Document:

ex104bluelinxjanzenemplo

                                                                  EXHIBIT 10.4                           EMPLOYMENT AGREEMENT         This Employment Agreement (this “Agreement”) is entered into as of March 2, 2020, to  be effective as of the Effective Date (as defined herein), between BLUELINX CORPORATION,  a  Georgia  corporation  (the “Company”), Kelly  C.  Janzen (“Executive”) and,  as applicable, to  BLUELINX HOLDINGS INC. (“BHI”).                                    RECITALS:         WHEREAS, the Executive agrees to provide services to BHI and the Company as their  Chief Financial Officer, and BHI and the Company in return agree to provide certain compensation  and benefits to Executive; and         WHEREAS,  the  Company  and  Executive  mutually  desire  to  memorialize  the  terms  of  Executive’s employment as Chief Financial Officer of BHI and the Company.         NOW, THEREFORE, in consideration of the mutual covenants contained herein and other  good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,  the parties hereto agree as follows:         1.    Certain  Definitions.  Certain  words  or  phrases  with  initial  capital  letters  not  otherwise defined herein are to have the meanings set forth in Section 8.         2.    Employment.  The Company  shall  employ  Executive,  and  Executive  accepts  employment with the Company upon the terms and conditions set forth in this Agreement for the  period beginning on the Effective Date and ending as provided in Section 5 (the “Employment  Period”).  For the purposes of this Agreement, the “Effective Date” shall be April 13, 2020.         3.    Position and Duties.               (a)   During the Employment Period, Executive shall serve as Chief Financial  Officer of BHI and the Company and shall have the normal duties, responsibilities and authority  of an executive serving in such position, subject to the power of the Chief Executive Officer of  BHI to provide oversight and direction with respect to such duties, responsibilities and authority,  either generally or in specific instances.               (b)   During  the  Employment  Period,  Executive  shall  devote  Executive’s  reasonable best efforts and Executive’s full professional time and attention (except for permitted  vacation periods and reasonable periods of illness or other incapacity) to the business and affairs  of BHI and the Company and their respective subsidiaries and affiliates. Executive shall perform  Executive’s duties and responsibilities to the best of Executive’s abilities in a diligent, trustworthy  and business-like manner.  However, (i) Executive may continue to serve as a member of the board  of directors of the non-profit corporations on which she serves on the Effective Date and may  become a member of the board of directors of any other non-profit corporations so long as doing  so does not create a conflict of interest or interfere with her ability to execute her responsibilities  hereunder, and (ii) Executive may, following the second anniversary of the Effective Date, become  a member of the board of directors of any for-profit corporation so long as doing so does not create  a conflict of interest or interfere with her ability to execute her responsibilities hereunder, and such 

 

membership is approved in advance by the Nominating & Governance Committee of BHI’s Board  of Directors.               (c)   Executive  shall  perform  Executive’s  duties  and  responsibilities from the  Company’s headquarters office in the Atlanta, Georgia metropolitan area (the “Principal Office”).               (d)   Executive as the Chief Financial Officer of BHI shall report to the Chief  Executive  Officer of  BHI;  provided,  however,  consistent  with  such  reporting  relationships,  Executive,  to  the  extent  required  by  applicable  law  or  regulation  or  to  the  extent  required  by  professional  responsibility,  nevertheless  may  provide  information  directly  to  the  Board  of  Directors of both BHI and the Company.         4.    Compensation and Benefits.               (a)   Salary. The  Company  agrees  to  pay  Executive  a  salary  during  the  Employment Period in installments (no less frequently than monthly) based on the Company’s  payroll practices as may be in effect from time to time.  The Executive’s salary is currently set at  the rate of $475,000 (less applicable withholding and other customary payroll deductions) per year  (“Base Salary”).  The Base Salary may be increased at the sole discretion of the Compensation  Committee of BHI’s Board of Directors, but there will not be any decrease in Executive’s Base  Salary.               (b)   Signing  Bonus.  Executive  will  receive $50,000, less  applicable  payroll  deductions, on the first payroll date following her commencement of employment.               (c)   Annual Bonus.  Executive shall be eligible to receive an annual bonus, with  the annual bonus target to be 80% of her then Base Salary (i.e., 80% upon achievement of annual  “target” performance goals), with the “target” based upon satisfaction of performance goals and  bonus criteria to be defined and approved by the Compensation Committee of BHI’s Board of  Directors for each fiscal year.  The Company shall pay any such annual bonus earned to Executive  in accordance with the terms of the applicable bonus plan, but in no event later than March 15 of  the calendar year following the calendar year in which such bonus is earned.  For calendar year  2020, Executive’s annual bonus will be pro-rated to equal 75% of the 2020 bonus performance but  will be no less than $285,000 (75% of her 2020 annual bonus target), and such amount shall be  guaranteed regardless of actual performance as long as Executive remains employed through the  date it is paid, which will be no later than March 15, 2021.               (d)   Long-Term Incentives.  During the Employment Period, the Executive will  be eligible to participate in long term incentive programs of the Company and BHI now or hereafter  made available to similarly situated executives, in accordance with the provisions of the applicable  plan, which may be amended from time to time, and as deemed appropriate by the Compensation  Committee of BHI’s Board of Directors to be applicable to her position as the Chief Financial  Officer.               (e)   Special Equity Grant.  On, or within 5 business days following, the Effective  Date, Executive shall be granted restricted stock units (“RSUs”) for 13,000 shares of BHI common  stock, with half of such RSUs vesting on February 1, 2021, and the remaining half vesting on  February 1, 2022.  If the value of such RSUs on the grant date (determined using the volume                                         2   

 

weighted average price over the 10 trading days prior to the grant date) is less than $200,000,  Executive shall be paid an additional cash amount equal to the difference between $200,000 and  the value of the RSUs, with such cash payment to be included with her first normal salary payment,  less applicable payroll deductions.               (f)   Equity Awards.  Executive shall receive an award of RSUs with a value  equal to 100% of Executive’s Base Salary, which award shall be made at the time and substantially  in  the  form  and  substance  as  2020  equity  awards  granted  to  other  direct  reports  of  the  Chief  Executive  Officer.   Thereafter,  annual  awards  of equity  and  rights  to receive  equity  or  equity  equivalents under the long-term incentive plans of BHI shall be determined in the discretion of the  Compensation Committee of the Board of Directors of BHI and shall be governed by the terms of  the applicable plan.               (g)   Expense Reimbursement.  The Company shall reimburse Executive for all  reasonable and necessary expenses incurred by Executive during the Employment Period in the  course of performing Executive’s duties under this Agreement in accordance with the Company’s  policies  in  effect  from  time  to  time  with  respect  to  travel,  entertainment  and  other  business  expenses.               (h)   Vacation.  Executive shall receive annual paid vacation in accordance with  the Company’s vacation policy applicable to senior executives in the amount of four (4) weeks per  year, prorated for partial years.               (i)   Executive Benefits Package.                       (i)   Executive is entitled during the Employment Period to participate,        on the same basis as the Company’s other senior executives, in the Company’s Standard        Executive  Benefits  Package.  The  Company’s “Standard  Executive  Benefits  Package”        means  those  benefits  (including  insurance,  vacation  and  other  benefits,  but  excluding,        except as hereinafter provided in Section 6, any broad-based severance pay program or        policy of the Company) for which substantially all of the executives of the Company are        from time to time generally eligible, as determined from time to time by the Board.                     (ii)  The  Company  and BHI will  maintain customary  and appropriate        Directors and Officers Liability Coverage for Executive during her Employment Period        and for the 6-year period immediately following her Employment Period, and will afford        Executive the Indemnification set forth in the Amended and Restated Bylaws of BHI, as        may be amended from time to time.               (j)   Additional  Compensation/Benefits.  The  Compensation  Committee  of  BHI’s Board of  Directors, with  input  from  the  Chief  Executive  Officer,  will  determine  any  compensation and benefits to be provided to Executive during the Employment Period by BHI or  the Company in addition to the compensation and benefits set forth in this Agreement.               (k)   Disgorgement  of  Compensation.  If  BHI  or  the  Company  is required  to  prepare an accounting restatement due to material noncompliance by BHI or the Company, as a  result of misconduct, with any financial reporting requirement under the federal securities laws, to  the  extent  required  by  law, Executive  will  reimburse  the  Company  for  (i)  any  bonus  or  other                                         3   

 

incentive-based  or  equity-based  compensation  received  by  Executive  from  the  Company  (including such compensation payable in accordance with this Section 4 and Section 6) during the  12-month period following the first public issuance or filing with the Securities and Exchange  Commission (whichever first occurs) of the financial document embodying that financial reporting  requirement, but only to the extent such compensation would not have been earned in accordance  with  such  restated  financials;  and  (ii)  any  profits  realized  by  Executive  from  the  improper  or  unlawful sale of BHI’s securities during that 12-month period.         5.    Employment Period.               (a)   Subject  to Section  5(b),  the  Employment  Period  will  commence  on  the  Effective Date and will continue until, and will end upon, the first anniversary of the Effective  Date (the “Initial Term”).  The Employment Period shall automatically be extended for successive  one-year terms (each, a “Renewal Term”), unless the Company shall have given Executive written  notice of non-extension at least ninety (90) calendar days prior to the expiration of the Initial Term  or any Renewal Term.               (b)   Notwithstanding  Section  5(a),  the  Employment  Period and  Executive’s  employment will end upon the first to occur of any of the following events:  (i) Executive’s death;  (ii)  the  Company’s  termination  of  Executive’s  employment  on  account  of  Disability;  (iii)  the  Company’s termination of Executive’s employment for Cause (a “Termination for Cause”); (iv)  the Company’s termination of Executive’s employment (A) without Cause or (B) upon expiration  of the Employment Period solely as a result of the Company’s non-renewal as provided in Section  5(a)  (each, a “Termination  without  Cause”); (v)  Executive’s  termination  of  Executive’s  employment for Good Reason (a “Termination for Good Reason”); (vi) Executive’s termination  of Executive’s employment at any time for any reason other than Good Reason (a “Voluntary  Termination”); or (vii) a Change in Control Termination.               (c)   Any termination of Executive’s employment under Section 5(b) (other than  Section 5(b)(i)) must be communicated by a Notice of Termination delivered by the Company or  Executive, as the case may be, to the other party.               (d)   Executive will be deemed to have waived any right to a Termination for  Good  Reason  based  on  the  occurrence  or  existence  of  a  particular  event  or  circumstance  constituting Good Reason unless Executive delivers a Notice of Termination within forty-five (45)  calendar days after the date Executive first becomes aware of such event or circumstance.         6.    Post-Employment Period Payments.               (a)   Except  as  otherwise  provided  in Section 6(c)  below,  at  the  Date  of  Termination, Executive will be entitled to (i) any Base Salary that has accrued but is unpaid, any  annual  bonus  that  has  been  earned  for  the  fiscal  year  prior  to  the  year  in  which  the  Date  of  Termination occurs, but is unpaid, any properly reimbursable expenses that have been incurred but  are unpaid, and any unexpired vacation days that have accrued under the Company’s vacation  policy but are unused, as of the end of the Employment Period, which amount shall be paid in a  lump sum in cash within thirty (30) calendar days of the Date of Termination, in accordance with  the Reimbursement Rules, where applicable, (ii) any plan benefits accrued before the termination                                         4   

 

plus the coverage described in Section 4(i)(ii) plus any benefits that by their terms extend beyond  termination of Executive’s employment (but only to the extent provided in any such benefit plan  in which Executive has participated as a Company employee and excluding, except as hereinafter  provided in Section 6, any Company severance pay program or policy) and (iii) any benefits to  which Executive is entitled in accordance with Part 6 of Subtitle B of Title I of the Employee  Retirement  Income  Security  Act  of  1974,  as  amended  (“COBRA”).  Except  as specifically  described  in  this  Section  6(a)  and  in  the  succeeding  subsections  of  this  Section  6  (under  the  circumstances described in those succeeding subsections), from and after the Date of Termination,  Executive shall cease to have any rights to salary, bonus, expense reimbursements or other benefits  from the Company, BHI or any of their subsidiaries or affiliates.               (b)   If Executive’s employment terminates on account of Executive’s death or  Disability, in  addition  to  the  payments contemplated  in Section  6(a),  the  Company  will  pay  Executive the compensation set forth in Section 6(c)(ii) below and will provide no further benefit  and make no further payments to Executive except as contemplated in Section 6(a).  If Executive’s  employment  terminates  on  account  of  Executive’s  Voluntary  Termination  or  Termination  for  Cause the Company will provide no further benefit and make no further payments to Executive  except as contemplated in Section 6(a).                (c)   If Executive’s employment terminates on account of a Termination without  Cause  or  a  Termination  for  Good  Reason,  neither  of  which  qualifies  as  a  Change  in  Control  Termination,  subject to Section  6(e)  below,  Executive  shall in  addition  to  the  benefits  and  payments described in Section 6(a) be entitled to the following:                     (i)   The Company will pay Executive salary continuance at Executive’s  regular base salary level of $475,000 (or any higher base salary level in effect on the Date of  Termination), less applicable payroll deductions, for one year following the Date of Termination,  through direct deposit to Executive’s currently designated bank account or any other bank account  Executive may designate.  These payments in the total gross amount of $475,000 (or any higher  base salary level in effect at the time of Executive’s Date of Termination) shall be referred to herein  as  “Separation  Pay.”   Separation  Pay  will  be  paid  on  the  Company’s  normal  payroll  dates  beginning on the first payroll date on or after the Date of Termination, provided that no amount  will be paid until the first pay day following the Effective Date of this Agreement, at which time  any missed payments will also be paid;                      (ii)  a pro-rata portion of Executive’s annual bonus as set forth in Section  4(c)  for  the  performance  year  in  which  Executive’s  termination occurs  (the  “Pro-Rata  Bonus  Amount”).  The Pro-Rata Bonus Amount shall be determined by multiplying the amount Executive  would have received based upon performance had employment continued through the end of the  performance  year and  the  performance  criteria  had  been  achieved  at  target by  a  fraction,  the  numerator of which is the number of days Executive was employed by the Company during the  performance year and the denominator of which is the total number of days in the performance  year.  Subject to delay if required under Section 11(a), the Pro-Rata Bonus Amount shall be paid  in a lump sum, less applicable payroll deductions, no later than thirty (30) days after the Date of  Termination;                                          5   

 

                  (iii) continued participation in the Company’s medical and dental plans,  on the same basis as active employees participate in such plans, until the earlier of (1) Executive’s  eligibility for any such coverage under another employer’s medical or dental insurance plans or  (2)  the  date  that  is  one  (1)  year  after  the  Date  of  Termination;  except  that  in  the  event  that  participation in any such plan permitted only by Executive electing continued participation through  COBRA, then assuming Executive timely makes such an election under COBRA, the Company  shall reimburse Executive on a monthly basis in accordance with the Reimbursement Rules for  any COBRA premiums paid by Executive (for Executive and her dependents).  Executive agrees  that the period of coverage under such plans (or the period of reimbursement if participation is  through  COBRA)  shall  count  against  the  plans’ obligation  to  provide  continuation  coverage  pursuant to COBRA; and                     (iv)  to the extent not theretofore paid or provided, any other amounts or  benefits required to be paid or provided or which the Executive is eligible to receive under any  plan, program, policy or practice or contract or agreement of the Company (such other amounts  and benefits shall be hereinafter referred to as the “Other Benefits”).               (d)   If Executive’s employment is terminated on account of a Change in Control  Termination,  subject  to Section  6(e)  below,  Executive  shall  be  entitled  to the  payments  and  benefits described in Section 6(c) except that:                     (i)   the payment called for in Section 6(c)(i) shall be equal to two (2)  times the Executive’s annual Base Salary in effect immediately prior to the Date of Termination,  less applicable payroll deductions;                      (ii)  the time period described in Section 6(c)(iii) shall be eighteen (18)  months instead of one (1) year; and                      (iii) unless expressly provided otherwise to the contrary in any equity  award agreement or plan, all unvested time-vested awards (whether to be settled in cash or stock)  shall  automatically  vest  and  become  non-forfeitable  as  of  the  date  the Separation Agreement  becomes irrevocable.               (e)   The Company shall have no obligation to make any of the payments, or  deliver any of the benefits,  in  accordance with Section 6(c) (other than  clause (iv) therein) or  Section  6(d) if Executive  declines  to  sign  and  return  a Separation Agreement,  or  revokes  the  Separation Agreement or the Separation Agreement does not become effective, within the sixty  (60) calendar days after the Date of Termination.  Notwithstanding any other provision of this  Agreement, any payments to be made, or benefits to be delivered, under this Agreement (other  than the payments required to be made by the Company pursuant to Sections 6(a) and 6(c)(iv))  prior to Executive’s execution of the Separation Agreement and the expiration of the applicable  revocation period, without Executive having elected to revoke same, within the 60-day period after  the  Date  of  Termination,  shall  be  accumulated  and  paid  in  a  lump  sum  or  delivered  after  Executive’s execution of the Separation Agreement and the expiration of the applicable revocation  period, without Executive having elected to revoke same, on the sixtieth (60th) day after the Date  of Termination (except that, if such 60-day period spans more than one (1) calendar year, and the                                          6   

 

payments or benefits constitute deferred compensation subject to Section 409A, the payments shall  be paid, and the benefits delivered, in the subsequent calendar year).                      (f)   Executive is not required to mitigate the amount of any payment or benefit  provided for in this Agreement by seeking other employment or otherwise, and employment of  Executive  after  Termination  shall  not  reduce  any  payment  or  benefit  provided  for  in  this  Agreement, except as described in Section 6(c)(iii).                7.    Competitive Activity; Confidentiality; Non-solicitation.               (a)   Confidential Information and Trade Secrets.                     (i)   The Executive shall hold in a fiduciary capacity for the benefit of  the Company Group all Confidential Information and Trade Secrets.  During and following her  employment, the Executive shall not, without the prior written consent of the Company or BHI or  as may otherwise be required by law or legal process, use, communicate or divulge Confidential  Information other than as necessary to perform her duties for the Company. If the Confidential  Information is deemed a trade secret under Georgia law, then the period for nondisclosure shall  continue  for  the  applicable  period  under  Georgia  Trade  Secret  laws  in  effect  at  the  time  of  Executive’s termination.  In addition, except as necessary to perform her duties for the Company,  during Executive’s employment and thereafter for the applicable period under the Georgia Trade  Secret  laws  in  effect  at  the  time  of  Executive’s  termination,  Executive  will  not,  directly  or  indirectly, transmit or disclose any Trade Secrets to any person or entity, and will not, directly or  indirectly, make use of any Trade Secrets, for himself or any other person or entity, without the  express written consent of the Company.  This provision will apply for so long as a particular  Trade Secret retains its status as a trade secret under applicable law. The protection afforded to  Trade Secrets and/or Confidential Information by this Agreement is not intended by the parties  hereto to limit, and is intended to be in addition to, any protection provided to any such information  under any applicable federal, state or local law.  Pursuant to the Defend Trade Secrets Act of 2016,  Executive understands that: (i) An individual may not be held criminally or civilly liable under  any federal or state trade secret law for the disclosure of a trade secret that: (a) is made (1) in  confidence to a federal, state, or local government official, either directly or indirectly, or to an  attorney; and (2) solely for the purpose of reporting or investigating a suspected violation of law;  or (b) is  made in  a complaint  or other document  that is  filed under seal in  a lawsuit  or other  proceeding; and (ii) further, an individual who files a lawsuit for retaliation by an employer for  reporting a suspected violation of law may disclose the employer's trade secrets to the attorney and  use the trade secret information in the court proceeding if the individual: (a) files any document  containing the trade secret under seal; and (b) does not disclose the trade secret, except pursuant  to court order.                     (ii)  All files,  records,  documents,  drawings,  specifications,  data,  computer programs, customer or vendor lists, specific customer or vendor information, marketing  techniques,  business  strategies,  contract  terms,  pricing  terms,  discounts  and  management  compensation of the Company, BHI or any of their respective subsidiaries and affiliates, whether  prepared by the Executive in the course of her duties or otherwise coming into the Executive’s  possession, shall remain the exclusive property of the Company, BHI or any of their respective  subsidiaries and affiliates, and the Executive shall not remove any such items from the premises                                         7   

 

of the Company, BHI or any of their respective subsidiaries and affiliates, except in furtherance of  the Executive’s duties.                     (iii) It is understood that while employed by the Company, the Executive  will promptly disclose to the Company in writing, and assign to the Company the Executive’s  interest in any invention, improvement, copyrightable material or discovery made or conceived by  the Executive, either alone or jointly with others, which arises out of the Executive’s employment  (“Executive Invention”).  At the Company’s request and expense, the Executive will reasonably  assist the Company, BHI or any of their respective subsidiaries and affiliates during the period of  the Executive’s employment by the Company and thereafter in connection with any controversy  or legal proceeding relating to an Executive Invention and in obtaining domestic and foreign patent  or other protection covering an Executive Invention.  As a matter of record, Executive hereby  states that she has provided below a list of all unpatented inventions in which Executive owns all  or partial interest. Executive agrees not to assert any right against the Company, BHI or any of  their respective subsidiaries and affiliates with respect to any invention which is not patented or  which is not listed.                     (iv)  As requested by the Company and at the Company’s expense, from  time to time and upon the termination of the Executive’s employment with the Company for any  reason,  the  Executive  will  promptly  deliver  to  the  Company,  BHI  or  any  of  their  respective  subsidiaries  and  affiliates  all  copies  and  embodiments,  in  whatever  form,  of  all  Confidential  Information  in  the Executive’s  possession  or within her control  (including, but  not  limited to,  memoranda,  records,  notes,  plans,  photographs,  manuals,  notebooks,  documentation,  program  listings, flow charts, magnetic media, disks, diskettes, tapes and all other materials containing any  Confidential Information) irrespective of the location or form of such material, including such  information located on Executive’s personal mobile phone, tablet, or laptop computer.  If requested  by the Company, the Executive will provide the Company with written confirmation that all such  materials have been delivered to the Company as provided herein.                     (v)   This  Section  7(a)  is  not  intended  to  restrict  or  limit  any  of  the  protected rights contained in Section 20 of this Agreement in any way.                (b)   Non-Solicitation  of  Protected  Customers.  Executive  understands and  agrees  that the relationship  between the Company Group and each of its  Protected Customers  constitutes a valuable asset of the Company Group and may not be converted to Executive’s own  use.  Executive hereby agrees that, during her employment with the Company and for a period of  two (2)  years following  the  termination  of  the  Executive’s  employment  for  any  reason,  the  Executive  shall  not,  directly  or  indirectly,  on  Executive’s  own  behalf  or  as  a  Principal  or  Representative of any other Person, solicit, divert, take away, or attempt to solicit, divert, or take  away  a  Protected  Customer  with  which  the  Executive  had  contact  while  employed  with  the  Company for the purpose of marketing, selling or providing to the Protected Customer any goods  or services substantially similar to the goods or services provided by the Company Group.               (c)   Non-Solicitation of Employees.  Executive understands and agrees that the  relationship between the Company Group and each of its employees constitutes a valuable asset  of the Company Group and may not be converted to Executive’s own use. Executive hereby agrees  that,  during her employment  and  for  a  period  of two (2)  years following  the  termination  of                                         8   

 

Executive’s  employment  for  any  reason,  the  Executive  shall  not,  directly  or  indirectly,  on  Executive’s own behalf or as a Principal or Representative of any other Person, solicit or induce,  or attempt to solicit or induce, any employee of the Company Group to terminate her employment  with the Company Group or, for a period of no more than six (6) months after a Company Group  employee is no longer employed by any member of the Company Group, to enter into employment  with any other Person that is in competition with the Company Group.                (d)   Non-Solicitation  of  Vendors.  Executive  understands  and  agrees  that  the  relationship between the Company Group and each of its vendors constitutes a valuable asset of  the Company Group and may not be converted to Executive’s own use. Executive hereby agrees  that, during his employment with the Company and for a period of two (2) years following the  termination of the Executive’s employment for any reason, the Executive shall not, directly or  indirectly, on Executive’s own behalf or as a Principal or Representative of any other Person,  solicit, divert,  take away, or attempt to solicit, divert, or take away or induce, any  existing or  prospective  vendor  of  any  member  of  the  Company  Group  to  reduce,  terminate  or  otherwise  negatively alter its relationship with any member of the Company Group.               (e)   Non-Competition.  During Executive’s employment and, if the Executive is  terminated for any reason hereunder, for a period of two (2) years following the termination of the  Executive’s  employment  (the “Restricted  Period”),  Executive shall  not render  services  substantially the same as the services rendered by Executive to the Company Group to any Person  that engages in or owns, invests in any material respect, operates, manages or controls any venture  or  enterprise  which  substantially  engages  or proposes  to  substantially  engage  in Competitive  Services in the Restricted Territory.  Notwithstanding the foregoing, nothing in this Agreement  shall be deemed to prohibit the ownership by Executive of not more than five percent (5%) of any  class  of  securities  of  any  corporation  having  a  class  of  securities  registered  pursuant  to  the  Securities Exchange Act of 1934, as amended.               (f)   Remedies: Specific Performance.  The parties acknowledge and agree that  the Executive’s breach of any of the restrictions set forth in this Section 7 will result in irreparable  and continuing damage to the Company Group for which there may be no adequate remedy at law.   The parties further agree and acknowledge that the Company, and each member of the Company  Group,  as  applicable,  shall  be  entitled  to  equitable  relief,  including  specific  performance  and  injunctive  relief,  as  a  remedy  for  any  such  breach  and  shall  not  be  required  to  post  bond  in  connection with obtaining such relief. Such equitable remedies shall be in addition to any and all  remedies, including damages, available to the Company, or any member of the Company Group,  as applicable, for such breaches by Executive.  In addition, without limiting any of the foregoing  remedies, and except as otherwise required by law, Executive shall not be entitled to any payments  set forth in Section 6 hereof and shall be obligated to repay to the Company the after tax amount  of any payments previously made pursuant to Section 6(b), (c) or (d) hereof if Executive commits  a Material Breach of any of the covenants set forth in this Section 7 and fails to remedy or cure  such Material Breach within fifteen (15) business days after her receipt of written notice thereof  from the Company.  Subject to and without waiver of Executive’s other rights and remedies, if  BHI or the Company or any other member of the Company Group breaches its obligations to  Executive under Section 4 or Section 6, the other covenants set forth in this Section 7 shall have  no further force or effect.                                         9   

 

            (g)   Communication of Section 7 Obligations. During Executive’s employment  and for two (2) years thereafter, Executive will communicate her obligations under this Section 7  to any person, firm, association, partnership, corporation or other entity with which Executive  accepts employment or is considering an offer of employment.               (h)   No Limitation.   The Company’s rights under this Section 7 are in addition  to, and not in lieu of, all other rights the Company may have at law or in equity to protect its  confidential information, trade secrets and other proprietary interests.         8.   Definitions.               (a)   “Cause” means:                     (i)   Executive’s Material  Breach  of  the  duties  and  responsibilities  of  Executive or of any provision of this Agreement, provided, however, that Executive’s engagement  in activities prohibited by Section 7 shall constitute Cause regardless of whether such engagement  constitutes a Material Breach;                     (ii)  Executive’s  (x) conviction of  a  felony  or  (y) conviction of  any  misdemeanor involving willful misconduct (other than minor violations such as traffic violations)  if such misdemeanor causes or is likely to cause material damage to the property, business, or  reputation of BHI or the Company or their respective subsidiaries and affiliates;                     (iii) acts of dishonesty by Executive resulting or intending to result in  personal gain or enrichment at the expense of the Company, BHI or their respective subsidiaries  and affiliates;                     (iv)  conduct by Executive in connection with her duties hereunder that  is fraudulent, unlawful, or willful, and is also materially injurious to the Company, BHI, or their  respective subsidiaries and affiliates;                     (v)   Executive’s failure to cooperate fully, or failure to direct the persons  subject to Executive’s management or direction to cooperate fully, with all corporate investigations  or  independent  investigations  by  the  Company,  BHI  or the  BHI  Board of  Directors,  all  governmental  investigations of the  Company  or  its  subsidiaries  and  affiliates,  and  all  orders  involving  Executive  or  the  Company  (or  its  subsidiaries  and  affiliates)  entered  by  a  court  of  competent jurisdiction; or                     (vi)  Executive’s material violation of BHI’s Code of Conduct (including  as applicable to executive officers), or any successor codes.         Notwithstanding the foregoing, no termination of the Executive’s employment shall be for  Cause until (A) there shall have been delivered to the Executive a copy of a written notice setting  forth the basis for such termination in reasonable detail (the “Cause Notice”) no later than forty- five (45) days after the Company first becomes aware of the facts allegedly constituting Cause,  and (B) the Executive shall have been provided an opportunity to be heard in person by BHI’s  Board of Directors (with the assistance of the Executive’s counsel if the Executive so desires)  following receipt of the Cause Notice.  No act, or failure to act, on the Executive’s part shall be                                         10   

 

considered “willful” unless the Executive has acted or failed to act with a lack of good faith and  with a lack of reasonable belief that the Executive’s action or failure to act was in the best interests  of the Company, BHI, or their respective subsidiaries and affiliates.  Any act, or failure to act,  based upon authority given pursuant to a resolution duly adopted by BHI’s Board of Directors or  the  Board  of  Directors  of  the  Company  or  based  upon  the  advice  of  counsel  for  BHI or  the  Company shall be conclusively presumed to be done, or omitted to be done, by Executive in good  faith  and  in  the  best  interests  of BHI  and the  Company.  Any  termination  of  the  Executive’s  employment by BHI or the Company under this Agreement shall be deemed to be a termination  other than for Cause unless it meets all requirements of this Section 8(a). The Company may not  rely on any evidence allegedly supporting “Cause” unless such evidence is disclosed to Executive  in  the Cause Notice. In  addition,  if a court of  competent  jurisdiction later determines  that the  reason(s) set forth by the Company in the Cause Notice are improper or otherwise do not meet the  definition of Cause set forth in this Section 8(a), the damages to which Executive will be entitled  shall  be  equal  to  the  amounts that  would  have been  paid  to  Executive had Executive been  terminated by the Company without Cause, plus reasonable attorneys’ fees, costs, expenses, and  prejudgment interest; provided, however, if a court of competent jurisdiction determines that the  reason(s) set forth by the Company in the Cause Notice are proper or otherwise meet the definition  of Cause set forth in this Section 8(a), Executive shall reimburse the Company for reasonable  attorneys’ fees, costs and expenses incurred by the Company in connection with such lawsuit.  Finally, Executive shall have thirty (30) calendar days following receipt of the Cause Notice to  address and “cure” any act or omission which might provide the basis for a termination for “Cause”  and, if cured within such 30-day period, such acts or omissions shall not provide the basis for a  termination for “Cause”.  Notwithstanding anything in this Section 8(a) to the contrary, in the  event  the  Company  is  precluded  from  providing  the  Cause  Notice  due  to applicable  law  or  regulation, or an ongoing internal investigation that would be compromised by providing the Cause  Notice, the Company  shall provide the Cause  Notice within ten (10) business  days  after such  impediment to providing the Cause Notice no longer exists.                (b)   “Change in Control” means any of the following events:                     (i)   The  acquisition  by  any  individual,  entity,  or  group  (a “Person”),  including any “person” within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act,  of beneficial ownership within the meaning of Rule 13d-3 promulgated under the Exchange Act,  of fifty percent (50%) or more of either: (i) the then outstanding shares of common stock of BHI  (the “Outstanding BHI Common Stock”), or (ii) the combined voting power of the then outstanding  securities of  BHI entitled to  vote  generally in the election of directors (the “Outstanding  BHI  Voting Securities”); excluding, however, the following:  (A) any acquisition directly from BHI  (excluding any acquisition resulting from the exercise of an exercise, conversion, or exchange  privilege unless the security being so exercised, converted, or exchanged was acquired directly  from BHI); (B) any acquisition by BHI; (C) any acquisition by an employee benefit plan (or related  trust) sponsored or maintained by BHI or any corporation controlled by BHI; or (D) any acquisition  by  any  corporation  pursuant  to  a  transaction  which  complies  with  clauses  (x),  (y),  and  (z)  of  Section 8(b)(iii);                      (ii)  Individuals who, as of the Effective Date, constitute the Board of  Directors of BHI (the “Incumbent Board”) cease for any reason to constitute at least a majority of  such  Board;  provided  that  any  individual  who  becomes  a  director  of  BHI  subsequent  to  the                                         11   

 

Effective Date whose election, or nomination for election by BHI’ s stockholders, was approved  by the vote of at least a majority of the directors then comprising the Incumbent Board shall be  deemed a member of the Incumbent Board; and provided further, that any individual who was  initially elected as a director of BHI as a result of an actual or threatened election contest, as such  terms are used in Rule 14a-11 of Regulation 14A promulgated under the Exchange Act, or any  other actual or threatened solicitation of proxies or consents by or on behalf of any Person other  than the Board of Directors of BHI shall not be deemed a member of the Incumbent Board;                     (iii) Consummation of a reorganization, merger, or consolidation of BHI  or  sale  or  other  disposition  of  all  or  substantially  all  of  the  assets  of  BHI  (a “Corporate  Transaction”);  excluding,  however,  a Corporate  Transaction  pursuant  to  which:  (x)  all  or  substantially all of the individuals or entities who are the beneficial owners, respectively, of the  Outstanding BHI Common Stock and the Outstanding BHI Voting Securities immediately prior to  such Corporate Transaction will beneficially own, directly or indirectly, more than sixty percent  (60%) of, respectively, the outstanding shares of common stock, and the combined voting power  of the outstanding securities entitled to vote generally in the election of directors, as the case may  be, of the corporation resulting from such Corporate Transaction (including, without limitation, a  corporation which as a result of such transaction owns BHI or all or substantially all of BHI’s  assets either directly or indirectly) in substantially the same proportions relative to each other as  their  ownership,  immediately  prior  to  such  Corporate  Transaction,  of  the  Outstanding  BHI  Common Stock and the Outstanding BHI Voting Securities, as the case may be; (y) no Person  (other than BHI; any employee benefit plan (or related trust) sponsored or maintained by BHI or  any corporation controlled by BHI; the corporation resulting from such Corporate Transaction;  and  any  Person  which  beneficially  owned,  immediately  prior  to  such  Corporate  Transaction,  directly or indirectly, thirty percent (30%) or more of the Outstanding BHI Common Stock or the  Outstanding  BHI  Voting  Securities,  as  the  case  may  be)  will  beneficially  own,  directly  or  indirectly, thirty percent (30%) or more of, respectively, the outstanding shares of common stock  of the corporation resulting from such Corporate Transaction or the combined voting power of the  outstanding securities of such corporation entitled to vote generally in the election of directors;  and (z) individuals who were members of the Incumbent Board will constitute at least a majority  of  the  members  of  the  board  of  directors  of  the  corporation  resulting  from  such  Corporate  Transaction; or                     (iv)  Approval  by  the  stockholders  of  BHI  of  a  plan  of  complete  liquidation or dissolution of BHI.               (c)   “Change  in Control  Termination” means  termination  of  Executive’s  employment by the Company as a result of a Termination without Cause or by Executive as a  result  of  a  Termination  for  Good  Reason  either  within  (i)  twenty-four  (24)  calendar  months  following a Change in Control or (ii) prior to a Change in Control if Executive’s termination was  either a condition of the Change in Control or was at the request or insistence of a Person (other  than BHI or the Company) related to the Change in Control.               (d)   “Code” means the Internal Revenue Code of 1986, as amended.               (e)   “Company Group” means the Company, BHI, and each of their respective  wholly-owned subsidiaries and affiliates.                                         12   

 

            (f)   “Competitive  Services” means  selling,  marketing,  manufacturing or  distributing products and/or services that are substantially similar to any of those sold, marketed,  distributed, furnished or supplied by the Company during the term of Executive’s employment  with the Company.                (g)   “Confidential  Information” means  knowledge  or  data  relating  to  the  Company Group that is not generally known to persons not employed or otherwise engaged by the  Company  Group,  is  not  generally  disclosed  by  the  Company  Group,  and  is  the  subject  of  reasonable efforts to keep it confidential.  Confidential Information includes, but is not limited to,  information  regarding  product  or  service  cost  or  pricing,  information  regarding  personnel  allocation or organizational structure, information regarding the business operations or financial  performance  of  the  Company  Group,  sales  and  marketing  plans,  and  strategic  initiatives  (independent or collaborative), information regarding existing or proposed methods of operation,  current and future development and expansion or contraction plans, sale/acquisition plans and non- public information concerning the legal or financial affairs of the Company Group.  Confidential  Information does not include information that has become generally available to the public by the  act of one who has the right to disclose such information without violating any right or privilege  of the Company Group.  This definition is not intended to limit any definition of confidential  information or any equivalent term under applicable federal, state or local law.               (h)   “Date of Termination” means (i) if Executive’s employment is terminated  by  the  Company  for  Disability, thirty  (30)  calendar days  after  the  Company  gives  Notice  of  Termination  to  Executive  (provided  that  Executive  has  not  returned  to  the  performance  of  Executive’s duties on a full-time basis during this 30-day period), (ii) if Executive’s employment  is terminated by Executive for Good Reason, the date specified in the Notice of Termination (but  in no event prior to thirty (30) calendar days following the delivery of the Notice of Termination  or more than sixty (60) calendar days following the delivery of the Notice of Termination), (iii) if  Executive’s employment is terminated by Executive for any reason other than Good Reason, the  date  on  which  a  Notice  of  Termination  is  given  to  the  Company;  and  (iv) if  Executive’s  employment is terminated by the Company for any other reason, the date on which a Notice of  Termination is given (except as a result of non-renewal by the Company as provided in Section  5(a), in which event the Date of Termination will be the date of the expiration of the Initial Term  or the Renewal Term, as applicable).  A termination of employment shall not be deemed to have  occurred  for  purposes  of  any  provision  of  this  Agreement  providing  for  the  payment  of  any  amounts or benefits subject to Section 409A of the Code (“Section 409A”) upon or following a  termination of employment unless such termination is also a “separation from service” within the  meaning of Section 409A.               (i)   “Disability” means the determination (1) by the Company, in accordance  with applicable law, based on information provided by a physician selected by the Company or its  insurers and reasonably acceptable to Executive or Executive’s legal representative that, as a result  of  a  physical  or  mental  injury  or  illness,  Executive  has  been  unable  to  perform  the  essential  functions of her job with or without reasonable accommodation for a period of (i) ninety (90)  consecutive calendar days or (ii) one hundred eighty (180) calendar days in any one-year period  or (2) that Executive is currently eligible to receive long-term disability benefits under the long- term  disability  plan  maintained  by  BHI or  the  Company  in  which  Executive  is  a  participant.   Notwithstanding  the  foregoing,  in  the  event  that  as  a  result  of  absence  because  of  mental  or                                         13   

 

physical incapacity the Executive incurs a “separation from service” within the meaning of the  term  under  Section  409A,  the  Executive  shall  on  such  date  automatically  be  terminated  from  employment because of Disability.               (j)   “Exchange Act” means the Securities Exchange Act of 1934, as amended.               (k)   “Good Reason” means, without the consent of Executive, (A) any material  diminution in Executive’s authority, duties or responsibilities that is caused by the Company (it  being understood that changes to reporting structure affecting Executive shall not be deemed a  material diminution of authority, duties or responsibilities so long as Executive’s responsibilities  remain materially consistent with those of Chief Financial Officers of similarly-sized companies);  (B) a material reduction by the Company of Executive’s Base Salary or the target bonus percentage  as set forth in Section 4(c) herein; (C) the Company’s requiring Executive to be based at any office  or location which is a material change in geographic location from the Principal Office as described  in Section 3(c); or (D) any material violation or non-performance by BHI or the Company of the  terms  of  this  Agreement,  which  shall  include  the  Company  knowingly  requiring  Executive  to  perform  any  act  or  omit  to  perform  any  act,  the  performance  or  omission  to  perform  would  constitute a violation of law. Notwithstanding the foregoing, “Good Reason” shall not be deemed  to  exist  for  purposes  of  (A)  through  (D)  if  the  event  or  circumstance  that  constitutes  “Good  Reason”  is  rescinded  or  remedied  by  BHI  or  the  Company  to  the  reasonable  satisfaction  of  Executive within thirty (30) days after receipt of a Notice of Termination.               (l)   “Material Breach” means an intentional act or omission by Executive which  constitutes  substantial  non-performance  of  Executive’s  obligations  under  this  Agreement and  causes material damage to the Company.               (m)   “Notice of Termination” means a written notice that indicates those specific  termination provisions in this Agreement relied upon and that sets forth in reasonable detail the  facts and circumstances claimed to provide a basis for termination of Executive’s employment  under the provision so indicated.  For purposes of this Agreement, no purported termination by  either party is to be effective without a Notice of Termination.               (n)   “Person” means:  any  individual  or  any  corporation,  partnership,  joint  venture, limited liability company, association or other entity or enterprise.               (o)   “Principal  or  Representative” means  a  principal,  owner,  partner,  shareholder, joint venturer, investor, member, trustee, director, officer, manager, employee, agent,  representative or consultant.               (p)   “Protected  Customers” means  any  then-existing  customer  to  whom  the  Company Group sold its products or services at any time during Executive’s employment and with  respect to whom Executive either (i) had business dealings on behalf of the Company Group; or  (ii) supervised or coordinated the dealings between the Company Group and the customer.               (q)   “Reimbursement  Rules” means  the  requirement  that  any  amount  of  expenses eligible for reimbursement under this Agreement be made (i) in accordance with the  reimbursement payment date set forth in the applicable provision of the Agreement providing for  the reimbursement or (ii) where the applicable provision does not provide for a reimbursement                                         14   

 

date, thirty (30) calendar days following the date on which Executive incurs the expense, but, in  each case, no later than December 31 of the year following the year in which the Executive incurs  the related expenses; provided, that in no event shall the reimbursements or in-kind benefits to be  provided by the Company in one taxable year affect the amount of reimbursements or in-kind  benefits to be provided in any other taxable year, nor shall the Executive’s right to reimbursement  or in-kind benefits be subject to liquidation or exchange for another benefit.               (r)   “Restricted Territory” means continental United States of America.               (s)   “Separation Agreement” means  a separation agreement in which the  Company and Executive describe their obligations, as provided in this Agreement, to each other  following Executive’s departure from the Company and which includes, without limitation, an  agreement by Executive not to disparage, and a release by the Executive of claims against, the  Company, its subsidiaries and affiliates, and their officers and directors, and such other terms to  which Executive and Company agree.               (t)   “Trade Secrets” means  all secret, proprietary or confidential information  regarding the Company, BHI or any of their respective subsidiaries and affiliates or that meets the  definition of “trade secrets” within the meaning set forth in O.C.G.A. § 10-1-761.         9.    Executive  Representations.  Executive  represents  to  the  Company  that (a) the  execution, delivery and performance of this Agreement by Executive does not and will not conflict  with, breach, violate or cause a default under any contract, agreement, instrument, order, judgment  or decree to which Executive is a party or by which Executive is bound and (b) upon the execution  and delivery of this Agreement by the Company, this Agreement will be the valid and binding  obligation of Executive, enforceable in accordance with its terms.           10.   Withholding of Taxes.  The Company shall withhold from any amounts payable  under this Agreement all federal, state, city or other taxes that the Company is required to withhold  under any applicable law, regulation or ruling.         11.   Section 409A.               (a)   Notwithstanding any provisions of this Agreement to the contrary, if the  Executive is a “specified employee” (within the meaning of Section 409A and determined pursuant  to procedures adopted by the Company) at the time of her separation from service (within the  meaning of Section 409A) and if any portion of the payments or benefits to be received by the  Executive upon separation from service would be considered deferred compensation under Section  409A (that does not qualify for an exemption from Section 409A), any such deferred compensation  amounts that would otherwise be payable pursuant to this Agreement during the six-month period  immediately following the Executive’s separation from service (the “Delayed Payments”) and any  such benefits that would be deferred compensation and that would otherwise be provided pursuant  to this Agreement (the “Delayed Benefits”) during the six-month period immediately following  the Executive’s separation from service (such period, the “Delay Period”) shall instead be paid or  made available on the earlier of (i) the first business day following the six-month anniversary of  the date of the Executive’s separation from service or (ii) Executive’s death (the applicable date,  the “Permissible Payment Date”).  The Company shall also reimburse the Executive for the after-                                        15   

 

tax cost incurred by the Executive in independently obtaining any Delayed Benefits in accordance  with the Reimbursement Rules (the “Additional Delayed Payments”).               (b)   With respect to any amount of expenses eligible for reimbursement under  Section 6(a), such expenses shall be reimbursed by the Company within thirty (30) calendar days  following the date on which the Company receives the applicable invoice from the Executive but  in no event later than December 31 of the year following the year in which the Executive incurs  the  related  expenses;  provided,  that  with  respect  to  reimbursement  relating  to  the  Additional  Delayed Payments, such reimbursement shall be made on the Permissible Payment Date.  In no  event shall the reimbursements or in-kind benefits to be provided by the Company in one taxable  year affect the amount of reimbursements or in-kind benefits to be provided in any other taxable  year, nor shall the Executive’s right to reimbursement or in-kind benefits be subject to liquidation  or exchange for another benefit.                 (c)   Each  payment  under  this  Agreement  shall  be  considered  a “separate  payment” and not of a series of payments for purposes of Section 409A.               (d)   Any  Delayed  Payments  shall  bear  interest  at  the  United States  5-year  Treasury  Rate  plus  2%,  which  accumulated  interest  shall  be  paid  to  the  Executive  on  the  Permissible Payment Date.         12.   Excess Parachute Payments.               (a)   In  the  event  that  it  shall  be  determined,  based  upon  the  advice  of  the  independent public accountants for BHI or the Company (the “Accountants”), that any payment,  benefit or distribution by the Company, BHI or any of their respective subsidiaries or affiliates (a  “Payment”) constitute “parachute payments” under Section 280G(b)(2) of the Code, as amended,  then, if the aggregate present value of all such Payments (collectively, the “Parachute Amount”)  exceeds 2.99 times the Executive’s “base amount”, as defined in Section 280G(h)(3) of the Code  (the “Executive  Base  Amount”),  the  amounts  constituting “parachute  payments” which  would  otherwise be payable to or for the benefit of Executive shall be reduced to the extent necessary so  that  the  Parachute  Amount  is  equal  to  2.99  times  the  Executive  Base  Amount  (the “Reduced  Amount”); provided that such amounts shall not be so reduced if the Executive determines, based  upon the advice of the Accountants, that without such reduction Executive would be entitled to  receive and retain, on a net after tax basis (including, without limitation, any excise taxes payable  under Section 4999 of the Code), an amount which is greater than the amount, on a net after tax  basis, that the Executive would be entitled to retain upon her receipt of the Reduced Amount.               (b)   If the determination made pursuant to clause (a) of this Section 12 results in  a reduction of the payments that would otherwise be paid to Executive except for the application  of clause (a) of this Section 12, each particular entitlement of Executive shall be eliminated or  reduced as follows:  (i) first all cash payments, pro rata; and then (ii) all remaining benefits, pro  rata.  Within any of these categories, a reduction shall occur first with respect to amounts that are  not deemed to constitute a “deferral of compensation” within the meaning of and subject to Code  Section 409A (“Nonqualified Deferred Compensation”) and then with respect to amounts that are  treated as Nonqualified Deferred Compensation, with such reduction being applied in each case to                                          16   

 

the payments in the reverse order in which they would otherwise be made, that is, later payments  shall be reduced before earlier payments.               (c)   As a result of the uncertainty in the application of Section 280G of the Code  at the time of a determination hereunder, it is possible that payments will be made by the Company  which should not have been made under clause (a) of this Section 12 (“Overpayment”) or that  additional payments which are not made by the Company pursuant to clause (a) of this Section 12  should have been made (“Underpayment”).  In the event that there is a final determination by the  Internal Revenue Service, or a final determination by a court of competent jurisdiction, that an  Overpayment has been made and that repayment will eliminate any excise tax otherwise due under  Section 4999 of the Code, any such Overpayment shall be repaid by Executive to the Company  together with interest at the applicable Federal rate provided for in Section 7872(f)(2) of the Code.   In  the  event  that  there  is  a  final  determination  by  the  Internal  Revenue  Service,  a  final  determination by a court of competent jurisdiction or a change in the provisions of the Code or  regulations pursuant to which an Underpayment arises, any such Underpayment shall be promptly  paid by the Company to or for the benefit of Executive, together with interest at the applicable  Federal rate provided for in Section 7872(f)(2) of the Code.         13.   Successors and Assigns.  This Agreement is to bind and inure to the benefit of and  be  enforceable  by  Executive,  the  Company  and  their  respective  heirs, executors,  personal  representatives, successors and assigns, except that neither party may assign any rights or delegate  any obligations hereunder without the prior written consent of the other party.  Executive hereby  consents to the assignment by the Company of all of its rights and obligations under this Agreement  to any successor to the Company by merger or consolidation or purchase of all or substantially all  of  the  Company’s  assets, provided  that  the  transferee  or  successor  assumes  the  Company’s  liabilities under this Agreement by agreement in form and substance reasonably satisfactory to  Executive.         14.   Survival.  Subject to any limits on applicability contained therein, Section 7 will  survive and continue in full force in accordance with its terms notwithstanding any termination of  the Employment Period.         15.   Choice of Law.  This Agreement is to be governed by the internal law, and not the  laws of conflicts, of the State of Georgia.         16.   Severability.  Whenever  possible,  each  provision  of  this  Agreement  is  to  be  interpreted in such manner as to be effective and valid under applicable law, but if any provision  of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable  law or rule in any jurisdiction, that invalidity, illegality or unenforceability is not to affect any  other provision or any other jurisdiction, and this Agreement is to be reformed, construed and  enforced in the jurisdiction as if the invalid, illegal or unenforceable provision had never been  contained herein.         17.   Notices.  Any notice provided for in this Agreement is to be in writing and is to be  either personally delivered, sent by reputable overnight carrier or mailed by first class mail, return  receipt requested, to the recipient at the address indicated as follows:                                          17   

 

            Notices to Executive:               To the address listed in the personnel records of the Company.               Notices to the Company:               BlueLinx Corporation              1950 Spectrum Circle, Suite 300              Marietta, Georgia 30067              Attention:  Legal Department              Facsimile: (770) 953-7008   or  any other  address  or  to  the  attention  of  any  other  person  as  the  recipient  party  shall  have  specified by prior written notice to the sending party. Any notice under this Agreement is to be  deemed to have been given when so delivered, sent or mailed.         18.   Amendment and Waiver.  The provisions of this Agreement may be amended or  waived  only  with  the  prior  written  consent  of  the  Company  and  Executive,  and  no  course  of  conduct or failure or delay in enforcing the provisions of this Agreement is to affect the validity,  binding effect or enforceability of this Agreement.         19.   Complete  Agreement.  This  Agreement  embodies  the  complete  agreement  and  understanding between the parties with respect to the subject matter hereof and effective as of its  date  supersedes  and  preempts  any prior  understandings,  agreements  or  representations  by  or  between the parties, written or oral, that may have related to the subject matter hereof in any way.         20.   Protected Rights.  Executive understands that nothing contained in this Agreement  limits Executive’s ability to file a charge or complaint with the Equal Employment Opportunity  Commission,  the  National  Labor  Relations  Board,  the  Occupational  Safety  and  Health  Administration,  the  Securities  and  Exchange  Commission  or  any  other  federal,  state  or local  governmental agency or commission (“Government Agencies”).  Executive further understands  that  this  Agreement  does  not  limit Executive’s ability  to  communicate  with  any  Government  Agencies or otherwise participate in any investigation or proceeding that may be conducted by any  Government Agencies, nor does this Agreement impact or limit Executive’s eligibility to receive  an award for information provided to any Government Agencies.         21.   Counterparts.  This Agreement may be executed in separate counterparts, each of  which is to be deemed to be an original and all of which taken together are to constitute one and  the same agreement.                                          18   

 

         The parties are signing this Agreement as of the date first set forth above, to be effective  as of the Effective Date.                                       BLUELINX CORPORATION                                                                              By:     /s/ Mitchell B. Lewis                                                         Name:  Mitchell B. Lewis                                            Title:  Chief Executive Officer and President                                                                             EXECUTIVE                                                                                /s/ Kelly C. Janzen                                                           Kelly C. Janzen                                       BLUELINX HOLDINGS INC.                                                                              By:     /s/ Mitchell B. Lewis                                                         Name:  Mitchell B. Lewis                                            Title:  Chief Executive Officer and President                                                                               LIST OF UNPATENTED INVENTIONS   Executive represents that she has no such inventions by initialing below next to the word “NONE.”   NONE:                                                                                                 19ex105bluelinxofarrellsep

                                                                 EXHIBIT 10.5                            SEPARATION AGREEMENT         THIS SEPARATION AGREEMENT (this “Agreement”) is made and entered into this  9th day of March, 2020, by and between SUSAN C. O’FARRELL (“Executive”) and BLUELINX  CORPORATION, a Georgia corporation (“Company”), on its own behalf and on behalf of its  parent,  subsidiaries  and  affiliates,  and  their  respective  predecessors,  successors,  assigns,  representatives, officers, directors, agents and employees.  The term “Company,” when used in  this  Agreement,  includes  its  parent,  subsidiaries  or  affiliates  (including  specifically  BlueLinx  Holdings Inc. (“BHI”)) and their respective predecessors, successors, assigns, representatives, past  or  present  officers,  directors,  agents  or  employees.   Executive  and  Company  are  sometimes  hereinafter referred to together as the “Parties” and individually as a “Party.”                                  BACKGROUND:         A.    Executive  is  employed  as  the  Senior  Vice  President,  Chief  Financial  Officer,  Treasurer and Principal Accounting Officer of Company.         B.    The Employment Agreement between Executive and Company dated May 5, 2014,  as  subsequently  amended  (the  “Employment  Agreement”),  and  Executive’s  employment  with  Company will terminate in all capacities effective as of the Termination Date (as defined below).         C.    Company and Executive wish to avoid any disputes which could arise under the  Employment Agreement and have therefore compromised any claims or rights they have or may  have by agreeing to the terms of this Agreement.         NOW, THEREFORE, FOR AND IN CONSIDERATION of the premises, the mutual  promises, covenants and agreements contained herein, and other good and valuable consideration,  the receipt and sufficiency of which are hereby acknowledged, the Parties hereto hereby agree as  follows:         1.    Termination of Employment.  Executive’s last day of employment with Company  will be April 12, 2020 (the “Termination Date”).  Effective as of the Termination Date, Executive  will cease to serve as the Senior Vice President, Chief Financial Officer, Treasurer and Principal  Accounting Officer of Company, but between the date of this Agreement and the Termination  Date, Executive will continue to remain employed with Company in her current role, and will, in  addition to her regular duties, provide transition services to any newly appointed Chief Financial  Officer,  as  reasonably  requested  by  Company.  If  Executive  voluntarily  terminates  her  employment or Company terminates Executive’s employment before the stated Termination Date  as a result of unsatisfactory performance, the Termination Date shall be deemed to be the date of  such actual, earlier termination.  Executive’s employment with Company, and all other positions  and offices with Company held by Executive on the Termination Date, shall be deemed to have  ended effective as of the Termination Date, and all benefits, privileges and authorities related to  Executive’s employment and services with Company ceased as of the Termination Date, except as  otherwise specifically set forth in this Agreement.                                                                Executive’s Initials _____                                                                                                                      Page 1 

 

                                                                 EXHIBIT 10.5         2.    Interpretation  of  Agreement.   The  Parties  agree  that  their  entry  into  this  Agreement is not and shall not be construed to be an admission of liability or wrongdoing on the  part of either Party.         3.    Future Cooperation.  Executive agrees that, notwithstanding the termination of  Executive’s employment on the Termination Date: (a) Executive, upon reasonable notice, will  make herself reasonably available to Company for a period of two (2) months after the Termination  Date  for the  purposes  of:  (i) providing  information  regarding  the  projects  and  files  on  which  Executive worked for the purpose of transition, and (ii) providing information regarding any other  matter, file, project, customer and/or client with whom or with respect to which Executive was  involved  while  employed  by,  or  providing  services  to,  Company; and  (b)  Executive,  upon  reasonable notice, will make herself reasonably available and provide information as to any matter  as to which she has knowledge or with respect to which she was involved and which is or becomes  the subject of litigation or other dispute, investigation or inquiry by any governmental organization  or entity, or accounting-related inquiry.         4.    Consideration.               (a)   In  consideration  of  Executive’s  termination  of  employment,  Executive’s  full release of Company from any and all Claims as described below, and Executive’s agreement  to perform the other duties and obligations of Executive contained herein, Company will, subject  to ordinary and lawful deductions and Sections 4(b) and (c) below:                     (i)   Pay  to  Executive  a  lump  sum  amount  equal  to  Four  Hundred        Seventy-Five  Thousand  Dollars  ($475,000)  (the  “Severance  Amount”),  to  be  paid  less        applicable withholdings no later than ten (10) business days after the Termination Date;                     (ii)  Pay  to  Executive  a  pro  rata  target  bonus  (the  “Pro-Rata  Bonus        Amount”) equal to Seventy-Seven Thousand Eight Hundred Five Dollars ($77,805), which        equals the target bonus that would be payable to Executive under the terms of Company’s        annual bonus plan for calendar year 2020, multiplied by 25.2% (92 days/365 days).  The        Pro-Rata  Bonus  Amount  shall  be  paid  in  cash,  with  such  amount,  less  applicable        withholdings, paid no later than ten (10) business days after the Termination Date;                     (iii) (a) Vest  and  make  non-forfeitable  all  time-based  restricted  stock        units granted in 2018 on the Release Effective Date, (b) ensure that all performance-based        restricted stock units  granted in  2018 will  continue to  vest  and become non-forfeitable        based on the actual performance of Company, in the same manner and at the same time as        if  Executive  remained  employed  by  Company,  (c) ensure  that  Three  Thousand  Nine        Hundred  Fifty-Nine  (3,959) of  the shares  awarded  as  time-based  restricted  stock  units        granted in 2019 (i.e., one third (1/3) of the total of such restricted stock unit award) will        continue to vest and become non-forfeitable on June 7, 2020 (i.e., in the same manner and        at the same time as of Executive remained employed by Company), and that the remainder        of  such  time-based  restricted  stock  units  granted  in  2019  will  be  forfeited  on  the        Termination Date, and (d) ensure that all performance-based restricted stock units granted        in 2019 will be forfeited on the Termination Date; and                                                                Executive’s Initials _____                                                                                                                      Page 2 

 

                                                                 EXHIBIT 10.5                     (iv)  Provide continued participation in Company’s medical and dental        plans, on the same basis as active employees participate in such plans, until the earlier of        (a) Executive’s  eligibility  for  any  such  coverage  under  another  employer’s  medical  or        dental insurance plans or (b) the date that is one (1) year after the Termination Date; except        that (x) in the event that participation in any such plan is barred, Company shall reimburse        Executive on a monthly basis for any premiums paid by Executive to obtain benefits (for        Executive and her dependents) equivalent to the benefits she is entitled to receive under        the Company’s benefit plans, and Executive agrees that the period of coverage under such        plans (or the period of reimbursement if participation is barred) shall count against the        plans’ obligation to provide continuation coverage pursuant to COBRA, and (y) for the        avoidance of doubt, Company shall not be obligated to pay, or reimburse Executive, for        any such benefits in excess of the portion of the related premium that Company would be        required to pay for such benefits for an active employee).               (b)   Notwithstanding  anything  else  contained  herein  to  the  contrary,  no  payments shall be made or benefits delivered under this Agreement (other than payments required  to be made by Company pursuant to Section 5 below) unless, (i) within twenty-one (21) days of  the date of this Agreement, Executive has signed and delivered to Company a Release in the form  attached hereto as Exhibit A (the “Initial Release”), and Executive does not revoke such Initial  Release  during  the  applicable  revocation  period,  and  (ii) within  thirty  (30)  days  after  the  Termination Date, (x) Executive has signed and delivered to Company another Release in the form  attached hereto as Exhibit A (the “Release”), which has been signed by Executive no earlier than  the  Termination  Date;  and  (y) the  applicable  revocation  period  under  the  Release  has  expired  without Executive having elected to revoke the Release.  The Release shall be effective as of the  day following the expiration of the applicable revocation period without Executive having elected  to revoke the Release (the “Release Effective Date”).  Executive agrees and acknowledges that she  would not be entitled to the consideration described herein absent execution of the Release and  expiration of the applicable revocation period without Executive having revoked the Release.  Any  payments to be made, or benefits to be delivered, under this Agreement within the period after the  Termination Date and prior to the Release Effective Date shall be accumulated and paid in a lump  sum, on the first regular payroll date occurring after the Release Effective Date.               (c)   As a further condition to receipt of the payments and benefits in Section  4(a) above, Executive also waives any and all rights to any other amounts payable to her upon the  termination of her employment relationship with Company, other than those specifically set forth  in this Agreement, including without limitation any severance, notice rights, payments, benefits  and other amounts to which Executive may be entitled under the laws of any jurisdiction and/or  her Employment Agreement, and Executive agrees not to pursue or claim any of the payments,  benefits or rights set forth therein.               (d)   If Company is required to prepare an accounting restatement due to material  noncompliance by Company, as a result of misconduct, with any financial reporting requirement  under the federal securities laws, to the extent required by law, Executive will reimburse Company  for: (i) any bonus or other incentive-based or equity-based compensation received by Executive  from  Company  (including  such  compensation  payable  in  accordance  with  this  Section  4  and  Section  5)  during  the  12-month  period  following  the  first  public  issuance  or  filing  with  the                                                                Executive’s Initials _____                                                                                                                      Page 3 

 

                                                                 EXHIBIT 10.5   Securities  and  Exchange  Commission  (whichever  first  occurs)  of  the  financial  document  embodying that financial reporting requirement; and (ii) any profits realized by Executive from  the sale of Company securities during that 12-month period.         5.    Other Benefits.               (a)   Nothing in this Agreement or the Release shall:                     (i)   alter or reduce any vested, accrued benefits (if any) Executive may        be entitled to receive under any 401(k) plan established by Company; or                     (ii)  affect  Executive’s  right  to  elect  and  pay  for  continuation  of        Executive’s health insurance coverage pursuant to COBRA.               (b)   The Company shall pay Executive:                     (i)   any base salary that accrues through the Termination Date and is        unpaid as of the Termination Date;                     (ii)  Executive’s 401(k) match for 2019 to the extent it is not paid prior        to the Termination Date; and                     (iii) any  reimbursable  expenses  that  Executive  incurs  before  the        Termination Date but are unpaid as of the Termination Date (subject to Company’s expense        reimbursement policy).               (c)   Executive acknowledges that no annual bonus was earned for fiscal year  2019, and that Executive shall not be reimbursed or paid for any accrued but unexpired vacation  days that are unused as of the Termination Date.               (d)   Company  shall continue  to  provide  Executive  with  customary  and  appropriate Directors and Officers Liability Coverage for six (6) years following the Termination  Date as required by Section 4(g)(ii) of the Employment Agreement.          6.    Competitive Activity; Confidentiality; Non-Solicitation.               (a)   The  Parties  acknowledge  and  agree  that,  except  as  specifically  set  forth  below,  Section  7  of  the  Employment  Agreement  (and  any  related  definitions)  survive  the  termination of the Employment Agreement and the termination of Executive’s employment and  are incorporated into this Agreement by reference.  The Parties hereby agree to continue to abide  by the obligations in Section 7 of the Employment Agreement as amended hereby.               (b)   Confidential  Information  and  Trade  Secrets.   Section  7(a)(i)  of  the  Employment Agreement is hereby amended and restated as follows:                     “(i)  Executive  shall  hold  in  a  fiduciary  capacity  for  the  benefit  of        Company  all  Confidential  Information  and  Trade  Secrets.   During  Executive’s                                                                Executive’s Initials _____                                                                                                                      Page 4 

 

                                                                 EXHIBIT 10.5         employment and thereafter for any reason, Executive shall not, without the prior written        consent  of  Company  or  as  may  otherwise  be  required  by  law  or  legal  process,  use,        communicate  or  divulge  Confidential  Information  other  than  as  necessary  to  perform        Executive’s duties for Company; provided, however, that if the Confidential Information        is deemed a trade secret under Georgia law, then the period for nondisclosure shall continue        for  the  applicable  period  under  Georgia  Trade  Secret  laws  in  effect  at  the  time  of        Executive’s termination.  In addition, except as necessary to perform Executive’s duties        for  Company,  during  Executive’s  employment  and  thereafter  for  the  applicable  period        under  the  Georgia  Trade  Secret  laws  in  effect  at  the  time  of  Executive’s  termination,        Executive will not, directly or indirectly, transmit or disclose any Trade Secrets to any        person or entity, and will not, directly or indirectly, make use of any Trade Secrets, for        himself or herself or any other person or entity, without the express written consent of        Company.  This provision will apply for so long as a particular Trade Secret retains its        status as a trade secret under applicable law.  The protection afforded to Trade Secrets        and/or Confidential Information by this Agreement is not intended by the parties hereto to        limit, and is intended to be in addition to, any protection provided to any such information        under any applicable federal, state or local law.                     Pursuant to the Defend Trade Secrets Act of 2016, Executive understands        that:                     An individual may not be held criminally or civilly liable under any federal              or state trade secret law for the disclosure of a trade secret that: (a) is made (i) in              confidence  to  a  federal,  state,  or  local  government  official,  either  directly  or              indirectly,  or  to  an  attorney;  and  (ii)  solely  for  the  purpose  of  reporting  or              investigating a suspected violation of law; or (b) is made in a complaint or other              document that is filed under seal in a lawsuit or other proceeding.                     Further, an individual who files a lawsuit for retaliation by an employer for              reporting a suspected violation of law may disclose the employer's trade secrets to              the  attorney  and  use  the  trade  secret  information  in  the  court  proceeding  if  the              individual: (a) files any document containing the trade secret under seal; and (b)              does not disclose the trade secret, except pursuant to court order.”               (c)   Definitions.  For  purposes  of  this  Agreement  (including  Section  6(b)  hereof), the following capitalized terms shall have the following meanings.               “Confidential Information” means knowledge or data relating to Company that is  not generally known to persons not employed or otherwise engaged by Company, is not generally  disclosed by Company, and is the subject of reasonable efforts to keep it confidential. Confidential  Information includes, but is not limited to, information regarding product or service cost or pricing,  information regarding personnel allocation or organizational structure, information regarding the  business operations or financial performance of Company, sales and marketing plans, and strategic  initiatives (independent or collaborative), information regarding existing or proposed methods of  operation, current and future development and expansion or contraction plans, sale/acquisition  plans  and  non-public  information  concerning  the  legal  or  financial  affairs  of  Company.                                                                 Executive’s Initials _____                                                                                                                      Page 5 

 

                                                                 EXHIBIT 10.5   Confidential Information does not include information that has become generally available to the  public by the act of one who has the right to disclose such information without violating any right  or privilege of Company.  This definition is not intended to limit any definition of confidential  information or any equivalent term under applicable federal, state or local law.               “Person”  means:   any  individual  or  any  corporation,  partnership,  joint  venture,  limited liability company, association or other entity or enterprise.               “Trade Secrets” means all secret, proprietary or confidential information regarding  Company, BHI or any of their respective subsidiaries and affiliates or that meets the definition of  “trade secrets” within the meaning set forth in O.C.G.A. § 10-1-761.         7.    Construction of Agreement and Venue for Disputes.  This Agreement shall be  deemed to have been jointly drafted by the Parties and shall not be construed against either Party.  This Agreement shall be governed by the law of the State of Georgia, and the Parties agree that  any actions arising out of or relating to this Agreement or Executive’s employment with Company  must be brought exclusively in either the United States District Court for the Northern District of  Georgia, or the State or Superior Courts of Cobb County, Georgia.  Notwithstanding the pendency  of any proceeding, either Party shall be entitled to injunctive relief in a state or federal court located  in Cobb County, Georgia upon a showing of irreparable injury.  The Parties consent to personal  jurisdiction and venue solely within these forums and solely in Cobb County, Georgia and waive  all  otherwise  possible  objections  thereto.   The  existence  of  any  claim  or  cause  of  action  by  Executive  against Company,  including  any  dispute  relating  to  the  termination  of  Executive’s  employment  or  under  this  Agreement,  shall  not  constitute  a  defense  to  enforcement  of  said  covenants by injunction.           8.    Severability.  If  any  provision  of  this  Agreement  shall  be  held void,  voidable,  invalid or inoperative, no other provision of this Agreement shall be affected as a result thereof,  and accordingly, the remaining provisions of this Agreement shall remain in full force and effect  as though such void, voidable, invalid or inoperative provision had not been contained herein.         9.    No Reliance Upon Other Statements.  This Agreement is entered into without  reliance upon any statement or representation of any Party hereto or any Party hereby released  other than the statements and representations contained in writing in this Agreement (including all  Exhibits hereto).         10.   Entire  Agreement.  This  Agreement,  including  all  Exhibits  hereto  (which  are  incorporated herein by this reference), contains the entire agreement and understanding concerning  the subject matter hereof between the Parties hereto.  No waiver, termination or discharge of this  Agreement, or any of the terms or provisions hereof, shall be binding upon either Party hereto  unless confirmed in writing.  This Agreement may not be modified or amended, except by a writing  executed by both Parties hereto.  No waiver by either Party hereto of any term or provision of this  Agreement or of any default hereunder shall affect such Party’s rights thereafter to enforce such  term or provision or to exercise any right or remedy in the event of any other default, whether or  not similar.  Notwithstanding the foregoing, the Employment Agreement will remain in effect until                                                                Executive’s Initials _____                                                                                                                      Page 6 

 

                                                                 EXHIBIT 10.5   the Termination Date to the extent the terms of the Employment Agreement are not inconsistent  with the terms of this Agreement and, if inconsistent, the terms of this Agreement will control.         11.   Further Assurance.  Upon the reasonable request of the other Party, each Party  hereto agrees to take any and all actions, including, without limitation, the execution of certificates,  documents or instruments, necessary or appropriate to give effect to the terms and conditions set  forth in this Agreement.         12.   No Assignment.  Neither Party may assign this Agreement, in whole or in part,  without  the  prior  written  consent  of  the  other  Party,  and  any  attempted  assignment  not  in  accordance herewith shall be null and void and of no force or effect.         13.   Binding Effect.  This Agreement shall be binding on and inure to the benefit of the  Parties and their respective heirs, representatives, successors and permitted assigns.         14.   Indemnification.   Company  understands  and  agrees  that  any  indemnification  obligations under its governing documents or the indemnification agreement between Company  and Executive with respect to Executive’s service as an officer of Company remain in effect and  survive  the  termination of  Executive’s  employment  under  this  Agreement  as  set  forth  in  such  governing documents or indemnification agreement.         15.   Nonqualified Deferred Compensation.               (a)   Any  payment or benefit provided pursuant  to  or in  connection with  this  Agreement is intended to comply with the “short term deferral” exception from Section 409A of  the Internal Revenue Code of 1986 (“Section 409A”) specified in Treas. Reg. § 1.409A-1(b)(4)  (or any successor provision) or the “separation pay plan” exception specified in Treas. Reg. §  1.409A-1(b)(9) (or any successor provision), or both of them, and shall be interpreted in a manner  consistent with the applicable exceptions.  If any payment or benefit provided pursuant to or in  connection  with  this  Agreement  is  considered  to  be  deferred  compensation  subject  to  Section  409A, it shall be paid and provided in a manner, and at such time and form, as complies with the  applicable  requirements  of  Section  409A  to  avoid  the  unfavorable  tax  consequences  provided  therein  for  non-compliance.  Executive  and  Company  agree  that  Executive’s  termination  of  employment is an involuntary separation from service under Section 409A.               (b)   Neither Company nor Executive shall take any action to accelerate or delay  the payment of any monies and/or provision of any benefits in any manner which would not be in  compliance with Section 409A (including any transition or grandfather rules thereunder).               (c)   Because  Executive  is  a “specified  employee”  for  purposes  of  Section  409A(a)(2)(B)(i), any payments or benefits provided pursuant to or in connection with Executive’s  “Separation from Service” (as determined for purposes of Section 409A) that constitute deferred  compensation subject to Section 409A shall not be made until the earlier of (i) Executive’s death  or  (ii)  six  months  after  Executive’s  Separation  from  Service  (the  “409A  Deferral  Period”)  as  required by Section 409A.  Payments otherwise due to be made in installments or periodically  during the 409A Deferral Period (“Delayed Payments”) shall be accumulated and paid in a lump                                                                Executive’s Initials _____                                                                                                                      Page 7 

 

                                                                 EXHIBIT 10.5   sum as soon as the 409A Deferral Period ends, and the balance of the payment shall be made as  otherwise  scheduled.   Any  such  benefits  subject  to  the  rule  may  be  provided  under  the  409A  Deferral  Period at  Executive’s expense, with  Executive having a  right  to reimbursement  from  Company once the 409A Deferral Period ends, and the balance of the benefits shall be provided  as otherwise scheduled.               (d)   For  purposes  of  this  Agreement,  all  rights  to  payments  and  benefits  hereunder shall be treated as rights to receive a series of separate payments and benefits to the  fullest extent allowed by Section 409A.               (e)   Notwithstanding any other provision of this Agreement, Company shall not  be liable to Executive if any payment or benefit which is to be provided pursuant to this Agreement  and which is considered deferred compensation subject to Section 409A otherwise fails to comply  with, or be exempt from, the requirements of Section 409A.  Executive shall be solely responsible  for  the  tax  consequences  with  respect  to  any  payment  or  benefit  provided  pursuant  to  or  in  connection with this Agreement, and in no event shall Company have any responsibility or liability  if this Agreement does not meet any applicable requirements of Section 409A.         16.   Counterparts.  This Agreement may be executed in any number of counterparts  and by the Parties hereto in separate counterparts, with the same effect as if the Parties had signed  the same document.  All such counterparts shall be deemed an original, shall be construed together,  and shall constitute one and the same instrument, with original signature, photocopy signature, fax  signature, or electronic signature permitted and accepted.         17.   Protected Rights.  Executive understands that nothing contained in this Agreement  limits Executive’s ability to file a charge or complaint with the Equal Employment Opportunity  Commission,  the  National  Labor  Relations  Board,  the  Occupational  Safety  and  Health  Administration,  the  Securities  and  Exchange  Commission  or  any  other  federal,  state  or  local  governmental agency or commission (“Government Agencies”).  Executive further understands  that  this  Agreement  does  not  limit  Executive’s  ability  to  communicate  with  any Government  Agencies or otherwise participate in any investigation or proceeding that may be conducted by any  Government Agencies, nor does this Agreement impact or limit Executive’s eligibility to receive  an award for information provided to any Government Agencies.                             [signatures on following page]                                                                                          Executive’s Initials _____                                                                                                                      Page 8 

 

                                                                 EXHIBIT 10.5         IN WITNESS WHEREOF, the Parties have executed, or caused their duly authorized  representatives to execute, this Agreement as of the day and year first above written.                                       “Executive”                                          /s/ Susan O’Farrell                                                     Susan O’Farrell                                       “Company”                                       BLUELINX CORPORATION                                        By:  /s/ Mitchell B. Lewis                                                Name: Mitchell B. Lewis                                      Title: President and Chief Executive Officer                                                                                                       Executive’s Initials _____                                                                                                                      Page 9 

 

                                                                 EXHIBIT 10.5                                    EXHIBIT A                                     RELEASE   In consideration for the undertakings and promises set forth in that certain Separation Agreement,  dated as of March 9, 2020 (the “Agreement”), between SUSAN O’FARRELL (“Executive”) and  BLUELINX  CORPORATION      (“Company”),  the  terms  of  which  are  incorporated  herein  by  reference,  Executive  (on  behalf  of  herself  and  her  heirs,  assigns  and  successors  in  interest)  unconditionally releases, discharges, and holds harmless Company and its parent and current and  former  subsidiaries  and  affiliates  and  their  respective  current  and  former  officers,  directors,  employees,  agents,  insurers,  benefit  plans,  assigns  and  successors  in  interest  (collectively,  “Releasees”) from each and every claim, cause of action, right, liability or demand of any kind and  nature, and from any claims which may be derived therefrom (collectively “Released Claims”),  that Executive had, has, or might claim to have against Releasees based upon facts occurring up  to the time Executive executes this Release, whether presently known or unknown to Executive,  including, without limitation, any and all claims listed below, other than any such claims Executive  has or might have under the Agreement:               (a)   arising from or in connection with Executive’s employment, pay, bonuses,        vacation or any other Executive benefits, and other terms and conditions of employment or        employment practices of Company;               (b)   arising out of or relating to the termination of Executive’s employment with        Company or the surrounding circumstances thereof;               (c)   based  on  discrimination  and/or  harassment  on  the  basis  of  race,  color,        religion, sex, national origin, handicap, disability, age or any other category protected by        law under Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, Executive        Order 11246, 42 USC § 1981, the Equal Pay Act, the Age Discrimination in Employment        Act  (“ADEA”),  the  Older  Workers  Benefits  Protection  Act,  the  Equal  Pay  Act,  the        Americans With Disabilities Act, the Rehabilitation Act of 1973, C.O.B.R.A. (as any of        these laws may have been amended), the Genetic Information Nondiscrimination Act, the        Family  and  Medical  Leave  Act,  or  any  other  similar  labor,  employment  or  anti-       discrimination law under state, federal or local law;               (d)   based  on  any  contract,  tort,  whistleblower,  personal  injury,  wrongful        discharge theory or other common law theory; or               (e)   arising  under  the  Agreement  or  any  written  or  oral  agreements  between        Executive and Company or any of Company’s subsidiaries or affiliates  (other than the        Agreement).               Executive expressly acknowledges that this Agreement is intended to include in its        effect, without limitation, all Claims which Executive does not know or suspect to exist in        her favor at the time she signs this Agreement, and that this Agreement contemplates the        extinguishment of any such Claim or Claims.                                                                          _______                                                              Executive’s Initials _____   

 

                                                                 EXHIBIT 10.5         Except as otherwise set forth herein, Executive covenants not to sue or initiate any claims  in any forum against any of the Releasees on account of or in relation to any Released Claim, or  to incite, assist or encourage other persons or entities to bring claims of any nature whatsoever  against Company or Releasees.  Executive further covenants not to accept, recover or receive any  monetary damages or any other form of relief which may arise out of or in connection with any  administrative  proceedings  which  may  be  filed  with  or  pursued  independently  by  any  governmental agency or agencies, whether federal, state or local.  This provision does not prohibit  Executive from filing a lawsuit challenging the validity of Executive’s waiver of claims under the  ADEA.         Notwithstanding anything herein to the contrary, Company and Executive acknowledge  and agree that the above release does not waive any rights or claims that may arise based on facts  or events occurring after the date of Executive’s execution of this Agreement, nor does it serve to  waive any rights or claims that are precluded from being waived by applicable law.         Protected  Rights.  Executive  understands that  nothing  contained  in  this  Release  limits  Executive’s  ability  to  file  a  charge  or  complaint  with  the  Equal  Employment  Opportunity  Commission,  the  National  Labor  Relations  Board,  the  Occupational  Safety  and  Health  Administration,  the  Securities  and  Exchange  Commission  or  any  other  federal,  state  or  local  governmental agency or commission (“Government Agencies”).  Executive further understands  that this Release does not limit Executive’s ability to communicate with any Government Agencies  or  otherwise  participate  in  any  investigation  or  proceeding  that  may  be  conducted  by  any  Government  Agency,  including  providing  documents  or  other  information,  without  notice  to  Company.   This  Release  does  not  limit  Executive’s  right  to  receive  an  award  for  information  provided to any Government Agencies.         In addition, Executive agrees not to file a lawsuit asserting any claims that are waived in  this Release.  If Executive files such a lawsuit, Executive shall pay all costs incurred by Releasees  (or any of them), including reasonable attorney’s fees, in defending against Executive’s claim, and,  as a precondition to filing any such lawsuit, shall return all but $500.00 of the severance benefits  or payments Executive has received.  The preceding two sentences of this paragraph do not apply  if Executive files a charge or lawsuit under the Age Discrimination in Employment Act (“ADEA”)  challenging  the  validity  of  this  Release.   However,  in  the  event  any  such  ADEA  lawsuit  is  unsuccessful, a court may order Executive to pay attorney’s fees and/or costs incurred by Releasees  (or any of them) where authorized by law.  In the event any such ADEA lawsuit is successful, the  severance  benefits  or  payments  Executive  received  for  signing  this  Release  shall  serve  as  restitution, recoupment, or setoff to any monetary award received by Executive.         Executive  hereby  acknowledges  that  Executive  has  no  interest  in  reinstatement,  reemployment or employment with Company or any Releasee, and Executive forever waives any  interest in or claim of right to any future employment by Company or any Releasee.  Executive  further  covenants  not  to  apply  for  future  employment  with  Company  or  any  Releasee,  or  to  otherwise seek or encourage reinstatement.                                                                             _______                                                              Executive’s Initials _____   

 

                                                           EXHIBIT 10.5   By signing this Release, Executive certifies that:         (a)   Executive  acknowledges  and  agrees  that  her  waiver  of  rights  under  this  Release  is knowing and voluntary and complies in full with all criteria set forth in the  regulations promulgated under the Older Workers Benefit Protection Act for release or  waiver of claims under the Age Discrimination in Employment Act and further complies  in full with the Americans with Disabilities Act, Title VII of the Civil Rights Act of 1964,  and any and all other applicable federal, state and local laws, regulations, and orders         (b)   Executive has carefully read and fully understands the provisions of this  Release;          (c)   That the payment referred to in this Release and the Agreement exceeds that  to which Executive would otherwise have been entitled, and that the actual payment is in  exchange for her release of the claims referenced in this Release;         (d)   Executive is advised via this Release, to consult with an attorney before  signing this Release.         (e)   Executive understands that any discussions she may have had with counsel  for Company regarding her employment or this Release does not constitute legal advice to  her and that she has had the opportunity to retain her own independent counsel to render  such advice;         (f)   Executive  understands  that  this  Release  and  the  Agreement  FOREVER  RELEASE  Company  and  all  other  Releasees  to  the  extent  set  forth  above,  except  that  Executive  is  not  releasing  or  waiving  any  claim  under  the  Age  Discrimination  in  Employment Act that may arise after Executive’s execution of this Release;         (e)   In signing this Release and the Agreement, Executive DOES NOT RELY  ON  AND  HAS  NOT  RELIED  ON  ANY  REPRESENTATION  OR  STATEMENT  (WRITTEN OR ORAL) NOT SPECIFICALLY SET FORTH IN THIS RELEASE OR IN  THE  AGREEMENT  by  Company  or  any  other  Releasee,  or  by  any  of  their  agents,  representatives,  or  attorneys  with  regard  to  the  subject  matter,  basis,  or  effect  of  this  Agreement or otherwise, and Executive agrees that this Release will be interpreted and  enforced in accordance with Georgia law;         (f)   Company hereby allows Executive no less than twenty-one (21) days from   Company’s  final  offer  to  consider  this  Release  and  the  Agreement,  and  she  has  had  sufficient time to consider her decision to enter into this Release and the Agreement.  In  the event Executive executes this Release and the Agreement prior to the expiration of the  aforesaid  21-day  period,  she  acknowledges  that  her  execution  of  this  Release  and  the  Agreement before the expiration of the 21-day period was knowing and voluntary and was  not induced in any way by Company or any other person or entity; and         (g)   Executive  agrees  to  its  terms  knowingly,  voluntarily  and  without  intimidation, coercion or pressure.                                                                    _______                                                        Executive’s Initials _____                

 

                                                                 EXHIBIT 10.5         Executive may revoke this Release within seven (7) calendar days after signing it.  To be  effective, such revocation must be delivered to and received in writing by the General Counsel of  Company at the offices of Company at 1950 Spectrum Circle, Suite 300, Marietta, Georgia 30067.   Revocation can be made by hand delivery or facsimile before the expiration of this seven (7) day  period.         This Release may be executed in any number of counterparts and by the Parties hereto in  separate counterparts, with the same effect as if the Parties had signed the same document.  All  such counterparts shall be deemed an original, shall be construed together, and shall constitute one  and the same instrument, with original signature, photocopy signature, fax signature, or electronic  signature permitted and accepted.         IN WITNESS WHEREOF, the undersigned has executed this Release as of the date set  forth below.                                 “Executive”                                    /s/ Susan O’Farrell                                         Susan O’Farrell                                 Dated:  March 9, 2020                                                                           _______                                                              Executive’s Initials _____

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