Document:

Exhibit 10.8

 

BODY CENTRAL ACQUISITION CORP.

 

INCENTIVE STOCK OPTION AGREEMENT

 

This INCENTIVE STOCK OPTION AGREEMENT, dated as of February 7,
2008, (this “Agreement”), is between BODY CENTRAL ACQUISITION CORP., a
Delaware corporation (the “Company”), and Richard L. Walters (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 1,400 shares, subject to adjustment pursuant to Section 8
of the Plan (the “Option Shares”), of
Common Stock, at a price of $25.00 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 February 7, 2009, the first
anniversary of the date of this Agreement, 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 May 7,
2009, 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 February 7, 2012, 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.  Subject to the following sentence, 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 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.

 

2

 

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/ Curtis V. Hill  

  	
   

  	
  By:

  	
  /s/ Richard L. Walters  

  
	
   

  	
  Curtis V. Hill  

  	
   

  	
   

  	
  Richard L. Walters

  
	
   

  	
  President and Chief Executive Officer

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Optionee’s Address:Exhibit 10.9

 

BODY
CENTRAL ACQUISITION CORP.

 

INCENTIVE
STOCK OPTION AGREEMENT

 

This
INCENTIVE STOCK OPTION AGREEMENT, dated as of August 15, 2007, (this “Agreement”),
is between BODY CENTRAL ACQUISITION CORP., a Delaware corporation (the “Company”),
and Richard L. Walters (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 5,280 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 January 2,
2008, the first anniversary of the date the 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 April 2,
2008, 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 January 2, 2011, 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. 
Subject to the following sentence, 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 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.

 

2

 

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/ George Kolber

  	
   

  	
  By:

  	
  /s/
  Richard L. Walters

  
	
   

  	
  George Kolber

  	
   

  	
   

  	
  Richard L. Walters

  
	
   

  	
  President and Chief
  Executive Officer

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Optionee’s Address:

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