Commitments and Contingent Liabilities

Leases — We are committed under non-cancellable leases for our entire store, distribution centers and office space locations, which generally provide for minimum rent plus additional increases in real estate taxes and certain operating expenses. Certain leases also require contingent rent based on sales.

The aggregate minimum annual real estate rent commitments as of January 30, 2016 are as follows (in thousands):



Due in Fiscal Year	Total
2016	$	127,244
2017	99,341
2018	89,439
2019	76,193
2020	64,164
Thereafter	164,507
Total	$	620,888

Additionally, as of January 30, 2016, we were committed to equipment leases in aggregate of $5.6 million through fiscal 2018.

Rental expense consists of the following (in thousands):



	Fiscal
	2015		2014 ¹		2013
Store rent:
Minimum rentals for stores	$	119,655	$	141,138	$	145,454
Contingent rentals	5,567		7,728		9,925
Total store rent	125,222		148,866		155,379
Office space rentals	6,965		6,545		6,399
Distribution centers rentals	3,238		3,229		3,229
Equipment rentals	4,551		3,492		4,035
Total rent	$	139,976	$	162,132	$	169,042

¹ Includes an immaterial prior period correction which reduced minimum rentals for stores by approximately $9.8 million for fiscal 2014.

Employment Agreements — On August 18, 2014, we entered into an Employment Agreement with Mr. Geiger pursuant to which he will serve as our Chief Executive Officer. The Employment Agreement, which has a three-year term, provides for an annual salary of $1.5 million in addition to a performance based bonus.

Additionally, we have contingent bonus compensation agreements with certain of our employees. The bonuses become payable if the individual is employed by us on the future payment date. The amount of conditional bonuses that may be paid is $0.5 million during fiscal 2016 and $1.2 million during fiscal 2017.

Legal Proceedings - During the pendency of the Chapter 11 Cases, all pending litigation wherein we are named as a defendant is generally stayed by operation of federal bankruptcy law, absent further order by the Bankruptcy Court. We are party to various litigation matters and proceedings in the ordinary course of business. In the opinion of our management, dispositions of these matters are not expected to have a material adverse effect on our financial position, results of operations or cash flows.

Contingencies - On May 23, 2014, we entered into $150.0 million secured credit facilities with affiliates of Sycamore Partners. In connection with this agreement, we entered into a sourcing agreement with an affiliate of Sycamore Partners that requires us to purchase a minimum volume of product for 10 years. This purchase commitment will commence during the first quarter of fiscal 2016 and is between $240.0 million and $280.0 million per annum depending on the year (see Note 3).

On February 2, 2015, we renewed the Supplier Agreement with one of our suppliers. Should we fail to meet annual purchase minimum thresholds in this agreement we would be liable to make certain agreed upon shortfall payments to this sourcing supplier. See Note 2 for a further discussion.

As discussed above, in June 2012, Bank of America, N.A. issued a stand-by letter of credit. On May 9, 2016, we cash collateralized the standby letter of credit, which expires on June 30, 2016.

We have various product license agreements that obligate us to pay the licensee at least the guaranteed minimum royalty amount based on sales of their products.

We have not issued any third party guarantees or commercial commitments as of January 30, 2016.

Executive Severance Plan - During November 2013, we adopted a Change of Control Severance Plan (“the Plan”), which entitles certain executive level employees to receive certain payments upon a termination of employment after a change of control (as defined in the Plan) of the Company. The adoption of the Plan did not have any impact on the consolidated financial statements for any periods presented.