Document:

Advisory Agreement

112 West 34th Street  New York, NY  10120 

March 29, 2013

Michael J. Cunningham
21 Bridge Road
Nanuet, New York 10954

Dear Michael:

The purpose of this letter (this "Agreement") is to confirm the terms by which you will be engaged by Aeropostale, Inc. (the "Company") as a consultant following your retirement as its President.  The key terms of your engagement are as follows:

1.     Term and Termination. Your retirement as President and the consulting engagement under this letter agreement shall become effective on March 29, 2013 (the "Effective Date"), and your employment agreement with the Company effective as of December 1, 2010 (the "Employment Agreement") will terminate on the Effective Date.  Except as expressly provided herein, as of the Effective Date, this Agreement shall replace and supersede the terms and conditions of the Employment Agreement.

The term of your engagement hereunder (the "Consulting Period") shall be one (1) year.  The parties hereto may extend the term of the Consulting Period by mutual agreement at least sixty (60) days prior to the end of the Consulting Period.  Notwithstanding the foregoing, the Company may terminate the Consulting Period at any time for Cause.  For purposes of this Agreement, "Cause" will have the same meaning as set forth in the Employment Agreement.

2.    Services.  You agree to provide transition, consulting and other related services to the Company, as may be requested from time to time by, and at the direction of, the Company's Chief Executive Officer ("CEO").  In this regard, you agree to consult with the CEO and other senior officers of the Company regarding (i) the Company's general corporate strategies, (ii) strategic initiatives and (iii) other related matters as requested by CEO, from time to time.  You agree to make yourself reasonably available as requested by the Company's CEO and to develop a mutually acceptable work schedule during the Consulting Period.  You shall diligently and competently perform the services requested hereunder and use reasonable efforts in connection with the performance of such services.  During the Consulting Period, you are expected to provide consulting services at a level equal to at least ten (10%) of the level of services provided by you as an employee of the Company.
 

The Company will reimburse you for reasonable and necessary business expenses incurred in the course of performing services hereunder in accordance with the Company's existing travel policy and business expense policies and procedures, subject to approval of such expenses by the CEO. Any reimbursement payable pursuant to this Paragraph 2 shall be paid as soon as administratively feasible upon your request.
3.    Compensation, Advisory Fee.  The Company shall pay you an Advisory Fee at the rate of $300,000 per annum during the Consulting Period.  The Advisory Fee shall be payable in equal installments pursuant to the Company's customary payroll policies in force at the time of payment (but in no event less frequently than monthly).

4.    Administrative Support. The Company agrees that it will provide you with appropriate office space and administrative support while you are performing services for the Company at the Company's headquarters. During the Consulting Period, the Company agrees to provide you with reasonable technical support and the Company's help desk shall be available to provide technical assistance to you as reasonably requested. The Company further agrees to maintain your Company e-mail address during the Consulting Period.

5.    Work Product, Competitive Activities, Confidentiality. You acknowledge and agree that, during the Consulting Period, you will continue to be bound by and you will adhere to, the provisions set forth in Sections 5 and 6 of your Employment Agreement.  

6.    Relationship.  It is the intention of the parties to this Agreement, and the Company has determined, that, during the Consulting Period, you are to be an independent contractor and not an employee of the Company and nothing in this Agreement shall be construed to create an employment relationship between you and the Company following your retirement as President.  As an independent contractor, you will not participate in any employee benefit plan or program.  No amount will be deducted or withheld from the Company's payments to you under the Agreement for federal, state or local taxes and no FICA taxes will be payable by the Company on your behalf.  You will be solely responsible for making appropriate filings and payments to the appropriate governmental taxing authorities, including payments of all income taxes and self­ employment taxes due on compensation received hereunder.

7.    Future Cooperation.  In connection with any and all claims, disputes, negotiations, investigation, lawsuits or administrative proceedings involving the Company, you agree to make yourself available, upon reasonable notice from the Company, and without the necessity of subpoena, to provide information or documents, provide declarations or statements to the Company, meet with attorneys or other representatives of the Company, prepare for and give depositions or testimony, and/or otherwise cooperate in the investigation, defense or prosecution of any or all such matters.  Any reimbursement payable pursuant to this Paragraph 7 shall be paid as soon as administratively feasible upon your request. Notwithstanding anything in this agreement to the contrary, you and the Company agree that the obligations imposed upon you under this Paragraph 7 shall survive the termination of your consultancy.  In the event of any disputes between you and a third party or governmental agency concerning this agreement or the reasonable performance of your duties hereunder, the Company agrees to pay for related costs 

and reasonable attorneys fees incurred by you in connection with such dispute.

8.    Miscellaneous.
(a)  Entire Agreement.  This Agreement contains the entire understanding of the parties in respect of its subject matter and supersedes all prior oral and written agreements and understandings between the parties with respect to such subject matter. 
(b)  Amendment; Waiver.  This Agreement may not be amended, supplemented, canceled or discharged, except by written instrument executed by you and the Company. No failure to exercise, and no delay in exercising, any right, power or privilege hereunder shall operate as a waiver thereof.  No waiver of any preceding breach of this Agreement shall operate as a waiver of a succeeding breach of this Agreement.
(c)  Binding Effect; Assignment.  The rights and obligations of the Company under this Agreement shall bind and inure to the benefit of any successor or successors of the Company by reorganization, merger or consolidation, or any assignee of all or substantially all of the Company's business and properties. Your rights or obligations under this Agreement shall bind and inure to your benefit and your heirs and personal representatives.  
(d)  Headings.  The headings contained in this Agreement are for reference purposes only and shall not affect the meaning or interpretation of this Agreement.
(e)  Governing Law; Interpretation.  This Agreement shall be governed and construed in accordance with the laws of the State of New York, without regard to conflicts of laws doctrines.  Any action, suit, proceeding, claim, dispute or controversy concerning this Agreement or the subject matter thereof shall be brought in the courts of the State of New York, in New York County, or in the federal courts of the United States within the State and County of New York, to the exclusive jurisdiction of which courts the parties hereto hereby agree.  Any service of process in any such action, suit, proceeding, claim, dispute or controversy shall be by delivering the same or by mailing the same (by registered or certified mail, return receipt requested) to the relevant addresses set forth in Section 9 or to such other addresses as may have been designated in writing.
(f)  Further Assurances.  You and the Company each agree, at any time and from time to time, to execute, acknowledge, deliver and perform, and/or cause to be executed, acknowledged, delivered and performed, all such further acts, deeds, assignments, transfers, conveyances, powers of attorney and/or assurances as may be necessary and/or proper to carry out the provisions and/or intent of this Agreement.
 (g)  Severability.  You and the Company each acknowledge and agree that the terms of this Agreement are fair and reasonable at the date signed by them. However, in light of the possibility of a change of conditions or of differing interpretations by a court of what is fair and reasonable, You and the Company stipulate as follows: if any one or more of the terms, provisions, covenants and restrictions of this Agreement shall be determined by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force 

and effect and shall in no way be affected, impaired or invalidated; further, if any one or more of the provisions contained in this Agreement shall for any reason be determined by a court of competent jurisdiction to be excessively broad as to duration, geographical scope, activity or subject, it shall be construed, by limiting or reducing it, so as to be enforceable to the extent compatible with then applicable law.
(h)   Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, and all of which taken together shall constitute a single agreement.
                
AEROPOSTALE, INC.
/s/ Thomas P. Johnson
  By: __________________
      Thomas P. Johnson

Accepted this 29th day of March, 2013

/s/ Michael J. Cunningham

________________________________
Michael J. Cunninghamexh_101.htm

EXHIBIT 10.1

 

FIRST AMENDMENT TO LEASE AND FIRST AMENDMENT TO FIRST AMENDED

AND RESTATED LICENSE AGREEMENT

 

THIS FIRST AMENDMENT TO LEASE AND FIRST AMENDMENT TO FIRST AMENDED AND RESTATED LICENSE AGREEMENT (the “First Amendment”), dated March 28, 2013, is by and between BASS LAKE REALTY LLC, a Delaware limited liability company, with an address in care of Great Point Investors LLC, Two Center Plaza, Suite 410, Boston, MA 02108 (“Landlord”), and CLEARFIELD, INC., a Minnesota corporation, with an address of 5480 Nathan Lane, Suite 210, Plymouth, MN 55442, successor to APA Cables & Networks, Inc. (“Tenant” or “Assignee”).

 

WITNESSETH:

 

WHEREAS, Landlord and APA Cables & Networks, Inc. (“APA” or “Assignor”) entered into a Lease dated May 31, 2006 (as amended, the “Lease”), with respect to certain premises consisting of approximately 29,738 rentable square feet of space (the “Existing Premises”) in Bass Lake Business Centre, 5480 Nathan Lane, Plymouth, MN 55442 (the “Building”); and

 

WHEREAS, Landlord and Tenant entered into a First Amended and Restated License Agreement dated July 11, 2011, but effective as of July 1, 2011 (the “License Agreement”), with respect to certain licensed premises consisting of approximately 9,561 rentable square feet of space (the “Licensed Premises”) in the Building, pursuant to which Tenant shall be using and occupying the Licensed Premises, as a licensee, through March 31, 2013; and

 

WHEREAS, effective January 2, 2008, APA Enterprises, Inc., APA’s parent company changed its name to Clearfield, Inc. and consolidated APA into Clearfield, Inc. and Tenant assumed all of the obligations of APA as tenant under the Lease;

 

WHEREAS, Landlord and Tenant have agreed, as of April 1, 2013, to expand the Existing Premises to include both the Licensed Premises and an additional 7,284 rentable square feet of space in the Building (the “New Premises”, and collectively with the Licensed Premises, the “First Expansion Premises”); and

 

WHEREAS, in connection with such expansion of the Existing Premises, Landlord and Tenant desire to extend the term of the Lease through February 28, 2015; and

 

WHEREAS, Landlord and Tenant desire to amend the Lease to provide for the expansion of the Existing Premises and the extension of the Lease Term, all upon the terms and provisions set forth herein, and to make other modifications to the terms and provisions of the Lease.

 

NOW, THEREFORE, in consideration of the mutual promises herein contained and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by the parties hereto, Landlord and Tenant, agree as follows:

  

  

  

1.   Capitalized Terms.  Capitalized terms not otherwise expressly defined herein shall have the meanings ascribed to them in the Lease. The term “Lease”, as used in the Lease, shall include the Lease, as amended by all amendments thereto.

 

2.   Acknowledgement of Assignment.  Tenant hereby acknowledges and agrees that Tenant has assumed and has agreed to perform, fulfill and observe all of the covenants, conditions, agreements, obligations and liabilities of Assignor as tenant under the Lease. In addition, Tenant has unconditionally agreed to be bound by, pay, observe and perform all of the terms, covenants, conditions and obligations of tenant under the Lease from and after January 2, 2008. Tenant represents that it has, since January 2, 2008, and will continue to operate the Premises for the uses permitted by the Lease, and that it has provided to Landlord the insurance policies or certificates required by the Lease. Tenant further acknowledges receipt of a copy of the Lease attached hereto as Schedule A.

 

3.   Consent to Assignment.  Effective as of January 2, 2008, Landlord consents to the above assignment of Lease from Assignor to Assignee (the “Assignment”) and accepts Tenant as the tenant under the Lease. Landlord’s consent to the Assignment, however, does not constitute (a) consent by Landlord to any further assignments of the Lease, or (b) consent or approval by Landlord of any of the terms, covenants, conditions, provisions or agreements of the assignment of Lease from Assignor to Assignee, and Landlord shall not be bound thereby. Landlord’s consent to the Assignment shall not be construed (i) to modify, waive, impair or affect any of the covenants, agreements, terms, provisions or conditions of the Lease (except as modified herein), or to waive any breach thereof, or any rights of Landlord against any person, firm, partnership, association, limited liability company, or corporation liable or responsible for the performance thereof, or to enlarge or increase Landlord’s obligations under the Lease; or (ii) to create any covenant, representation or warranty, express or implied, on the part of Landlord with respect to Assignee’s use and enjoyment of the Premises, the fitness of the Premises for Assignee’s purposes, or any other matter arising out of or in connection with the Assignment.

 

4.   Tenant Name and Address.  The Lease is amended by inserting the name and address of Tenant (as set forth in the opening paragraph hereof) into the Lease, in place of the name of Assignee, in all instances in the Lease where the name and address of the tenant appears.

 

5.   Basic Terms.  Article I of the Lease is amended as follows:

 

a.    The definition of “Landlord’s Notice Address” is amended by deleting the name and address of “United Properties” and substituting the following in place thereof:

 

	 	
“Colliers International

4350 Baker Road

Suite 400

Minnetonka, MN 55343

Attn: Bill Wardwell”

 

  

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b.   The definition of “Premises” is amended by adding the following at the end of said definition (provided, however, Tenant is bound to lease the First Expansion Premises as of the date hereof):

 

“From and after April 1, 2013 (the “First Expansion Premises Commencement Date”), the Premises shall include (a) an additional approximately sixteen thousand eight hundred forty-five (16,845) rentable square feet of space located in the Building, and shown on Exhibit B attached hereto and made a part hereof (the “First Expansion Premises”), such that as of the First Expansion Premises Commencement Date the Premises shall contain a total of approximately forty-six thousand five hundred eighty-three (46,583) rentable square feet of space. The term “Premises” shall refer to the Existing Premises during such period of time during the Lease Term that the Tenant is leasing the Existing Premises only, and, from and after the First Expansion Premises Commencement Date, shall refer to the Existing Premises plus the Expansion Premises.”

 

The Lease is amended by deleting Exhibit B attached thereto and substituting such exhibit with Exhibit B attached hereto, which shows both the Existing Premises and the First Expansion Premises.

 

c.   The definition of “Tenant’s Pro Rate Share” is amended by adding the following at the end of such definition, “, provided, however, as of the First Expansion Premises Commencement Date, Tenant’s Pro Rata Share is 73.94%.”

 

d.    Notwithstanding anything to the contrary contained in the Lease, the Lease Term shall expire on February 28, 2015.

 

e.   As of the First Expansion Premises Commencement Date the definition of “Base Rent” is amended by deleting subsections (g) and (h) in their entirety and replacing such subsection with the following:

 

“(g) For the period beginning on November 1, 2012, and ending on March 31, 2013, five monthly payments, each in the amount of $20,593.56.

 

 (h) For the remainder of the Lease Term, the following specified amounts: “As to the Existing Premises

 

	
Dates

	
Annual Base Rent

	
Monthly Base Rent

	
April 1, 2013 – June 30, 2013

	
$247,122.72

	
$20,593.56

	
July 1, 2013 – November 30, 2014

	
$254,854.68

	
$21,237.89

	
December 1, 2014 – February 28, 2015

	
$262,500.32

	
$21,875.03

 

As to the Portion of the First Expansion Premises known as the “Licensed Premises”

 

	
Dates

	
Annual Base Rent

	
Monthly Base Rent

	
April 1, 2013 – November 30, 2013

	
$28,683.00

	
$2,390.25

	
December 1, 2013 – February 28, 2015

	
$35,853.72

	
$2,987.81

 

  

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As to the Portion of the First Expansion Premises known as the “New Premises”

 

	
Dates

	
Annual Base Rent

	
Monthly Base Rent

	
April 1, 2013 – February 28, 2015

	
$32,778.00

	
$2,731.50”

 

f.   The definition of “Parking Spaces” is amended by adding the following at the end of said definition: “; provided, however, from and after the Expansion Premises Commencement Date, a total of one hundred twenty-seven (127) non-reserved parking spaces will be provided for Tenant in the parking area serving the Building.”

 

6.   Lease of Premises for Term.  Landlord and Tenant acknowledge and agree that the terms and provisions of Section 2.1 of the Lease apply to the Existing Premises from and after the date of the Lease and to the First Expansion Premises from and after the First Expansion Premises Commencement Date (provided that Tenant is bound to lease the First Expansion Premises from and after the date of this First Amendment). In addition, Landlord and Tenant acknowledge and agree that the Landlord’s Work applies with respect to the Existing Premises only.

 

7.   Total Operating Costs.  Landlord and Tenant acknowledge and agree that from and after the First Expansion Premises Commencement Date, Total Operating Costs will be payable with respect to the entire Premises (i.e., the Existing Premises, plus the First Expansion Premises), utilizing Tenant’s Pro-Rata Share as set forth in this First Amendment.

 

8.   Parking.  Section 8.4(c) of the Lease is amended by adding the following at the end of the first sentence thereof: “; provided, however, from and after the First Expansion Premises Commencement Date, Tenant shall be entitled to park in a total of one hundred twenty-seven (127) non-reserved parking spaces in the parking area serving the Building.”

 

9.    Existing Conditions.  Landlord and Tenant acknowledge that the terms and provisions of the first three sentences of Section 9.1 of the Lease apply to the First Expansion Premises as of the date of this First Amendment (and to the Existing Premises as of the date of the Lease), and that the remainder of said Section 9.1 applies to the Existing Premises only. Notwithstanding anything to the contrary contained herein, on April 1, 2013, the existing plumbing and HVAC systems and equipment in the New Premises shall be in good working order.

 

10.   License Agreement.  The License Agreement is amended by deleting the first sentence of paragraph 2 thereof and replacing such sentence with the following: “Licensee shall have the right to use and occupy the Licensed Premises beginning on July 1, 2011 through and including March 31, 2013 (the “License Term”).”

 

11.   Brokers.  Each of Landlord and Tenant represents to the other that the representing party has not dealt with any broker or agent in connection with this First Amendment, other than Colliers International and Tegra Group (collectively, the “Broker”), and no broker or agent, other than the Broker, negotiated this First Amendment. Each of Landlord and Tenant agrees to indemnify, defend and hold the other party and their respective agents and employees, harmless from and against any claims for a fee or commission made by any broker or

  

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agent, other than the Broker, claiming to have acted by or on such party’s behalf in connection with this First Amendment. Landlord agrees to pay to Broker, pursuant to the terms of a separate agreement, any commissions due as a result of this First Amendment.

 

12.   Remainder Binder.  It is mutually agreed that all covenants, conditions and agreements set forth in the Lease, as amended hereby, shall remain binding upon the parties and inure to the benefit of the parties hereto and their respective permitted successors and assigns.

 

13.   Ratification and Confirmation.  Except as modified hereby, all other terms and conditions of the Lease shall remain unchanged and in full force and effect and are hereby ratified and confirmed by the parties hereto.

 

14.   First Amendment Prevails.  Any inconsistencies or conflicts between the terms and provisions of the Lease and the terms and provisions of this First Amendment shall be resolved in favor of the terms and provisions of this First Amendment.

 

15.   No Oral Modification.  This First Amendment shall not be modified except in writing signed by both parties hereto.

 

16.   Non-Binding Until Execution.  The submission of this First Amendment shall not constitute an offer and this First Amendment shall not be effective and binding unless and until fully executed and delivered by each of the parties hereto.

 

17.   Authority.  Each party to this First Amendment represents and warrants for itself that all requisite organizational action has been taken in connection with this transaction, and the individual signing on behalf of such party represents and warrants that he/she has been duly authorized to bind such party by his/her signature.

 

18.   Counterparts.  This First Amendment may be executed in counterparts, each of which shall be deemed an original and all of which when taken together shall constitute one fully executed original First Amendment, binding upon the parties hereto, notwithstanding that all of the parties hereto may not be signatories to the same counterpart. Additionally, telecopied or pdf signatures may be used in place of original signatures on this First Amendment. Landlord and Tenant intend to be bound by the signatures on the telecopied or pdf document, are aware that the other party will rely on the telecopied or pdf signatures, and hereby waive any defenses to the enforcement of the terms of this First Amendment based on the form of signature.

 

[SIGNATURES ON FOLLOWING PAGE]

  

5

  

IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to be effective on the date first indicated above.

 

	
Landlord:

	  
	
BASS LAKE REALTY LLC, a Delaware limited liability company

 

	
By:

	 
 
/s/ Joseph A. Versaggi

	  
	  	
Name:

	 
Joseph A. Versaggi

	  
	  	
Title:

	 
Vice President

	  
	  
	  
	
Tenant:

	  
	
CLEARFIELD, INC., a Minnesota corporation

	  
	
By:

	
/s/  Cheryl Beranek

	  
	  	
Name:

	
Cheryl Beranek

	  
	  	
Title:

	
President/CEO

	  

 

 

  

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EXHIBIT B-1

PLAN OF THE FIRST EXPANSION PREMISES

 

 

B-2-1

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