Document:

EXHIBIT 10.3

 

AMENDED AND RESTATED EXECUTIVE
EMPLOYMENT AGREEMENT

BETWEEN

CHRISTOPHER & BANKS CORPORATION

AND

MONICA DAHL

 

THIS AGREEMENT is effective as of July 31, 2008, by and between
Christopher & Banks Corporation, a corporation duly organized and existing
under the laws of the State of Delaware (the “Corporation”) and Monica Dahl (“Executive”).

 

PREAMBLE

 

Executive is an employee of the Corporation, and the parties previously
executed an Executive Employment Agreement dated August 6, 2006.  This Amended and Restated Executive
Employment Agreement (“Agreement”) supersedes and replaces that prior
agreement.  The parties have agreed to
execute this Agreement containing the following terms and conditions:

 

ARTICLE 1

EMPLOYMENT

 

1.1           The
Corporation agrees to employ Executive, and Executive agrees to be employed by
the Corporation, as Senior Vice President, Planning & Allocation and
e-Commerce.  Executive agrees to perform
such other duties which may be assigned to her from time to time by the Corporation’s
Chief Executive Officer, the Corporation’s Board of Directors  or the person to whom she reports per the
provisions of Section 3.1.

 

ARTICLE 2

TERM

 

2.1           The
term of this Agreement shall be the period commencing on July 31, 2008 and
ending on February 28, 2010, unless sooner terminated as hereinafter
provided in Article 12; provided, however, Executive is and shall remain
an at-will employee.  The term of this
Agreement will expire on February 28, 2010, if it has not earlier been
terminated, without any further action required by either party hereto at that
time.

 

ARTICLE 3

DUTIES

 

3.1           Executive
agrees to devote her full time and effort, to the best of her ability, to carry
out her duties as Senior Vice President, Planning & Allocation and
e-Commerce for the profit, benefit and advantage of the business of the
Corporation and its related entities (the “Company”).  Executive shall continue to report directly
to the Chief Executive Officer of the Corporation until February 28, 2009;
she shall report thereafter to either (i) the Chief Executive Officer of
the Corporation or (ii) such other executive as is designated by the Chief
Executive Officer.

 

ARTICLE 4

COMPENSATION AND BENEFITS

 

4.1           Executive’s
annual base salary hereunder will initially be $375,000.  Effective March 1, 2009, Executive’s
annual base salary shall be adjusted to $325,000.  Effective June 1, 2009, Executive’s
annual base salary shall be adjusted to $250,000.  Executive will thereafter be eligible for
potential increases to her annual base salary based on her performance and the
Corporation’s salary guidelines, and such other factors as are deemed relevant
by the Chief Executive Officer and/or the Compensation Committee of the
Corporation’s Board of Directors 

 

 

 

(“Compensation Committee”).  Executive’s
base salary shall be payable at the same intervals as the Corporation pays
other executives.

 

4.2           As
long as she remains employed hereunder, Executive shall be eligible for
potential equity awards in accordance with the guidelines and parameters that
are used in the normal course of business by the Compensation Committee.

 

4.3           Executive
shall continue to be eligible to receive annual bonuses in accordance with the
Corporation’s senior executive incentive plan as in effect and approved by the
Board of Directors or Compensation Committee from time to time.

 

4.4           Subject
to the terms and conditions of such plans and programs, Executive shall be
entitled to participate in the various other employee benefit plans and
programs applicable to senior executives of the Corporation including, but not
limited to, medical, life and other benefits.

 

4.5           The
Corporation shall continue to pay to Executive a car allowance of $1,000 per
month through the earlier of (a) February 28, 2009, or (b) the
termination of her employment.

 

4.6           Executive
shall be entitled, during each full calendar year in which this Agreement
remains in effect, to twenty-three (23) days of paid time off (“PTO”), and a
pro rata portion thereof for any partial calendar year of employment.  Except as expressly provided in the
Corporation’s PTO policy, any PTO not used during any such calendar year may
not be carried forward to any succeeding calendar year and shall be
forfeited.  Employee shall not be
entitled to receive any payment in cash for PTO remaining unused at the end of
any year.  At separation from employment,
the Corporation will pay Executive for any unused PTO in the year of such
separation, pro rated from January 1 of the year of separation through
Executive’s last day of employment to the extent consistent with the terms of
the Corporation’s PTO policy.  As of the
effective date of this Agreement, Executive had 122.50 hours of PTO available
for the remainder of 2008.

 

ARTICLE 5

INSURANCE

 

5.1           The
Corporation, at its own expense, shall continue to provide life insurance
coverage on Executive’s life through the earlier of (a) February 28,
2009, or (b) the termination of her employment.  The death benefit shall be in the amount of
$1,000,000; $500,000 in the form of whole life insurance and $500,000 in the
form of term life insurance.  The
Executive will be the owner of both policies, and the death benefit shall be
payable to a beneficiary designated solely by Executive.  The Corporation shall have the right at its
own expense and for its own benefit to purchase additional insurance on
Executive’s life, and Executive shall cooperate by providing necessary
information, submitting to required medical examinations, and otherwise
complying with the insurance carrier’s requirements.

 

5.2           Executive
shall be entitled to disability insurance in line with the present policy of
the Corporation, to be provided at the expense of the Corporation.

 

ARTICLE 6

DEFINITIONS

 

6.1           “Cause”
shall mean (i) any fraud, misappropriation or embezzlement by Executive in
connection with the business of the Company, (ii) any conviction of a
felony or a gross misdemeanor by Executive, (iii) any gross neglect or
persistent neglect by Executive to perform the duties assigned to her hereunder
or any other act that can be reasonably expected to cause substantial economic
or reputational injury to the Company or (iv) any material breach of
Articles 7 or 8 of this Agreement, provided that the existence of such
neglect or material breach shall be determined by a majority of the directors
and their determination shall be set forth in writing and attested to by each
concurring director.  Provided further
that in connection with an event described in Section 6.1 (iii) above,
Executive shall first have received a written notice from the Corporation which
sets forth in reasonable detail the manner in which Executive has grossly or
persistently neglected her duties, and Executive shall have a period of ten 

 

2

 

(10) days to cure the same, but the Corporation shall neither be
required to give written notice of, nor shall Executive have a period to cure,
the same or any similar gross or persistent neglect or material breach which
the Corporation has previously given written notice to Executive hereunder and
Executive has cured such neglect or breach.

 

6.2           A “Change
of Control” shall be deemed to have occurred if (i) there shall be
consummated (A) any consolidation or merger in which the Corporation is
not the continuing or surviving corporation or pursuant to which shares of the
Corporation’s common stock would be converted into cash, securities or other
property, other than a consolidation or a merger having the same proportionate
ownership of common stock of the surviving corporation immediately after the
consolidation or merger or (B) any sale, lease, exchange or other transfer
(in one transaction or a series of related transactions other than in the
ordinary course of business of the Corporation) of all, or substantially all,
of the assets of the Corporation to any corporation, person or other entity
which is not a direct or indirect wholly-owned subsidiary of the Corporation,
or (ii) any person, group, corporation or other entity (collectively, “Persons”)
shall acquire beneficial ownership (as determined pursuant to Section 13(d) of
the Securities Exchange Act of 1934, as amended, and rules and regulations
promulgated thereunder) of 50% or more of the Corporation’s outstanding common
stock.  In all cases, the determination
of whether a Change of Control has occurred shall be made in accordance with Section 409A
of the Internal Revenue Code of 1986, as amended (the “Code”), and the
regulations, notices and other guidance of general applicability issued
thereunder.

 

6.3           “Confidential
Information” means any information that is not generally known, including trade
secrets, outside the Company and that is proprietary to the Company, relating
to any phase of the Company’s existing or reasonably foreseeable business which
is disclosed to Executive during Executive’s employment by the Company
including information conceived, discovered or developed by Executive.  Confidential Information includes, but is not
limited to, business plans; financial statements and projections; operating
forms (including contracts) and procedures; payroll and personnel records;
marketing materials and plans; proposals; supplier information; customer
information; software codes and computer programs; customer lists; project
lists; project files; training manuals; policies and procedures manuals; health
and safety manuals; target lists for new stores and information relating to
potential new store locations; price information and cost information;
administrative techniques or documents or information that is designated by the
Company as “Confidential” or similarly designated.

 

6.4           A “Competitor”
means any person or organization (1) which is a women’s specialty apparel
store retailer whose operations on the date of termination of Executive’s
employment compete with twenty percent (20%) or more of the Company’s
Christopher & Banks, CJ Banks or Acorn store operations, including,
but not limited to, The Cato Corporation, Talbots, Inc., Chico’s FAS, Inc.,
Coldwater Creek, Inc., The Limited, Inc., Dress Barn Inc.  United Retail Group, Inc., Charming
Shoppes, Inc., New York and Company, Bebe, Charlotte Russe and Ann Taylor;
and (2) the following department stores and large box retailers:  Kohls department stores, Target, J.C. Penney
and Sears.  “Competitor” shall also
include all divisions, subsidiaries, and affiliates of the stores identified in
this Section 6.4.

 

6.5           “Good
Reason” shall mean a good faith determination by Executive, in Executive’s sole
and absolute judgment, that any one or more of the following events has
occurred, at any time during the term of this Agreement or after a Change of
Control; provided, however, that such event shall not constitute “Good Reason”
if Executive has expressly consented to such event in writing or if Executive
fails to provide written notice of his/her decision to terminate within sixty
(60) days of the occurrence of such event:

 

(i)            A material change in Executive’s
reporting responsibilities, titles or offices, or any removal of Executive from
or any failure to re-elect Executive to any of such positions, which has the
effect of materially diminishing Executive’s responsibility or authority;

 

(ii)           A requirement imposed by the
Corporation on Executive that results in Executive being based at a location
that is outside of a twenty-five (25) mile radius of Executive’s prior job
location;

 

(iii)          Any material breach by the Corporation
of this Agreement between Executive and the Corporation.

 

3

 

ARTICLE 7

NONCOMPETITION AND NONSOLICITATION

 

7.1           During
Executive’s employment, Executive will not plan, organize or engage in any
business competitive with any product or service marketed or planned for
marketing by the Company or conspire with others to do so.

 

7.2           During
Executive’s employment and for a period of one year after termination of
Executive’s employment with the Corporation for any reason, whether voluntary
or involuntary, Executive will not, without the written permission of the
Corporation, (i) directly or indirectly engage in activities with a
Competitor or (ii) own (whether as a shareholder, partner or otherwise,
other than as a 5% or less shareholder of a publicly held company) any interest
in a Competitor, or (iii) be connected as an officer, director, advisor,
consultant or employee of or participate in the management of any Competitor.

 

7.3           During
Executive’s employment and for a period of one year after termination of
Executive’s employment with the Corporation for any reason, whether voluntary
or involuntary, Executive will not solicit, entice, or induce (or attempt to do
so, directly or indirectly), any employee of the Company to be employed by any
other party.  This Section 7.3 shall
apply to then-current employees and any individual who was employed by the Company
at any time in the one-year period immediately prior to Executive’s termination
date.

 

7.4           During
Executive’s employment and for a period of one year after termination of
Executive’s employment with the Corporation for any reason, whether voluntary
or involuntary, Executive will not engage (or attempt to do so, directly or
indirectly) any vendor or supplier of the Company on behalf of a
Competitor.  In addition, Executive also
agrees during her employment and for one (1) year thereafter that she
shall not engage directly or indirectly in any activity intended to interfere,
adversely impact or disrupt the Company’s relationships with its vendors or
suppliers.  This Section 7.4 shall
apply to then-current vendors and suppliers and any vendor or supplier who was
a vendor or supplier of the Company at any time in the one-year period
immediately prior to Executive’s termination date.

 

7.5           During
Executive’s employment and at all times thereafter, Executive will not make any
statements, written or oral, which are disparaging of the Company or any of its
officers, directors, employees, or agents.

 

ARTICLE 8

CONFIDENTIAL INFORMATION AND TRADE DOCUMENTS

 

8.1           Unless
authorized in writing by the Corporation, Executive will not directly or
indirectly divulge, either during or after the term of her employment, or until
such information becomes generally known, to any person not authorized by the
Corporation to receive or use it any Confidential Information for any purpose
whatsoever.

 

8.2           All
documents or other tangible property relating in any way to the business of the
Company which are conceived by Executive or come into her possession during her
employment shall be and remain the exclusive property of the Corporation and
Executive agrees to return all such documents and tangible property to the
Corporation upon termination of her employment or at such earlier time as the
Corporation may request of Executive.

 

ARTICLE 9

JUDICIAL CONSTRUCTION

 

9.1           Executive
believes and acknowledges that the provisions contained in this Agreement,
including the covenants contained in Articles 7 and 8 of this Agreement,
are fair and reasonable.  Nonetheless, it
is agreed that if a court finds any of these provisions to be invalid in whole
or in part under the laws of any state, such finding shall not invalidate the
covenants, nor the Agreement in its entirety, but rather the covenants shall be
construed and/or bluelined, reformed or rewritten by the court as if the most
restrictive covenants permissible under applicable law were contained herein.

 

4

 

ARTICLE 10

RIGHT TO INJUNCTIVE RELIEF

 

10.1         Executive
acknowledges that a breach by Executive of any of the terms of Articles 7
and 8 of this Agreement will render irreparable harm to the Corporation.  Accordingly, the Corporation shall therefore
be entitled to any and all equitable relief, including, but not limited to,
injunctive relief, and to any other remedy that may be available under any
applicable law or agreement between the parties, and to recover from Executive
all costs of litigation including, but not limited to, reasonable attorneys’
fees and court costs.

 

ARTICLE 11

CHANGE OF CONTROL

 

11.1         If on
or before February 29, 2009 and within twelve (12) months following a
Change in Control Executive’s employment is terminated by the Corporation or
its successor without Cause or Executive resigns with Good Reason, all
restricted stock held by Executive shall vest immediately for the benefit of
Executive, and the Board of Directors will use its reasonable efforts to
register such shares under the Securities Act of 1933, as amended, if
necessary.

 

11.2         If
on or before February 29, 2009 and within twelve (12) months following a
Change in Control Executive’s employment is terminated by the Corporation or
its successor without Cause or Executive resigns with Good Reason, in addition
to any severance pay and benefits under Section 12.1 of this Agreement,
Executive shall be entitled to receive from the Corporation or its successor a
lump sum payment equivalent to one (1) year of her then-current base
salary.  This payment shall be made by
the Corporation within ten (10) business days following Executive’s
termination date, subject to the application of Code Section 409A as set
forth in Section 12.1 of this Employment Agreement.

 

11.3         In
the event any Change of Control Benefit, as defined below, payable to Executive
would constitute an “excess parachute payment” as defined in Code Section 280G,
Executive shall receive a “tax gross-up” payment sufficient to pay the initial
excise tax applicable to such excess parachute payment (but excluding the
income and excise taxes, if any, applicable to the tax gross-up payment).  Such additional cash payment shall be made
within sixty (60) days following the effective date of the Change of
Control.  For purposes of this Section 11.3,
a “Change of Control Benefit” shall mean any payment, benefit or transfer of
property in the nature of compensation paid to or for the benefit of Executive
under any arrangement which is considered contingent on a Change of Control for
purposes of Code Section 280G, including, without limitation, any and all
of the Corporation’s salary, bonus, incentive, restricted stock, stock option,
equity-based compensation or benefit plans, programs or other arrangements, and
shall include benefits payable under this Agreement.

 

ARTICLE 12

TERMINATION

 

12.1         Notwithstanding
anything herein to the contrary, Executive is an at-will employee and the
Corporation may terminate the employment of Executive at any time without Cause
by written notice of termination of employment to Executive.  In the event that the Corporation terminates
the employment of Executive by delivering notice in accordance with the
preceding sentence, Executive shall receive severance payments as follows:  (A) if Executive’s employment is
terminated without Cause on or before February 28, 2009, Executive shall
receive a severance payment in the amount of $375,000;  (B) if Executive’s employment is
terminated without Cause after February 28, 2009 but on or before February 28,
2010, Executive shall receive a severance payment in the amount of
$250,000.  If, however, Executive shall
secure other employment, self employment or a consulting position, the
preceding severance amount payable to or on behalf of Executive by the Corporation
shall be offset and reduced by such other cash compensation Executive earns
through such other employment or consulting arrangements during the severance
period hereunder.  Severance pay due to
Executive hereunder will be made over time in accordance with the Corporation’s
regular payroll schedule.  Executive
shall be entitled to the severance pay and benefits set forth in this Section 12.1
only if she first executes, returns and does not rescind a release of claims
agreement as prepared by the Corporation and in favor of the Company.  Executive agrees to immediately notify the
Corporation 

 

5

 

of the amount of compensation earned by her through other employment,
self-employment or consulting during the severance period hereunder.

 

Except as provided in this Section 12.1, all compensation and
benefits, including the vesting of outstanding restricted stock or stock option
awards, provided to Executive under this Agreement shall immediately cease upon
her termination (including, but not limited to, bonus eligibility), subject to
applicable employment laws and regulations.

 

Notwithstanding the foregoing, if the severance payments described in
this Section 12.1 or the change of control payments described in Section 11.2
are subject to the requirements of Code Section 409A and the Corporation
determines that Executive is a “specified employee” as defined in Code Section 409A
as of the date of the termination, such payments shall not be paid or commence
earlier than the date that is six months after the termination, but shall be
paid or commence during the calendar year following the year in which the
termination occurs and within 30 days of the earliest possible date permitted
under Code Section 409A.

 

12.2         In
consideration of Executive’s release of claims as described in Section 12.1
of this Agreement, by signing this Agreement, the Corporation agrees to release
and not to sue, and forever discharges Executive of and from any and all manner
of claims, demands, actions, causes of action, administrative claims,
liability, damages, claims for punitive or liquidated damages, claims for
attorney’s fees, costs and disbursements, individual or class action claims, or
demands of any kind whatsoever it has or might have against Executive in law or
equity, contract or tort, arising within the scope of Executive’s employment at
the Corporation from the beginning of her employment with the Corporation
through Executive’s termination date from the Corporation.  The Corporation’s release of claims in this Section 12.2
shall not apply to claims arising out of Executive’s intentional misconduct or
gross negligence.

 

12.3         The
Corporation may terminate Executive’s employment at any time for Cause and at
such time all compensation and benefits provided to Executive under this
Agreement shall immediately cease, subject to applicable employment laws and
regulations.

 

12.4         This
Agreement will terminate upon Executive’s death or upon Executive’s disability
that prevents her from performing her essential job functions under this
Agreement, with or without reasonable accommodation, for a continuous period of
six (6) months or for periods aggregating six (6) months in any
eighteen (18) month period.

 

ARTICLE 13

INDEMNIFICATION AND COOPERATION

 

13.1         The
Corporation shall indemnify Executive to the full extent permitted by law for
damages, costs and expenses (including, without limitation, judgments, fines,
penalties, settlements and reasonable fees and expenses of Executive’s counsel)
incurred in connection with all matters, events and transactions related to or
arising within the scope of Executive’s employment under this Agreement, unless
such damages, expenses and reasonable fees and expenses resulted from Executive’s
intentional misconduct or gross negligence.

 

13.2         During
her employment hereunder and at all times following the termination of her
employment, Executive agrees to respond to and cooperate fully with all
reasonable requests made by the Corporation for consultation or assistance regarding
litigated matters with respect to  which
Executive has knowledge or information arising from her employment with the
Corporation.

 

ARTICLE 14

ASSIGNMENT

 

14.1         Executive
consents to and the Corporation shall have the right to assign this Agreement to
its successors or assigns.  Additionally,
Executive consents to and the Corporation shall have the right to assign this
Agreement to any subsidiary, and all covenants or agreements hereunder shall
inure to the benefit of and be enforceable by or against its successors or
assigns.

 

6

 

14.2         The
terms “successors” and “assigns” shall include any corporation which buys all
or substantially all of the Corporation’s assets, or a controlling portion of
its stock, or with which it merges or consolidates.

 

ARTICLE 15

FAILURE TO DEMAND PERFORMANCE AND WAIVER

 

15.1         The
Corporation’s failure to demand strict performance and compliance with any part
of this Agreement during Executive’s employment shall not be deemed to be a
waiver of the Corporation’s rights under this Agreement or by operation of
law.  Any waiver by either party of a
breach of any provision of this Agreement shall not operate as or be construed
as a waiver of any subsequent breach thereof.

 

ARTICLE 16

ENTIRE AGREEMENT

 

16.1         The
Corporation and Executive acknowledge that this Agreement contains the full and
complete agreement by and between the parties, that there are no oral or
implied agreements or other modifications not specifically set forth herein, and
that this Agreement supersedes any prior agreements or understandings, if any,
between the Corporation and Executive, whether written or oral (including, but
not limited to, the parties’ Executive Employment Agreement dated August 6,
2006).  The parties further agree that no
modifications of this Agreement may be made except by means of a written
agreement or memorandum signed by both parties. 
Notwithstanding anything in this Agreement to the contrary, the Corporation
expressly reserves the right to amend this Agreement without Executive’s
consent to the extent necessary or desirable to comply with Code Section 409A,
and the regulations, notices and other guidance of general applicability issued
thereunder.

 

ARTICLE 17

GOVERNING LAW

 

17.1         The
parties acknowledge that the Corporation’s principal place of business is
located in the State of Minnesota.  The
parties hereby agree that this Agreement shall be construed in accordance with
the internal laws of the State of Minnesota without regard to the conflict of
laws thereof.

 

ARTICLE 18

SURVIVAL

 

18.1         The
parties agree that Articles 7 and 8 of this Agreement, and those
provisions necessary for the enforcement of Articles 7 and 8 of this
Agreement, shall survive termination of this Agreement and termination of Executive’s
employment for any reason.

 

ARTICLE 19

UNDERSTANDINGS

 

19.1         Executive
hereby acknowledges that (a) the Corporation informed her, as part of the
offer of employment under this Employment Agreement and prior to her accepting
employment with the Corporation under the terms and conditions set forth in
this Agreement, that the restrictive covenants contained in Articles 7 and
8 of this Agreement would be required as part of the terms and conditions of
her employment with the Corporation under this Agreement; (b) this
Agreement constitutes good and valuable consideration in exchange for the
restrictive covenants contained in Articles 7 and 8 of this Agreement, (c) she
has carefully considered the restrictions contained in this Agreement and
determined that they are reasonable; and (d) the restrictions in this
Agreement will not unduly restrict Executive in securing other employment or
earning a livelihood in the event of her termination from the Corporation.

 

19.2         By
signing below, Executive authorizes the Corporation to notify third parties
(including, but not limited, Executive’s actual or potential future employers)
of Articles 7 and 8 of this Agreement, and those provisions necessary for
the enforcement of Articles 7 and 8 of this Agreement, and Executive’s
responsibilities thereunder.

 

7

 

19.3         Executive
represents and warrants to the Corporation that she is not under, or bound to
be under in the future, any obligation to any person, firm, or corporation that
is or would be inconsistent or in conflict with this Agreement or would
prevent, limit, or impair in any way the performance by her of her obligations
hereunder.

 

19.4         If
Executive possesses any information that she knows or should know is considered
by any third party, such as a former employer of Executive’s, to be
confidential, trade secret, or otherwise proprietary, Executive shall not
disclose such information to the Corporation or use such information to benefit
the Corporation in any way.

 

IN WITNESS WHEREOF, the Corporation has hereunto signed its name and
Executive hereunder has signed her name, all as of the day and year first above
written.

 

	
   

  	
  CHRISTOPHER & BANKS
  CORPORATION

  
	
   

  	
   

  	
   

  	
   

  
	
  Date: July 31,
  2008

  	
  By:

  	
   

  	
  /s/Lorna Nagler

  
	
   

  	
   

  	
  Its:

  	
  Chief Executive Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  /s/Ellen Sanko

  
	
   

  	
  Witness

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  EXECUTIVE

  
	
   

  	
   

  	
   

  	
   

  
	
  Date: July 28,
  2008

  	
  /s/Monica Dahl

  
	
   

  	
  Monica Dahl

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  /s/Sandra Miller

  
	
   

  	
  Witness

  
						

 

8Exhibit 10.5.3

 

CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS
BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

FIFTH AMENDMENT TO
OFFICE LEASE AGREEMENT

 

THIS FIFTH AMENDMENT TO OFFICE LEASE AGREEMENT (this “Amendment”),
dated as of June 16, 2008, (the “Effective Date”) is entered into by and
between CIRCLE POINT PROPERTIES, LLC, a Delaware limited liability company (the
“Landlord”) and ALLOS THERAPEUTICS, INC., a Delaware corporation (the “Tenant”).

 

Recitals:

 

A.                                   Catellus Development Corporation, a Delaware
limited liability company (“CDC”) and Tenant entered into that certain Office
Lease dated April 23, 2001, as amended by that certain First Amendment and
Commencement Date Memorandum dated as of November 1, 2001, that certain
Second Amendment to Lease dated as of November 12, 2002, that certain
Amended and Restated Second Amendment to Lease dated as of December 9,
2002, that certain Third Amendment to Lease dated as of November 23, 2003
and that certain Consent of Landlord to Sublease and Fourth Amendment to Lease
dated as of January 12, 2005 
(collectively the “Lease”), pertaining to the premises containing approximately
43,956 rentable square feet (“RSF”), commonly known as Suite 200, Suite 160
and Storage Space, Suite 170, Suite 180 and Suite 190 located in
the office building located at 11080 Circle Point Road, Westminster, Colorado
80020 (collectively, the “Original Premises”).

 

B.                                     Landlord has succeeded to all of CDC’s right,
title, obligations, and interest under the Lease.

 

C.                                     Capitalized terms used herein and not
otherwise defined herein shall have the meanings given to them in the Lease.

 

D.                                    Landlord and Tenant desire to amend the Lease
in the manner and form hereinafter set forth.

 

NOW, THEREFORE, for good and valuable consideration, Landlord and
Tenant hereby agree as follows:

 

1.                                       Reduction of Premises. 
As of the Extension Commencement Date, the Original Premises shall be
reduced by approximately 9,420 RSF as more particularly depicted and
cross-hatched on Exhibit A attached hereto and incorporated herein
by this reference (the “Vacated Space”). 
The resulting space shall be Suite 200 and Suite 160 (and storage
space) consisting of approximately 34,536 RSF (the “Reduced Premises”) and all
references in the Lease to the “Premises” shall mean the Reduced Premises.  Tenant agrees to vacate and surrender
possession of the Vacated Space and, unless Landlord provides written notice to
Tenant to the contrary, to cause all parties claiming by, through or under
Tenant to vacate and surrender possession of the Vacated Space as of the
Extension Commencement Date in the condition as required by the Lease and this
Amendment.  Landlord and Tenant hereby
acknowledge and agree that effective as of the Extension Commencement Date,
Tenant renounces all right of possession in and to the Vacated Space.  Any occupancy of the Vacated Space as of the
Extension Commencement Date by Landlord or any party claiming by, through or
under Landlord shall not be deemed an eviction (constructive or
otherwise).  As of the Extension
Commencement Date, rights under the Lease solely for the Vacated Space shall be
deemed terminated as though they had expired according to their terms, and
except as provided herein, Landlord and Tenant shall be relieved of any and all
further obligations thereunder; provided, however, such termination shall not
affect Tenant’s liability for rental and other obligations accruing prior to
the Extension Commencement Date, including, without limitation, its obligation
to pay Tenant’s Percentage Share of Operating Expenses and Tenant’s Percentage
Share of Real Property Taxes attributable to the period prior to the Extension
Commencement Date, at such time as such obligation is finally determined, nor
shall the same affect Landlord’s liability to Tenant with respect to
Adjustments due to Tenant under the Lease with respect to the Vacated Space.

 

 

2.                                       Term.  Provided
there is no uncured Event of Default by Tenant as of November 1, 2008 (the
“Extension Commencement Date”), the term of the Lease for the Reduced Premises
shall be extended for thirty-nine (39) months to expire at 12:00 midnight on January 31,
2012 (the “Extension Term”) and shall be on all of the terms and conditions of
the Lease except as specifically provided herein to the contrary.  Tenant’s renewal hereunder shall be deemed
exercise of its option to renew, pursuant to Section 3.2 of the Lease and,
except as otherwise set forth herein, there shall be no further rights on the
part of Tenant to extend the term of the Lease as amended by this Amendment.

 

3.                                       Base Rent.  Subject to Section 10
below, commencing on the Extension Commencement Date and continuing throughout
the Extension Term, Tenant shall pay Base Rent for the Reduced Premises
monthly, in advance, in the manner as set forth in the Lease as follows:

 

	
  Period

  	
   

  	
  Rate Per RSF

  	
   

  	
  Monthly Base Rent

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  
	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  
	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  
	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  

 

4.                                       Additional
Rent.  Subject to Section 10
below, commencing on the Extension Commencement Date and continuing throughout
the Extension Term, Tenant shall pay Tenant’s Percentage of Operating Expenses
and Tenant’s Percentage of Real Estate Taxes in accordance with the Lease;
provided, however, that as of the Extension Commencement Date, Tenant’s
Percentage Share shall be equal to 22.809% and the RSF of the Building shall be
equal to 151,412 RSF.

 

5.                                       Condition
of Premises.  Except as otherwise set
forth herein, Landlord shall have no obligation for the completion or
remodeling of the Reduced Premises and Tenant shall accept the Reduced Premises
in its “as is” condition and configuration as
of the Extension Commencement Date. 
Notwithstanding the foregoing, subject to Section 10 below,
Landlord agrees, as its only obligation hereunder with respect to remodeling of
the Reduced Premises (other than the Additional Allowance described herein), at
its sole cost and expense to the extent of the sum of [*] ([*]) per RSF in the
Premises (the “Construction Allowance”), to finish the Reduced Premises with
Building Standard (as hereinafter defined) improvements of the scope to be
mutually agreed upon and which, shall then be attached as Exhibit B
hereto and incorporated herein (the “Finish Work”) in accordance with a
mutually agreed upon space plan, which, upon its completion, shall be attached
as Exhibit C hereto and incorporated herein by this reference (the “Space
Plan”) using a mutually acceptable contractor. 
The Construction Allowance may be used by Tenant for costs of the Finish
Work including the architectural design, permitting, engineering, construction,
signage and project management thereof, as well as voice and data cabling,
security, furniture, moving and restacking. 
Other than as set forth on the Space Plan, Landlord shall have no
obligations for the completion or remodeling of the Reduced Premises, and
Tenant shall accept the Reduced Premises in their “as is” condition on the
Extension Commencement Date.  “Building
Standard” as used herein shall mean building standard tenant finish items
prestocked or in place in the Premises which Landlord normally provides to
tenants (e.g., ceiling grid, paint, sprinklers, HVAC and similar items).  Tenant agrees that because Tenant is
currently occupying the Reduced Premises and will continue to occupy the
Reduced Premises as of the Extension Term Commencement Date that Landlord (its
agents, employees and contractors) shall have the right to enter the Reduced Premises
to allow Landlord to perform certain construction and remodeling work in
connection with the construction of the Finish Work.  Tenant acknowledges and that because Landlord
will perform the Finish Work in and about the Reduced Premises, that certain
interruption and interference with Tenant’s business will likely occur.  Landlord will use reasonable efforts to
attempt to minimize the interferences with Tenant’s business during the
construction of the Finish Work. 
Nevertheless, Tenant waives (a) any and all claims against Landlord
based on constructive eviction and loss of use or business; and (b) any
and all claims against Landlord for any interruption and interference with
Tenant’s business during Landlord’s construction activities including constructive
eviction.  Landlord or its agent shall
supervise the Finish Work, make disbursements required to be made to the
contractor, act as a liaison between the contractor and Tenant and coordinate
the relationship between the Finish Work, the Building and the Building’s
systems.  In consideration for Landlord’s
construction 

 

2

 

supervision services,
Tenant shall pay to Landlord a construction supervision fee equal to three
percent (3%) of the total construction costs of the Finish Work (excluding the
construction supervision fee and any other cost items not directly supervised
by Landlord as are more particularly identified on the scope of Finish Work to
be attached as Exhibit C hereto). 
At Tenant’s election, Landlord shall contribute an additional sum not to
exceed [*] ([*]) per RSF in the Reduced Premises (the “Additional Allowance”)
solely toward additional permanent leasehold improvements for or in the
Premises, excluding any costs related to Tenant’s furniture or fixtures.  The amount of the Additional Allowance
actually utilized by Tenant shall be amortized as additional Base Rent over the
initial Term at nine percent (9%) per annum, in the same manner as a loan having
equal monthly payments of principal and interest.  Tenant’s election to use all or a portion of
the Additional Allowance shall be made by written notice to Landlord given no
later than upon approval of the Space Plan. 
If Tenant elects to receive  the
Additional Allowance, then within ten (10) days after Landlord’s request,
Tenant shall execute and return an amendment (in form reasonably acceptable to
Tenant) modifying the Base Rent accordingly. 
If Tenant fails timely: (i) to make its election regarding
utilization of the Additional Allowance; or (ii) to execute and return the
required lease amendment, then Landlord shall automatically be released from
its obligation to contribute the Additional Allowance, whereupon Tenant shall
promptly pay Landlord the full amount of any out of pocket costs of the Finish
Work in excess of the Construction Allowance in accordance with this Section 5
(i.e., in accordance with the provision below describing the fifty percent
(50%) payment method).  If, for any
reason, less than all of the Extension Term remains at the time the required
lease amendment is executed and returned to Landlord, then Tenant shall, upon
demand, promptly pay all amortization payments (including interest) which would
have been payable for the elapsed portion of the Term through the month in
which such lease amendment is actually so executed and returned.  Any failure by Tenant to make any payments
required under the foregoing provisions within ten (10) days after notice
shall constitute an Event of Default under the Lease as amended by this
Amendment. In the event Tenant does not elect or fails to timely elect to
utilize the Additional Allowance, all out of pocket costs for performing the
Finish Work in excess of the Construction Allowance shall be paid by Tenant.  In the event Tenant timely elects to utilize
the Additional Allowance, all costs for 
performing the Finish Work in excess of the Construction Allowance and
Additional Allowance shall be paid by Tenant. 
Tenant shall pay to Landlord fifty percent (50%) of the amount by which
the total costs for the Finish Work will exceed the Construction Allowance  (and, if applicable the Additional Allowance)
prior to Landlord beginning the Finish Work and the remaining fifty percent
(50%) after Landlord completes the Finish Work. 
The Construction Allowance and the Additional Allowance, if applicable,
shall not be disbursed to Tenant in cash, but shall be applied by Landlord to
the payment of the costs of the Finish Work if, and when the cost of the Finish
Work is actually incurred and paid by Landlord. 
Subject to force majeure and items within the control of Landlord, the
Construction Allowance and the Additional Allowance, if applicable, must be
used within twelve (12) months following the Extension Commencement Date or
shall be deemed forfeited with no further obligation by Landlord with respect
thereto.

 

6.                                       Renewal
Option.  Subject to Section 10
below, if no uncured Event of Default exists at the time of exercise or at the
commencement of the extended term, and Tenant is occupying at least seventy-five
percent (75%) of the entire Reduced Premises at the time of such election,
Tenant may renew the Lease, as hereby amended, for one (1) additional
period of three (3) years, by delivering written notice of the exercise
thereof to Landlord not earlier than twelve (12) months nor later than nine (9) months
before the expiration of the Extension Term. 
The Base Rent payable for each month during such extended term shall be
the prevailing fair market rental rate (the “Prevailing Market Rental Rate”), at
the commencement of such extended term, for renewals of space in the Building
or complex, if applicable, of equivalent quality, size, utility and location,
with the length of the extended term and the credit standing of Tenant to be
taken into account.  Within thirty (30)
days after receipt of Tenant’s notice to renew, Landlord shall deliver to
Tenant written notice of the Prevailing Market Rental Rate and shall advise
Tenant of the required adjustment to Base Rent, if any, and the other terms and
conditions offered.  Tenant shall, within
ten (10) days after receipt of Landlord’s notice, notify Landlord in
writing whether Tenant accepts or rejects Landlord’s determination of the
Prevailing Market Rental Rate.  If Tenant
timely notifies Landlord that Tenant accepts Landlord’s determination of the
Prevailing Market Rental Rate, then, on or before the commencement date of the
extended Term, Landlord and Tenant shall execute an amendment to this Lease
extending the Extension Term on the same terms provided in the Lease as amended
by this Amendment, except as follows:

 

3

 

(a)                                  Base
Rent shall be adjusted to the Prevailing Market Rental Rate; and

 

(b)                                 Tenant
shall have no further renewal option unless expressly granted by Landlord in
writing.

 

If Tenant rejects
Landlord’s determination of the Prevailing Market Rental Rate, Tenant shall
notify Landlord, within ten (10) days after Landlord delivers notice of
the Prevailing Market Rental Rate to Tenant, of the rental rate that Tenant
asserts as the prevailing market rental rate applicable hereunder.  Each party shall, at their own expense,
within ten (10) days after Landlord receives Tenant’s notice of such
dispute, designate by written notice to the other party one (1) qualified,
unbiased real estate broker of good reputation, having at least five (5) years’
experience in the Highway 36 Corridor Denver metropolitan area real estate
submarket. The two (2) brokers so designated shall each submit a
determination of the prevailing fair market rate.  Landlord and Tenant shall each require the
brokers to make such determination and report it in writing to Landlord and
Tenant within twenty (20) days after such selection, and each party shall use
its best efforts to secure such determination within such time period.  If the two (2) selected brokers agree as
to what is the prevailing fair market rental rate, such rate shall deemed the
Prevailing Market Rental Rate.  If the
two (2) selected brokers fail to agree as to what is the prevailing fair
market rental rate and the disparity between the two (2) brokers’ asserted
prevailing fair market rate is ten percent (10%) or less, the average of the
two (2) broker’s rates shall be deemed the Prevailing Market Rental
Rate.  If the disparity between the two (2) brokers’
asserted prevailing fair market rate is greater than ten percent (10%) then,
the two (2) brokers shall together immediately select a third similarly
qualified broker who shall then (within ten (10) days of the brokers’
selection) determine which rate is closest to the prevailing fair market rental
rate as determined by the third (3rd) broker. 
The third (3rd) broker shall notify Landlord and Tenant of the broker’s
determination and the rental rate selected shall be the Prevailing Market
Rental Rate applicable hereunder.

 

Unless otherwise agreed
to in writing, Landlord shall not be obligated to pay a commission with respect
to Tenant’s exercise of the Option, and Tenant shall indemnify, defend, and
hold Landlord harmless from and against all costs, expenses, attorneys’ fees,
and other liability for commissions or other compensation claimed by any broker
or agent claiming the same by, through, or under Tenant.  If Tenant rejects Landlord’s determination of
the Prevailing Market Rental Rate, or fails to timely notify Landlord in
writing that Tenant accepts or rejects Landlord’s determination of the
Prevailing Market Rental Rate, time being of the essence with respect thereto,
Tenant’s rights under this Section 6 shall terminate and Tenant
shall have no right to renew this Lease. 
Tenant’s rights under this Section 6 shall terminate if (1) the
Lease as amended by this Amendment or Tenant’s right to possession of the
Reduced Premises is terminated, (2) Tenant assigns any of its interest in
the Lease as amended by this Amendment except to an Affiliated Assignee or
sublets any portion of the Reduced Premises except to an Affiliate, (3) Tenant
fails to timely exercise its option under this Section 6, time
being of the essence with respect to Tenant’s exercise thereof, or (4) Landlord
determines, in its reasonable judgment, that Tenant will be unable to meet its
financial obligations under the Lease as extended due to Tenant’s financial
condition or creditworthiness.

 

7.                                       Expansion
Option.  During the Extension Term,
Tenant shall have the Right of First Offer as set forth in Section 2.5 of
the Lease.

 

8.                                       Parking.  As of the Extension Commencement Date, Tenant
shall have the right to One Hundred Forty-Five (145) parking spaces in
accordance with the terms of the Lease.

 

9.                                       Notices.  Wherever any notice is required or permitted
under the Lease as amended by this Amendment such notice shall be in writing
and delivered in accordance with the terms of the Lease; provided, however that
Landlord’s address for notices shall be as follows:

 

	
  Landlord:

  
	
   

  
	
  Cushman &
  Wakefield

  
	
  11080 Circle Point Road

  
	
  Westminster, Colorado
  80020

  
	
  Attn:
  Cushman & Wakefield

  

 

 

4

 

	
  With a copy to:

  
	
   

  
	
  Circle Point
  Properties, LLC

  
	
  c/o Northridge Capital,
  LLC

  
	
  1000 Potomac Street NW,
  Suite 150

  
	
  Washington, DC 20007

  
	
  Attn.:  Kevin Fay

  
	
   

  
	
  Tenant:

  
	
   

  
	
  AT THE PREMISES

  
	
   

  
	
  With a copy to:

  
	
  Attn: General Counsel

  

 

10.                                 Condition
Subsequent.  This Amendment is
expressly subject to the following condition subsequent, that as of the
Extension Commencement Date there exist no uncured Events of Default.  If such uncured Event of Default does exist
as of the Extension Commencement Date then, at Landlord’s election, Landlord
may declare this Amendment null and void ab initio, and
thereafter: (i) Tenant’s right to exercise the Option to Extend pursuant
to Section 3.2 of the Lease shall be forfeited and there shall be no
further rights on the part of Tenant to extend the term of the Lease under the
original Lease or as amended by this Amendment; and (ii) the Lease shall
be deemed to have terminated at the end of the original Lease Term and
thereafter Tenant shall surrender possession of the Premises in the manner
required under the Lease.

 

11.                                 Mold
and Moisture.  It is generally
understood that mold spores are present essentially everywhere and that mold
can grow in most any moist location. 
Emphasis is properly placed on prevention of moisture and on good
housekeeping and ventilation practices. 
Tenant acknowledges the necessity of housekeeping, ventilation, and
moisture control (especially in kitchens, janitor’s closets, bathrooms, break
rooms and around outside walls) for mold prevention.  In signing this Amendment, Tenant has not
observed mold, mildew or moisture within the Reduced Premises; however, Tenant
has not hired any inspector to confirm/deny such claim, nor has Tenant
investigated behind any of the walls in the Reduced Premises or the
Building.  Tenant agrees to promptly
notify Landlord if Tenant observes mold/mildew and/or moisture conditions (from
any source, including leaks), and allow Landlord to evaluate and make
recommendations and/or take appropriate corrective action at Landlord’s cost
unless otherwise set forth in the Lease. 
Tenant releases Landlord from any liability for any personal injury or
damages to property caused by or associated with moisture or the growth of or
occurrence of mold or mildew on the Reduced Premises or the Building of which
Tenant knew and failed to notify Landlord in accordance with this Section 11.  In addition, execution of this Amendment
constitutes acknowledgement by Tenant that control of moisture and mold
prevention are integral to its obligations under the Lease as modified by this
Amendment; provided, however, that Landlord, at its sole cost and expense,
shall be responsible for remediation of any mold or mildew in the Building, for
fixing leaks in the Building, for providing proper ventilation to the Building
to prevent moisture accumulation, and for causing its cleaning service provider
to diligently mop up or otherwise remove any mold, mildew or moisture that such
provider encounters in its daily cleaning of the Reduced Premises.

 

12.                                 Brokers.  Tenant and Landlord hereby warrant and
represent each to the other that neither has engaged any brokers or agents in
the transaction which resulted in this Amendment other than CB Richard Ellis, Inc.,
(“Landlord’s Broker”) and Jones Lang LaSalle (“Tenant’s Broker”), which shall
be paid a commission by Landlord pursuant to a separate agreement.  Each party shall indemnify the other against
any expense incurred as a result of any claim for brokerage or other
commissions made by any other broker, finder, or agent, whether or not meritorious,
employed by the other party or claiming by, through, or under Tenant or
Landlord respectively.

 

5

 

13.                                 Interpretation.  If there is any conflict between the terms of
this Amendment and the terms of the Lease, the terms of this Amendment shall
govern.  Except as herein specifically
set forth, all other provisions of the Lease shall remain in full force and
effect and be binding upon the parties in accordance with their terms.  The Lease as hereby amended is in full force
and effect, is hereby ratified and affirmed by the parties, and is binding upon
the parties in accordance with its terms.

 

14.                                 Time
of Essence.  Time is of the essence
herein and, unless waived by Landlord (which it shall have the right, but not
the obligation, to do so) this Amendment is contingent upon execution and
delivery by Tenant to Landlord no later than 5:00 p.m.,  May 15, 2008.

 

15.                                 Counterparts.  This Amendment may be executed in one or more
separate counterparts but each separate counterpart, when assembled with the
other signature pages from the corresponding counterpart signature pages,
shall constitute one original executed Amendment.

 

[Remainder of Page Intentionally
Left Blank]

 

6

 

IN WITNESS
WHEREOF, the parties have executed this Amendment as of the day and year first
above written and is effective upon delivery of a fully executed copy to
Tenant.

 

 

	
   

  	
  LANDLORD:

  
	
   

  	
   

  
	
   

  	
  CIRCLE POINT
  PROPERTIES, LLC,

  
	
   

  	
  a Delaware limited
  liability company

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Circle Point Properties
  II, LLC

  
	
   

  	
   

  	
  a Delaware limited
  liability company

  
	
   

  	
   

  	
  its:   Sole Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Circle Point Holdings,
  LLC

  
	
   

  	
   

  	
   

  	
  a Delaware limited
  liability company

  
	
   

  	
   

  	
   

  	
  its:   Sole Member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  NORTHRIDGE CAPITAL,
  LLC,

  
	
   

  	
   

  	
   

  	
   

  	
  a Delaware limited
  liability

  
	
   

  	
   

  	
   

  	
   

  	
  company, its Managing
  Member

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  By:

  	
    /s/ Kevin J. Fay

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
   Kevin J. Fay

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
   Vice President

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  TENANT:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ALLOS THERAPEUTICS,
  INC.,

  
	
   

  	
  a Delaware corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Marc Graboyes

  
	
   

  	
  Name:

  	
   Marc Graboyes

  
	
   

  	
  Title:

  	
    SVP,
  General Counsel

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ATTEST:

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ David C. Clark

  
	
   

  	
  Name:

  	
   David C. Clark

  
	
   

  	
  Title:

  	
   VP Finance

  
														

 

7

 

EXHIBIT A

 

(The
Vacated Space)

 

 

8

 

EXHIBIT B

 

(Scope
of the Finish Work)

 

[to be attached]

 

9

 

EXHIBIT C

 

(The
Space Plan)

 

[to be attached]

 

10

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