Document:

EXHIBIT 10.14(a)

 

ADVISORY AGREEMENT

ADVISORY AGREEMENT (this “Agreement”),
dated as of May 11, 2004, between MF Merger Corporation, a New York
corporation (the “Merger Sub”), MF Acquisition Corporation, a Delaware
corporation (“MF Acquisition” and, together with its subsidiaries, collectively,
the “Company”) and ACOF Operating Manager, L.P. (“Ares”) a Delaware limited
liability partnership and Ares Corporate Opportunities Fund, L.P, a Delaware
limited liability partnership (“Fund” and, together with Ares, the “Ares
Entities”).

WHEREAS, on the closing date
(the “Closing Date”) , Merger Sub shall merge with and into Maidenform Inc., a
New York corporation, (“Maidenform”) with Maidenform as the surviving
corporation pursuant to the Agreement and Plan of Merger (as amended from time
to time the “Plan of Merger”) dated as of March 16, 2004 among MF Acquisition,
Merger Sub, Maidenform and with respect to certain provisions, Ares.;

WHEREAS, Ares, by and
through itself, its affiliates and their respective officers, employees and
representatives, has expertise in the areas of finance, strategy, investment
and acquisitions relating to the business of the Company; and

WHEREAS, the Company desire
to avail themselves, for the term of this Agreement, of the expertise of Ares
in the aforesaid areas and Ares wishes to provide the services to the Company
as herein set forth;

NOW, THEREFORE, in
consideration of the foregoing recitals and the covenants and conditions
contained herein, the parties hereto agree as follows:

1.             Appointment. 
The Company hereby appoint Ares to render the advisory and consulting
services described in Section 2 hereof for the term of this Agreement.

2.             Services.  Ares
hereby agrees that, during the term of this Agreement, it shall render to the Company,
by and through itself and its officers, employees and representatives as Ares
in its sole discretion shall designate from time to time, advisory and
consulting services in relation to the affairs of the Company and its
subsidiaries, including, without limitation, (i) advice with respect to
the general developments in the Company’s industry and the manner in which
those developments may impact the Company; (ii) advice in designing
financing structures and advice regarding relationships with the Company and its
lenders, bankers and lessors; (iii) advice regarding the structure and
timing of public and private offerings of debt and equity securities of the Company
and its subsidiaries and other financings (including capital lease financings);
(iv) advice regarding property dispositions or acquisitions; and
(v) such other advice directly related or ancillary to the above advisory
services, in the case of (i)-(v) as may be mutually agreeable to Ares and the
Company.

 

 

3.             Fees. 
(a)  In consideration of the services contemplated by Section
2, for the term of this Agreement, the Company agrees to pay to Ares an annual
fee (the “Monitoring Fee”) equal to (x) a prorated portion of a quarterly
fee of $67,500 for the period from the Closing Date through July 1, 2004, payable
on the Closing date, such payment to be made not later than 5 business days
after the Closing Date; (y) $125,000 in cash for the balance of calendar year
2004, payable in quarterly installments on July 1 and October 1; and (z) $250,000
in cash thereafter, payable in quarterly installments in advance on
January 1, April 1, July 1 and October 1 of each year
through the date (the “Termination Date”) on which Ares and its affiliates
(including, without limitation, the “Ares Investors” referred to in the stockholders
agreement entered into on the date hereof) hold, directly or indirectly,
beneficial ownership of less than 10% of the common equity interests of the
Company acquired on the Closing Date, or such earlier date as the Company and Ares
shall agree.  Any Monitoring Fee for the
last calendar year of this Agreement shall be prorated for the period of such
year ending on the Termination Date.

(b)           Upon the Closing Date, MF Acquisition and Merger Sub, agree,
on a joint and several basis, to pay to the Ares Entities or their designees a
fee for services rendered in connection with the structuring of the Plan of
Merger and the transactions contemplated thereby (the “Transactions”) in the
amount of $2,000,000 and agree, on a joint and several basis, to reimburse the Ares
Entities and their affiliates for their out-of-pocket expenses incurred in
connection with Transactions.

4.             Reimbursements. 
In addition to the fees payable pursuant to this Agreement, MF
Acquisition and Merger Sub agree, on a joint and several basis, to pay directly
to or reimburse Ares for its Out-of-Pocket Expenses.  For the purposes of this Agreement, the term “Out-of-Pocket
Expenses” shall mean the reasonable out-of-pocket costs and expenses reasonably
incurred by Ares or its affiliates in connection with the Transactions and the services
rendered hereunder in pursuing, or otherwise related to, the business of the Company,
including, without limitation, (i) fees and disbursements of any independent
professionals and organizations, including independent accountants, outside
legal counsel or consultants, (ii) costs of any outside services or independent
contractors such as, couriers, business publications, on-line financial
services or similar services and (iii) transportation, per diem costs, word
processing expenses or any similar expense not associated with its ordinary
operations.  All reimbursements for
Out-of-Pocket Expenses shall be made promptly upon or as soon as practicable
after presentation by Ares to the Company of a written statement thereof.

5.             Indemnification. 
MF Acquisition and Merger Sub will, on a joint and several basis, indemnify
and hold harmless Ares, its affiliates and its respective partners (both
general and limited), members (both managing and otherwise), officers, directors,
employees, agents and representatives (each such person being an “Indemnified
Party”) from and against any and all losses, claims, damages and liabilities,
whether joint or several (the “Liabilities”), related to, arising out of or in
connection with the advisory and consulting services contemplated by this
Agreement or the engagement of Ares pursuant to, and the performance by Ares of
the services contemplated by, this Agreement, whether or not pending or
threatened, whether or not an Indemnified Party is

 

 

a party, whether or not
resulting in any liability and whether or not such action, claim, suit,
investigation or proceeding is initiated or brought by the Company.  MF Acquisition and Merger Sub agree to be
jointly and severally responsible to reimburse any Indemnified Party for all
reasonable costs and expenses (including reasonable attorneys’ fees and
expenses) as they are incurred in connection with investigating, preparing,
pursuing, defending or assisting in the defense of any action, claim, suit,
investigation or proceeding for which the Indemnified Party would be entitled
to indemnification under the terms of the previous sentence, or any action or
proceeding arising therefrom, whether or not such Indemnified Party is a party
thereto.  Upon the reasonable request of any
Indemnified Party, the Company shall advance such expenses to the Indemnified
Party, `subject to return in the event it is ultimately determined that the
Indemnified Party is not entitled to such reimbursement.  MF Acquisition and Merger Sub will not be
liable under the foregoing indemnification provision with respect to any
Indemnified Party, to the extent that any loss, claim, damage, liability, cost
or expense is determined by a court, in a final judgment from which no further
appeal may be taken, to have resulted primarily from the gross negligence or
willful misconduct of Ares.  If an
Indemnified Party is reimbursed hereunder for any expenses, such reimbursement
of expenses shall be refunded to the extent it is finally judicially determined
that the Liabilities in question resulted primarily from the gross negligence
or willful misconduct of Ares.

6.             Accuracy of Information.  The Company shall furnish or cause to be
furnished to Ares such information as Ares believes appropriate to its
monitoring services hereunder and to the ownership by affiliates of Ares of
equity interests of the Company (all such information so furnished being the “Information”).  The Company recognizes and confirms that Ares
(i) will use and rely primarily on the Information and on information available
from generally recognized public sources in performing the services
contemplated by this Agreement without having independently verified the same,
(ii) does not assume responsibility for the accuracy or completeness of the
Information and such other information and (iii) is entitled to rely upon the
Information without independent verification.

7.             Term.  This
Agreement shall be effective as of the date hereof and shall continue until the
Termination Date, provided that Section 4 shall remain in effect with respect
to Out-of-Pocket Expenses incurred prior to the Termination Date.  The provisions of Sections 5 shall survive
the termination of this Agreement.

8.             Permissible Activities.  Subject to applicable law, nothing herein
shall in any way preclude Ares, its affiliates or their respective partners
(both general and limited), members (both managing and otherwise), officers,
directors, employees, agents or representatives from engaging in any business activities
or from performing services for its or their own account or for the account of
others, including for companies that may be in competition with the business
conducted by the Company.

9.             Miscellaneous. 
(a)  No amendment or waiver of any provision of this
Agreement, or consent to any departure by either party hereto from any such
provision, shall be effective unless the same shall be in writing and signed by
all of the

 

 

parties hereto.  Any amendment, waiver or consent shall be
effective only in the specific instance and for the specific purpose for which
given.  The waiver by any party of any
breach of this Agreement shall not operate as or be construed to be a waiver by
such party of any subsequent breach.

(b) Any notices or other communications required or permitted hereunder
shall be sufficiently given if delivered personally or sent by facsimile,
Federal Express, or other overnight courier, addressed as follows or to such
other address of which the parties may have given notice:

	
  If to the Ares Entities,
  MF Acquisition or Merger Sub 

  before the Closing Date:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  c/o ACOF OPERATING
  MANAGER, L.P.

  1999 Avenue of the Stars

  19th Floor

  Los Angeles, California
  90067

  
	
   

  	
   

  	
  Attention:

  	
  David Kaplan

  
	
   

  	
   

  	
   

  	
  Bennett Rosenthal

  
	
   

  	
   

  	
  Facsimile:

  	
  (301) 201-4157

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  If to Merger Sub after the
  

  Closing Date:

  	
   

  	
  Maidenform, Inc.

  154 Avenue E

  Bayonne, NJ 07002

  Attention: Steven N.
  Masket

  Fax: 201-436-9506

  

 

 

Unless otherwise specified
herein, such notices or other communications shall be deemed received (i) on
the date delivered, if delivered personally or sent by facsimile, and (ii) one
business day after being sent by Federal Express or other overnight courier.

(c)           This Agreement shall constitute the entire agreement
between the parties with respect to the subject matter hereof, and shall
supersede all previous oral and written (and all contemporaneous oral)
negotiations, commitments, agreements and understandings relating hereto.

(d)           This Agreement shall be governed by, and construed and
interpreted in accordance with, the internal laws of the State of New
York.  This Agreement shall inure to the
benefit of, and be binding upon, Ares, the Company and its respective
successors and assigns.  The provisions
of Section 5 shall inure to the benefit of each Indemnified Party.

 

 

(e)           This Agreement may be executed by one or more parties to
this Agreement on any number of separate counterparts, and all of said
counterparts taken together shall be deemed to constitute one and the same
instrument.

(f)            The provisions of this Agreement shall be binding upon
and inure to the benefit of the parties hereto and their respective successors
and assigns; provided that no party may assign, delegate or otherwise
transfer any of its rights or obligations under this Agreement without the consent
of each other party hereto.

(g)           Following the Merger, all obligations of Merger Sub will
be assumed by Maidenform, Inc. as the surviving corporation of the Merger.

(h)           The waiver by any party of any breach of this Agreement
shall not operate as or be construed to be a waiver by such party of any
subsequent breach.

(i)            Any provision of this Agreement which is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

 

IN WITNESS WHEREOF, the
parties have caused this Agreement to be executed and delivered by their duly
authorized officers or agents as of the date first above written.

	
   

  	
  ARES
  CORPORATE OPPORTUNITIES FUND, L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  David B. Kaplan

  	
   

  
	
   

  	
   

  	
  Name:
  David B. Kaplan

  	
   

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  ACOF
  OPERATING MANAGER, L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  David B. Kaplan

  	
   

  
	
   

  	
   

  	
  Name:
  David B. Kaplan

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  MF
  ACQUISITION CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  David B. Kaplan

  	
   

  
	
   

  	
   

  	
  Name:
  David B. Kaplan

  
	
   

  	
   

  	
  Title:   President

  
	
   

  	
   

  	
   

  
	
   

  	
  MF
  MERGER CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  David B. Kaplan

  	
   

  
	
   

  	
   

  	
  Name:
  David B. Kaplan

  
	
   

  	
   

  	
  Title:   PresidentEXHIBIT
10.14(b)

Termination
Agreement

 

Termination Agreement (this
“Agreement”), dated as of July ____, 2005, among Maidenform Brands, Inc. (f/k/a
MF Acquisition Corporation), a Delaware corporation (“Maidenform Brands,” and
together with its subsidiaries, the “Company”), Maidenform, Inc. (as successor
in interest to MF Merger Corporation), a New York corporation (“Maidenform
NY”), ACOF Operating Manager, L.P., a Delaware limited partnership (“Ares”),
and Ares Corporate Opportunities Fund, L.P., a Delaware limited partnership
(the “Fund” and together with Ares, the “Ares Entities”).

 

WHEREAS, the parties hereto
are parties to that certain Advisory Agreement, dated as of May 11, 2004 (the
“Advisory Agreement”);

 

WHEREAS, Maidenform Brands
has filed a registration statement with the Securities and Exchange Commission
to register its common stock in an initial public offering (the “IPO”) under
the Securities Act of 1933, as amended;

 

WHEREAS, the parties desire
to terminate the Advisory Agreement upon the consummation of the IPO in
accordance with the terms and conditions contained herein;

 

NOW, THEREFORE, the parties
hereby agree as follows:

 

1.                                                           Termination.  Conditioned upon and contemporaneously with
the consummation of the IPO, and in consideration for the payment of $750,000
by the Company to Ares, all rights and obligations of the parties under the
Advisory Agreement shall be terminated and be of no further force and effect; provided,
that (a) Ares shall also be entitled to be paid the pro rata portion of the
Monitoring Fee (as defined in the Advisory Agreement) for the period commencing
on July 1, 2005 until the date of the consummation of the IPO, (b) Ares shall
be entitled to reimbursement for its Out-of-Pocket Expenses (as defined in the
Advisory Agreement) incurred up to and including the date of the consummation
of the IPO in accordance with the provisions of Section 4 of the Advisory
Agreement; and (c) the provisions of Sections 5 (Indemnification) and 8
(Permissible Activities) shall survive the termination of the Advisory
Agreement.

 

2.                                                           Miscellaneous.

 

(a)                                                           No amendment or
waiver of any provision of this Agreement, or consent to any departure by
either party hereto from any such provision, shall be effective unless the same
shall be in writing and signed by all of the parties hereto.  Any amendment, waiver or consent shall be
effective only in the specific instance and for the specific purpose for which
given.  The waiver by any party of any
breach of this Agreement shall not operate as or be construed to be a waiver by
such party of any subsequent breach.

 

 

(b)                                                          This Agreement
shall constitute the entire agreement between the parties with respect to the
subject matter hereof, and shall supersede all previous oral and written (and
all contemporaneous oral) negotiations, commitments, agreements and
understandings relating hereto.

 

(c)                                                           This Agreement
shall be governed by, and construed and interpreted in accordance with, the
internal laws of the State of New York.

 

(d)                                                          This Agreement
may be executed by one or more parties to this Agreement on any number of
separate counterparts, and all of said counterparts taken together shall be
deemed to constitute one and the same instrument.

 

(e)                                                           The provisions
of this Agreement shall be binding upon and inure to the benefit of the parties
hereto and their respective successors and assigns; provided, that no
party may assign, delegate or otherwise transfer any of its rights or
obligations under this Agreement without the consent of each other party
hereto.

 

(f)                                                             Any provision
of this Agreement that is prohibited or unenforceable in any jurisdiction
shall, as to such jurisdiction, be ineffective to the extent of such
prohibition or unenforceability without invalidating the remaining provisions
hereof, and any such prohibition or unenforceability in any jurisdiction shall
not invalidate or render unenforceable such provision in any other
jurisdiction.

 

(g)                                                          This Agreement
shall be of no further force and effect if the IPO is not consummated on or
before September 30, 2005.  In such an
event, the Company shall pay the Monitoring Fee for the period from July 1,
2005 through September 30, 2005 to Ares on October 3, 2005, without any
interest or penalties.  Upon such payment
by the Company to Ares on October 3, 2005, the Company will be deemed to have
not breached the provisions of the Advisory Agreement relating to the
Monitoring Fee for the period from July 1, 2005 through September 30, 2005.

 

 

 

[REMAINDER
OF PAGE INTENTIONALLY BLANK]

 

 

 

 

 

 

 

 

 

2

 

IN WITNESS WHEREOF, the
parties have caused this Agreement to be executed and delivered by their duly
authorized officers or agents as of the date first above written.

 

 

	
   

  	
  ARES CORPORATE
  OPPORTUNITIES FUND, L.P

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

 

	
   

  	
  ACOF OPERATING MANAGER,
  L.P.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

 

	
   

  	
  MAIDENFORM BRANDS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

 

	
   

  	
  MAIDENFORM, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

 

 

 

 

 

 

[TERMINATION
AGREEMENT]

 

3

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