AGREEMENT

 

Amendment  (the “Amendment”), dated as of August 16, 2012, to that certain Employment Agreement  (the “Agreement”) by and, between Body Central Corp. (the “Company”), and Thomas W. Stoltz (the “Executive”) dated as of the 7th day of September, 2011 (the “Agreement”).

 

The undersigned parties hereby desire to amend the Agreement in the manner set forth herein.  All capitalized terms used herein but not otherwise defined shall have the meanings ascribed to such terms in the Agreement.

 

NOW, THEREFORE,  in consideration of the mutual covenants and agreements herein contained and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:

 

1.                                       Effective as of the date of this Amendment, Section 1 of the Agreement is hereby amended by deleting subsection (b) in its entirety and inserting in lieu thereof the following:

 

(b)                                 Position and Duties.  During the Term, the Executive shall serve as the Chief Operating Officer, Chief Financial Officer and Treasurer of the Company, and shall have responsibilities and duties consistent with such positions and such additional duties as may from time to time be prescribed by the Chairman of the Board of Directors of the Company (the “Board”), the Chief Executive Officer of the Company (the “CEO”) or other authorized executive, provided that such duties are consistent with the level of the Executive’s position or other positions that the Executive may hold from time to time.  Executive understands and agrees that the Board may relieve Executive from the position of Chief Financial Officer at any time and under no circumstances shall relieving the Executive of the title, powers, duties and/or responsibilities of Chief Financial Officer be deemed to give rise to a “Good Reason Condition” as defined in Section 3, below.  In addition to the foregoing, Executive agrees that, at the discretion of the Board, the Board may appoint him to the position of Interim Chief Executive Officer of the Company without further compensation.  Executive understands and agrees that, in the event that the Board appoints him to the position of Interim Chief Executive Officer, then: (x) in addition to the foregoing, Executive shall have such additional powers, duties and responsibilities commensurate with such position;  (y) the Board may relieve Executive from the position of Interim Chief Executive Officer at any time; and (z) under no circumstances shall relieving the Executive of the title, powers, duties and/or responsibilities of Interim Chief Executive Officer be deemed to give rise to a “Good Reason Condition” as defined in Section 3, below.  The Executive shall devote the Executive’s full working time and efforts to the business and affairs of the Company.  Notwithstanding the foregoing, the Executive may serve on other boards of directors, with the written approval of the Board, or engage in religious, charitable or other community activities as long as such services and activities are disclosed to the Board and do not materially interfere with the Executive’s performance of the Executive’s

 

 

duties, responsibilities and obligations to the Company under this Agreement or otherwise.

 

2.                                       Effective as of the date of this Amendment, Section 2 of the Agreement is hereby amended by deleting subsection (a) in its entirety and inserting in lieu thereof the following:

 

(a)                                  Base Salary.  During the Term, the Executive’s base salary shall be based on an annual rate of Four Hundred Twenty Five Thousand dollars ($425,000).  The annual base salary rate in effect at any given time is referred to herein as “Base Salary.”  The Base Salary shall be payable in a manner that is consistent with the Company’s usual payroll practices for senior executives.

 

3.                                       Effective as of the date of this Amendment, Section 2 of the Agreement is hereby amended by deleting subsection (b) in its entirety and inserting in lieu thereof the following:

 

(b)                                 Discretionary Bonus.  During the Term, the Executive shall be eligible to receive discretionary bonuses as determined by the Compensation Committee from time to time in its sole discretion (“Discretionary Bonuses”).  Discretionary Bonuses (if any) shall be payable at the same time bonuses are payable to the Company’s senior executives generally in accordance with the Company’s policies with respect thereto in effect from time to time.  The Executive’s target Discretionary Bonus shall be equal to 65% of Base Salary and shall be based on the performance of the Company and the Executive; provided that such target shall not limit the discretion of the Compensation Committee.  In no case shall the Executive’s Discretionary Bonus pertaining to a given fiscal year exceed 130% of the Executive’s Base Salary.  To be eligible to receive a Discretionary Bonus for a given year, the Executive must be employed by the Company on the day such Discretionary Bonus for such year is paid (the “Discretionary Bonus Vesting Date”).  The Executive shall not be deemed to have earned or be entitled to (and shall not receive) any Discretionary Bonus for a given year or any pro-rata portion of any Discretionary Bonus for a given year if the Executive’s employment terminates for any reason (whether by the Company or the Executive) prior to the Discretionary Bonus Vesting Date.

 

4.                                       Section 2 of the Agreement is hereby amended by deleting subsection (c) in its entirety and inserting in lieu thereof the following:

 

(c) Stock Options.

 

(i)                                     On the Commencement Date, the Executive was granted non-qualified options to purchase 40,000 shares of the Company’s Common Stock pursuant to and subject to the terms and conditions set forth in the Body Central Corp.

 

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Amended and Restated 2006 Equity Incentive Plan (the “Option Plan”)  and a Non-Qualified Stock Option Agreement (the “Option Agreement”) between the Executive and the Company.  In addition to the foregoing and in connection with Executive’s elevation to Chief Operating Officer, the Executive  will be granted  non-qualified options to purchase 50,000  shares of the Company’s Common Stock pursuant to and subject to the terms and conditions set forth in the Option Plan and Option Agreement.

 

(ii)                                  In addition to the foregoing, the Executive shall also be eligible to receive an annual long-term grant valued at $300,000 and comprised of 2/3 of such value (as determined based on the Black-Scholes model) being in the form of options to purchase the Company’s common stock and 1/3 of such value being in the form of the Company’s restricted stock, in each case pursuant to and subject to the terms and conditions set forth in the Option Plan and the relevant award agreement.

 

5.                                       Except as expressly amended, modified and supplemented hereby, the provisions of the Agreement are and will remain in full force and effect.

 

IN WITNESS WHEREOF, the parties have executed this Agreement effective on the date and year first above written.

 

 

	
THOMAS   W. STOLTZ
    	
 
    	
BODY   CENTRAL CORP., BODY SHOP OF AMERICA, INC and CATALOGUE   VENTURES, INC.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/   Thomas W. Stoltz 
    	
 
    	
By:
    	
/s/   John K. Haley
    
	
 
    	
Thomas   W. Stoltz
    	
 
    	
 
    	
John   K. Haley
    
	
 
    	
 
    	
 
    	
 
    	
Chairman   of the Board
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Dated:
    	
8/21/2012
    	
 
    	
Dated:
    	
8/21/2012
    

 

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