Document:

Exhibit 10.1

Exhibit 10.1

September 13, 2011

Paul Weichselbaum

57 Solomon Pierce Road

Lexington, MA 02420

Dear Paul:

This letter agreement (the “Agreement”) will confirm that we have agreed to the following
terms and conditions regarding your separation from employment with LoJack Corporation (“LoJack” or
the “Company”).

1. Employment Status. The parties have mutually agreed that your employment with
LoJack will terminate effective as of September 16, 2011 (“Termination Date”). As of the
Termination Date, you will also no longer hold the position of officer of any LoJack subsidiary.

2. Severance Payments. Provided that you execute this Agreement and do not revoke
your signature, then LoJack will pay you twenty-six (26) weeks of severance (the “Severance
Period”). Your severance pay will be calculated at a rate equal to your current biweekly gross
salary of $13,076.93 and will be less withholdings as required by law or as authorized by you,
including withholding for the employee portion of COBRA coverage. Your severance payments will be
made to you in equal biweekly installments in accordance with LoJack’s usual pay schedule starting
on the first regular pay date after the expiration of the Revocation Period described in Paragraph
12 below.

3. Vacation. Regardless of whether you sign this Agreement, on the Termination Date,
LoJack will pay you the balance of your vacation days accrued but not yet taken as of the
Termination Date, less withholdings as required by law.

4. Benefits. Your right to continue coverage under LoJack’s group dental and medical
insurance plans under COBRA, 29 U.S.C. §1161 et seq., will commence on September 17, 2011. Benefit
Concepts, LoJack’s COBRA administrator, will provide you with separate written information and
notification of your right to continue such coverage. If you elect to continue coverage under
COBRA, LoJack will pay the employer portion of the premium for such coverage through the Severance
Period and the employee portion will be deducted from your severance payments. At the end of the
Severance Period, your continuation of such coverage will be at your sole expense. The Company
will provide outplacement services in accordance with the Company’s policy, through the New
Directions Executive Program. New Directions will provide specifics outlining the benefits of this
executive program. Your eligibility to participate in all other of LoJack’s benefit plans and
programs will end on the Termination Date. Your Change in Control Agreement with the Company,
dated December 4, 2009, shall terminate as of the Termination Date and, pursuant to the terms of
the Change in Control Agreement, be of no further force and effect as of the Termination Date.
LoJack will also support your tax preparation for the 2011 calendar year through our preferred
vendor, GW Wade, so long as your taxes are filed no later than April 15, 2012, or we receive
written notification of an extension or request thereof. GW Wade will bill LoJack directly for the
approved expenses. This may be a taxable benefit to you.

You may elect to convert your Basic Life Insurance coverage to an individual policy with
Reliance Standard Insurance Company. You also have the option to port any voluntary life insurance
you have through LoJack. If you are interested in exploring either or both of these options,
please contact the Benefits Department at LoJack for the appropriate forms as soon as possible.
Please note that you only have 31 days from the Termination Date to submit these forms to Reliance
Standard Insurance Company in order to convert/port your current coverage to individual policies.

If you have ever been a participant in the LoJack 401(k) Plan, you will receive an action
package from ING Direct within the next few weeks from your Termination Date informing you of your
distribution/rollover options.

5. 2011 Bonus: You shall be entitled to receive the prorated portion (for the period
of time actually worked prior to your Termination Date) of your annual bonus for 2011, to be paid
no later than March, 15, 2012, if earned, in accordance with the terms of the Company’s Annual
Incentive Plan and consistent with the annual bonuses paid to the Company’s executive officers at
such time under the Annual Incentive Plan.

 

 

 

6. Equity Awards: Except as otherwise provided in this Section 6, your outstanding
equity grants shall be governed by the terms of the Company’s 2008 Stock Incentive Plan and the
respective grant documents, including the stock option agreements and restricted stock agreements,
as the case may be.

(a) A pro-rata portion of your November 2009 time based restricted stock grants will vest on
the Termination Date per your agreement when the stock was granted. In addition, although the
termination will not occur after the second anniversary of the Grant Date, the Compensation
Committee has agreed to accelerate an additional third of the shares upon receipt of the fully
executed agreement. Your February 2011 time based restricted stock grant and your February 2011
performance based restricted stock grant shall be forfeited in its entirety on the Termination
Date.

(b) Your December 2010 performance share grant shall vest or be forfeited in a manner, and at
such time, consistent with the Compensation Committee’s treatment of such performance shares for
all other executive officers in 2012.

(c) The unvested portion of your stock option grants shall be forfeited in their entirety on
the Termination Date. You shall be entitled to exercise all vested stock options for a period of
three (3) months following the Termination Date.

7. General Release of Claims. In exchange for the promises set forth herein, you, on
behalf of yourself and your heirs, executors, administrators and assigns, hereby release and
forever discharge LoJack Corporation and its directors, officers, employees, agents, successors and
assigns (the “Releasees”), from any and all suits, claims, demands, debts, sums of money, damages,
interest, attorneys’ fees, expenses, actions, causes of action, judgments, accounts, promises,
contracts, agreements, and any and all claims of law or in equity, whether now known or unknown,
which you now have or ever have had against the Releasees, or any of them, including, but not
limited to, any claims under Title VII of the Civil Rights Act of 1964, the Americans With
Disabilities Act, the Age Discrimination in Employment Act, The Genetic Information
Nondiscrimination Act of 2008, the Older Workers Benefit Protection Act, the Family and Medical
Leave Act and any other federal, state or local statute, regulation, ordinance or common law
creating employment-related causes of action, and all claims related to or arising out of your
employment or the termination of your employment with LoJack. You also hereby waive any claim for
reinstatement, attorney’s fees, or costs. You represent that you have not previously filed or
joined in any complaints, charges or lawsuits against LoJack pending before any governmental agency
or court of law relating to your employment and/or the cessation thereof.

This General Release of Claims shall not apply to (a) any vested interest you may have in any
401(k), pension or employee welfare plan by virtue of your employment with LoJack; (b) any claim
that may arise after you sign this Agreement; (c) any claim that may not be waived by law; (d) any
claim by you to enforce this Agreement, and (e) any right you may have to file, cooperate or
participate in any proceeding before a fair employment practices agency; provided, however that you
hereby waive any right to recover any monetary benefits or damages in connection with any
proceeding brought against LoJack on your behalf or on behalf of a class of which you may be a
member.

8. Affirmation of Continuing Obligations; Return of LoJack Property. You hereby
acknowledge and reaffirm your continuing obligations under your LoJack Corporation Employee
Invention, Non-Competition and Confidentiality Agreement. All documents, records, materials,
software, equipment, office entry cards or keys and other physical property, and all copies of the
same that have come into your possession or been produced by you in connection with your
employment, have been and remain the sole property of LoJack. You agree that you have returned all
such property to LoJack by the Termination Date.

 

 

 

9. Non-solicitation; Non-hire; Covenant Against Competition. You agree that for a
period of one (1) year after the Termination Date (the “Restricted Period”) you will not, directly
or indirectly, on your own behalf or on behalf of any third person or entity, and whether through
your own efforts or through the efforts or employing the assistance of any other person or entity
(including without limitation any consultant or any person employed by or associated with any
entity with whom you are employed or associated):

(a) knowingly hire or employ any employee of LoJack, or solicit or induce any such employee to
terminate his/her employment or other relationship with LoJack.

(b) solicit or accept business, compensation, employment or other position from or own any
interest in (i) any former or present partners, affiliates or foreign licensees of LoJack or with
Absolute Software Inc. or SC Integrity Inc.; or (ii) any person or entity engaged in any aspect of
the business of stolen vehicle tracking and recovery, the tracking, location or recovery of
valuable mobile assets including safety and security vehicle telematics applications, or the
tracking and rescue of people at risk; provided, however, that this Section 9(b) shall not limit or
restrict you or your employer from providing professional accounting, consulting or advisory
services to LoJack, its officers or its licensees. You acknowledge that (i) the principal business
of the Company (which expressly includes for purposes of this Section 9 and any related enforcement
provisions hereof, its successors and assigns) is the offering of products and services relating to
stolen vehicle tracking and recovery, the tracking, location or recovery of valuable mobile assets
including safety and security vehicle telematics applications; (ii) LoJack is one of the limited
number of persons who have developed such a business; (iii) LoJack’s business is national and
international in scope; (iv) your work for LoJack has given you access to the confidential affairs
and proprietary information of the Company; (v) your covenants and agreements contained in Section
8 and this Section 9 are essential to the business and goodwill of LoJack; and (vi) LoJack would
not have entered into this Agreement but for the covenants and agreements set forth in Section 8
and this Section 9. Accordingly, you covenant, agree and acknowledge that (i) you have had an
opportunity to seek advice of counsel in connection with this Agreement and (ii) the restrictive
covenants are reasonable in geographical and temporal scope and in all other respects. It is the
express intent of the parties that (a) in case any one or more of the provisions contained in this
Agreement shall for any reason be held to be excessively broad as to duration, geographical scope,
activity, or subject, such provision shall be construed by limiting and reducing it as determined
by a court of competent jurisdiction, so as to be enforceable to the fullest extent compatible with
applicable law; and (b) in case any one or more of the provisions contained in this Agreement
cannot be so limited and reduced and for any reason is held to be invalid, illegal, or
unenforceable, such invalidity, illegality, or unenforceability shall not affect the other
provisions of this Agreement, and this Agreement shall be construed as if such invalid, illegal, or
unenforceable provision had never been contained herein.

10. Confidentiality. You agree to keep strictly confidential, not to make public and
not to disclose to anyone in any manner the terms of this Agreement except to your immediate
family, state and federal tax authorities, your attorneys, tax preparers, accountants or other
professional advisers, and except as may be necessary to enforce the Agreement or upon court order.
You also may disclose this Agreement if required to do so in conjunction with any claim that you
may file for unemployment compensation benefits.

11.  Non-Disparagement. You agree not to take any action or make any statement,
written or oral, or make any posting on any website, blog or by any other electronic means, that
disparages or criticizes LoJack or any of its affiliates, or their respective officers, directors,
employees, or agents, or that is intended to, or that does in fact, damage any of their business or
personal reputations or that interferes with, impairs or disrupts LoJack’s normal business
operations.

12. Consultation with Counsel; Time for Signing; Revocation. You have the right to
and should consult with an attorney of your own choice prior to signing this Agreement. You have
until twenty-one (21) days from your receipt of this Agreement to decide whether to sign it. You
will have seven (7) days after signing this Agreement to revoke your signature (the “Revocation
Period”). If you intend to revoke your signature, you must do so in a writing addressed and
delivered to me prior to the end of the 7-day revocation period. This Agreement shall not be
effective, and neither LoJack nor you shall have any rights or obligations hereunder, until the
expiration of the 7-day Revocation Period.

13. Section 409A. In order to comply with Section 409A of the Internal Revenue Code of
1986, as amended (the “Code”), if you are determined to be a “specified employee” as defined in
Section 409A of the Code at the time any payment of nonqualified deferred compensation is made, and
the deferral of the commencement of any payments or benefits otherwise payable hereunder as a
result of your separation of employment is necessary in order to prevent the imposition of any accelerated or additional tax under Section 409A of the
Code, the Company will defer the commencement of the payment of any such payments or benefits
hereunder (without any reduction in such payments of benefits ultimately paid or provided to you)
until the date that is six months following your Termination Date with the Company and its
affiliates (or the earliest date as is permitted under Section 409A of the Code).

 

 

 

Further, it is the intention of the parties that no payment or entitlement pursuant to this
Agreement will give rise to any adverse tax consequences to any person pursuant to Section 409A of
the Code. Notwithstanding any provision in this Agreement to the contrary, this Agreement shall be
interpreted, applied and to the minimum extent necessary, amended, so that this Agreement does not
fail to meet, and is operated in accordance with, the requirements of Section 409A of the Code. Any
reference in this Agreement to Section 409A of the Code shall also include any proposed, temporary
or final regulations, or any other guidance, promulgated with respect to such Section by the U.S.
Department of the Treasury or the Internal Revenue Service.

14. General Provisions.

a) Severability. The invalidity or unenforceability of any provision of this
Agreement shall in no way affect the validity or enforceability of any other provisions, or any
part, hereof.

b) Enforcement; Applicable Law; Jurisdiction. This Agreement shall be governed by and
construed in accordance with the laws of the Commonwealth of Massachusetts. You agree that all
disputes arising under or out of this Agreement shall be brought in courts of competent
jurisdiction within the Commonwealth of Massachusetts and you hereby consent to jurisdiction in
courts located in the Commonwealth of Massachusetts with respect to all matters arising out of or
related to this Agreement.

c) Entire Agreement. This Agreement constitutes the entire agreement between you and
LoJack concerning the terms and conditions of your separation from employment with LoJack,
including all compensation and treatment of prior equity awards in connection therewith and, unless
otherwise stated herein, supersedes all prior and contemporaneous agreements, understandings,
negotiations and discussions, whether oral or written, between you and LoJack on such subject
matters, except as provided in Paragraph 7. You agree that LoJack has not made any warranties,
representations or promises to you regarding the meaning or implication of any provision of this
Agreement other than as stated herein.

d) Modification and Waiver. This Agreement may be amended or modified only by a
written instrument signed by you and an authorized representative of LoJack. The failure of you or
LoJack at any time to require the performance of any provision of this Agreement shall in no manner
affect the right of such party at a later time to enforce the same provision.

Please indicate your understanding and acceptance of this Agreement by signing and returning
one copy to me. The other copy is for your records.

Sincerely,

	 	 	 	 	 
	/s/ Jeannine Lombardi-Giardina
 

	 	 	 	 
	Jeannine Lombardi-Giardina
	 	 	 	 
	Director of Human Resources
	 	 	 	 
	 
	 	 	 	 
	Accepted and Agreed:
	 	 	 	 
	 
	 	 	 	 
	/s/ Paul Weichselbaum 
 

	 	 	 	Dated: October 6, 2011 
	Paul WeichselbaumExhibit 10.1

Those portions of this Agreement that have been redacted were omitted pursuant to a request for

confidential treatment and have been filed separately with the Securities and Exchange Commission.

Exhibit 10.1

THIS AGREEMENT IS SUBJECT TO

ARBITRATION PURSUANT TO THE 

SOUTH CAROLINA UNIFORM ARBITRATION ACT

DISTRIBUTION AGREEMENT

TABLE OF CONTENTS

	 	 	 	 	 
	ARTICLE ELEMENT	 	 	 	 
	1. Definitions
	 	 	2	 
	2. Services
	 	 	3	 
	3. Term/Termination/Early Termination
	 	 	3	 
	4. Compensation
	 	 	4	 
	5. Terms of Payment
	 	 	4	 
	6. Safekeeping/Title
	 	 	4	 
	7. Loss-Damage: Storage/Handling
	 	 	4	 
	8. Charge-backs
	 	 	5	 
	9. Indemnification
	 	 	5	 
	10. Force Majeure
	 	 	5	 
	11. Insurance
	 	 	5	 
	12. Access Control
	 	 	6	 
	13. Assignment
	 	 	6	 
	14. Nondisclosure
	 	 	6	 
	15. Notice
	 	 	7	 
	16. Independent Contractor
	 	 	7	 
	17. Compliance with Laws
	 	 	8	 
	18. Nondiscrimination
	 	 	8	 
	19. Non-Waiver; Reservation of Rights
	 	 	8	 
	20. Waiver of Lien
	 	 	8	 
	21. Headings
	 	 	9	 
	22. Applicable Law
	 	 	9	 
	23. Severability
	 	 	9	 
	24. Authority
	 	 	9	 
	25. Interpretation
	 	 	9	 
	26. Arbitration
	 	 	10	 
	27. Successors and Assigns
	 	 	10	 

Exhibits

	 	 	 	 	 
	 	“A”	 	 	Scope of Work

	 	“B”	 	 	Compensation

	 	“C”	 	 	Chargeback agreement

 

 

Those portions of this Agreement that have been redacted were omitted pursuant to a request for

confidential treatment and have been filed separately with the Securities and Exchange Commission.

DISTRIBUTION AGREEMENT

THIS DISTRIBUTION AGREEMENT (“Agreement”) is made and entered into as of the 13th day of February
2009, by R.G. BARRY CORPORATION, hereinafter referred to as CUSTOMER, and UTi INTEGRATED LOGISTICS,
INC., hereinafter referred to as CONTRACTOR.

W I T N E S S E T H

WHEREAS, CONTRACTOR is in the business of providing storage, equipment, management, and personnel
for the operation of DISTRIBUTION CENTER facilities; and

WHEREAS, Contractor has agreed to provide distribution services in a facility known as Fontana or
UTi DISTRIBUTION CENTER (hereinafter sometimes DISTRIBUTION CENTER), located at 13230 San
Bernardino Ave., Fontana, CA;

WHEREAS, CUSTOMER further desires to obtain DISTRIBUTION CENTER operating services from CONTRACTOR;
and

WHEREAS, both parties have considered their respective obligations and responsibilities and the
consequences of entering into a binding agreement and are desirous of doing so.

NOW, THEREFORE, in consideration of the PREMISES and of the mutual covenants set forth herein, the
parties agree as follows:

ARTICLE ONE

DEFINITIONS

	1.01.	 	MATERIAL means any unfinished matter, including packaging supplies, furnished by or on
behalf of CUSTOMER to CONTRACTOR for handling, storage, or use.

	1.02.	 	PRODUCT means finished goods and parts that have been furnished by or on behalf of CUSTOMER
for handling, storage or use by CONTRACTOR.

	 
	1.03.	 	REPLACEMENT COST shall be defined as follows:

	 	(a)	 	When the MATERIAL or PRODUCT was purchased by CUSTOMER, REPLACEMENT
COST means the price paid by CUSTOMER at the time of purchase.

	 	(b)	 	When the MATERIAL or PRODUCT was manufactured by CUSTOMER for sale to
customers, REPLACEMENT COST means CUSTOMER’s lowest current (or
most-favored-customer) wholesale list price for the MATERIAL or PRODUCT less
ten (10%) percent.

	 	(c)	 	When the MATERIAL or PRODUCT was manufactured by CUSTOMER but not for
sale to customers, REPLACEMENT COST means CUSTOMER’s actual direct
manufacturing cost.

	1.04.	 	PREMISES means that portion of the DISTRIBUTION CENTER devoted to CUSTOMER’s PRODUCT and
MATERIAL as set forth on Exhibit B attached hereto, which PREMISES shall be used exclusively
for CUSTOMER and shall be segregated from other portions of the DISTRIBUTION CENTER.

 

2

 

Those portions of this Agreement that have been redacted were omitted pursuant to a request for

confidential treatment and have been filed separately with the Securities and Exchange Commission.

ARTICLE TWO

SERVICES

	2.01.	 	CONTRACTOR shall provide DISTRIBUTION CENTER services to CUSTOMER including the handling,
storing, shipping and transportation (pursuant to CUSTOMER’s direction and instruction) of
CUSTOMER’s MATERIALS and PRODUCTS that CUSTOMER elects to deliver to CONTRACTOR, as further
described in Exhibit A attached hereto.

	2.02.	 	CONTRACTOR shall obtain or provide all necessary personnel and equipment, in addition to any
provided by CUSTOMER, to enable it to perform its DISTRIBUTION CENTER and shipping obligations
hereunder.

	2.03.	 	CONTRACTOR shall strive to maintain the DISTRIBUTION CENTER and the equipment used in the
performance of services hereunder in a clean, proper, and safe operating condition.

	2.04.	 	The services provided by CONTRACTOR hereunder shall be available eight (8) hours per day,
five (5) days per week, fifty-two (52) weeks per year (excluding holidays designated by
CUSTOMER). CONTRACTOR shall also provide overtime, weekend and emergency service at other
times requested by CUSTOMER upon reasonable notice.

ARTICLE THREE

TERM/TERMINATION/EARLY TERMINATION

	3.01	 	This Agreement shall be effective as of the day and year first written above (the Effective
Date) and shall continue through December 31, 2011 (the “Initial Term”). Thereafter this
Agreement shall automatically renew for periods of one (1) year (the “Renewal Term(s)) (unless
written notice of termination is given by either party at least one hundred twenty (120) days
prior to the end of the initial term or any extension thereof, in which event the termination
shall be effective as of the end of the “Initial Term” or the “Renewal Term” as the case may
be.

	3.02	 	Either party may terminate this Agreement for any or no reason upon ninety (90) days’ written
notice to the non-terminating party. In addition, if due to casualty, condemnation or other
occurrence the PREMISES or the DISTRIBUTION CENTER are unavailable for the services the
parties shall work in cooperation to find replacement facilities to provide the services
contemplated under this Agreement; provided that if services are materially impaired at the
PREMISES or the DISTRIBUTION CENTER for a period of 90 days or more, or if because of the
nature of the occurrence CUSTOMER reasonably determines that services at the PREMISES or the
DISTRIBUTION CENTER shall be materially impaired for a period of 90 days or more, CUSTOMER may
terminate this Agreement by written notice to CONTRACTOR.

	3.03	 	Should CUSTOMER terminate this Agreement prior to the end of the “Initial Term” or any
“Renewal Term” for convenience (I.e., not due to a (I) termination of CONTRACTOR’S lease for
the DISTRIBUTION CENTER, (ii) the unavailability of the PREMISES or the DISTRIBUTION CENTER
makes the services unavailable or materially impaired, or (iii) the default or bankruptcy of
CONTRACTOR), CUSTOMER shall pay to CONTRACTOR, on a monthly basis, base service charges and
seasonal service charges for months and the amount of space set forth in Exhibit B through the
expiration of the “Initial Term,” or the then applicable “Renewal Term,” as appropriate, to
the extent that such space is not utilized for other purposes. CUSTOMER shall receive a credit
against such service charges in the amount of ***** per square foot per month for all space
utilized for other purposes. CONTRACTOR shall use its best efforts to mitigate the services
charges payable by CUSTOMER and find other uses for such space, in its reasonable discretion;
provided that CONTRACTOR shall not be required to find a substitute use for the space
allocated to CUSTOMER until all other vacant space in the DISTRIBUTION CENTER is utilized.

 

3

 

Those portions of this Agreement that have been redacted were omitted pursuant to a request for

confidential treatment and have been filed separately with the Securities and Exchange Commission.

	3.04	 	If either party hereto shall default in the substantial performance of any obligation
specified herein, the non-defaulting party shall notify the defaulting party of the default in
writing and, if such default is not remedied within thirty (30) days from dispatch of such
notice, the non-defaulting party shall have the right to terminate this Agreement immediately,
provided, however, that, in the event that such default cannot be wholly cured
within thirty (30) days, the defaulting party shall have such longer period as shall be
reasonably necessary to cure the default so long as the defaulting party (a) has commenced to
cure within said thirty-day period and (b) continues diligently to effect, and does effect, a
cure within fifteen (15) additional days. Termination under Article Three above shall not
relieve or release either party hereto from any rights, liabilities or obligations that have
accrued prior to the effective date of such termination. The term “obligations” in the
context of these Articles shall include MATERIALS and PRODUCTS which have been authorized by
release(s) but not yet delivered. Such release(s) shall be completed even if delivery must
occur after the termination date hereof.

ARTICLE FOUR

COMPENSATION

	4.01.	 	CUSTOMER shall pay CONTRACTOR in accordance with the schedule attached hereto as Exhibit B
Compensation. Should CUSTOMER request space in excess of that stated in Exhibit B, the
service charges shall be increased at the same rate (***** per square foot of additional space
per month ) to reflect the increase in space for the actual months used. CUSTOMER must
authorize all services under this Agreement.

ARTICLE FIVE

TERMS OF PAYMENT

	5.01.	 	CONTRACTOR shall invoice CUSTOMER monthly for all services performed and sums due under this
Agreement during the preceding month.

	5.02.	 	Payment shall be due thirty (30) days after date of CONTRACTOR’s invoice. Any payments not
received by CONTRACTOR within thirty (30) days of the invoice date shall be subject to a
late-payment charge of one (1.0%) percent per month, calculated from the invoice date. In the
event a portion of an invoice is questioned or in dispute, payment shall nonetheless be made
of all portions not in question.

ARTICLE SIX

SAFEKEEPING/TITLE

	6.01.	 	CONTRACTOR shall exercise reasonable care in the safekeeping and safe handling of all
CUSTOMER MATERIAL or PRODUCT when in the care, custody, and control of CONTRACTOR. Unless
otherwise specified in this Agreement, title to such MATERIAL or PRODUCT shall remain with
CUSTOMER. If requested by CUSTOMER, CONTRACTOR shall segregate and placard such MATERIAL or
PRODUCT indicating CUSTOMER’s ownership. CONTRACTOR shall take no action inconsistent with
CUSTOMER’s ownership of CUSTOMER MATERIAL or PRODUCT.

ARTICLE SEVEN

LOSS-DAMAGE: STORAGE/HANDLING

	7.01.	 	CONTRACTOR is hereby granted an annual operational no-fault “loss-damage” allowance in the
amount of *****, to be based solely on the valuation and inventory records of the Customer and
the activities at the DISTRIBUTION CENTER as reported to the Customer by UTi.

	7.02.	 	In the event of any loss or damage to MATERIAL or PRODUCT in excess of the “loss-damage”
allowance that results from the negligent acts or omissions of CONTRACTOR, its employees,
agents, or assigns, CONTRACTOR shall reimburse CUSTOMER at REPLACEMENT COST up to a maximum
of ***** Dollars per incident and in the annual aggregate.

 

4

 

Those portions of this Agreement that have been redacted were omitted pursuant to a request for

confidential treatment and have been filed separately with the Securities and Exchange Commission.

	7.03.	 	CONTRACTOR shall report in writing to CUSTOMER any incident involving loss or damage in
excess of *****, and shall provide such documentation regarding the incident as may be
reasonably requested by CUSTOMER.

ARTICLE EIGHT

CHARGE-BACKS

	8.01	 	When preparing CUSTOMER’s goods for shipment to CUSTOMER’s customers, should CONTRACTOR fail
to comply with certain requirements of that preparation, CONTRACTOR agrees to reimburse
CUSTOMER for “Charge-backs” as set forth on Exhibit C attached hereto and a part hereof. All
Charge-backs must be reported to CONTRACTOR within sixty (60) days of CUSTOMER receiving
notification thereof. CONTRACTOR will not be responsible for Charge-backs not reported to
CONTRACTOR within one (1) year after occurrence.

ARTICLE NINE

INDEMNIFICATION

	9.01.	 	CONTRACTOR will indemnify, hold harmless, and defend CUSTOMER against all liability, loss
and expense including, but not limited to, settlements, judgments, court costs, and attorney
fees incurred by CUSTOMER resulting from any act or omission, whether negligent or
intentional, by CONTRACTOR in performance under this Agreement (other than those losses
covered by the “loss-damage” allowance in Article Seven above). This indemnity shall not
apply to the extent that the liability, loss or expense is caused by any act or omission,
whether negligent or intentional, on the part of CUSTOMER.

	9.02.	 	CUSTOMER will indemnify, hold harmless, and defend CONTRACTOR against all liability, loss
and expense including, but not limited to, settlements, judgments, court costs, and attorney
fees incurred by CONTRACTOR resulting from any act or omission, whether negligent or
intentional, by CUSTOMER in performance under this Agreement. This indemnity shall not apply
to the extent that the liability, loss or expense is caused by any act or omission, whether
negligent or intentional, on the part of CONTRACTOR.

ARTICLE TEN

FORCE MAJEURE

	10.01.	 	No liability shall result to either party from delay in performance or from nonperformance
caused by circumstances beyond the control of the party who has delayed performance or not
performed, including but not necessarily limited to acts of nature, acts of war, civil
commotions, riots, strikes, lockouts, acts of the government in either its sovereign or
contractual capacity, accident, fire, water damages, flood, earthquake, or other natural
catastrophes. The non-performing party shall be diligent in attempting to remove any such
cause of delay or non-performance and shall promptly notify the other party of its extent and
probable duration.

ARTICLE ELEVEN

INSURANCE

	11.01.	 	Each party shall carry and maintain in force as necessary at all times relevant hereto
insurance of the type and minimum coverage limits stated below:

	 	(a)	 	Commercial General Liability (Occurrence Form), including contractual
liability in a Combined Single Limit for Bodily Injury and Property Damage:
$1,000,000 per occurrence;

	 	(b)	 	Excess Liability — Umbrella form in the amount of $5,000,000 excess
over existing Employers Liability, General Liability, and Automotive Liability.

 

5

 

Those portions of this Agreement that have been redacted were omitted pursuant to a request for

confidential treatment and have been filed separately with the Securities and Exchange Commission.

	11.02.	 	Certificates of insurance evidencing the coverages required above of either party shall be
filed with the other party on or before the Effective Date of this Agreement. Such
certificates shall require that the insurer will give both parties thirty (30) days’ advance
notice of any changes in, or cancellation of, coverage, but neither party shall incur any
liability if the insurer should fail to provide such notice.

	11.03	 	The minimum coverages required under this Agreement shall serve as limits to CONTRACTOR’s
liability to CUSTOMER for any of the covered expenses.

	11.04	 	Should the CONTRACTOR use the services of subcontractors, CONTRACTOR will require
subcontractor to carry the same level of insurance coverage.

ARTICLE TWELVE

ACCESS CONTROL

	12.01.	 	CONTRACTOR shall permit entry to the PREMISES only to CUSTOMER’s authorized personnel or
invitees and to such other persons whose presence is necessary for the administration of the
DISTRIBUTION CENTER operation or to carry on business functions of CUSTOMER.

	12.02.	 	CONTRACTOR shall permit entry to the DISTRIBUTION CENTER only to those persons whose
presence is necessary for the administration of the DISTRIBUTION CENTER operation or to carry
on business functions of CUSTOMER and other customers of CONTRACTOR utilizing space in the
DISTRIBUTION CENTER.

ARTICLE THIRTEEN

ASSIGNMENT

	13.01.	 	The rights and obligations covered herein are personal to each party hereto, and for this
reason this Agreement is assignable only with the written consent of the other party, such
consent not to be unreasonably withheld.

ARTICLE FOURTEEN

NONDISCLOSURE

	14.01.	 	CONTRACTOR agrees not to disclose to third parties any information or knowledge that may be
gained or learned by it or its employees about the business, products, employees or methods
employed by CUSTOMER unless such disclosure is necessary to perform services required under
this Agreement. CONTRACTOR shall restrict access to the PREMISES only to those persons
permitted in this Article Fourteen who have signed a confidentiality agreement.

 

6

 

Those portions of this Agreement that have been redacted were omitted pursuant to a request for

confidential treatment and have been filed separately with the Securities and Exchange Commission.

ARTICLE FIFTEEN

NOTICE

	15.01.	 	Whenever any notice, demand, consent, or approval shall or may be given hereunder to either
of the parties by the other, each such notice, demand, consent, or approval shall be in
writing and be sent by telecopier/fax with a confirmation copy dispatched no later than the
next business day by national courier service (such as Federal Express), addressed as follows:

	 	 	 
	To CONTRACTOR at:

	 	With Copy to:
	 
	 	 
	UTi Integrated Logistics, Inc.

	 	Stephen Savarese
	Attention: President, Distribution

	 	General Counsel
	700 Gervais Street

	 	UTi
	Suite 100

	 	900 Cummings Center, Suite 403T
	Columbia, South Carolina 29201

	 	Beverly, Massachusetts 01915
	Fax: (803) 771-6785

	 	Fax: (978) 232-9921
	 
	 	 
	To CUSTOMER at:

	 	With Copy to:
	 
	 	 
	R.G. Barry Corporation

	 	R.G. Barry Corporation
	Attention: Jose Ibarra

	 	Attention: Ann Scarberry
	13405 Yarmouth Rd., NW

	 	13405 Yarmouth Rd., NW
	Fax: (614) 866-9787

	 	Fax: (614) 729-7152

	15.02.	 	Either party may change its address for purposes of receipt of any such communication by
giving ten (10) days’ prior written notice of such change to the other party in the manner
prescribed above.

ARTICLE SIXTEEN

INDEPENDENT CONTRACTOR

	16.01.	 	CONTRACTOR’S relationship to CUSTOMER shall be that of an independent contractor. Nothing
in this Agreement shall be construed to constitute CONTRACTOR, or any of its employees,
representatives, or agents as an employee, joint venturer, or partner of CUSTOMER. Moreover,
except for CONTRACTOR’S limited role as receiving and shipping agent at the DISTRIBUTION
CENTER as described in Section 16.03, nothing in this Agreement shall be construed to
constitute CONTRACTOR, or any of its employees, representatives, or agents as an agent of
CUSTOMER.

	16.02.	 	CUSTOMER shall refrain at all times from directing the work and activities of CONTRACTOR’S
employees, subcontractors, and agents. All operational suggestions and requests by CUSTOMER
shall be routed through CONTRACTOR’s Contract Administrator. Likewise, all operational
suggestions and requests by CONTRACTOR shall be routed through CUSTOMER’s Contract
Administrator. The names of the Contract Administrators of each party shall be provided by
Notice as set forth in Article Nineteen.

	16.03.	 	Where required in the course of rendering service hereunder, CONTRACTOR shall be considered
CUSTOMER’s agent for the limited purpose of acting as a “shipper” or “receiver” of MATERIAL or
PRODUCT. As such, CONTRACTOR may sign or certify that it has properly classified, described,
packaged, marked, or labeled PRODUCTS or MATERIALS for shipment and that they are in proper
condition for transportation according to the applicable regulations of the Department of
Transportation. Similarly, CONTRACTOR may certify and acknowledge receipt, after ascertaining
the accuracy of carrier’s count and the delivered condition of the MATERIALS or PRODUCTS
involved.

	16.04.	 	Neither party shall hire (or cause to be hired by a third party) any employee of the other
party during the “Initial Term” hereof and for a period of one (1) year thereafter without
first giving written notice to the other party. Any party who hires (or causes to be hired by
a third party) any employee of the other party shall pay as an agreed training reimbursement
fee to the other party, within ten (10) days of demand therefor, a sum per occurrence equal to
the employee’s gross compensation for the six (6) months preceding the date of demand.

 

7

 

Those portions of this Agreement that have been redacted were omitted pursuant to a request for

confidential treatment and have been filed separately with the Securities and Exchange Commission.

ARTICLE SEVENTEEN

COMPLIANCE WITH LAWS

	17.01.	 	Both parties agree that they shall in good faith endeavor to comply with all applicable
federal, state and local laws, rules, and regulations in the performance of their obligations
under this Agreement.

ARTICLE EIGHTEEN

NONDISCRIMINATION

	18.01.	 	CONTRACTOR acknowledges that it has a corporate policy of compliance with all applicable
laws, rules, orders, and regulations of governmental authority covering the production, sale,
and delivery of the materials or services specified herein, including, but not limited to,
Executive Order 11246, and the rules and regulations promulgated thereunder, the
Rehabilitation Act of 1973, and the Vietnam Era Veterans Readjustment Act of 1974. Further,
CONTRACTOR’S policy also includes compliance with all applicable provisions of the Fair Labor
Standards Act of 1938, as amended.

ARTICLE NINETEEN

NON-WAIVER; RESERVATION OF RIGHTS

	19.01.	 	CUSTOMER’s or CONTRACTOR’s waiver of any of its remedies afforded hereunder or by law is
without prejudice and shall not operate as a waiver of any other remedies that such party
shall have available to it, nor shall such waiver operate to waive such party’s rights to any
remedies due to a future breach, whether of a like or different character. In no event shall
the failure of CUSTOMER or CONTRACTOR to insist upon strict performance of any of the terms,
conditions and covenants herein be deemed to be a waiver of any rights or remedies that
CUSTOMER or CONTRACTOR may have, and shall not be deemed a waiver of any subsequent breach or
default in the terms, conditions and covenants herein contained except as may be waived in
writing.

ARTICLE TWENTY

WAIVER OF LIEN

	20.01.	 	All right, title and interest in and to all of the MATERIAL and PRODUCT shall remain with
CUSTOMER. CONTRACTOR, for itself and its successors and assigns, hereby waives and
relinquishes, and agrees to obtain from third parties who might claim any such lien or right
(such as CONTRACTOR’S secured creditors and the landlord of the DISTRIBUTION CENTER), their
written waiver and relinquishment of all rights, if any, to any common law or statutory lien
or other right of retention whatsoever with respect to the MATERIAL and PRODUCT. CONTRACTOR
acknowledges that the provisions of the preceding sentence are a bargained consideration
essential to CUSTOMER’s agreement to CONTRACTOR’s possession of the MATERIAL and PRODUCT.
Unless otherwise provided herein, no liens or judgments against, CONTRACTOR shall be
applicable to CUSTOMER’s property, including the MATERIAL and PRODUCT.

	20.02.	 	Within 5 business days after CUSTOMER’S execution of this Agreement, CUSTOMER shall provide
to CONTRACTOR during the initial term of this Agreement a standby letter of credit (the “LC”)
in form and substance reasonably acceptable to CONTRACTOR and CUSTOMER, upon all of the
following terms:

	 	(i)	 	CONTRACTOR may draw upon the LC only in the event that CUSTOMER files, or has
filed against it, a petition in Bankruptcy and then only for amounts which have not
been paid to CONTRACTOR under this Agreement within 5 days after the due date thereof;
and

 

8

 

Those portions of this Agreement that have been redacted were omitted pursuant to a request for

confidential treatment and have been filed separately with the Securities and Exchange Commission.

	 	(ii)	 	for the period from February 13, 2009 to February 12, 2010, the face amount of
the LC shall be *****; the face amount of the LC during the period from February 13, 2010 to February
12,2012 shall be *****; the face amount of the LC for the period from February 13,2012
to December 31,2012 shall be *****; and no letter of credit shall be required after
December 31, 2012, provided that the parties may, at their option, discuss the
possibility of mutually agreeing on the need for a letter of credit after December
31,2012; and

	 	(iii)	 	the obligations of CUSTOMER with respect to the LC may be provided by
one or more letters of credit and/or successive letters of credit, so long as a
replacement letter of credit is provided to CUSTOMER prior to the expiration of
the then existing letter of credit.

ARTICLE TWENTY-ONE

HEADINGS

	21.01.	 	All headings of the clauses of this Agreement are inserted for convenience only and shall
not affect any construction or interpretation of this Agreement.

ARTICLE TWENTY-TWO

APPLICABLE LAW

	22.01.	 	This Agreement shall be construed, enforced, and performed in accordance with the laws of
the State of South Carolina.

ARTICLE TWENTY-THREE

SEVERABILITY

	23.01.	 	In the event that any clause of this Agreement shall be found to be void or unenforceable,
such finding shall not be construed to render any other clause of this Agreement either void
or unenforceable, and all other clauses shall remain in full force and effect unless the
clause(s) that is/are invalid or unenforceable shall substantially affect the rights or
obligations granted to or undertaken by either party.

ARTICLE TWENTY-FOUR

AUTHORITY

	24.01.	 	The parties hereby represent that they have full power and authority to enter into and
perform this Agreement, and the parties know of no Agreement, promises, or undertakings that
would prevent the full execution and performance of this Agreement.

ARTICLE TWENTY-FIVE

INTERPRETATION

	25.01.	 	This Agreement, together with the attachments and Exhibits specifically referenced and
attached hereto, embodies the entire understanding between CUSTOMER and CONTRACTOR, and there
are no contracts, understandings, conditions, warranties, or representations, oral or written,
express or implied, with reference to the subject matter hereof that are not merged herein.
Except as otherwise specifically stated, no modification hereto shall be of any force or
effect unless (a) reduced to writing and signed by both parties hereto, and (b) expressly
referred to as being a modification of this Agreement. Both parties recognize that each
equally participated in the preparation of this Agreement, and no weight shall be given to,
nor shall any construction or interpretation be influenced by, any presumption of preparation
of an Agreement by CUSTOMER or by CONTRACTOR.

 

9

 

Those portions of this Agreement that have been redacted were omitted pursuant to a request for

confidential treatment and have been filed separately with the Securities and Exchange Commission.

ARTICLE TWENTY-SIX

ARBITRATION

	26.01.	 	Any controversy which shall arise between CUSTOMER and CONTRACTOR regarding the rights,
duties, or liabilities of either party hereunder shall be settled by binding arbitration in
Columbia, South Carolina in accordance with the South Carolina Uniform Arbitration Act and
pursuant to the rules of the American Arbitration Association except that the arbiters shall
have no authority to make any award for punitive damages. The arbitration award shall be by
written decision and shall be final and binding. Judgment upon the award may be entered and
enforced by any court of competent jurisdiction.

	26.02.	 	Not withstanding the foregoing, if any arbitration proceeding shall be commenced, or if any
action at law or in equity, shall brought by either party for any reason and including but not
limited to or on account of any breach of or to enforce or interpret any of the covenants,
terms or conditions of this Agreement, the prevailing party shall be entitled to recover costs
and expenses, including reasonable attorneys’ fees, from the other party and such attorneys’
fees and other costs and expenses shall be made a part of any award or judgment rendered.

ARTICLE TWENTY-SEVEN

SUCCESSORS AND ASSIGNS

	27.01.	 	The covenants, conditions and agreements contained in this Agreement shall bind and inure to
the benefit of CUSTOMER and CONTRACTOR and their respective successors and permitted assigns.

{Signature Page Follows}

 

10

 

Those portions of this Agreement that have been redacted were omitted pursuant to a request for

confidential treatment and have been filed separately with the Securities and Exchange Commission.

{Signature Page}

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their duly authorized
representatives to be effective as of the day and year first above written.

	 	 	 	 	 	 	 	 	 
	CONTRACTOR:	 	 	 	CUSTOMER:
	 
	 	 	 	 	 	 	 	 
	UTi INTEGRATED LOGISTICS, INC.	 	 	 	R. G. BARRY CORPORATION
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Douglas L. Walker
	 	 	 	By:
	 	/s/ José G. Ibarra
	 

	 	 
	 	 	 	 	 	 
	Its: President	 	 	 	Its: SVP Finance, CFO
	Date: April 20, 2009	 	 	 	Date: April 23, 2009

Exhibits attached:

	 	 	 
	“A”
	 	Scope of Work

	“B”
	 	Compensation

	“C”
	 	Chargeback Agreement

 

11

 

 Those portions of this Agreement that have been redacted were omitted pursuant to a request for

confidential treatment and have been filed separately with the Securities and Exchange Commission.

EXHIBIT A

SCOPE OF WORK

This schedule is incorporated in and made a part of the Master Distribution Services Agreement.
This schedule provides a brief, non-inclusive overview/guideline of the expected functions to be
performed by the Operator at the DISTRIBUTION CENTER (DC). The Seasonal Program (SP) is an
integrated part of the DC operations: however, program requirements and characteristics may vary
slightly from typical DC programs. RGB has contracted with UTi for storage and distribution in the
Ontario warehouse. RGB sells and ships slippers to such department stores as ***** and several
others. Their product is purchased from overseas manufacturers and shipped to the LA port where
they are picked up and delivered to the warehouse. The warehouse will receive the goods, store and
ship according to RGB requirement.

RECEIVING

	 	•	 	Warehouse will receive an ASN (943) for future in-transits. There will be one ASN per
container. Container may contain several PO’s.

	 	•	 	Warehouse typically has 24 hours to unload, count and report to RGB the contents
received.

	 	•	 	Several containers may arrive at one time. RGB will prioritize the unloading.

	 	•	 	Unload container, blind count and receive into warehouse.

	 	•	 	All OS&D’s signed off by supervisor and scanned to RGB.

	 	•	 	Communicate to RGB via 944 product received.

	 	•	 	RGB will update their system according to the 943 sent then modify manually to correct
quantities from our OS & D spread sheet.

	 	•	 	No packing slip in containers. Warehouse will need to print In-transit report.

	 	•	 	TR number, container and sku quantity are the information fields needed to update the
RGB system.

INVENTORY MANAGEMENT

	 	•	 	Product will be stored as a single lotted item.

	 	•	 	All products are case in and case out.

	 	•	 	Warehouse will do cycle counting.

	 	•	 	RGB requires one wall to wall inventory a year.

	 	•	 	An 846 will be sent each week on Sunday for system reconciliation.

	 	•	 	An 832 will be sent for item maintenance.

	 	•	 	If an item already exists then the item supplemental file will have the old item
references removed and replaced with the new one.

ORDER MANAGEMENT

	 	•	 	RGB will send a 940 for each order.

	 	•	 	Orders will be received into future status. Orders have a start ship date and a cancel
after date.

	 	•	 	Orders will be released for pick by ship date.

	 	•	 	Orders may be picked early and held for shipping.

	 	•	 	Orders will be release in waves if possible.

	 	•	 	Pick tickets are printed for all orders.

	 	•	 	Order changes will be communicated to CSR via email.

 

12

 

Those portions of this Agreement that have been redacted were omitted pursuant to a request for

confidential treatment and have been filed separately with the Securities and Exchange Commission.

	 	•	 	***** orders will be governed by the 753 and 754 EDI transactions.

	 	•	 	RGB will receive ***** orders Monday night.

	 
	 	•	 	Tuesday 753 sent to ***** and orders sent to warehouse.

	 
	 	•	 	Tuesday night ***** sends 754 to RGB.

	 
	 	•	 	Wednesday morning RGB sends modified 754 to warehouse.

	 
	 	•	 	Wednesday, warehouse will print labels and apply to cases.

	 
	 	•	 	Thursday carriers will begin picking up shipments.

	 	•	 	UPS and FEDEX orders will be wave picked by carrier.

	 	•	 	Labels will be printed at the UPS or FEDEX station.

	 	•	 	UPS and FEDEX stations will be connected to and/or for shipment information to be passed
and processed automatically.

	 	•	 	All orders must be confirmed when shipped to allow time for 945 to be generated and sent
to RGB where they will generate the customer ASN.

PICKING

	 	•	 	Depending on the requirements of loading bt customer picking will happen on individual
orders, consolidate picks or wave picks.

	 	•	 	***** will be bulked pick by ***** PO number by sku.

	 	•	 	UPS and FEDEX bulked picked but process through stations by order.

SHIPPING

	 	•	 	All orders will be routed using checklist provided by RGB.

	 	•	 	Shipments will be tendered to carrier according to customer requirements.

	 	•	 	All documents must be signed to requirement to prevent charge backs.

	 	•	 	Depending on the customer floor loading and palletizing is used. Vics BOL must be
marked accordingly.

	 	•	 	Once shipped, the order must be confirmed immediately for 945 timing.

SHIPPING DOCUMENTS

	 	•	 	Picking ticket

	 	•	 	UCC128 labels

	 	•	 	Vics Bol

	 	•	 	Manifest

	 	•	 	Packing Slip

 

13

 

 Those portions of this Agreement that have been redacted were omitted pursuant to a request for

confidential treatment and have been filed separately with the Securities and Exchange Commission.

EXHIBIT B

COMPENSATION

	 	 	 	 	 
	Service	 	Cost	 	Comment
	Premises: 13230 San Bernardino, Fontana, CA
	 	 	 	 
	 
	 	 	 	 
	1. Base monthly service charge
	 	*****	 	January – December
	 
	 	 	 	 
	2. Seasonal monthly service charge
	 	*****	 	June – December
	 
	 	 	 	 
	3. Unit Handling Rates
	 	 	 	 
	 
	 	 	 	 
	Inbound
	 	*****	 	per inbound carton
	 
	 	 	 	 
	 
	 	*****	 	per inbound display
	 
	 	 	 	 
	 
	 	*****	 	per inbound layer (****)
	 
	 	 	 	 
	Outbound
	 	*****	 	per outbound carton
	 
	 	 	 	 
	 
	 	*****	 	per outbound display
	 
	 	 	 	 
	 
	 	*****	 	per outbound transfer
	 
	 	 	 	 
	 
	 	*****	 	per outbound layer (****)
	 
	 	 	 	 
	Transload
	 	*****	 	per carton
	 
	 	 	 	 
	Supplies
	 	 	 	 
	 
	 	 	 	 
	4. Supplies (shrinkwrap, tape, cartons, etc.)
	 	®	 	**********
	 
	 	 	 	 
	5. Other
	 	 	 	 
	 
	 	 	 	 
	Special Project Labor
	 	*****	 	per warehouse hour
	 
	 	 	 	 
	 
	 	*****	 	per warehouse overtime hour
	 
	 	 	 	 
	 
	 	*****	 	per clerical hour
	 
	 	 	 	 
	 
	 	*****	 	per clerical overtime hour
	 
	 	 	 	 
	Reboxing / Recoup
	 	*****	 	per carton
	 
	 	 	 	 
	Display prep (palletize, band, wrap)
	 	*****	 	per pallet
	 
	 	 	 	 
	IT Support
	 	®	 	**********
	 
	 	 	 	 
	6. Compliance Manager (as mutually agreed
to by the parties)
	 	®	 	*****

Note: All compensation for items 4, 5 and 6 shall be subject to CUSTOMER’S pre-approval.

 

14

 

Those portions of this Agreement that have been redacted were omitted pursuant to a request for

confidential treatment and have been filed separately with the Securities and Exchange Commission.

EXHIBIT C

CHARGE-BACK AGREEMENT

For each of the following failures to comply with requests, CONTRACTOR shall pay to
CUSTOMER, ***** of the charge-back incurred by CUSTOMER, up to a maximum of:

	 	 	 	 	 
	1. BOL
	 	 	 	 
	a. Missing BOL
	 	 	*	****
	b. Incorrect documentation, Master BOL, Manifest, Supplement
	 	 	*	****
	 
	 	 	 	 
	2. BOL Infractions
	 	 	 	 
	a. BOL not signed and dated by Driver and UTI
	 	 	*	****
	b. Incorrect Cartons / Weight on the BOL
	 	 	*	****
	c. BOL not marked SLC or SLDC
	 	 	*	****
	d. Failure to mark Pallet Y/N
	 	 	*	****
	e. Incorrect SCAC
	 	 	*	****
	f. Missing Customer ID #
	 	 	*	****
	g. Missing Trailer #, Seal #, Pro #
	 	 	*	****
	h. Incorrect Freight Charge Terms
	 	 	*	****
	 
	 	 	 	 
	3. ASN Failure
	 	 	*	****
	 
	 	 	 	 
	4. Invalid Routing
	 	 	 	 
	a. Failure to follow customer lead time requirements for routing
	 	 	*	****
	b. Incorrect routing method, such as call, fax, internet
	 	 	*	****
	c. Failure to combine same day or consecutive day shipments
	 	 	*	****
	d. Incorrect carrier
	 	 	*	****
	e. Failure to fax docs, i.e., BOL, Manual ASN, Packing Lists,
etc.
	 	 	*	****
	 
	 	 	 	 
	5. Shipping outside of customer order window, early or late
	 	 	*	****
	 
	 	 	 	 
	6. Small packaging routing errors
	 	 	 	 
	a. Incorrect Freight Type, i.e., prepaid, collect, 3rd Party,
Consignee Bill
	 	 	*	****
	b. Incorrect Carrier
	 	 	*	****
	c. Invalid tracking numbers
	 	 	*	****

 

15

 

Those portions of this Agreement that have been redacted were omitted pursuant to a request for

confidential treatment and have been filed separately with the Securities and Exchange Commission.

	 	 	 	 	 
	7. Labels
	 	 	 	 
	a. Scanning without Maintenance Log
(with Maintenance Log — No Charge)
	 	 	*	****
	b. Misplace Carton Labels
	 	 	*	****
	c. Alignment / Formatting Errors
	 	 	*	****
	 
	 	 	 	 
	8. Loading
	 	 	 	 
	a. OS & D
	 	 	 	 
	1. Concealed — SLDC — UTI not responsible, SLC — review of
paperwork and inventory to be done.
	 	 	*	****
	2. Failure to load all or part of an order
	 	 	*	****
	b. Improper Sort and Segregation per Checklist
	 	 	*	****
	c. Loading Configuration, i.e., Multi-stop, High & Tight,
	 	 	 	 
	1. Multi-stop
	 	 	*	****
	2. High & Tight
	 	 	*	****
	3. Load Separation
	 	 	*	****
	d. Incorrect Carrier
	 	 	*	****
	e. Detention
	 	 	*	****
	f. Palletization Errors
	 	 	 	 
	1. Strapping
	 	 	*	****
	2. Stretch-wrap
	 	 	*	****
	3. CHEP
	 	 	*	****
	4. Pallet Labels
	 	 	*	****
	5. Overhang
	 	 	*	****

 

16

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00196-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00196-of-00352.parquet"}]]