Document:

dxlg-ex1038_132.htm

 

Exhibit 10.38

Destination XL Group, Inc.

555 Turnpike Street

Canton, MA 02021

 

April 4, 2018

 

Red Mountain Capital Partners LLC

10100 Santa Monica Boulevard, Suite 925

Los Angeles, CA 90067

 

Re:  Destination XL Group, Inc. (the “Company”)

 

Reference is made to:

 

1.the Restated Certificate of Incorporation, as amended (the “Charter”), of the Company; and

 

2.that certain letter dated March 11, 2013 from the Company to, and countersigned by,  Red Mountain Capital Partners LLC (“Red Mountain”) regarding the ownership of the Company’s stock (the “2013 Waiver Letter”); 

 

3. that certain letter dated January 29, 2014 from the Company to, and countersigned by,  Red Mountain (the “Standstill Agreement”); and

 

4.that certain letter dated December 23, 2014 from the Company to, and countersigned by,  Red Mountain Capital Partners LLC (“Red Mountain”) regarding the ownership of the Company’s stock (the “2014 Waiver Letter” and together with the 2013 Waiver Letter, the “Waiver Letters”)

 

Unless otherwise noted, capitalized terms used herein and not otherwise defined herein shall have the meanings ascribed to such terms in the Charter.

 

Subject to the restrictions contained herein and your execution and return to us via email of a copy of this letter, the Company hereby authorizes, in accordance with §4.3.2(b) of the Charter and paragraph 5 of the Standstill Agreement, Red Mountain and its Affiliates to increase their aggregate Percentage Stock Ownership interest in the Corporation up to an aggregate of 17.12% of the outstanding common stock of the Company from the 15% ownership level previously authorized by the Waiver Letters and paragraph 5 of the Standstill Agreement.  All other terms of the previous Waiver Letters and the Standstill Agreement remain in effect and are not otherwise amended by this authorization.  For the avoidance of doubt, as set forth in the Waiver Letters, the Percentage Stock Ownership interest in the Company held in the aggregate by Red Mountain, its Affiliates and any other person affiliated with Red Mountain may also increase from the 17.12% threshold up to 20%, but only to the extent such increase is achieved through (a) compensation paid in Corporation Securities to Willem Mesdag pursuant to the Destination XL Group, Inc. Third Amended and Restated Non-Employee Director Compensation Plan (as 

1

 

may be further amended) and/or (b) a reduction in the number of issued and outstanding shares of common stock of the Company.  Any Transfer that is not permitted under the terms of the Waiver Letters, the Standstill Agreement and/or this letter shall be a “Prohibited Transfer” under the Charter, and the Corporation Securities that are the subject of any such Prohibited Transfer shall be “Excess Securities” under the Charter.  

 

The foregoing authorizations to acquire beneficial ownership of additional Corporation Securities are referred to herein, collectively, as the “Authorizations.”

 

In order to fulfill the purpose of the Charter, these Authorizations may be revoked at any time in the sole discretion of the Board of Directors (or a committee thereof that has been appointed by the Board of Directors) of the Company.  Such revocation shall be in writing and sent by email, fax or letter to Red Mountain and shall be effective immediately.

 

Kindly execute and return to us via email a copy of this letter at which time it shall serve as a binding and enforceable agreement between us in accordance with its terms. By signing this letter, you agree that this letter and its terms shall remain confidential, except to the extent disclosure thereof is required by law, regulation or judicial process.

 

Thank you for your interest in the Corporation.

 

Very truly yours,

DESTINATION XL GROUP, INC.

 

 

By: /s/ David A. Levin

Name:  David A. Levin
Title:    President, CEO

ACKNOWLEDGED AND AGREED:

RED MOUNTAIN CAPITAL PARTNERS LLC

 

By:    /s/ T Willem Mesdag  
Name:    T Willem Mesdag
Title:      Managing Partner

 

2ex_177916.htm

Exhibit 10.21

 

FIRST AMENDMENT TO LEASE

 

This FIRST AMENDMENT TO LEASE (this “Amendment”) is made and effective this 17th day of September, 2018 (“Effective Date”), by and between AR Meridian Circle Owner, LLC, a Delaware limited liability company (“Landlord”) and Nortech Systems, Inc., a Minnesota corporation (“Tenant”).

 

RECITALS:

 

WHEREAS, LSOP 3 MN 3, LLC, a Delaware limited liability company (the “Original Landlord”) and Tenant entered into that certain Lease Agreement dated April 1, 2015, as assigned (collectively, the “Lease”), with respect to that certain premises known as Suite 150 and containing approximately 19,154 rentable square-feet of space (the “Premises”) located in that certain building commonly known as the Meridian Business Center Building, 7550 Meridian Circle, maple Grove, Minnesota (the “Building”).

 

WHEREAS, Landlord and Tenant desire to amend the Lease as more fully described herein.

 

NOW, THEREFORE, in consideration of the foregoing, the covenants and agreements herein contained, and for other good and valuable consideration, the receipt of which is hereby acknowledged, Landlord and Tenant hereby agree as follows:

 

	 	
			1.

				
			Recitals. The Recitals set forth above are incorporated into this Amendment as if fully set forth herein.

			

 

	 	
			2.

				
			Definitions. Capitalized terms used, but not defined herein, have the meanings ascribed to them in the Lease, except as otherwise set forth in this Amendment.

			

 

	 	
			3.

				
			Term. Section 1(d) of the Lease is hereby deleted in its entirety and replaced with the following:

			

 

(c) Term: One hundred and sixteen (116) full calendar months (plus any partial month from the Commencement Date until the first day of the next full calendar month during the Term).

 

	 	
			4.

				
			Minimum Annual Rent. Section 1(g) of the Lease is hereby deleted in its entirety and replaced with the following:

			

 

(d) Minimum Annual Rent: Payable in monthly installments as follows:

 

	
			Year

				
			Months

				
			Per Square

			Foot

				
			Annually

				
			Monthly

			
	
			06/01/2018-12/31/2018

				
			37-43

				
			$7.81

				
			$149,642.57

				
			$12,470.21

			
	
			01/01/2019-05/31/2019

				
			44-48

				
			$10.56

				
			$202,266.24

				
			$16,855.52

			
	
			06/01/2019-05/31/2020

				
			49-60

				
			$10.82

				
			$207,322.90

				
			$17,276.91

			
	
			06/01/2020-05/31/2021

				
			61-72

				
			$11.09

				
			$212,505.97

				
			$17,708.83

			
	
			06/01/2021-05/31/2022

				
			73-84

				
			$11.37

				
			$217,818.62

				
			$18,151.55

			
	
			06/01/2022-05/31/2023

				
			85-96

				
			$11.66

				
			$223,264.08

				
			$18,605.34

			
	
			06/01/2023-05/31/2024

				
			97-108

				
			$11.95

				
			$228,845.69

				
			$19,070.47

			
	
			06/01/2024-01/31/2025

				
			109-116

				
			$12.25

				
			$234,566.83

				
			$19,547.24

			

 

 

 

 

	 	
			5.

				
			Improvements to Premises. Landlord shall make certain improvements to the interior of the Premises pursuant to those certain Fit Plans and Specifications dated July 10, 2018 and prepared by Genesis Architects (the “Improvements”). Landlord will use commercially reasonable efforts to substantially complete the Improvements by December 1, 2018. Improvements shall include design costs, plans, permits, fees, construction costs, and a four percent (4%) construction management fee payable to Landlord (collectively, the “Improvement Costs”). The reasonable Improvement Costs, not to exceed Two Hundred and Fifty Thousand and No/100 Dollars ($250,000.00) (“Estimated Project Costs”), shall be payable by Landlord directly to the vendor. Section 9(b) of the Lease recognizes that several of the HVAC Units currently serving the building are Aged Units (as defined in the Lease). If Landlord elects to replace one or more of such Aged Units, the cost of such replacement will be paid as contemplated in the Lease and shall not count toward the maximum project costs referenced above. In the event Landlord replaces one or more of the Aged Units, Landlord will bear the cost of replacing a unit of a similar size and capacity, tenant will bear the costs of any capacity increases necessitated by the Improvements. Landlord shall provide Tenant a full accounting of the project costs, including without limitation copies of the invoice(s) for such Improvements, and such other documents as Tenant shall reasonably request. If the Improvement Costs exceed the Estimated Project Costs, Tenant will be responsible for amounts, approved in advance of incurrence, in excess of the Estimated Project Costs payable to Landlord immediately upon Landlord providing invoices for such Improvement Costs.

			

 

	 	
			6.

				
			Broker. Tenant and Landlord represent and warrant to each other that the parties have not dealt with any real estate broker, salesperson or finder in connection with this Amendment, and no other such person initiated or participated in the negotiation of this Amendment or is entitled to any commission in connection herewith. Tenant agrees to indemnify, defend and hold Landlord harmless from and against all costs, fees (including reasonable attorneys’ fees), expenses, liabilities, and claims (collectively, “Losses”) incurred or suffered by Landlord arising from any breach by Tenant of Tenant’s foregoing representation and warranty. Landlord agrees to indemnify, defend and hold Tenant harmless from and against all Losses incurred or suffered by Tenant arising from any breach by Landlord of Landlord’s foregoing representation and warranty.

			

 

	 	
			7.

				
			Signs. Section 11 of the Lease is hereby amended to allow Tenant, at Tenant’s sole cost and expense, to place two signs on the exterior of the Premises, the size and style of which shall be subject to the prior written approval of Landlord and the prior approval of the City of Maple Grove. All signage shall comply with all applicable rules, regulations, declarations and local municipal code requirements. Upon the expiration or termination of the Lease, Tenant shall, at Landlord’s option, remove all signage and restore the affected area as necessary, as Tenant’s sole cost.

			

 

 

 

 

	 	
			8.

				
			Miscellaneous. This Amendment may be executed in several counterparts, each of which shall be deemed an original, but all of which together shall constitute on and the same instrument. Except as otherwise expressly amended as set forth herein, the terms and provisions of the Lease shall remain unchanged and in full force and effect. This Amendment and each covenant, agreement and other provision herein shall be binding upon and shall inure to the benefit of the parties hereto and their heirs, administrators, representatives, successors and assigns.

			

 

[Signature Page to Follow]

 

 

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed effective as of the Effective Date above written.

 

	
			 

				
			LANDLORD: 

			
	 	 
	 	AR MERIDIAN CIRCLE OWNER, LLC, a
	 	Delaware limited liability company
	 	 
	 	 
	 	 
	 	By: /s/        John Schulz                                                                                     
	 	Name:      John Schulz                                                                                        
	 	Its:      Manager                                                                                                   
	 	 
	 	 
	 	 
	 	Tenant:
	 	NORTECH SYSTEMS, INC., a Minnesota
	 	corporation
	 	 
	 	 
	 	By: /s/ Richard G Wasielowski
	 	Name: Richard G Wasielowski                                                                          
	 	Its:  CEO

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