Confidential Separation Agreement and General Release 

This Confidential Separation Agreement and General Release (“Agreement”) is entered into by and between  Vitalize, LLC dba Bodybuilding.com, a Delaware limited liability company (the “Employer”) and David Escobar (the  “Employee”) residing at ______________________________________________________________ (the Employer  and the Employee are collectively referred to as the “Parties”) as of the date last signed below (the “Execution  Date”). 

The Employee’s last day of employment with the Employer is Tuesday, October 6, 2020 (the “Separation Date”).  Except as otherwise set forth in this Agreement, the Separation Date is the employment termination date for the  Employee for all purposes, meaning the Employee is not entitled to any further compensation, monies, or other  benefits from the Employer, including coverage under any benefit plans or programs sponsored by the Employer, as  of the Separation Date. 

  1. Return of Property. The Employee must return all Employer property by October 20, 2020, including  identification cards or badges, access codes or devices, keys, laptops, computers, monitors, telephones, mobile  phones, hand-held electronic devices, credit cards, keys, electronically stored documents or files, physical files, and  any other Employer property in the Employee’s possession. 
  2. Severance Package. As consideration for the Employee’s execution of and compliance with this Agreement, including the Employee’s waiver and release of claims in Section 3 and other post-termination obligations, the Employer agrees to provide: 

(a) An amount equal to Employee’s base salary through October 23, 2020, which will be paid in accordance with Employer’s regular payroll practices and on Employer’s regularly scheduled payroll dates and 

(b) One (1) lump sum payment in the amount of $3,535.00 USD, which will be added to Employee’s final check from Employer. 

(collectively, the “Severance Package”). 

The Severance Package calculations are based on a forty (40) hour work week, Monday through Friday, unless otherwise noted in this Agreement. The Severance Package will be paid less all relevant taxes and withholdings. 

Notwithstanding the foregoing, no payment shall be made or begin before the Effective Date of this Agreement. The  Employee understands, acknowledges, and agrees that the Severance Package exceeds what the Employee is otherwise entitled to receive on separation from employment, and that these benefits are being given as  consideration in exchange for executing this Agreement and the general release and restrictive covenants contained  in it. The Employee further acknowledges that the Employee is not entitled to any additional payment or consideration not specifically referenced in this Agreement. 

  1. Employee Release.  

(a) General Release and Waiver of Claims

In exchange for the consideration provided in this Agreement, the Employee and the Employee’s  heirs, executors, representatives, administrators, agents, and assigns (collectively, the  “Releasors”) waive, release, and discharge the  Employer, including the Employer’s parents, subsidiaries, affiliates, predecessors, successors, and  assigns, and each of its and their respective officers, directors, and employees, in their corporate 

and individual capacities (collectively, the “Released Parties”), from any and all claims, demands,  actions, causes of actions, judgments, rights, fees, damages, debts, obligations, liabilities, and  expenses (inclusive of attorneys’ fees) of any kind whatsoever, (collectively, “Claims”), arising out of, or in any way related to the Employee’s hire, benefits, employment,  termination, or separation from employment with the Employer by reason of any actual or alleged  act, omission, transaction, practice, conduct, occurrence, or other matter including, but not  limited to: any and all claims under Title VII of the Civil Rights Act of 1964 (Title VII), the Americans  with Disabilities Act (ADA), the Family and Medical Leave Act (FMLA) (regarding existing but not  prospective claims), the Worker Adjustment and Retraining Notification (WARN) Act, the Fair Labor  Standards Act (FLSA), the Equal Pay Act, the Employee Retirement Income Security Act (ERISA)  (regarding unvested benefits), the Civil Rights Act of 1991, Section 1981 of U.S.C. Title 42, the Fair  Credit Reporting Act (FCRA), the National Labor Relations Act (NLRA), the Age Discrimination in  Employment Act (ADEA), any claims arising under the Idaho Labor Code, and Idaho Code Section  67-5901 et seq., including any amendments and their respective implementing regulations, and  any other federal, state, local, or foreign law (statutory, regulatory, or otherwise) that may be legally  waived and released; however, the identification of specific statutes is for purposes of example  only, and the omission of any specific statute or law shall not limit the scope of this general release  in any manner; 

However, this general release and waiver of claims excludes, and the Employee does not waive,  release, or discharge: (i) any right to file an administrative charge or complaint with, or testify,  assist, or participate in an investigation, hearing, or proceeding conducted by, the Equal  Employment Opportunity Commission, the Texas Workforce Commission, the Idaho Human Rights  Commission, Civil Rights Division, or other similar federal or state administrative agencies  ; (ii) claims that cannot be waived by law; and (iii) any rights to vested  benefits, such as pension or retirement benefits, the rights to which are governed by the terms of  the applicable plan documents and award agreements 

(b) Acknowledgement. By signing this Agreement, the Employee hereby acknowledges and confirms  that:  

(i) the Employee has read this Agreement in its entirety and understands all of its  terms;  

(ii) by this Agreement, the Employee has been advised in writing to consult with an attorney of the Employee’s choosing, and Employee had the opportunity to do so, before signing this Agreement;  

(iii) the Employee knowingly, freely, and voluntarily agrees to all of the terms and conditions set out in this Agreement including, without limitation, the waiver, release, and covenants contained in it;  

(iv) the Employee is signing this Agreement, including the waiver and release, in exchange for good and valuable consideration in addition to anything of value to which the Employee is otherwise entitled;

 

(v) the Employee was given at least fourteen (14) days to consider the terms of this Agreement and consult with an attorney of the Employee’s choice, although the Employee may sign it sooner if desired; 

(vi) changes to this Agreement, whether material or immaterial, do not restart the  running of the 14-day period, and if Employee fails to sign the Agreement within this period, the  offers made herein are withdrawn and this Agreement is null and void; and 

(vii) the Employee understands that the release contained in this paragraph does not apply to rights and claims that may arise after the Employee signs this Agreement. Accordingly, the Employee has the right to sue for claims which the Employee does not know or suspect to exist in his favor at the time of executing this release, which if known by him must have materially affected his settlement with the Employer.  

  1. Post-Termination Obligations and Restrictive Covenants.  

(a) Acknowledgment

The Employee understands and acknowledges that by virtue of the Employee’s employment with  the Employer, the Employee had access to and knowledge of Confidential Information, was in a  position of trust and confidence with the Employer, and benefitted from the Employer’s goodwill.  The Employee understands and acknowledges that the Employer invested significant time and expense in developing the Confidential Information and goodwill.  

The Employee further understands and acknowledges that the restrictive covenants below are necessary to protect the Employer’s legitimate business interests in its Confidential Information and goodwill. The Employee further understands and acknowledges that the Employer’s ability to  reserve these for the exclusive knowledge and use of the Employer is of great competitive  importance and commercial value to the Employer and that the Employer would be irreparably  harmed if the Employee violates the restrictive covenants below. 

(b) Confidential Information

The Employee understands and acknowledges that during the course of employment with the  Employer, the Employee has had access to and learned about confidential, secret, and proprietary  documents, materials, and other information, in tangible and intangible form, of and relating to the  Employer and its businesses and existing and prospective customers, suppliers, investors, and other associated third parties (“Confidential Information”). The Employee further understands  and acknowledges that this Confidential Information and the Employer’s ability to reserve it for the  exclusive knowledge and use of the Employer is of great competitive importance and commercial  value to the Employer, and that improper use or disclosure of the Confidential Information by the  Employee may cause the Employer to incur financial costs, loss of business advantage, liability  under confidentiality agreements with third parties, civil damages, and criminal penalties. 

For purposes of this Agreement, Confidential Information includes, but is not limited to, all  information not generally known to the public, in spoken, printed, electronic, or any other form or  medium, relating directly or indirectly to the business of the Employer and any existing or  prospective customer, supplier, investor, or other associated third party, or of any other person or  entity that has entrusted information to the Employer in confidence. 

The Employee understands that the above list is not exhaustive, and that Confidential Information  also includes other information that is marked or otherwise identified or treated as confidential or  proprietary, or that would otherwise appear to a reasonable person to be confidential or proprietary  in the context and circumstances in which the information is known or used.

Subject to Section 4(c)(2), the Employee understands and agrees that Confidential Information developed by the Employee  in the course of the Employee’s employment by the Employer is subject to the terms and conditions  of this Agreement as if the Employer furnished the same Confidential Information to the Employee  in the first instance. Confidential Information shall not include information that is generally available  to and known by the public at the time of disclosure to the Employee, provided that the disclosure  is through no direct or indirect fault of the Employee or person(s) acting on the Employee’s behalf. Confidential information shall also not include any information, documents, designs, plans, or know-how that the Employer created for other previous employers or that he acquired or possessed before working for this Employer. Accordingly, the Employee has the right to deal with such information at his pleasure.  

(c) Disclosure and Use Restrictions

(i) Employee Covenants. The Employee agrees and covenants:  

(A) Subject to Section 4(c)(2), to treat all Confidential Information as strictly confidential;

(B) Subject to Section 4(c)(2), not to directly or indirectly disclose, publish, communicate, or make  available Confidential Information, or allow it to be disclosed, published, communicated, or  made available, in whole or part, to any entity or person whatsoever (including other  employees of the Employer) not having a need to know and authority to know and use the  Confidential Information in connection with the business of the Employer and, in any  event, not to anyone outside of the direct employ of the Employer; and  

(C) Subject to Section 4(c)(2), not to access or use any Confidential Information, and not to copy any  documents, records, files, media, or other resources containing any Confidential  Information, or remove any such documents, records, files, media, or other resources  from the premises or control of the Employer, except as allowed by applicable law, as  required in the performance of any of the Employee’s remaining authorized employment  duties to the Employer, or with the prior written consent of an authorized officer acting on  behalf of the Employer (and then, such disclosure shall be made only within the limits and  to the extent of such law, duties, or consent).  

The Employee understands and acknowledges that the Employee’s obligations under this  Agreement regarding any particular Confidential Information begin immediately and shall continue  during and after the Employee’s employment by the Employer until the Confidential Information has  become public knowledge other than as a result of the Employee’s breach of this Agreement or a  breach by those acting in concert with the Employee or on the Employee’s behalf. 

(ii) Permitted Disclosures

Nothing in this Agreement shall be construed to prevent the disclosure of the Employee’s work samples to potential customers, clients, and future employers. In making the disclosure, the Employee shall redact all sections in the work that contains any information about the Employer’s company. 

Nothing in this Agreement shall be construed to prevent  disclosure of Confidential Information as may be required by applicable law or regulation, or  pursuant to the valid order of a court of competent jurisdiction or an authorized government  agency, provided that the disclosure does not exceed the extent of disclosure required by such  law, regulation, or order. The Employee shall promptly provide written notice of any such order to an authorized officer of the Employer. 

Nothing in this Agreement prohibits or restricts the Employee (or Employee’s attorney) from  initiating communications directly with, responding to an inquiry from, or providing testimony before  the Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority  (FINRA), any other self-regulatory organization, or any other federal or state regulatory authority  regarding this Agreement or its underlying facts or circumstances [or a possible securities law  violation. 

(iii) Notice of Immunity Under the Defend Trade Secrets Act of 2016. Notwithstanding any other provision of this Agreement:

 

(A) The Employee will not be held criminally or civilly liable under any  

federal or state trade secret law for any disclosure of a trade secret that is made: (1) in  confidence to a federal, state, or local government official, either directly or indirectly, or to  an attorney, and solely for the purpose of reporting or investigating a suspected violation  of law; or (2) in a complaint or other document that is filed under seal in a lawsuit or other  proceeding. 

(B) If the Employee files a lawsuit for retaliation by the Employer for  

reporting a suspected violation of law, the Employee may disclose the Employer’s trade  secrets to the Employee’s attorney and use the trade secret information in the court  proceeding if the Employee: (1) files any document containing the trade secret under seal;  and (2) does not disclose the trade secret, except pursuant to court order. 

  1. Cooperation. The parties agree that certain matters in which the Employee has been involved during the Employee’s employment may need the Employee’s cooperation with the Employer in the future. Accordingly, for a  period of six (6) months after the Separation Date, to the extent reasonably requested by the Employer, the  Employee shall cooperate with the Employer regarding matters arising out of or related to the Employee’s service to  the Employer, provided that the Employer shall make reasonable efforts to minimize disruption of the Employee’s  other activities. The Employer shall reimburse the Employee for reasonable expenses incurred in connection with this cooperation. 
  2. Non-Disparagement. The Employee agrees and covenants that the Employee shall not at any time make,  publish, or communicate to any person or entity or in any public forum any defamatory, maliciously false, or  disparaging remarks, comments, or statements concerning the Employer or its businesses, or any of its employees,  officers, or directors its existing and prospective customers, suppliers, investors, and other associated third parties, now or in the future. This Section does not in any way restrict or impede the Employee from exercising protected  rights to the extent that such rights cannot be waived by agreement or from complying with any applicable law or  regulation or a valid order of a court of competent jurisdiction or an authorized government agency, provided that  such compliance does not exceed that required by the law, regulation, or order. 
  3. Confidentiality of Agreement. The Employee agrees and covenants that the Employee shall not disclose any of  the negotiations of, terms of, or amount paid under this Agreement to any individual or entity; provided, however, that  the Employee will not be prohibited from making disclosures to the Employee’s spouse or domestic partner, attorney,  tax advisors, or as may be required by law.  

This Section does not in any way restrict or impede the Employee from exercising protected rights to the extent that  such rights cannot be waived by agreement or from complying with any applicable law or regulation or a valid order  of a court of competent jurisdiction or an authorized government agency, provided that such compliance does not  exceed that required by the law, regulation, or order. The Employee shall promptly provide written notice of any such order to Randi Schumacher at Vitalize, LLC via email to randi.schumacher@bodybuilding.com.  

  1. Remedies. In the event of a breach or threatened breach by  either party of this Agreement,  both parties  hereby acknowledge and agree that the aggrieved party shall be entitled to seek, in addition to other available remedies,  a temporary or permanent injunction or other equitable relief against such breach or threatened breach from any  court of competent jurisdiction, and that money damages would not afford an adequate remedy, without the necessity 

of showing any actual damages, and without the necessity of posting any bond or other security. Any equitable relief shall be in addition to, not instead of, legal remedies, monetary damages, or other available relief. 

The Parties mutually agree that this Agreement can be specifically enforced in court and can be cited as evidence in legal proceedings alleging breach of the Agreement. 

  1. Successors and Assigns.  

(a) Assignment by the Employer

The Employer may freely assign this Agreement at any time. This Agreement shall inure to the benefit of the Employer and its successors and assigns. 

(b) No Assignment by the Employee

The Employee may not assign this Agreement in whole or in part. Any purported assignment by the Employee shall be null and void from the initial date of the purported assignment. 

  1. Governing Law, Jurisdiction, and Venue. This Agreement and all matters arising out of or relating to this  Agreement and the Employee’s employment or termination of employment with Employer, whether sounding in contract, tort, or statute, for all purposes shall be governed by and construed in accordance with the laws of Idaho  without regard to any conflicts of laws principles that would require the laws of any other jurisdiction to apply. Any action or proceeding by either of the Parties to enforce this Agreement shall be brought in any state or federal court located in the state of Idaho, county of Ada. The Parties hereby irrevocably submit to the exclusive jurisdiction of these courts and waive the defense of inconvenient forum to the maintenance of any action or proceeding in such venue. 
  2. Entire Agreement. Unless specifically provided herein, this Agreement contains all of the understandings and  representations between Employer and Employee relating to the subject matter hereof and supersedes all prior and  contemporaneous understandings, discussions, agreements, representations, and warranties, both written and oral,  regarding such subject matter; provided, however, that nothing in this Agreement modifies, supersedes, voids, or  otherwise alters Employee’s Confidentiality, Proprietary Rights, and Non-Solicit Agreement with Employer. 

In the event of any inconsistency between this Agreement and any other agreement between the Employee and the Employer, the statements in this Agreement shall control. 

  1. Modification and Waiver. No provision of this Agreement may be amended or modified unless the amendment or modification is agreed to in writing and signed by the Employee and by an authorized signatory of the Employer.  No waiver by either Party of any breach by the other party of any condition or provision of this Agreement to be  performed by the other Party shall be deemed a waiver of any similar or dissimilar provision or condition at the same  or any prior or subsequent time, nor shall the failure of or delay by either Party in exercising any right, power, or  privilege under this Agreement operate as a waiver thereof to preclude any other or further exercise thereof any other such right, power, or privilege. 
  2. Severability. If any provision of this Agreement is found by a court of competent jurisdiction to be invalid, illegal,  or unenforceable in any respect, or enforceable only if modified, such finding shall not affect the validity of the  remainder of this Agreement, which shall remain in full force and effect and continue to be binding on the Parties. 
  3. Captions. Captions and headings of the sections and paragraphs of this Agreement are intended solely for convenience and no provision of this Agreement is to be construed by reference to the caption or heading of any section or paragraph.

 

  1. Counterparts. The Parties may execute this Agreement in counterparts, each of which shall be deemed an original, and all of which taken together shall constitute one and the same instrument. 
  2. No Admission of Liability. Nothing in this Agreement shall be construed as an admission by the Employer or the Employee of any wrongdoing, liability, or noncompliance with any federal, state, city, or local rule, ordinance, statute, common law, or other legal obligation. 

The Employee SHALL NOT be liable for any and all action or inaction done by them before they received and read the contents of this Agreement.  

  1. Notices. All notices under this Agreement must be given in writing by receipted email at the addresses indicated in this Agreement. When providing written notice to Employer, a copy must be provided to Employer’s Legal Department at the addresses below. 

Notice to Employer

Raquel Krol, Chief People Officer – raquel.krol@bodybuilding.com 

With concurrent copy to: 

Randi Schumacher, Sr. Director of Legal – randi.schumacher@bodybuilding.com 

Notice to the Employee: 

____________________________________________ 

  1. Section 409A. This Agreement is intended to comply with Section 409A of the Internal Revenue Code of 1986, as amended (Section 409A), including the exceptions thereto, and shall be construed and administered in accordance with such intent. Notwithstanding any other provision of this Agreement, payments provided under this Agreement may only be made upon an event and in a manner that complies with Section 409A or an applicable exemption. Any payments under this Agreement that may be excluded from Section 409A either as separation pay  due to an involuntary separation from service, as a short-term deferral, or as a settlement payment pursuant to a  bona fide legal dispute shall be excluded from Section 409A to the maximum extent possible. For purposes of Section 409A, any installment payments provided under this Agreement shall each be treated as a separate payment. To the extent required under Section 409A, any payments to be made under this Agreement in connection  with a termination of employment shall only be made if such termination constitutes a “separation from service” under  Section 409A. Notwithstanding the foregoing, Employer makes no representations that the payments and benefits  provided under this Agreement comply with Section 409A and in no event shall Employer be liable for all or any  portion of any taxes, penalties, interest, or other expenses that may be incurred by Employee on account of non compliance with Section 409A. 
  2. Acknowledgment of Full Understanding. THE EMPLOYEE ACKNOWLEDGES AND AGREES THAT THE EMPLOYEE HAS FULLY READ, UNDERSTANDS, AND VOLUNTARILY ENTERS INTO THIS AGREEMENT. THE EMPLOYEE ACKNOWLEDGES AND AGREES THAT THE EMPLOYEE HAS HAD AN OPPORTUNITY TO ASK QUESTIONS AND CONSULT WITH AN ATTORNEY OF THE EMPLOYEE’S CHOICE BEFORE SIGNING THIS AGREEMENT. THE EMPLOEE FURTHER ACKNOWLEDGES THAT THE EMPLOYEE’S SIGNATURE BELOW IS AN AGREEMENT TO RELEASE EMPLOYER FROM ANY AND ALL CLAIMS THAT CAN BE RELEASED AS A MATTER OF LAW. 

[SIGNATURE PAGE FOLLOWS]

 

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Execution Date. VITALIZE, LLC DBA BODYBUILDING.COM 

By: ____________________________ 

Name: Raquel Krol 

 Title: Chief People Officer 

          Date: ____________________________ 

EMPLOYEE 

Signature: ____________________________ 

Print Name: David Escobar 

Date: ____________________________

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