ADVISORY SERVICES AGREEMENT
Exhibit 10.1
THIS ADVISORY SERVICES AGREEMENT (this “AGREEMENT”) is made as of December 29, 2006, by and
between Sigma Capital Advisors, LLC, a Delaware limited liability company (the “SERVICE PROVIDER”),
and Berliner Communications, Inc., a Delaware corporation (“BERLINER”).
WITNESSETH:
WHEREAS, on December 29, 2006, Berliner entered into a Note Purchase Agreement (the “Note
Purchase Agreement”) with those investors set forth on Schedule A thereto (the “Buyers”);
WHEREAS, Service Provider, by and through its officers, employees, agents, representatives and
affiliates, has expertise in the areas of corporate management, finance, product strategy,
investment, acquisitions, governance and other matters relating to the business of Berliner;
WHEREAS, Berliner desires to avail itself of the expertise of Service Provider in the
aforesaid areas.
NOW, THEREFORE, in consideration of the mutual covenants and agreements hereinafter set forth,
the parties agree as follows:
1. DEFINITIONS. Capitalized terms used but not defined herein shall have the respective
meanings assigned to such terms in the Note Purchase Agreement.
2. APPOINTMENT. Berliner hereby engages the Service Provider, and the Service Provider hereby
agrees under the terms and conditions set forth herein, to provide certain services to Berliner and
its subsidiaries as described in Section 4 hereof.
3. TERM. The term of the Agreement (the “TERM”) shall commence on the date hereof and shall
continue until such time as the Buyers or any of their affiliates no longer hold any securities of
Berliner or its affiliates or any successor thereto. The provisions of Section 8 and 10 shall
survive termination of this Agreement.
4. DUTIES OF THE SERVICE PROVIDER. The Service Provider shall provide Berliner and its
subsidiaries with business, finance and organizational strategy, advisory, consulting and other
services (collectively, the “SERVICES”) related to the business of Berliner and its subsidiaries.
The Services will be provided at such times and places as may reasonably be determined by the
Service Provider.
5. POWER OF THE SERVICE PROVIDER. So that they may properly perform their duties hereunder,
the Service Provider shall, subject to Section 9 hereof, have the authority and power to do all
things necessary and proper to carry out the duties set forth in Section 4 hereof.
6. COMPENSATION; EXPENSES. In consideration of the performance of the Services, Berliner
shall pay to Service Provider an amount equal to $100,000 and shall deliver to Service Provider the
executed Additional Warrant. In addition, Berliner shall pay directly, or reimburse Service
Provider for, its out-of-pocket expenses incurred in connection with the performance of the
Services.
7. [Reserved]
8. INDEMNIFICATION. In the event that Service Provider or any of its affiliates, principals,
partners, directors, stockholders, employees, agents and representatives (collectively, the
“INDEMNIFIED PARTIES”) becomes involved in any capacity in any action, proceeding or investigation
in connection with any matter referred to in or contemplated by this Agreement, or in connection
with the Services, Berliner will indemnify and hold harmless the Indemnified Parties from and
against any actual or threatened claims, lawsuits, actions or liabilities (including out-of-pocket
expenses and the fees and expenses of counsel and other litigation costs and the cost of any
preparation or investigation) of any kind or nature, arising as a result of or in connection with
this Agreement or the Services, activities and decisions hereunder, and will periodically reimburse
Service Provider for its expenses as described above, except that Berliner will not be obligated to
so indemnify any Indemnified Party if, and to the extent that, such claims, lawsuits, actions or
liabilities against such Indemnified Party directly result from the gross negligence or willful
misconduct of such Indemnified Party as admitted in any settlement by such Indemnified Party or
held in any final, non-appealable judicial or administrative decision. In connection with such
indemnification, Berliner will promptly remit or pay to Service Provider any amounts which Service
Provider certifies to Berliner in writing are payable to Service Provider or other Indemnified
Parties hereunder. The reimbursement and indemnity obligations of Berliner under this Section 8
shall be in addition to any liability which Berliner may otherwise have, shall extend upon the same
terms and conditions to any Indemnified Party, as the case may be, of Service Provider and any such
affiliate and shall be binding upon and inure to the benefit of any successors, assigns, heirs and
personal representatives of Berliner, Service Provider, and any such Indemnified Party.
9. INDEPENDENT CONTRACTOR. Nothing herein shall be construed to create a joint venture or
partnership between the parties hereto or an employee/employer relationship. Service Provider shall
be an independent contractor pursuant to this Agreement. No party hereto shall have any express or
implied right or authority to assume or create any obligations on behalf of or in the name of any
other party hereto or to bind any other party hereto to any contract, agreement or undertaking with
any third party.
10. LIABILITY. The Service Provider is not and never shall be liable to any creditor of
Berliner or its subsidiaries or affiliates with respect to the subject matter of this Agreement,
and Berliner agrees to indemnify and hold each Indemnified Party harmless from and against any and
all such claims of alleged creditors of Berliner and its subsidiaries or affiliates and against all
costs, charges and expenses (including attorneys fees and expenses) incurred or sustained by any
Indemnified Party in connection with any action, suit or proceeding to which it may be made a party
by any alleged creditor of Berliner. Notwithstanding anything contained in this Agreement to the
contrary, Berliner agrees and acknowledges that Service Provider and its partners, principals,
shareholders, directors, officers, employees and affiliates intend to engage and participate in
acquisitions and business transactions outside of the scope of the relationship created by this
Agreement and they shall not be under any obligation whatsoever to make such acquisitions, business
transactions or other opportunities through Berliner or any of its subsidiaries or offer such
acquisitions, business transactions or other opportunities to Berliner or any of its subsidiaries
and shall be free to perform services similar to the Services for the account of others, including
companies that may be in competition with the business conducted by Berliner and its subsidiaries.
11. ASSIGNMENT. No party hereto may assign any of its rights or obligations hereunder
without the prior written consent of the other parties hereto; PROVIDED, HOWEVER, that,
notwithstanding the foregoing, Service Provider may assign its rights and obligations under this
Agreement to any of its affiliates without the consent of Berliner.
12. SUCCESSORS. This Agreement and all the obligations and benefits hereunder shall inure to
the successors and permitted assigns of the parties hereto.
13. COUNTERPARTS. This Agreement may be executed and delivered by the parties hereto in
separate counterparts, each of which when so executed and delivered shall be deemed an original and
both of which taken together shall constitute but one and the same agreement.
14. ENTIRE AGREEMENT; MODIFICATION; GOVERNING LAW. The terms and conditions hereof
constitute the entire agreement between the parties hereto with respect to the subject matter of
this Agreement and supersede all previous communications, either oral or written, representations
or warranties of any kind whatsoever, except as expressly set forth herein. No modifications of
this Agreement nor waiver of the terms or conditions hereof shall be binding upon any party hereto
unless approved in writing by an authorized representative of such party. All issues concerning
this Agreement shall be governed by and construed in accordance with the laws of the State of New
York, without giving effect to any choice of law or conflict of law provision or rule (whether of
the State of New York or any other jurisdiction) that would cause the application of the law of any
jurisdiction other than the State of New York.
15. NO THIRD PARTY BENEFICIARIES. Except as provided in Section 8 and Section 10 hereof,
this Agreement is for the sole benefit of the parties hereto and their permitted assigns and
nothing herein expressed or implied shall give or be construed to give to any person, other than
the parties hereto and such assigns, any legal or equitable rights hereunder.
IN WITNESS WHEREOF, the parties hereto have signed this Advisory Services Agreement as of the
day and year first above written.
| SIGMA CAPITAL ADVISORS, LLC |
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| By: | /s/ Xxxx Xxxx | |||
| Name: | Xxxx Xxxx | |||
| Title: | Manager | |||
| BERLINER COMMUNICATIONS, INC. |
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| By: | /s/ Xxxxxxx X. Xxxxxxxx | |||
| Name: | Xxxxxxx X. Xxxxxxxx | |||
| Title: | Chief Executive Officer | |||
